Deck 13: Organizational Structure

Question 1

Terri is upset because tasks that previously were part of her job are now subdivided into separate jobs as a result of recent reorganization.This is an example of

A)work specialization.
B)departmentalization.
C)infrastructure.
D)chain of command.
E)decentralization.

Answer 1

A

Question 2

The assignment of authority to another person to carry out specific duties and make the decisions required to successfully complete those duties is known as

A)chain of command.
B)departmentalization.
C)work specialization.
D)delegation.
E)centralization.

Answer 2

D

Question 3

Raghib just started working for a new organization,and he asked the person training him "To whom do I go if I have a problem?" Raghib wants to understand the company's

A)peer pressure.
B)organizational structure.
C)chain of command.
D)departmentalization.
E)centralization.

Answer 3

C

Question 4

Estee Lauder has a separate department for Clinique,Origins,and MAC such that each is operated as a separate company.This is known as departmentalization by

A)osmosis.
B)product.
C)function.
D)process.
E)service.

Question 5

One of the best attributes of Francois in the eyes of his employees is that he gives them the authority to carry out specific duties; this allows the employees to make some decisions on their own.This is known as

A)passing the buck.
B)chain of command.
C)giving orders.
D)delegation.
E)groupthink.

Question 6

SCENARIO 13-1 You are developing a training manual that will assist managers in designing an appropriate organizational structure for new organizations.You have included information and references for all of the key questions that managers need to answer.
Refer to Scenario 13-1.You suggest that one of the questions to be answered is "To what degree should tasks be subdivided into separate jobs?" The answer to this question is provided by

A)formalization.
B)work specialization.
C)span of control.
D)chain of command.
E)work diversity.

Question 7

Ted works for an aluminum tubing manufacturer that has separate departments for casting,press,tubing,inspecting,and shipping.This is known as departmentalization by

A)osmosis.
B)product.
C)function.
D)process.
E)service.

Question 8

How job tasks are formally divided,grouped and coordinated is termed

A)organizational structure.
B)organizational behaviour.
C)formalization.
D)span of control.
E)work specialization.

Question 9

What sort of departmentalization sees companies create separate work groups based on different types of goods?

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

Question 10

SCENARIO 13-1 You are developing a training manual that will assist managers in designing an appropriate organizational structure for new organizations.You have included information and references for all of the key questions that managers need to answer.
Refer to Scenario 13-1.You suggest that one of the questions to be answered is "On what basis should jobs be grouped together?" The answer to this question is provided by

A)departmentalization.
B)work specialization.
C)centralization.
D)formalization.
E)decentralization.

Question 11

Which of the following questions relates to work specialization?

A)To what degree are tasks subdivided into separate jobs?
B)On what basis will jobs be grouped together?
C)To whom do individuals and groups report?
D)How many individuals can a manager efficiently and effectively direct?
E)Where does decision-making authority lie?

Question 12

A manufacturing manager who organizes the plant by separating engineering,accounting,manufacturing,personnel,and purchasing into departments is practicing which type of departmentalization?

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

Question 13

Sun Petroleum Products departmentalizes by fuels,lubricants,and waxes and chemicals.This is an example of departmentalization by

A)functions.
B)process.
C)customer.
D)product.
E)job design.

Question 14

Daniella is frustrated after working for her new company for a few weeks.It is clear to her that,unlike her past employer,upper management makes the decisions affecting her work.This is an example of

A)specialization.
B)chain of command.
C)authority.
D)centralization.
E)decentralization.

Question 15

After a recent reorganization,Steve's boss is wondering whether he has too many people reporting to him.His boss is concerned about his

A)delegation.
B)span of control.
C)command and control.
D)motivation.
E)decentralization.

Question 16

Donna works in sales for an office supplies firm that has separate retail,wholesale,and government departments.This is known as departmentalization by

A)geography.
B)service.
C)process.
D)customer.
E)function.

Question 17

Evidence indicates that work specialization contributes to higher employee productivity at the price of

A)reduced job coordination.
B)increased job complexity.
C)increased job satisfaction.
D)reduced job satisfaction.
E)reduced creativity.

