Deck 15: Foundations of Organization Structure

Question 1

For much of the first half of the twentieth century, managers viewed work specialization as ________.

A) a means to encourage employee satisfaction
B) an effective solution to over-centralization
C) an unending source of increased productivity
D) difficult to implement without automation technology
E) a frustrating cause of reduced efficiency

Answer 1

C

Question 2

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

Answer 2

A

Question 3

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

A) chain of command
B) path of power
C) span of control
D) line of responsibility
E) web of authority

Answer 3

A

Question 4

Anna's company needs to dramatically cut costs, speed decision making, and increase flexibility. Which of the following structural decisions will help her achieve the desired objectives?

A) increasing the span of control
B) decreasing the unity of command
C) increasing the degree of formalization
D) decentralizing management decisions
E) departmentalizing the company on the basis of products

Question 5

The ________ refers to the number of subordinates that a manager directs.

A) span of control
B) unity of command
C) chain of command
D) line of responsibility
E) leadership web

Question 6

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

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

Question 7

The basis by which jobs are grouped is called ________.

A) social clustering
B) span of control
C) work specialization
D) centralization
E) departmentalization

Question 8

Which of the following terms refers to the rights inherent in a managerial position to give orders and expect them to be obeyed?

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

Question 9

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 into separate jobs?
E) To what degree will there be rules and regulations to direct employees and managers?

Question 10

The degree to which tasks in an organization are subdivided into separate jobs, is called ________.

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

Question 11

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

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

Question 12

AgriProducers has customers all over the United States that need their soil and crops tested in their labs. The crops and soil are different in the various large areas of the nation, such as the West Coast and the Midwest. Which type of departmentalization would be best for AgriProducers?

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

Question 13

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 14

Proctor & Gamble has separate departments for Tide, Pampers, Charmin, and Pringles. This is an example of departmentalization by ________.

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

Question 15

A plant manager organizes a plant by separating engineering, accounting, manufacturing, personnel, and purchasing into departments. The plant is departmentalized on the basis of ________.

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

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

Mike Morrell is a production supervisor in Porco Rosso, an aircraft manufacturing firm. After evaluating Mike's managerial capabilities, some members of the senior management feel that average productivity would improve if more workers are assigned to him. However, some managers are skeptical about Mike's ability to handle more workers.
Which of the following statements, if true, would support the argument favoring increased span of control?

A) Mike's team consists of highly experienced and skilled labor.
B) Porco Rosso recently became the world's leading aircraft manufacturer.
C) Mike is receiving increasing complaints about interpersonal conflicts within the team.
D) Mike's team is highly dependent on his guidance, even on minor issues.
E) When additional workers were assigned to Mike on a previous occasion, it had led to unfavorable results.

Question 18

Which of the following statements is true regarding work specialization?

A) Work specialization indicates to what degree will there be rules and formalized 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 decreases efficiency and productivity.
E) Work specialization hinders efficient use of employee skills.

Question 19

Mike Morrell is a production supervisor in Porco Rosso, an aircraft manufacturing firm. After evaluating Mike's managerial capabilities, some members of the senior management feel that average productivity would improve if more workers are assigned to him. However, some managers are skeptical about Mike's ability to handle more workers.
Which of the following statements, if true, would weaken the argument favoring increased span of control?

A) Mike has a reputation of handling interpersonal conflicts effectively.
B) Performance reports from the last few years show that teams that were monitored closely had higher productivity.
C) Porco Rosso recently launched its latest engine model, the PR-4.
D) Market trends indicate that the demand for aircraft is expected to increase substantially over the next few years.
E) When additional workers were assigned to Mike on a previous occasion, it had led to favorable and productive results.

Question 20

According to the principle of unity of command, ________.

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) an organization should be departmentalized on the basis of functions
E) employees should report directly to two supervisors to maintain task balance

Question 21

________ 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 22

The simple structure is most widely practiced in small businesses in which ________.

A) the manager and owner are one and the same
B) the number of employees is between 100 to 150
C) employees are highly skilled
D) managers are hired directly by the company's owner
E) training budgets are limited

Question 23

According to a 2011 survey, many workers in Qtopia Inc. are dissatisfied with their jobs. The survey revealed that most of the dissatisfied workers believe that they have very little control over their job assignments. Therefore, to increase workers' job satisfaction, Boris, a production manager, feels they need to only concentrate on changing the dissatisfied workers' beliefs regarding the degree of control they have over their job assignments. Which of the following, if true, would weaken the conclusion made by Boris?

