Deck 11: Organisational Structure

Question 1

Which of the following generalisations about organisational structures and employee performance and satisfaction is most true?

A)It is probably safe to say that no evidence supports a relationship between span of control and employee performance.
B)No one wants work that makes minimal intellectual demands and is routine.
C)There is fairly strong evidence linking decentralisation and job satisfaction.
D)The evidence generally indicates that work specialisation contributes to lower employee productivity.

Answer 1

A

Question 2

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

A)volatility
B)creativity
C)complexity
D)capacity

Answer 2

C

Question 3

refers to how an organisation transfers its inputs into outputs.

A)Imitation
B)Technology
C)Operations
D)Innovation

Answer 3

B

Question 4

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

A)simple structure.
B)bureaucracy.
C)matrix structure.
D)virtual organisation.

Question 5

departmentalisation seeks to achieve economies of scale by placing people with common skills and orientations into common units.

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

Question 6

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)It empowers employees.
D)Managers can maintain closer control.

Question 7

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

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

Question 8

We- Train- Em has hired you to develop training materials for their seminars.Your first assignment is to write a training manual that will assist new managers in designing an appropriate structure for their part of an organisation.Included in the manual will be information about the key questions that they must answer in deciding about the best organisational structure. One of the questions included in the training manual is "To what degree are tasks subdivided into separate jobs?" This question addresses the issue of:

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

Question 9

The strength of the simple structure lies in its:

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

Question 10

The organisation is typically small and highly centralised with little or no departmentalisation.

A)limitless
B)team
C)virtual
D)matrix

Question 11

You have divided the jobs done by your department through work specialisation and are now trying to decide how to best group them for efficiency and service to the customer.You are considering grouping activities by function,product,process,or customer. You have decided that since you are a novice at departmentalisation,you will go with the most popular method.You will probably choose departmentalisation.

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

Question 12

You have divided the jobs done by your department through work specialisation and are now trying to decide how to best group them for efficiency and service to the customer.You are considering grouping activities by function,product,process,or customer. You find that there seems to be a common set of problems among certain types of buyers of your product.You will probably choose:

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

Question 13

John and Alex both work for large organisations.John's organisation is highly departmentalised and everything is fairly formal.All decisions are made at the top of the hierarchy.Alex,on the other hand,works for an organisation that is low in formalisation and composed of numerous cross- functional teams.Employees in this organisation frequently get to make their own decisions. John is likely working for:

A)a matrix organisation.
B)an organic organisation.
C)a mechanistic organisation.
D)a boundaryless Organisation.

Question 14

The major advantage of the virtual organisation is its:

A)flexibility.
B)predictability.
C)control.
D)empowerment.

Question 15

If there is low formalisation,a comprehensive information network,and high participation in decision making,one would expect a(n):

A)bureaucracy.
B)organic structure.
C)mechanistic structure.
D)stable structure.

Question 16

John and Alex both work for large organisations.John's organisation is highly departmentalised and everything is fairly formal.All decisions are made at the top of the hierarchy.Alex,on the other hand,works for an organisation that is low in formalisation and composed of numerous cross- functional teams.Employees in this organisation frequently get to make their own decisions. Alex is likely working for:

A)a mechanistic organisation.
B)a matrix organisation.
C)a boundaryless Organisation.
D)an organic organisation.

Question 17

Simple structures are characterised by:

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

Question 18

We- Train- Em has hired you to develop training materials for their seminars.Your first assignment is to write a training manual that will assist new managers in designing an appropriate structure for their part of an organisation.Included in the manual will be information about the key questions that they must answer in deciding about the best organisational structure. The degree of rules and regulations that direct employees and managers is termed:

A)departmentalisation.
B)span of control.
C)formalisation.
D)chain of command.

Question 19

You have learned about the traditional and new design options for organisational 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 organisation. Your new organisation is looking for maximum flexibility.The most appropriate structure is probably the:

A)matrix organisation.
B)matrix structure.
C)team structure.
D)virtual organisation.

Question 20

All of the following are characteristics of the organic model except:

A)cross hierarchical teams.
B)rigid departmentalisation.
C)cross- functional teams.
D)free flow of information.

Question 21

refers to the degree of instability of an environment.

A)Capacity
B)Volatility
C)Complexity
D)Equilibrium

Question 22

In boundaryless organisations,removing vertical boundaries:

A)minimises status and rank.
B)introduces more participative decision making practices.
C)flattens the hierarchy.
D)all of the above.

Question 23

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

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

Question 24

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

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

Question 25

You are interested in explaining the different types of organisational 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. A structure that is flat,has little formalisation and has a wide span of control is a:

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

Question 26

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

Question 27

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

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

Question 28

You have learned about the traditional and new design options for organisational 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 organisation. You have decided to hire other organisations to perform many of the basic functions.You have hired an accounting firm to keep your records,a recruiting firm to handle human resource functions,a computer firm to handle all records,and are looking for other areas in which to outsource operations.You have chosen to operate your business as a:

A)virtual organisation.
B)matrix structure.
C)matrix organisation.
D)team structure.

Question 29

The bureaucracy is characterised by all of the following except:

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

Question 30

The key underlying all bureaucracies is:

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

Question 31

Which of the following is a true statement?

A)The evidence indicates that manager job satisfaction decreases as the number of employees supervised increases.
B)There is some self- selection operating in the choice of careers.
C)It is clear that everyone prefers to do work where they have little contact with their boss.
D)All of the above.

