Deck 14: Foundations of Organizational Structure

Question 1

Organizational structure has six key elements. Which of the following is not one of these six key elements?

A) chain of command
B) departmentalization
C) work specialization
D) span of control
E) location of authority

Answer 1

E

Question 2

A wider span of control ________.

A) increases costs
B) decreases the speed of decision making
C) decreases flexibility
D) brings the organization closer to customers
E) discourages employee autonomy

Answer 2

D

Question 3

The principle of ________ helps preserve the concept of an unbroken line of authority.

A) span of control
B) chain of command
C) cross-functionality
D) centralization
E) unity of command

Answer 3

E

Question 4

The right inherent in a managerial position to give orders and expect orders to be obeyed is termed ________.

A) chain of command
B) authority
C) span of control
D) unity of command
E) leadership

Question 5

Blueberry Inc. has organized its operations in departments like engineering, accounting, manufacturing, personnel, and purchasing. This is an example of ________ departmentalization.

A) target customer
B) product
C) functional
D) geographic
E) categorical

Question 6

A task that is subdivided into many separate jobs is considered to have ________.

A) a high degree of departmentalization
B) a low degree of decentralization
C) a high degree of work specialization
D) a wider span of control
E) a high degree of formalization

Question 7

A ________ allows management to make the most efficient use of its employees' skills and even successfully improve them through repetition.

A) low degree of centralization
B) high degree of formalization
C) wider span of control
D) low degree of departmentalization
E) high degree of work specialization

Question 8

The unity-of-command principle states that ________.

A) managers should limit their oversight to a maximum of 12 employees
B) managers should oversee 1-4 employees on average
C) an individual should be directly responsible to only one supervisor
D) managers should provide direction to their employees in a unified fashion
E) employees should report directly to two supervisors to maintain task balance

Question 9

Which of the following statements is true regarding work specialization?

A) Work specialization indicates to what degree will there be rules and formalization regulations to direct employees and managers.
B) Work specialization decreases the time spent in changing tasks.
C) Work specialization increases the cost of finding and training workers to do specific and repetitive tasks.
D) Work specialization provides an unending source of increased productivity.
E) Work specialization hinders efficient use of employee skills.

Question 10

A ________ is consistent with recent efforts by companies to reduce costs, cut overhead, speed up decision making, increase flexibility, get closer to customers, and empower employees.

A) wider span of control
B) high degree of formalization
C) longer chain of command
D) lack of work specialization
E) high degree of centralization

Question 11

The basis by which jobs are grouped is called ________.

A) formalization
B) departmentalization
C) chain of command
D) span of control
E) centralization

Question 12

Some of the departments in Proctor & Gamble are Tide, Pampers, Charmin, and Pringles. This is an example of departmentalization by ________.

A) function
B) process
C) geography
D) product
E) interest

Question 13

________ refers to the degree to which decision making is concentrated at a single point in the organization.

A) Formalization
B) Departmentalization
C) Centralization
D) Work specialization
E) Line of command

Question 14

Aeronautics Inc., a parts supplier, has departments for government aircraft and contracts, large commercial aircraft clients, and small personal aircraft clients. This is an example of ________ departmentalization.

A) product
B) function
C) geography
D) customer
E) service

Question 15

A manufacturing manager organizes a plant into engineering, accounting, manufacturing, personnel, and supply specialists departments. This division of an organization into groups according to work functions is an example of ________.

A) social clustering
B) bureaucracy
C) specialization
D) centralization
E) departmentalization

Question 16

A narrow span of control ________.

A) encourages employee autonomy
B) is expensive because it adds levels of management
C) simplifies vertical communication
D) increases the speed of decision making
E) discourages overly tight supervision

Question 17

AgriProducers provides services related to the testing of soil and crops. It also provides advice to its customers for improving the productivity of the soil and the quality of the crops. It has customers all over the United States. The crops and soil are different in the various large areas of the nation, such as the West Coast, and the Mid-West. Which type of departmentalization would be best for AgriProducers?

A) functional
B) process
C) product
D) geographic
E) temporal

Question 18

Which one of the following is not one of the primary ways to group jobs?

A) skill
B) customer
C) function
D) product
E) service

Question 19

Chain of command is a key element of an organization's structure. Which of the following key questions is addressed by this element?

A) How many individuals can a manager efficiently and effectively direct?
B) To whom do individuals and groups report?
C) On what basis will jobs be grouped together?
D) To what degree are activities subdivided Work specialization into separate jobs?
E) To what degree will there be rules and regulations to direct employees and managers?

