Deck 15: Foundations of Organization Structure

Question 1

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

Answer 1

D

Question 2

The trend in recent years has been toward ________.

A) narrower spans of control
B) wider spans of control
C) a span of control of four
D) an ideal span of control of six to eight
E) eliminating spans of control in favor of team structures

Answer 2

B

Question 3

AgriProducers has customers all over the United States that need their soil tested in their labs as well as their products for their crops. 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

Answer 3

D

Question 4

Which of the following is not a benefit achieved from work specialization?

A) decreased time in changing tasks
B) decreased training costs
C) increased investment in machinery
D) increased efficiency and productivity
E) decreased time in putting away tools

Question 5

Proctor & Gamble departmentalizes by Tide, Pampers, Charmin, and Pringles. This is an example of departmentalization by ________.

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

Question 6

Stalsberry Company has employees in personnel, sales, and accounting. This division of an organization into groups according to work functions is an example of ________, the second element of structural organization.

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

Question 7

________ 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) Wider spans of control
B) Narrower spans of control
C) Matrix structures
D) Simple structures
E) None of the above

Question 8

Which of the following is a drawback of a narrow span of control? It ________.

A) reduces effectiveness
B) is more efficient
C) encourages overly tight supervision and discourages employee autonomy
D) empowers employees
E) increases participatory decision-making

Question 9

Maya's company needs to dramatically cut costs. Which of the following structural decisions will help her immediately reduce costs?

A) doubling the span of control
B) decreasing the unity of command
C) increasing the chain of command
D) decentralizing management decisions
E) formalizing work processes

Question 10

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 low degree of structure
E) a high degree of matrix structuring

Question 11

The ________ principle 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

Question 12

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

A) span of control
B) unity of command
C) chain of command
D) decentralization principle
E) leadership web

Question 13

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 14

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

A) It is expensive.
B) It makes vertical communication in the organization more complex.
C) Supervisors may lose control of their employees.
D) It encourages overly tight supervision.
E) It helps increase organizational efficiency.

Question 15

The unity-of-command principle states which of the following?

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 16

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) power
D) unity of command
E) leadership

Question 17

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) authority
C) span of control.
D) unity of command
E) web of authority

Question 18

For much of the first half of the 20^th century, managers viewed work specialization as ________.

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

Question 19

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

A) centralization
B) departmentalization
C) work specialization
D) formalization
E) location of authority

Question 20

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

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

Question 21

The structure that creates dual lines of authority is the ________.

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

Question 22

Which of the following is not a common organizational design?

A) simple structure
B) bureaucracy
C) centralized structure
D) matrix structure
E) none of the above

Question 23

Which of the following is not a disadvantage of the matrix structure?

A) the confusion it creates
B) its propensity to foster power struggles
C) the stress it places on individuals
D) increasing employee insecurity
E) the constant predictability

Question 24

The best definition for centralization is a situation in which decision making ________.

A) is pushed down to lower level employees
B) is concentrated at a single point in the organization
C) depends on the situation
D) is completed in each department and then sent to the president for review
E) is diffused among a large segment of employees

Question 25

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

A) high centralization
B) high horizontal differentiation
C) high employee discretion
D) standardization
E) bureaucracy

Question 26

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

A) the owner also manages the company
B) management is limited to one individual
C) managers have a high degree of influence with the company's owner
D) managers are hired directly by the company's owner
E) training budgets are limited

Question 27

Which one of the following dichotomies of organizational structure specifically defines where decisions are made?

A) complexity/simplicity
B) formalization/informalization
C) centralization/decentralization
D) specialization/enlargement
E) affectivity/reflexivity

Question 28

Employee discretion is inversely related to ________.

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

Question 29

The most prominent structural characteristic of the matrix structure is that ________.

A) it strictly follows the chain of command
B) it breaks the unity-of-command concept
C) it has a very tall span of control
D) all departments are highly formalized
E) it is highly centralized

Question 30

Which of the following is not a strength of bureaucracies?

A) ability to perform standardized tasks efficiently
B) functional departments resulting in economies of scale
C) high concern with rules and regulations
D) minimum duplication of personnel and equipment
E) unified jargon or "language" among employees

Question 31

In an organization that has high centralization, ________.

A) the corporate headquarters is located centrally to branch offices
B) all top level officials are located within the same geographic area
C) action can be taken more quickly to solve problems
D) new employees have a great deal of legitimate authority
E) top managers make all the decisions and lower level managers merely carry out directions

Question 32

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) loss of economies of scale
D) increases in groupthink
E) employees receiving conflicting directives

Question 33

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

A) network; modular
B) team; social
C) pyramid; multi-level
D) boundaryless; global
E) simple; unitary

Question 34

________ 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 35

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

A) centralization
B) disempowerment
C) work specialization
D) departmentalization
E) decentralization

Question 36

The key underlying concept of all bureaucracies is ________.

A) efficiency
B) standardization
C) centralization
D) span of control
E) specialization

Question 37

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

A) clearly defined procedures on 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 38

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) specialization

Question 39

The strength of product departmentalization in the matrix structure is its ________.

