Question 1

Two popular trends in departmentalization are the increasing use of ________ departmentalization and the use of ________ teams.

Accepted Answer

A)  product; trans-departmental
B)  functional; product innovation
C)  process; diversified skill
D)  customer; cross-functional D

Question 2

Once an organization grows past a certain size,the impact of size on organization structure strengthens.

Accepted Answer

A) True 
 B)False  False

Question 3

When decisions tend to be made at lower levels in an organization,the organization is said to be decentralized.

Accepted Answer

A) True 
 B)False  True

Question 4

In which of the following organizational structures is empowerment most crucial?

Accepted Answer

A)  boundaryless
B)  simple
C)  functional
D)  team

Question 5

John is president of a chain of stores called Art & Craft Depot. He is aware that the structure of his organization must change in order to compete more effectively in today's global marketplace. However, he is not sure which structure would work best for his company. His company is currently organized under the following departments: accounting, human resources, sales, purchasing, and distribution. However, there are other choices available. He has considered reorganizing around their primary product groups: silk flowers, art supplies, craft supplies, pottery, and fabric. However, equally important are the different types of clients they serve, including homemakers, artists, interior decorators, industrial display contractors, and art schools. The business is growing, and they now have stores in six provinces across Canada. Furthermore, his customers seldom shop for just one type of item. For example, a customer who buys flowers will frequently purchase a vase and other supplies that are required to create a full floral arrangement. This means that individual customers often shop in several merchandise areas of the store.
-If John organizes the new structure based on the provinces served across Canada they would be using ________ departmentalization.

Accepted Answer

A)  process
B)  functional
C)  geographical
D)  customer

Question 6

Lacey has been hired as a consultant for XYZ Consulting. Her first assignment is to work with one of XYZ's newest clients, Custom Leather, Ltd., a manufacturer of high-end leather furniture. Custom Leather was founded more than a decade ago with the idea that great-looking, comfortable leather furniture could be custom made and delivered to customers in 30 days. Traditionally, retailers stocked leather sofas to satisfy customers' desire to receive new furniture fast, which resulted in limited colour choices and styles. Traditional sofa manufacturers produced their products in large batches on standardized assembly lines. In contrast, Custom Leather offers 13 different styles in more than 70 different colours through a select group of retail outlets. Each sofa is built to the customer's individual requirements and is shipped within two to three weeks. However, the emergence of a new manufacturing technology has enabled some of the traditional competitors to offer greater customization, thereby reducing some of Custom Leather's competitive advantage. As a result, Custom Leather's president, Miles Standish, is considering several changes to their current work processes and organizational structure.
-Standish is planning to double the size of his workforce to accompany an expansion in the number of retail outlets that carry Custom Leather products.Lacey tells him that he should expect the organizational design to become more ________ as a result of this change.

Accepted Answer

A)  mechanistic
B)  functional
C)  organic
D)  decentralized

Question 7

A simple structure is an organizational design with low departmentalization,narrow spans of control,and decentralized authority.

Accepted Answer

A) True 
 B)False

Question 8

In a short essay,describe the four contingency variables that should be considered in determining an appropriate structure in organizational design.

Accepted Answer

The answer of In a short essay,describe the four contingency...

Question 9

Organizations that are highly flexible and adaptive are described as ________.

Accepted Answer

A)  organic
B)  boundaryless
C)  intuitive
D)  virtual

Question 10

Customer departmentalization groups jobs on the basis of product or customer flow.

Accepted Answer

A) True 
 B)False

Question 11

Organizational learning cannot take place without ________.

Accepted Answer

A)  motivation
B)  information
C)  structure
D)  technology

Question 12

Lacey has been hired as a consultant for XYZ Consulting. Her first assignment is to work with one of XYZ's newest clients, Custom Leather, Ltd., a manufacturer of high-end leather furniture. Custom Leather was founded more than a decade ago with the idea that great-looking, comfortable leather furniture could be custom made and delivered to customers in 30 days. Traditionally, retailers stocked leather sofas to satisfy customers' desire to receive new furniture fast, which resulted in limited colour choices and styles. Traditional sofa manufacturers produced their products in large batches on standardized assembly lines. In contrast, Custom Leather offers 13 different styles in more than 70 different colours through a select group of retail outlets. Each sofa is built to the customer's individual requirements and is shipped within two to three weeks. However, the emergence of a new manufacturing technology has enabled some of the traditional competitors to offer greater customization, thereby reducing some of Custom Leather's competitive advantage. As a result, Custom Leather's president, Miles Standish, is considering several changes to their current work processes and organizational structure.
-At her first meeting with Standish,Lacey provided an overview of Custom Leather,Ltd.,which examined the relationship between a firm's ________.