Question 20

Span of control is a key element of an organization's structure. Which of the following key questions is addressed by this element?

A) On what basis will jobs be grouped together?
B) To whom do individuals and groups report?
C) To what degree will there be rules and regulations to direct employees and managers?
D) How many individuals can a manager efficiently and effectively direct?
E) To what degree are activities subdivided into separate jobs?

Question 21

Samantha is the owner of a flower shop. She has five employees that all report directly to her and she makes all the decisions regarding the type and quantity of flowers and looks after the shop's finances. Which type of organizational structure does Samantha have?

A) bureaucracy
B) virtual structure
C) matrix structure
D) boundaryless structure
E) simple structure

Question 22

________ is the key concept that underlies all bureaucracies.

A) A dual line of command
B) Standardization
C) Decentralization
D) Employee empowerment
E) Wider span of control

Question 23

Which of the following is not a characteristic of a highly formalized organization?

A) clearly defined procedures covering work processes
B) explicit job description
C) high employee job discretion
D) a large number of organizational rules
E) a consistent and uniform output

Question 24

Which of the following statements is true regarding a matrix structure?

A) It breaks the unity-of-command concept.
B) It cannot achieve economies of scale.
C) It reduces ambiguity about who reports to whom.
D) It prevents power struggles.
E) It enhances role clarity and avoids role conflict.

Question 25

Which one of the following problems is most likely to occur in a matrix structure?

A) decreased response to environmental change
B) decreased employee motivation
C) decreased economies of scale
D) increases groupthink
E) power struggles

Question 26

Publishing representatives who call on college professors to inform them of their company's new publications have a great deal of freedom in their jobs. They have only a general sales pitch, which they tailor as needed. Based on this information, we can say that the job of these publishing representatives ________.

A) score low on the degree of work specialization
B) score low on the degree of decentralization
C) score high on the degree of departmentalization
D) score high on the degree of centralization
E) score low on the degree of formalization

Question 27

Which of the following types of organization structures is best suitable for coordination when the organization has a number of complex and interdependent activities?

A) simple structure
B) bureaucracy
C) matrix structure
D) divisional structure
E) centralized structure

Question 28

With reference to organizational designs, the ________ structure is most widely practiced in small businesses in which the manager and owner are one and the same.

A) matrix
B) virtual
C) boundaryless
D) simple
E) bureaucracy

Question 29

The ________ is characterized by a low degree of departmentalization, wide spans of control, authority centralized in a single person, and little formalization.

A) bureaucracy
B) matrix organization
C) simple structure
D) team structure
E) centralized structure

Question 30

The clerical and editorial employees in a publishing house need to be at their desks by 8:00 AM and follow a set of precise procedures dictated by management. The jobs of these clerical and editorial employees ________.

A) have a wide span of control
B) score high on the degree of departmentalization
C) score high on the degree of formalization
D) lack a unity of command
E) score low on the degree of work specialization

Question 31

A ________ organization is a small, core organization that outsources major business functions.

A) centralized
B) virtual
C) bureaucratic
D) matrix
E) simple

Question 32

Which of the following statements is true regarding a centralized organization?

A) A centralized organization is more flexible than a decentralized organization.
B) In a centralized organization, decision making is pushed down to the managers closest to the action.
C) A centralized organization is more responsive than a decentralized organization.
D) In a centralized organization, top managers are rarely involved in decision making.
E) In a centralized organization, decision making is concentrated at a single point in the organization.

Question 33

The virtual organization is also called the ________ or ________ organization.

A) network; modular
B) boundaryless; social
C) divisional; multi-level
D) boundaryless; global
E) matrix; divisional

Question 34

Which of the following statements is true regarding a bureaucracy?

A) Bureaucracies need innovative and experienced decision makers at all levels in the organization.
B) Bureaucracy is an ideal organizational design for those organizations that operate under highly uncertain conditions.
C) Typically bureaucracies have wider spans of control.
D) Bureaucracies can get by with less talented middle- and lower-level managers.
E) Bureaucracies encourage employee empowerment.

Question 35

The more the lower-level personnel provide input or are actually given the discretion to make decisions, the ________ within that organization.

A) higher is the degree of formalization
B) lower is the level of empowerment
C) lower is the degree of work specialization
D) higher is the degree of departmentalization
E) higher is the degree of decentralization

Question 36

A bureaucracy is characterized by all of the following except ________.