Question 18

SCENARIO 13-1 You are developing a training manual that will assist managers in designing an appropriate organizational structure for new organizations.You have included information and references for all of the key questions that managers need to answer.
Refer to Scenario 13-1.The degree to which rules and regulations are used to direct employees and managers in their work is termed

A)chain of command.
B)formalization.
C)span of control.
D)departmentalization.
E)division of labour.

Question 19

Bob works for a manufacturer that has separate departments for engineering,accounting,manufacturing,purchasing,and human resources.This is reflective of departmentalization by

A)product.
B)osmosis.
C)function.
D)service.
E)process.

Question 20

Now that Terri's tasks have been divided up to create separate jobs,the next step that her organization took was to group these jobs together so that common tasks could be coordinated.This is an example of

A)infrastructure.
B)decentralization.
C)centralization.
D)departmentalization.
E)chain of command.

Question 21

If a job is highly formalized,it would NOT include

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

Question 22

SCENARIO 13-2 You have divided the jobs done by your department through work specialization and are now trying to decide how to best group them for efficiency and service to the customer.You are considering grouping activities by functions,product,process or customer.
Refer to Scenario 13-2.You find that there seem to be a common set of problems among certain types of buyers of your product.To help resolve this problem,you should choose

A)function departmentalization.
B)product departmentalization.
C)process departmentalization.
D)customer departmentalization.
E)geographic departmentalization.

Question 23

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

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

Question 24

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)power.
D)unity of command.
E)power and authority structure.

Question 25

In a highly formalized organization,job behaviours are relatively

A)programmed.
B)nonprogrammed.
C)discretionary.
D)non-existent.
E)flexible.

Question 26

SCENARIO 13-2 You have divided the jobs done by your department through work specialization and are now trying to decide how to best group them for efficiency and service to the customer.You are considering grouping activities by functions,product,process or customer.
Refer to Scenario 13-2.You have decided that since you are a novice at departmentalization,you will go with the most popular method.You will probably choose which type of departmentalization?

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

Question 27

An office supply firm that has three departments to service retail,wholesale,and government customers is practicing which type of departmentalization?

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

Question 28

When a manager assigns some of their authority to another person to carry out specific duties,allowing that employee to make some decisions,the process is called

A)chain of command.
B)span of control.
C)permissive environment.
D)discretionary powers.
E)delegation.

Question 29

If you have a narrow span of control,you have what type of organization?

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

Question 30

Which of the following is NOT a benefit of boundary spanning?

A)a member of an R & D team who implements ideas from a production team
B)prevents formal structures from becoming too rigid
C)enhances organization and team creativity
D)reduces coordination across groups
E)an HR executive who frequently learns from the IT group

Question 31

Employee discretion is inversely related to

A)complexity.
B)standardization.
C)centralization.
D)technology.
E)decentralization.

Question 32

Which of the following 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)mechanistic structure

Question 33

Which of the following formal mechanisms would not facilitate boundary-spanning activities through an organization's structures?

A)Assign formal liaison roles or develop committees of individuals from different areas of the organization.
B)increasing development activities for employees
C)creating job rotation programs so new hires get a better sense of different areas of the organization
D)hiring more employees with specialized experience
E)Bring attention to overall organizational goals and shared identity concepts.

Question 34

When decision-making authority is concentrated in a single point,the organization is structured using

A)delegation.
B)formalization.
C)complexity.
D)centralization.
E)span of control.

Question 35

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)top managers make all the decisions-lower-level managers merely carry out directions.
D)decision discretion is widely dispersed throughout the organization.
E)problems can be quickly and efficiently solved.

Question 36

The degree to which decision making is distributed to lower-level employees is termed

A)centralization.
B)decentralization.
C)departmentalization.
D)work specialization.
E)task specialization.

Question 37

The best definition for centralization is

A)Decision discretion is pushed down to lower-level employees.
B)Decision making is concentrated at a single point in the organization.
C)Decision making depends on the situation.
D)Decision making is done in each department and then sent to the president for the final decision.
E)Decision making is largely concentrated within teams.

Question 38

Where there is high formalization,there is (are)

A)explicit job descriptions.
B)few rules and regulations.
C)a variety of tasks in progress.
D)few personnel policies.
E)job flexibility and freedom.