Accepted Answer

A)  employees and products
B)  technology and structure
C)  size and structure
D)  processes and employees

Question 13

One purpose of organizing is to ________.

Accepted Answer

A)  know what kinds of employees to hire in the future
B)  establish relationships among employees,teams and departments
C)  ensure the best and most specific job descriptions for each position
D)  allow executives to better get to know their employees

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

A company is planning to revise its organizational structure and one of the managers suggests increasing employee empowerment by giving them more decision-making authority.Which of the following,if TRUE,would support his stand?

Accepted Answer

A)  The firm's employees are reluctant to disrupt the status quo and are apprehensive about any change in responsibility.
B)  The company's front-line workers have first-hand knowledge of what can and cannot be done.
C)  The company is trying to recover from an economic downturn that caused significant losses which necessitated downsizing.
D)  The company culture revolves around the founder who is charismatic and in-charge kind of CEO.

Question 16

Grouping activities on the basis of production flow is called ________ departmentalization.

Accepted Answer

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

Question 17

Jim Johnson is the CEO of Prairie Farm Equipment Corp, a major Canadian manufacturer. Prairie has been in business for more than 110 years and has been very profitable. Today, the company has a tall structure with formalized communication channels and rigid hierarchical relationships. All major decisions are made by Mr. Johnson. This arrangement has worked well until recently, when the company began to encounter some major global competition. Foreign companies have begun to export new, lower-priced products into the Canadian market. At the same time, foreign markets appear to be opening their doors to more Canadian products. A few days ago, one of the vice-presidents presented some exciting news about a major market opportunity overseas. Several managers were now working on an international expansion proposal to be presented at the next board meeting. As the company's strategy was beginning to change, Mr. Johnson realized that its structure would also need to change. But change how? The company was very large and used routine technology to produce its products. What should he do?
-Which of the following contingency factors is having the biggest impact on the need for structural changes at Prairie?

Accepted Answer

A)  size
B)  technology
C)  environmental uncertainty
D)  culture

Question 18

John is president of a chain of stores called Art & Craft Depot. He is aware that the structure of his organization must change in order to compete more effectively in today's global marketplace. However, he is not sure which structure would work best for his company. His company is currently organized under the following departments: accounting, human resources, sales, purchasing, and distribution. However, there are other choices available. He has considered reorganizing around their primary product groups: silk flowers, art supplies, craft supplies, pottery, and fabric. However, equally important are the different types of clients they serve, including homemakers, artists, interior decorators, industrial display contractors, and art schools. The business is growing, and they now have stores in six provinces across Canada. Furthermore, his customers seldom shop for just one type of item. For example, a customer who buys flowers will frequently purchase a vase and other supplies that are required to create a full floral arrangement. This means that individual customers often shop in several merchandise areas of the store.
-If John were able to organize their structure based on product flow they would be using ________ departmentalization.

Accepted Answer

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

Question 19

In a learning organization,it is important to have managers to control and direct the flow of information.

Accepted Answer

A) True 
 B)False

Question 20

Global competition,accelerated product development by competitors,and increased demands by customers for better service have encouraged organizations to become more ________.

Accepted Answer

A)  organic
B)  mechanistic
C)  centralized
D)  bureaucratic

Exam 11: Designing Organizational Structure

Two popular trends in departmentalization are the increasing use of departmentalization and the use of teams.

Once an organization grows past a certain size,the impact of size on organization structure strengthens.

When decisions tend to be made at lower levels in an organization,the organization is said to be decentralized.

In which of the following organizational structures is empowerment most crucial?

A simple structure is an organizational design with low departmentalization,narrow spans of control,and decentralized authority.

In a short essay,describe the four contingency variables that should be considered in determining an appropriate structure in organizational design.

Organizations that are highly flexible and adaptive are described as ________.

Customer departmentalization groups jobs on the basis of product or customer flow.

Organizational learning cannot take place without ________.

One purpose of organizing is to ________.

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

A company is planning to revise its organizational structure and one of the managers suggests increasing employee empowerment by giving them more decision-making authority.Which of the following,if TRUE,would support his stand?

Grouping activities on the basis of production flow is called ________ departmentalization.

In a learning organization,it is important to have managers to control and direct the flow of information.

Global competition,accelerated product development by competitors,and increased demands by customers for better service have encouraged organizations to become more ________.