Deck 15: Organizational Structure

Question 1

A narrower span of control is consistent with the trend towards employee involvement and teamwork.

Answer 1

False

Question 2

One of the main benefits of formal hierarchy as a coordinating mechanism is that it increases flexibility and responsiveness to customer needs.

Answer 2

False

Question 3

Job descriptions and training are examples of coordination through standardization.

Answer 3

True

Question 4

Span of control can increase without adverse consequences by introducing informal communication and other coordinating mechanisms.

Question 5

Traditional management theorists set the maximum span of control at 20 people,but this number may be higher where work activities are routine and standardized.

Question 6

Formal hierarchy is usually the most efficient coordinating mechanism in small organizations.

Question 7

Informal communication as a coordinating mechanism is ineffective in nonroutine situations.

Question 8

Integrator roles increase informal communication as a coordinating mechanism.

Question 9

An organization's structure is mainly its organizational chart.

Question 10

When work activities are too complex to standardize through extensively training employees,companies need to coordinate work effort through precise job descriptions.

Question 11

Today's educated and individualistic workforce is less tolerant of coordination through formal hierarchy.

Question 12

Informal communication is a coordination mechanism only in small and a few medium-sized organizations.

Question 13

Organizational structures are tools for change.

Question 14

Formal hierarchy is the most effective coordinating mechanism where employees work in non-routine and ambiguous situations.

Question 15

The number of layers in an organization's hierarchy depends on the number of people employed and the average span of control.

Question 16

Large organizations encourage informal communication as a coordinating mechanism by keeping each workplace small.

Question 17

The two fundamental requirements of all organizational structures are divisionalization and decentralization.

Question 18

Division of labor leads to increased job specialization.

Question 19

Job descriptions,goal setting,and training are applications of coordination through standardization.

Question 20

When work is divided among people,a coordinating mechanism is needed to ensure that everyone works in concert.

Question 21

Formalization represents the establishment of standardization as a coordinating mechanism.

Question 22

Mechanistic structures operate best in stable environments.

Question 23

A problem with the divisional organizational structure is that it does not allow the organization to grow within that structure.

Question 24

Organizations tend to become less formalized as they age and grow in number of employees.

Question 25

Organizations tend to centralize as their external environment becomes more complex.

Question 26

In matrix structures that combine two divisionalized structures,most employees have two bosses.

Question 27

Functional structures foster professional identity and permit greater specialization than most other forms of departmentalization.

Question 28

As external environments become more complex and dynamic,organizational structures should become more mechanistic and less organic.

Question 29

Functional structures tend to have higher dysfunctional conflict and poorer coordination across units than other forms of departmentalization.

Question 30

Some matrix structures typically overlay a divisional structure with a functional structure to gain the benefits of both.

Question 31

One problem with departmentalization is that it discourages coordination through informal communication.

Question 32

Departmentalization establishes interdependencies and coordination through informal communication within each work unit.

Question 33

One problem with the divisional structure is that it increases the risk of duplication and underutilization of resources.

Question 34

A simple structure is one of the best structures in which to accommodate organizational growth and diversification.

Question 35

Companies can be centralized in some parts of the organization and decentralized in other parts.

Question 36

The main reasons why companies are moving toward flatter organizational structures is that it improves coordination through formal hierarchy.

Question 37

Divisional structures may be formed around products,geography,or functional specializations.

Question 38

A mechanistic structure is decentralized,has a narrow span of control and little formalization.

Question 39

Companies with divisionalized structures are increasingly adopting the geographically-based structure.

Question 40

Most organizations begin with centralized structures and become more decentralized as they grow larger and divide work into more specialized functions.

Question 41

A widely accepted scholarly view of an organization's structure and its environment is that organizational decision makers can choose the environments in which they want to operate.

Question 42

Strategic choice refers to the idea that organizational leaders are able to redefine and manipulate their environments rather than being totally determined by them.

Question 43

All organizational structures have the following two fundamental requirements:

A) flatter span of control and decentralization
B) division of labor and coordination
C) decentralization and divisionalization
D) coordination and decentralization
E) centralization and outsourcing

Question 44

Network structures come close to the perfect example of a mechanistic organizational structure.

Question 45

Larger firms tend to be more centralized and make greater use of direct supervision than do smaller firms.

Question 46

In a typical network structure,several satellite organizations are beehived around a core firm.

Question 47

Organizations move towards a team-based structure by flattening the hierarchy,reducing formalization,and making extensive use of self-directed work teams.

Question 48

Organizations that follow a cost leadership strategy should apply an organic organizational structure.

Question 49

Coordination of work activities is required:

A) whenever there is division of labor.
B) only in team-based organizations.
C) whenever the organization has more than approximately 100 employees.
D) only when organizations operate in complex environments.
E) never; coordination of work activities is not found in organizations.

Question 50

One of the main forces pushing organizations towards a network structure is the recognition that an organization has only a few core competencies.

Question 51

People who feel comfortable working in structured bureaucracies tend to experience greater satisfaction working in a matrix structure.

Question 52

The best organizational structure depends on the variety and analyzability of the tasks.

Question 53

One of the main advantages of network structures is that they ensure the core organization has a high degree of control over production,marketing and other functions.

Question 54

Organic structures are better suited to dynamic environments than to routine environments.

Question 55

The more diversified the environment,the more the firm would benefit from a divisionalized form of departmentalization.

Question 56

Team-based organizational structures are usually found within larger divisionalized structures.

Question 57

One problem with the team-based organizational structure is that employees may experience more stress due to ambiguity of their roles.