Question 39

Which type of departmentalization results in increased accountability for merchandise performance?

A)geographic
B)customer
C)process
D)product
E)market

Question 40

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

A)It reduces effectiveness.
B)It is more efficient.
C)It is expensive.
D)It empowers employees.
E)It encourages employee autonomy.

Question 41

The characteristic underlying all bureaucracies is

A)flexibility.
B)standardization.
C)dual lines of authority.
D)decentralization.
E)low efficiencies.

Question 42

What is a big drawback of the divisional structure?

A)addressing specific concerns of various units within the organization
B)providing clear responsibility for all activities related to a product
C)increased cost from overlapping tasks between divisions
D)increased coordination in units
E)multiple strategies required for different regions

Question 43

A structure of evolving networks of independent companies linked together to share skills and costs is called

A)virtual organization.
B)team.
C)boundaryless.
D)feminine organization.
E)modular.

Question 44

A small core organization that outsources major business functions is known as a(n)________ organization.

A)matrix
B)virtual
C)organic
D)bureaucratic
E)mechanistic

Question 45

An organizational design that combines functional and product departmentalization is known as

A)matrix.
B)organic.
C)mechanistic.
D)hybrid.
E)bureaucratic.

Question 46

Which organization is opposite to the typical bureaucracy that has many vertical levels of management and where ownership of the means of production is an example of control?

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

Question 47

The structure that is used in hospitals,universities and entertainment companies is the

A)matrix structure.
B)simple structure.
C)bureaucracy.
D)team structure.
E)modular structure.

Question 48

The matrix structure combines the

A)functional and simple structures.
B)functional and product structures.
C)simple and product structures.
D)organic and mechanistic structures.
E)bureaucracy and mechanistic structures.

Question 49

SCENARIO 13-3 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.
Refer to Scenario 13-3.You have just described a structure that is flat,has little formalization and is fast,flexible,and inexpensive to maintain.This is the

A)matrix structure.
B)simple structure.
C)bureaucracy.
D)team structure.
E)job enhancement structure.

Question 50

The structure that creates dual lines of authority and combines functional and product departmentalization is the

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

Question 51

The ________ structure seeks to eliminate the chain of command and replace departments with empowered teams.This structure removes vertical and horizontal boundaries in addition to breaking down external barriers between the company and its customers and suppliers.

A)virtual
B)hybrid
C)matrix
D)mechanistic
E)team

Question 52

Luigi works for an advertising agency and the organizational structure is such that he has two bosses; his direct boss is the manager of the department he is assigned to and his other boss is the manager responsible for the new product that is his main focus.This is an example of what kind of structure?

A)organic
B)simple
C)matrix
D)bureaucratic
E)hybrid

Question 53

Todd works for a manufacturer that outsources all of its production to another organization for cost reasons.This is an example of what kind of organization?

A)team-based
B)hybrid
C)matrices
D)virtual
E)boundaryless

Question 54

If you wanted to outsource many of the functions that are currently performed within your organization,which organizational structure would make the most sense?

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

Question 55

Simple structures are characterized by

A)shared authority.
B)narrow spans of control.
C)lots of formalization.
D)low degrees of departmentalization.
E)diverse accountability.

Question 56

An organizational structure characterized by highly routine operating tasks,very formalized rules and regulations,narrow span of control,and centralized authority is known as a

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

Question 57

Which of the following would benefit from a functional structure?

A)small organizations
B)organizations with wide product lines
C)organizations with employees working across functional lines
D)organizations with diversified units
E)organizations with specialized employees looking to build their expertise

Question 58

SCENARIO 13-3 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.
Refer to Scenario 13-3.You describe the virtues of standardization.The structure that you are most likely describing is the

A)matrix structure.
B)simple structure.
C)bureaucracy.
D)team structure.
E)modular structure.

Question 59

Which 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)employees receiving conflicting directives
E)decreased coordination efforts

Question 60

Which of the following is consistent with a simple structure?

A)high centralization
B)high horizontal differentiation
C)high formalization
D)high departmentalization
E)high vertical differentiation

Question 61

Lea's company pursues a strategy of cost minimization,but it has not been succeeding.Its structure is quite loose,informal,and decentralized.A better organizational structure for it might be

A)organic.
B)matrix.
C)mechanistic.
D)imitation.
E)simple.