A) Many dissatisfied workers feel that their wages are too low and working conditions are unsatisfactory.
B) The number of workers in Qtopia Inc. who are satisfied with their jobs is greater than the number of workers who are dissatisfied.
C) The workers in Qtopia Inc. are more dissatisfied than workers in other companies.
D) Qtopia Inc. was included in a popular magazine's list of 100 best companies to work for, in its 2008 edition.
E) The workers in the company who are satisfied with their jobs believe that they have sufficient control over their job assignments.

Question 24

Gordon is a new divisional manager at AskSocrates.com. In reorganizing his division, he must make some decisions regarding the span of control for management within his division.
While observing the departments in his division, Gordon 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 external 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 25

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 26

A ________ 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) networked organizational structure
E) hierarchical organization

Question 27

Which of the following is a drawback of a narrow span of control?

A) It reduces effectiveness.
B) It is more expensive.
C) It encourages employee autonomy.
D) It decreases the number levels in the organizational hierarchy.
E) It increases participatory decision making.

Question 28

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

A) Formalization
B) Empowerment
C) Work specialization
D) Departmentalization
E) Decentralization

Question 29

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 30

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 formalization.
C) It becomes increasingly inadequate as an organization grows.
D) It is most widely adopted in large businesses in which the manager and owner are different.
E) It is characterized by a narrow span of control.

Question 31

Gordon is a new divisional manager at AskSocrates.com. In reorganizing his division, he must make some decisions regarding the span of control for management within his division.
The question of span of control determines ________.

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

Question 32

The strength of product departmentalization in the matrix structure is that it facilitates ________.

A) coordination among specialties
B) implementation of a high degree of centralization
C) adherence to chain of command
D) standardization
E) employee empowerment

Question 33

The key concept that underlies all bureaucracies is ________.

A) efficiency
B) standardization
C) increased flexibility
D) decentralization
E) specialization

Question 34

Which of the following statements is true regarding a bureaucracy?

A) Bureaucracies are characterized by a low degree of formalization.
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

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

Question 36

Mark is the owner of a local shoe business. He has fifteen employees who report directly to him and he makes all the decisions regarding the type and quality of shoes and looks after the shop's finances. Which type of organizational structure does Mark have?

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

Question 37

Elena is the senior manager of a scientific operations team at a well-known clinical research organization. The organization delivers more than 4,000 solutions across more than 18 therapeutic areas. Being a perfectionist, Elena has reached her present position through hard work and dedication. Given that she has also worked effectively with teams in the past, she has recently been assigned to lead a team working on a new project which is critical to the company. Elena refuses to allocate any tasks to her team and decides to put in extra hours and weekends to complete the groundwork herself. Based on the information presented here, which of the following would best explain this contradiction?

A) Elena feels she will not be able to guide her team well on the project.
B) Elena is not very sociable with her colleagues.
C) Elena feels that by delegating work, she will complicate her working relationship with the team.
D) Elena feels that this project is vital to the team's success.
E) Elena is reluctant to delegate work as she lacks confidence in her team's abilities.

Question 38

Which of the following is a characteristic of a simple structure?

A) high centralization
B) inflexibility
C) narrow spans of control
D) ambiguous accountability
E) high degree of formalization

Question 39

In an organization, top managers make all the decisions, and lower-level managers merely carry out their directives. This organization is most likely to be characterized by ________.

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

Question 40

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 41

A virtual organization is also known as a(n) ________ organization.

A) boundaryless
B) electronic
C) modular
D) pyramidal
E) triangular

Question 42

You are interested in explaining the different types of organizational designs to students of basic management. These students need to know the advantages and disadvantages of each structure as well as the structure's characteristics.
You explain to your students the structure of a local grocery store situated in your neighborhood. The store employs two full-time employees, a salesperson and a cashier. The owner of the store acts as its manager and makes all the decisions. Which of the following organizational structures is being described by you?

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

Question 43

You have learned about the traditional and new design options for organizational structures. You have decided that one of the designs developed during the last decade or two is probably the most appropriate for your newly formed organization.
You decide to eliminate horizontal, vertical, and external barriers within your organization. You want to operate as a ________ organization.

A) matrix
B) formalized
C) team structure
D) boundaryless
E) centralized

Question 44

Which of the following is most likely to be a drawback of a virtual organization?

A) constant flux and reorganization
B) increased technology costs and decentralization
C) lack of flexibility and innovativeness
D) lack of qualified employees and poor management
E) poor communication and high degree of formalization

Question 45

A boundaryless organization is most likely to ________.

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

Question 46

You are the CEO of Achilles Incorporation. 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) highly formalized organization
E) bureaucracy

Question 47

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

A) decreased response to environmental change
B) increased social loafing
C) loss of economies of scale
D) increase in groupthink
E) employees receiving conflicting directives

Question 48

A boundaryless organization strives to ________.