A) highly routine operating tasks
B) formalized rules and regulations
C) tasks that are grouped into functional departments
D) decentralized decision making
E) high work specialization

Question 37

Which of the following statements is true about the simple structure?

A) It is very expensive to operate.
B) It is characterized by a high degree of departmentalization.
C) It becomes increasingly inadequate as an organization grows.
D) It is rigid.
E) It is characterized by a narrow span of control.

Question 38

Which of the following types of organizational designs combines two forms of departmentalization, functional and product?

A) simple structure
B) bureaucracy
C) matrix structure
D) virtual structure
E) boundaryless structure

Question 39

________ refers to the degree to which jobs within the organization are standardized.

A) Formalization
B) Decentralization
C) Departmentalization
D) Span of control
E) Chain of command

Question 40

Employee discretion is inversely related to ________.

A) complexity
B) formaliztion
C) specialization
D) departmentalization
E) empowerment

Question 41

Which of the following statements is true regarding a virtual organization?

A) A virtual organization is sometimes called matrix organization.
B) A virtual organization is highly decentralized.
C) A virtual organization is characterized by high degree of departmentalization.
D) A virtual organization tends to have unclear roles, goals, and responsibilities.
E) A virtual organization lacks flexibility.

Question 42

A(n) ________ strategy emphasizes the introduction of major new products and services.

A) innovation
B) cost-minimization
C) imitation
D) organic
E) mechanistic

Question 43

Which of the following dimensions of an environment describes the degree to which the environment can support growth?

A) capacity
B) flexibility
C) volatality
D) sustainability
E) complexity

Question 44

Which of the following is not part of an organization's environment?

A) public pressure groups
B) customers
C) employees
D) competitors
E) suppliers

Question 45

One of the questions you tell the trainees to ask is, "To what degree are tasks subdivided into separate jobs?" This question addresses the issue of ________.

A) formalization
B) work specialization
C) span of control
D) chain of command
E) matrix restructuring

Question 46

Volatility refers to the degree of ________ within an environment.

A) sustainability
B) instability
C) flexibility
D) complexity
E) adaptability

Question 47

Some individuals want work that makes minimal intellectual demands and provides the security of routine; for them, ________ is a source of job satisfaction.

A) free flow of information
B) wide span of control
C) low formalization
D) high work specialization
E) high decentralization

Question 48

Lotus Inc. is attempting to flatten its organizational hierarchy. It is encouraging the use of cross-hierarchical teams, participative decision-making practices, and the use of 360-degree performance appraisals. Based on this information we can say that Lotus Inc. is attempting to create a ________ organization.

A) highly centralized
B) virtual
C) boundaryless
D) highly formalized
E) highly departmentalized

Question 49

________ is a systematic effort to make an organization leaner by selling off business units, closing locations, or reducing staff.

A) Removing boundaries
B) Departmentalizing
C) Decentralizing
D) Downsizing
E) Formalizing

Question 50

Organizations following a(n) ________ strategy try to both minimize risk and maximize opportunity for profit, moving into new products or new markets only after innovators have proven their viability.

A) innovation
B) cost-cutting
C) imitation
D) organic
E) mechanistic

Question 51

Which of the following is typically a characteristic of the mechanistic model of organization?

A) low formalization
B) rigid departmentalization
C) decentralized management
D) wide spans of control
E) low specialization

Question 52

The ________ of an environment refers to the degree of heterogeneity and concentration among environmental elements.

A) volatality
B) flexibility
C) complexity
D) adaptability
E) permeability

Question 53

Which of the following is typically a characteristic of the organic model of organization?

A) narrow spans of control
B) centralization
C) free flow of information
D) high formalization
E) clear chain of command

Question 54

The major advantage of the virtual organization is its ________.

A) decentralized structure
B) ability to enhance role clarity
C) flexibility
D) highly departmentalized structure
E) ability to minimize organizational politics

Question 55

Who coined the term "boundaryless organization?"

A) Steve Jobs
B) Jack Welch
C) Henry mintzberg
D) Bill Gates
E) Frederick Herzberg

Question 56

Any organization's environment has three dimensions. Identify these dimensions.

A) stability, adaptability, and employee-orientation
B) complexity, volatility, and capacity
C) replaceability, product-orientation, and stability
D) flexibility, employee-orientation, and capacity
E) volatality, product-orientation, and adaptability

Question 57

Work specialization contributes to higher employee productivity-but at the price of ________.

A) reduced economies of scale
B) increased cost
C) reduced job satisfaction
D) restricted flow of information
E) increased complexity

Question 58

A boundaryless organization is most likely to ________.

