Deck 14: Foundations of Organisational Structure

Question 1

At an Alcoa aluminium tubing plant,production is organised into five departments: casting; press; tubing; finishing; and inspecting,packing and shipping.This is an example of ________ departmentalisation.

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

Answer 1

A

Question 2

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

A)span of control
B)unity of command
C)power
D)decentralisation

Answer 2

B

Question 3

A manufacturing manager who organises the plant by separating engineering,accounting,manufacturing,personnel,and purchasing into departments is practicing ________ departmentalisation.

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

Answer 3

C

Question 4

Work specialisation is the same as:

A)unity of command
B)span of control
C)job grouping
D)division of labour

Question 5

In the late 1940s,most manufacturing jobs in industrialised countries were being done with high:

A)work specialisation
B)formalisation
C)span of control
D)departmentalisation

Question 6

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

A)chain of command
B)unity of command
C)power
D)authority

Question 7

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

A)It encourages overly tight supervision and discourages employee autonomy.
B)It is inexpensive.
C)Managers maintain closer control.
D)It empowers employees.

Question 8

Woolworths departmentalises by Woolworths Liquor,BWS,and Dan Murphy Cellars.This is an example of departmentalisation by:

A)process
B)product
C)customer
D)function

Question 9

The ________ principle states that a person should have one and only one superior to whom he or she is directly responsible.

A)unity of command
B)power
C)chain of command
D)span of control

Question 10

One of the most popular ways to group activities is by:

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

Question 11

________ departmentalisation achieves economies of scale by placing people with common skills and orientations into common units.

A)Functional
B)Product
C)Geographic
D)Process

Question 12

The basis by which jobs are grouped together is termed:

A)formalisation
B)departmentalisation
C)work specialisation
D)centralisation

Question 13

Organisational structure is made up of six key elements.Which of the following is not one of these elements?

A)coordination
B)formalisation
C)departmentalisation
D)centralisation

Question 14

________ defines how job tasks are formally divided,grouped,and coordinated.

A)Organisational behaviour
B)Organisational structure
C)Span of control
D)Formalisation

Question 15

The degree to which tasks are subdivided into separate jobs is termed:

A)departmentalisation
B)formalisation
C)span of control
D)work specialisation

Question 16

Grouping jobs on the basis of function,product,geography,process,or customer is a form of:

A)chain of command
B)span of control
C)departmentalisation
D)work specialisation

Question 17

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

A)authority
B)chain of command
C)power
D)unity of command

Question 18

For much of the first half of the 20th century,managers viewed ________ as an unending source of increased productivity.

A)formalisation
B)span of control
C)departmentalisation
D)work specialisation

Question 19

The ________ refers to the number of subordinates a manager can efficiently and effectively direct.

A)organisational chart
B)unity of command
C)span of control
D)chain of command

Question 20

Which one of the following components of organisational structure specifically defines where decisions are made?

A)centralisation
B)technology
C)formalisation
D)complexity

Question 21

Work specialisation and division of labour are synonymous.

Question 22

If a job is highly formalised,it would not include which of the following?

A)explicit job description
B)clearly defined procedures on work processes
C)a large number of organisational rules
D)high employee job discretion

Question 23

In an organisation that has high centralisation:

A)all top level officials are located within the same geographic area
B)the corporate headquarters is located centrally to branch offices
C)action can be taken more quickly to solve problems
D)top managers make all the decisions and lower level managers merely carry out top management's directions

Question 24

Specialisation defines how job tasks are formally defined,grouped,and coordinated.

Question 25

Managers need to address six key elements when they design their organisation's structure: work specialisation,departmentalisation,chain of command,span of control,centralisation and decentralisation,and formalisation.

Question 26

The best definition for centralisation is:

A)decision making depends on the situation
B)decision making is done in each department and then sent to the president for the final decision
C)decision making is concentrated at a single point in the organisation
D)decision discretion is pushed down to lower level employees

Question 27

Explicit job descriptions,lots of rules,and clearly defined procedures concerning work processes are consistent with:

A)technological innovation
B)high formalisation
C)an organic model
D)high centralisation

Question 28

The strength of functional departmentalisation is putting similar specialists together.

Question 29

The degree to which tasks in the organisation are subdivided into separate jobs is termed departmentalisation.

Question 30

If you have a narrow span of control,you have a ________ organisation.

A)matrix
B)multi-level
C)short
D)tall

Question 31

Work specialisation can be carried too far and may result in employee boredom,stress,and absenteeism.

Question 32

For much of the first half of this century,managers viewed departmentalisation as an unending source of increased productivity.

Question 33

Which of the following is not a drawback of a narrow span of control?

A)They encourage overly tight supervision.
B)They are expensive.
C)They make vertical communication in the organisation more complex.
D)They encourage employee autonomy.