Question 62

________ is characterized by a comprehensive information network and many participants in decision making.

A)A bureaucracy
B)A mechanistic structure
C)A stable structure
D)An organic structure
E)A boundaryless organization

Question 63

Which strategy emphasizes the introduction of major new products and services?

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

Question 64

SCENARIO 13-4 After extensively researching both traditional and new design options for organizational structures,you have decided that one of the designs developed since the early 1980s is probably the most appropriate for your newly formed organization.
Refer to Scenario 13-4.You wish to outsource many of the functions that are usually performed internally.You have chosen to operate your business as a

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

Question 65

An organic structure is typically characterized by

A)high complexity.
B)low formalization.
C)a limited-information network.
D)little participation by lower-level members in decision making.
E)no cross-functional teams.

Question 66

Kim thinks that she is going to love working for her new company,as it is very informal with a lot of cross-functional teams with members from different departments.This is an example of what kind of structure?

A)mechanistic
B)flat
C)organic
D)transitional
E)hybrid

Question 67

An organization's environment represents

A)the organizational culture.
B)anything outside the organization itself.
C)the accounting system.
D)everything both inside and outside the organization.
E)a relatively certain future.

Question 68

If there are low formalization,a comprehensive information network and many participants in decision making,one would expect

A)a bureaucracy.
B)a mechanistic structure.
C)an organic structure.
D)a stable structure.
E)a typical government organization.

Question 69

A structure that is flat,uses cross-functional teams,and has low formalization is known as

A)informal.
B)unstructured.
C)organic.
D)mechanistic.
E)amorphous.

Question 70

Which term refers to how an organization transfers its inputs to outputs?

A)technology
B)structure
C)strategy
D)environment
E)innovation

Question 71

Which of the following is a challenge with the circular structure?

A)spreading the vision outward
B)innovation and creativity
C)employees are unclear who they report to
D)supporting corporate social responsibility
E)reduced hierarchy

Question 72

What is a major difference between a mechanistic model and an organic model?

A)One involves new products and services.
B)One has high formalization.
C)They vary greatly in organizational size.
D)One is for technological firms.
E)One is characteristic of the service industry.

Question 73

Kara works for a company that has a flat organizational structure; authority is centralized in a single person who has a wide span of control and authority.This is an example of what kind of structure?

A)organic
B)simple
C)matrix
D)bureaucratic
E)hybrid

Question 74

Wazi feels very comfortable working for an organization that has a clear chain of command,a lot of departmentalization,and a narrow span of control,as this suits his personality.This is an example of what kind of structure?

A)mechanistic
B)flat
C)organic
D)transitional
E)hybrid

Question 75

SCENARIO 13-4 After extensively researching both traditional and new design options for organizational structures,you have decided that one of the designs developed since the early 1980s is probably the most appropriate for your newly formed organization.
Refer to Scenario 13-4.Your new organization is looking to network with a variety of independent companies so that you can share skills,costs and access to other markets.The most appropriate structure is probably the

A)matrix organization.
B)virtual organization.
C)team structure.
D)matrix structure.
E)modular organization.

Question 76

Which of the following structures is characterized by extensive departmentalization,high formalization,a limited information network,as well as centralization?

A)mechanistic model
B)organic model
C)technology model
D)job structure model
E)job satisfaction model

Question 77

Changes in corporate strategy precede and lead to

A)changes in the environment.
B)better communication.
C)increased productivity.
D)changes in an organization's structure.
E)satisfying management's demands.

Question 78

Which of the following is inconsistent with the organic model?

A)cross-functional teams
B)rigid departmentalization
C)cross-hierarchical teams
D)free flow of information
E)high participation in decision making

Question 79

Emilio's company is very innovative and seeks to defeat its competition by introducing a steady stream of new products.The best organizational structure for this company would likely be

A)organic.
B)matrix.
C)mechanistic.
D)imitation.
E)simple.

Question 80

Which of the following is uncharacteristic of a mechanistic structure?

A)extensive departmentalization
B)high formalization
C)limited information network
D)flexibility
E)little participation