A) encourage hierarchical structure
B) avoid using cross-functional teams
C) discourage participative decision-making practices
D) use 360-degree performance appraisals
E) replace empowered teams with departments

Question 59

Which of the following is not a strategy to reduce the negative impact of downsizing?

A) investment in high-involvement work practices
B) early discussion of downsizing with employees
C) employee participation in the downsizing process
D) removal of vertical boundaries
E) provision of post-downsizing assistance

Question 60

Which of the following types of organizations is most likely to operate in a state of perpetual flux and reorganization?

A) a highly decentralized organization
B) a boundaryless organization
C) a matrix organization
D) a bureaucracy
E) a virtual organization

Question 61

In centralized organizations, top managers make all the decisions, and lower-level managers merely carry out their directives.

Question 62

You instruct the trainees to ask the client organization if they have clearly defined procedures covering most of the jobs in the organization and lots of rules and policies. You want to help them understand the ________.

A) chain of command
B) degree of formalization
C) span of control
D) degree of departmentalization
E) degree of centralization

Question 63

________ is addressed by asking the question "On what basis are jobs grouped together?"

A) Departmentalization
B) Work specialization
C) Centralization and decentralization
D) Formalization
E) Span of control

Question 64

The question of span of control determines ________.

A) the employee grievance policy of the organization
B) the number of levels and managers an organization has
C) where decisions are made
D) how jobs will be grouped
E) how employees will be compensated

Question 65

Your trainees are given a case study concerning a local manufacturing firm called Acme Products. In assessing Acme's organizational structure, your trainees notice that all of the company's decisions are made by top management, with little or no input from lower-level personnel. The trainees most likely identify Acme as a(n) ________ organization.

A) highly decentralized
B) highly formalized
C) highly departmentalized
D) highly centralized
E) informally structured

Question 66

The chain of command is an unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom.

Question 67

While observing the departments in his division, Matthew notices that some managers with wide spans of control seem to perform more effectively than other managers with similarly-sized spans of control. Which of the following statements is most likely to be true regarding the high-performing managers?

A) These managers are paid higher salaries than the low-performing managers.
B) These managers have eternal locus of control.
C) The employees within their departments tend to compete to reach productivity goals, which boosts performance.
D) The employees within their departments score high on agreeableness.
E) The employees within their departments are highly skilled and very knowledgeable about their jobs.

Question 68

Narrow spans of control increase the speed of decision making.

Question 69

You assign your students a project that involves developing a business plan for a retail chain. The retail chain will have 1000 employees and will serve customers both locally and internationally via a storefront and an Internet catalog. Which of the following organizational designs is least likely to be suitable for this retail store?

A) matrix
B) virtual
C) bureaucracy
D) team
E) simple

Question 70

You describe to your students a new committee within the university that brings together specialists from all different departments to develop a new interdisciplinary program. The structure of the committee best meets the definition of the ________.

A) matrix structure
B) simple structure
C) boundaryless organization
D) virtual organization
E) bureaucracy

Question 71

You extol the virtues and benefits of standardization. You are probably promoting the ________.

A) matrix structure
B) virtual organization
C) bureaucracy
D) team structure
E) simple structure

Question 72

The Acme Products case study notes that the senior management at Acme is concerned because the company takes so long to bring new products to the market. Which of the following approaches would your trainees identify as the most likely solution to resolve this problem?

A) reducing the use of cross-functional work teams
B) decentralization of the decision-making process
C) decreased work specialization
D) decreased formalization of policies and procedures
E) reduced diversity within the company's work force

Question 73

You are the CEO of Apex Systems. You have decided to hire other organizations to perform many of the basic functions of your business. You have hired an accounting firm to keep your records, a recruiting firm to handle human resource functions, and a computer firm to handle all records. To keep costs down, you are looking for other areas in which to outsource operations. You have chosen to operate your business as a ________.

A) matrix organization
B) virtual organization
C) highly centralized organization
D) boundaryless organization
E) beaureaucracy

Question 74

Departmentalization refers to the degree to which jobs within the organization are standardized.

Question 75

Narrow spans of control make vertical communication in the organization more complex.

Question 76

Work specialization increases the time spent in changing tasks.

Question 77

As compared to decentralized organization, a centralized organization can act more quickly to solve problems.

Question 78

The organizational design of simple structure is highly risky.

Question 79

The simple structure becomes increasingly inadequate as an organization grows.

Question 80

The simple structure is characterized by a high degree of departmentalization and narrow span of control.