A) ability to facilitate coordination
B) economies of scale
C) adherence to chain of command
D) standardization
E) social empowerment

Question 40

Kyle runs a dog boarding kennel. He has seven employees that all report directly to him and he makes all the decisions regarding the dogs, accounting, and technology. Which type of organizational structure does Kyle's kennel have?

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

Question 41

________ are the greatest disadvantages and threats to the success of a virtual organization.

A) Constant flux and reorganization
B) Increased technology costs and decentralization
C) Lack of flexibility and leadership
D) Lack of qualified contractors and poor management
E) Poor communication and confusion

Question 42

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

A) public pressure groups
B) customers
C) personnel
D) competitors
E) the media

Question 43

The ________ is a structure characterized by extensive departmentalization, high formalization, a limited information network, and centralization.

A) mechanistic model
B) organic model
C) traditional model
D) bureaucracy organization
E) simple structure

Question 44

________ 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 45

The innovation strategy is characterized by ________.

A) unorthodox structures
B) a mixture of loose and tight properties
C) low specialization and low formalization
D) high technology
E) simple structure

Question 46

If there is low formalization, a comprehensive information network, and high participation in decision making, one would expect a(n) ________ structure.

A) simple
B) mechanistic
C) organic
D) stable
E) matrix

Question 47

All of the following are characteristics of the organic model except ________.

A) cross-functional teams
B) narrow spans of control
C) cross-hierarchical teams
D) employee discretion
E) flatness

Question 48

The ________ of an environment refers to the degree to which it can support growth.

A) capacity
B) qualifications
C) potential
D) capability
E) permeability

Question 49

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

A) stable, abundant, and simple
B) complexity, volatility, and capacity
C) complex, scarce, and dynamic
D) innovative, cost-cutting, and imitation
E) specialization, departmentalization, centralization

Question 50

Which of the following is not a negative impact of reducing the size of the workforce?

A) reduced employee commitment
B) increased absenteeism
C) lower creativity
D) reduced wage costs
E) voluntary turnover

Question 51

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

A) innovation
B) enhancement
C) progressive
D) organic
E) matrix

Question 52

A company oriented around cost minimization is best served by which type of structure?

A) virtual
B) combination
C) mechanistic
D) organic
E) targeted

Question 53

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) technology
E) mechanistic

Question 54

Which of the following is not a determinant of an organization's structure?

A) strategy
B) organization size
C) diversity
D) technology
E) environment

Question 55

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

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 56

Which of the following is not an advantage that virtual organizations have over the common organization structures?

A) uses the best talent for each project
B) decreases flexibility of the project
C) minimizes bureaucratic overhead
D) lessens long-term risks associated with investment
E) decreases costs

Question 57

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

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

Question 58

The major advantage of the virtual organization is its ________.

A) control
B) predictability
C) flexibility
D) empowerment
E) complexity

Question 59

The boundaryless organization strives to ________ the company, its customers, and suppliers.

A) break down barriers between
B) reduce bureaucracy cost associated with
C) outsource projects relating to
D) create a higher level of formalization in and with
E) centralize power within

Question 60

An organization's ________ refers to the way in which it transfers its inputs into outputs.

A) strategy
B) profits
C) imitation
D) technology
E) environment

Question 61

The matrix structure facilitates the allocation of specialists.

Question 62

Organizations operating in highly scarce, dynamic, and complex environments fare best if under organic structures.

Question 63

One disadvantage of the simple structure is its high risk.

Question 64

The primary characteristics of the virtual organization are that it is decentralized and has little or no departmentalization.

Question 65

Thomas is opening a manufacturing plant with a mechanistic and centralized structure. Which of the following countries would be less comfortable with the plant?

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

Question 66

Autonomy and formalization are positively related.

Question 67

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

A) lobby governments
B) use only organic structures
C) install centralized organizations
D) limit global expansion
E) form business alliances

Question 68

All things being equal, the wider or larger the span of control, the more profitable the organization.

Question 69

Volatility refers to the degree of ________ within an environment.

A) support
B) instability
C) flexibility
D) resources
E) pressures

Question 70

Evidence indicates that ________ is positively related to job satisfaction.

A) span of control
B) high specialization
C) decentralization
D) complexity
E) centralization

Question 71

Research supports the notion that employees prefer centralized business structures.

Question 72

The strength of the bureaucracy lies in its ability to perform standardized activities.

Question 73

A decentralized organization is more likely to result in a feeling of alienation by employees than a centralized organization.

Question 74

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 75

Businesses structured according to the mechanistic model usually have high employee participation in decision making.

Question 76

The virtual organization is effective at reinforcing management control over business operations.

Question 77

For much of the first half of the twentieth century, managers viewed departmentalization as promoting increased productivity.

Question 78

The strength of functional departmentalization lies in putting similar specialists together.

Question 79

An organization pursues a price-minimization strategy by controlling costs, avoiding unnecessary innovation or marketing expenses, and cutting prices in selling basic products.

Question 80

The size of an organization affects the organization's structure at a decreasing rate of impact.