Question 58

An organic structure works better than a mechanistic structure where tasks have high variety and low analyzability.

Question 59

Decentralization is the preferred strategy for organizations in simple,integrated (one market)and hostile environments.

Question 60

A virtual corporation is a form of network structure that reshapes itself quickly to fit immediate needs,usually for a specific client.

Question 61

The trend toward flatter organizational structures (delayering)has occurred because this action:

A) tends to reduce overhead costs.
B) narrows the span of control for supervisors.
C) puts decision makers closer to front-line staff and information about customer needs.
D) does all of these things.
E) reduce overhead costs AND puts decision makers closer to front-line staff and information about customer needs.

Question 62

All organizations have:

A) a formal hierarchy that includes supervisors and non-supervisory employees.
B) a divisionalized structure.
C) some form of coordinating mechanism.
D) a mechanistic structure.
E) formal tem-based structures

Question 63

Many of the best-performing production plants are able to widen their span of control to more than 70 employees per supervisor by:

A) teaching supervisors how to more efficiently monitor employees.
B) giving up on the idea that all employees must perform their fair share of work.
C) hiring supervisors who intimidate employees more often.
D) relying on self-directed work teams and other coordinating mechanisms.
E) introducing video cameras and other technologies to help supervisors to monitor more employees.

Question 64

A century ago,administrative scholars believed that organizations are more effective if they:

A) rely on formal hierarchy to coordinate work.
B) introduce self-directed work teams.
C) rely on informal communication to coordinate work.
D) adopt matrix structures.
E) decentralize.

Question 65

Integrator roles do which of the following?

A) They increase formalization and centralization.
B) They support informal communication as a coordinating mechanism.
C) They reduce the need for virtual corporations.
D) They increase the amount of formal hierarchy.
E) They do none of these things.

Question 66

As soon as people divide work among themselves,they need to:

A) centralize.
B) decentralize.
C) form a team-based organizational structure.
D) rely increasingly on a simple structure.
E) rely on one or more coordinating mechanisms.

Question 67

Standardizing work through job descriptions and procedures:

A) is a form of coordination.
B) is more common when the work is complex and ambiguous.
C) tends to reduce quality and consistency.
D) is unnecessary in large organizations.
E) is more common in organic rather than mechanistic structures.

Question 68

Dividing work into more specialized jobs tends to:

A) increase training costs.
B) reduce work efficiency.
C) reduce the opportunity to match people with appropriate jobs.
D) do all of these things.
E) do none of these things.

Question 69

Which of the following is a coordinating mechanism?

A) Training
B) Clarifying work procedures
C) Informal communication
D) All of these are coordinating mechanisms.
E) None of these is a coordinating mechanism.

Question 70

When work activities are too complex to standardize through procedures or goals,companies often coordinate work effort:

A) through direct supervision.
B) by extensively training employees.
C) by giving one employee most of the tasks previously divided among many people.
D) through further division of labor.
E) through formal hierarchy.

Question 71

A wider span of control is possible where:

A) employees manage themselves rather than being coordinated through close supervision.
B) the company has a high degree of formalization and operates in a complex environment.
C) the organization has few employees and a tall hierarchy.
D) all of these conditions exist.
E) none of these conditions exist.

Question 72

Which of these statements about decentralization is FALSE?

A) Organizations decentralize as they grow larger.
B) Different degrees of decentralization can occur simultaneously in different parts of the organization.
C) Organizations operating in diverse environments are more effective when they centralize decision making.
D) Large organizations should worry about having too much decentralization.
E) Large organizations that remain centralized tend to become less responsive to the external environment.

Question 73

Candoo Ltd will soon flatten its hierarchy by removing two of the five layers of management.If the number of employees in the organization remains constant,which of the following must also occur?

A) It must adopt a matrix form of departmentalization.
B) It must widen the span of control.
C) It must rely more on direct supervision than standardization to coordinate the resulting structure.
D) It must centralize decision making.
E) All of these must occur.

Question 74

As organizations grow,which of the following does NOT typically occur?

A) Informal communication becomes more prevalent as a coordinating mechanism.
B) There is increasing division of labor.
C) The organization becomes more decentralized.
D) The organization becomes more formalized.
E) There is increasing job specialization.

Question 75

Which coordinating mechanism is typically most important among people working in hospital surgical operations?

A) Direct supervision
B) Integrator roles
C) Job descriptions
D) Extensive training
E) People working in surgical operations do not use any coordinating mechanism.

Question 76

To increase work efficiency and make it easier to match employee competencies with job requirements,companies tend to:

A) divide work into more specialized jobs.
B) rely on formal hierarchy as a coordinating mechanism.
C) rely on a narrow span of control.
D) centralize decision making.
E) rely on formal hierarchy AND a narrow span of control.

Question 77

Coordination through formal hierarchy relies mainly on:

A) informal communication.
B) job descriptions.
C) goals and objectives.
D) direct supervision.
E) none of these.

Question 78

Which of the following is NOT a coordinating mechanism?

A) Job descriptions
B) Informal communication
C) Centralization
D) Sales targets
E) Extensive training

Question 79

In organizational structures,integrator roles serve mainly as:

A) a form of standardization
B) an informal communication coordinating mechanism
C) a form of direct supervision
D) one of four types of technology
E) the main element in divisionalized structures

Question 80

An organizational chart mainly illustrates which type of coordinating mechanism?

A) Formal hierarchy
B) Informal communication
C) Standardization of skills
D) Standardization of output
E) None of these