Question 34

___________ are 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)Narrower spans of control
B)Wider spans of control
C)Flatter organisations
D)Formalisations

Question 35

The component of structure which considers where decision-making authority lies is:

A)formalisation
B)delegation
C)complexity
D)centralisation

Question 36

There are four key design elements of organisational structure.

Question 37

The trend in recent years has been toward:

A)an ideal span of control of eight
B)narrower spans of control
C)a span of control of five
D)wider spans of control

Question 38

Employee discretion is inversely related to:

A)technology
B)standardisation
C)centralisation
D)complexity

Question 39

Organisations may use all of the forms of departmentalisation.

Question 40

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

A)work specialisation
B)departmentalisation
C)decentralisation
D)centralisation

Question 41

Span of control determines the number of levels and managers an organisation has.

Question 42

Flat organisational structures result from narrow spans of control.

Question 43

What is organisational structure?

Question 44

All things being equal,the wider or larger the span,the more efficient the organisation.

Question 45

The trend in recent years has been toward wider spans of control.

Question 46

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

Question 47

A decentralised organisation is more likely to result in a feeling of alienation by employees than a centralised organisation.

Question 48

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

Question 49

What is 'chain of command'?

Question 50

The principle of unity of command suggests that managers should back one another up when a directive has been given.

Question 51

To ensure that performance doesn't suffer because of wider spans,organisations have been investing heavily in employee training.

Question 52

Departmentalisation answers questions for employee such as "To whom do I go if I have a problem?"

Question 53

Narrow spans of control encourage overly tight supervision and discourage employee autonomy.

Question 54

The unbroken line of authority that extends from the top of the organisation to the lowest echelon is termed the chain of command.

Question 55

What is work specialisation?

Question 56

The greater the formalisation,the less input an employee has into how his or her work is done.

Question 57

What is 'departmentalisation'?

Question 58

In a decentralised organisation,decision making is pushed down to the managers closest to the action.

Question 59

Autonomy and formalisation are inversely related.

Question 60

Increase in the number of rules and regulations results in increased formalisation.

Question 61

The strength of the simple structure lies in its:

A)information processing
B)centralisation
C)simplicity
D)formalisation

Question 62

Simple structures are characterised by:

A)a low degree of departmentalisation
B)a narrow span of control
C)shared authority
D)lots of formalisation

Question 63

Which one of the following is consistent with a simple structure?

A)high horizontal differentiation
B)high centralisation
C)high departmentalisation
D)high formalisation

Question 64

The key underlying all bureaucracies is:

A)dual lines of authority
B)flexibility
C)standardisation
D)wide span of control

Question 65

The simple structure is fast,flexible,inexpensive to maintain,and accountability is clear.

Question 66

The bureaucracy is characterised by all of the following EXCEPT:

A)highly routine operating tasks
B)decentralised decision making
C)tasks that are grouped into functional departments
D)formalised rules and regulations

Question 67

The ________ is characterised by highly routine operating tasks achieved through specialisation.

A)matrix structure
B)centralised structure
C)bureaucracy
D)simple structure

Question 68

Specialisation creates subunit conflicts in the:

A)matrix structure
B)simple structure
C)centralised structure
D)bureaucracy

Question 69

The strength of the bureaucracy lies in its simplicity.It's fast,flexible,and inexpensive to maintain.

Question 70

A primary strength of bureaucracy is its:

A)ability to perform standardised activities in a highly efficient manner
B)ability to operate consistently through global rules and regulations
C)effective and efficient use of resources
D)tolerance for ambiguity

Question 71

List and briefly describe the six key questions that managers need to answer in designing the proper organisational structure.

Question 72

The ________ is characterised by a low degree of departmentalisation,wide spans of control,authority centralised in a single person,and little formalisation.

A)matrix organisation
B)team structure
C)simple structure
D)bureaucracy

Question 73

The strength of the bureaucracy is its ability to facilitate coordination when the organisation has complex and interdependent activities.

Question 74

The ________ is most widely practised in small businesses in which the manager and owner are one and the same.

A)simple structure
B)bureaucracy
C)matrix structure
D)centralised structure

Question 75

The ________ is a flat organisation.

A)centralised structure
B)matrix structure
C)simple structure
D)bureaucracy

Question 76

Which of the following is not a common organisational design?

A)matrix structure
B)centralised structure
C)bureaucracy
D)simple structure

Question 77

What is the difference between centralisation and decentralisation?

Question 78

Discuss and give examples of the five common ways that an organisation can group activities.

Question 79

What is 'span of control'?

Question 80

Putting similar specialties together,and forming them into functional departments results in:

A)duplication of personnel and equipment
B)breakdowns in communication through increased use of jargon and acronym
C)economies of scale
D)increased costs