Question 32

Functional departments:

A)create horizontal boundaries.
B)stifle interactions between functions,product lines,units.
C)Both A and B.
D)Neither A or B.

Question 33

You have divided the jobs done by your department through work specialisation and are now trying to decide how to best group them for efficiency and service to the customer.You are considering grouping activities by function,product,process,or customer. You are organising into southern,northern,western,and eastern regions.This is termed departmentalisation.

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

Question 34

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

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

Question 35

The strength of the matrix structure is its:

A)ability to facilitate coordination.
B)adherence to chain of command.
C)predictability.
D)economies of scale.

Question 36

Which of the following is not a common organisational design?

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

Question 37

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

A)cost- minimisation
B)imitation
C)innovation
D)organic

Question 38

Following changes in corporate strategy,an organisation should:

A)become boundaryless.
B)change the environment.
C)increase employment.
D)change the organisation's structure.

Question 39

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)decentralisation
C)centralisation
D)departmentalisation

Question 40

An organisation that seeks to eliminate the chain of command,have limitless spans of control,and replace departments with empowered teams is known as the:

A)boundaryless organisation.
B)virtual organisation.
C)matrix organisation.
D)team structure.

Question 41

Which of the following is not part of the organisation's environment?

A)competitors
B)public pressure groups
C)customers
D)technology

Question 42

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

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

Question 43

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

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

Question 44

The basis by which jobs are grouped together is termed:

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

Question 45

Matthew is a new divisional manager.In reorganising his department,he must make some decisions regarding the span of control. The question of span of control determines:

A)where decisions are made.
B)the number of levels and managers an organisation has.
C)who reports to whom.
D)how jobs will be grouped.

Question 46

The boundaryless organisation relies heavily on:

A)external barriers.
B)vertical boundaries.
C)information technology.
D)horizontal boundaries.

Question 47

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

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

Question 48

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

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

Question 49

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

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

Question 50

A review of the evidence indicates that:

A)work specialisation tends to increase productivity but at the price of job satisfaction
B)one cannot generalise about people's preferences about organisational structure
C)there is no relationship between span of control and employee performance.
D)all of the above

Question 51

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

A)industry
B)technology
C)strategy
D)organisation size

Question 52

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

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

Question 53

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

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

Question 54

You are interested in explaining the different types of organisational 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 have been extolling the virtues of standardisation.You are probably describing the:

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

Question 55

A small,core organisation that outsources major business functions is the organisation.

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

Question 56

The matrix structure combines which two forms of departmentalisation?

A)simple and functional
B)organic and mechanistic
C)product and organic
D)functional and product

Question 57

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

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

Question 58

Which of the following is not a characteristic of a mechanistic structure?

A)limited information network
B)flexibility
C)extensive departmentalisation
D)high formalisation

Question 59

To maximise employee performance and satisfaction:

A)boundaryless organisations should always be used.
B)never give people routine type of work.
C)individual differences should be taken into account.
D)all of the above.

Question 60

You have learned about the traditional and new design options for organisational 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 organisation. You have eliminated horizontal,vertical,and external barriers.You are operating as a:

A)team structure.
B)virtual organisation.
C)matrix organisation.
D)boundaryless organisation.

Question 61

The major disadvantages of the matrix lie in the confusion it creates,its propensity to foster power struggles,and the stress it places on individuals.

Question 62

The is a structure characterised by extensive departmentalisation,high formalisation,a limited information network,and centralisation.

A)organic model
B)boundaryless organisation
C)mechanistic model
D)technology model

Question 63

We- Train- Em has hired you to develop training materials for their seminars.Your first assignment is to write a training manual that will assist new managers in designing an appropriate structure for their part of an organisation.Included in the manual will be information about the key questions that they must answer in deciding about the best organisational structure. is addressed by asking the question "On what basis will jobs be grouped together?"

A)Formalisation
B)Departmentalisation
C)Centralisation and decentralisation
D)Work specialisation

Question 64

Which of the following is a true statement regarding organisational design on employee behaviour?

A)Work specialisation is an unending source of higher productivity.
B)Participative decision making is positively related to job satisfaction.
C)National culture is not a factor when considering issues of job performance and satisfaction.
D)All of the above.

Question 65

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)Formalisation
B)Narrower spans of control
C)Wider spans of control
D)Flatter organisations

Question 66

Work specialisation and division of labour are the same thing.

Question 67

You are interested in explaining the different types of organisational 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. The structure that combines functional and product departmentalisation is the:

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

Question 68

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

Question 69

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

A)decreased response to environmental change
B)loss of economies of scale
C)decreased employee motivation
D)employees receiving conflicting directives

Question 70

Having too many people report to you can undermine effectiveness.

Question 71

The primary characteristics of the virtual organisation are that it breaks down department barriers and decentralises decision making to the level of the work team.

Question 72

The trend in recent years has been toward:

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

Question 73

Mechanistic structures are high in formalisation.

Question 74

A major weakness of the bureaucracy is lack of attention to rules.

Question 75

An organisation that seeks to eliminate the chain of command is a boundaryless organisation.

Question 76

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

Question 77

Standardisation is the key that underlies all bureaucracies.

Question 78

Strategy does not impact an organisation's structure.

Question 79

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

Question 80

The best definition for centralisation is:

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