A) break down barriers between the company, its customers, and suppliers
B) reduce bureaucracy costs associated with managing the projects in the organization
C) outsource projects to a competent third party
D) create a higher level of formalization in the organization
E) centralize power within the organization

Question 49

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 avoids duplication of activities.

Question 50

Blastkrieg, a chain of audio equipment stores, uses computerized inventory control and customer self- service to eliminate the category of sales clerks from its force of employees. After diversifying into computer electronics, it now plans to employ the same concept in selling desktop PCs and laptops. Which of the following is an assumption made in Blastkrieg's strategy?

A) All computer electronics stores use a similar strategy.
B) Sales personnel are not required for selling computer electronics successfully.
C) The same kind of computers will be used in inventory control for both audio equipment and electronics at Blastkrieg.
D) A self-service strategy cannot be employed without computerized inventory control.
E) Sales clerks are the only employees of Blastkrieg who could be assigned tasks related to inventory control.

Question 51

You have learned about the traditional and new design options for organizational structures. You have decided that one of the designs developed during the last decade or two is probably the most appropriate for your newly formed organization.
You have recently started your business with a small capital investment. Your business needs a very high degree of flexibility so that you can quickly respond to environmental changes and you are also interested in minimizing costs. Which of the following types of organizations is best suitable for your business?

A) a highly centralized organization
B) a virtual organization
C) a formalized organization
D) a bureaucracy
E) a hierarchical organization

Question 52

________ 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 53

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 a high degree of departmentalization.
D) A virtual organization tends to have unclear roles, goals, and responsibilities.
E) A virtual organization lacks flexibility.

Question 54

Who coined the term "boundaryless organization?"

A) Steve Jobs
B) Jack Welch
C) Milton Friedman
D) John Maynard Keynes
E) Frederick Herzberg

Question 55

Which of the following is a method that companies can use to break down cultural barriers in the global market?

A) increase the degree of formalization
B) use only organic structures
C) increase the degree of centralization
D) limit global expansion
E) form strategic alliances

Question 56

Odysseus Corp. 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 Odysseus Corp. is attempting to create a ________ organization.

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

Question 57

You are interested in explaining the different types of organizational designs to students of basic management. These students need to know the advantages and disadvantages of each structure as well as the structure's characteristics.
You extol the virtues and benefits of standardization. You are most likely to be promoting the ________.

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

Question 58

You are interested in explaining the different types of organizational designs to students of basic management. These students need to know the advantages and disadvantages of each structure as well as the structure's characteristics.
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 ________ structure.

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

Question 59

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

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

Question 60

The major advantage of a 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 61

Which of the following is most likely to be a characteristic of an organization pursuing an innovation strategy?

A) high formalization
B) high specialization
C) decentralized control
D) rigid departmentalization
E) narrow span of control

Question 62

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 63

A(n) ________ model is generally synonymous with the bureaucracy in that it has highly standardized processes for work, high formalization, and more managerial hierarchy.

A) mechanistic
B) organic
C) network
D) boundaryless
E) pyramidal

Question 64

Which of the following terms refers to the way an organization transfers inputs into outputs?

A) volatility
B) formalization
C) complexity
D) technology
E) environment

Question 65

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 66

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

A) density
B) simplicity
C) complexity
D) intricacy
E) permeability

Question 67

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 68

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

Question 69

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

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

Question 70

Volatility refers to the degree of ________ within an environment.

A) heterogeneity
B) instability
C) flexibility
D) diffusivity
E) conformity

Question 71

Narrow spans of control increase the speed of decision making.

Question 72

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 73

Harald is opening a manufacturing plant with a mechanistic and centralized structure. Employees from which of the following countries will be least comfortable with this type of a structure?

A) Greece
B) Peru
C) Canada
D) France
E) Chile

Question 74

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

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

Question 75

Which of the following is most likely to be a characteristic of an organization pursuing a cost-minimization strategy?

A) lack of tight control
B) wide span of control
C) low work specialization
D) high centralization
E) low formalization

Question 76

What are the key dimensions to any organization's environment?

A) conformity, criticality, and diffusivity
B) complexity, volatility, and capacity
C) complexity, diffusivity, and criticality
D) conformity, criticality, and capacity
E) criticality, volatility, diffusivity

Question 77

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

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

Question 78

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 79

A(n) ________ model is a structure that is flat, uses cross-hierarchical and cross-functional teams, has low formalization, possesses a comprehensive information network, and relies on participative decision making.

A) mechanistic
B) organic
C) boundaryless
D) network
E) pyramidal

Question 80

Work specialization increases the time spent in changing tasks.