Deck 16: Foundations of Organization Structure

Question 1

The structure of an organization is

A)the basic purpose of the organization.
B)the sum of the individual working arrangements in place in an organization.
C)a system of task, reporting, and authority relationships.
D)a system of relationships that provides a framework of people.
E)the basis through which individual activities are monitored.

Answer 1

C

Question 2

Dividing an organization's manufacturing jobs into drill press, milling, heat treat, and assembly areas is an example of departmentalization.

A)product
B)occupation
C)service
D)customer
E)process

Answer 2

E

Question 3

is the extent to which work in an organization is separated into various tasks and assigned to various people.

A)Segregation
B)Departmentalization
C)Differentiation
D)Administrative component
E)Division of labor

Answer 3

E

Question 4

The size and shape of the organization is also called its

A)culture.
B)configuration.
C)division of labor.
D)coordination.
E)structure.

Question 5

The shows all people, positions, reporting relationships, and lines of formal communication in the organization.

A)objectives chart
B)organizational chart
C)position chart
D)PERT chart
E)activities chart

Question 6

Jobs grouped according to traditional business tasks such as marketing, manufacturing, and personnel are departmentalized by

A)process.
B)service.
C)function.
D)operation.
E)structure.

Question 7

Division of labor may be traced to the work of

A)Henry Mintzberg.
B)Adam Smith.
C)Abraham Maslow.
D)Frederick Herzberg.
E)Bill Antson.

Question 8

The internal operations of an organization provide the framework for which type(s) of departmentalization?

A)Process and market
B)Function and process
C)Function and market
D)Product and customer
E)Geographical and customer

Question 9

One of the advantages of departmentalization by business function includes

A)automatic coordination with customers.
B)better communication with other employees in other functions.
C)a broadening of focus for the work team.
D)increased interaction with other parts of the organization.
E)sharing of ideas within the group.

Question 10

Factors external to the organization provide the framework for all of the following types of departmentalization except

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

Question 11

The statement of "what business we are in" defines the company's and gives the organization a reason to exist.

A)organizational structure
B)strategies
C)goals
D)objectives
E)purpose

Question 12

Division of labor is often referred to as .

A)departmentalization
B)the organizational chart
C)specialization
D)configuration
E)the administrative hierarchy

Question 13

Organizational goals do all of the following except

A)supersede individual goals in importance.
B)motivate people to work together.
C)provide measurable performance targets.
D)focus on past successes of the organization.
E)keep the organization on track.

Question 14

Requirements for the structure of an organization include which of the following?

A)The structure must limit legitimate managerial power.
B)The structure must divide the available labor according to the skills desired by the employees.
C)The structure must define organization goals for the company as a whole.
D)The structure must first be accepted by employees in order to be successful.
E)The structure must identify the various tasks or processes necessary for the organization to reach its goals.

Question 15

The groupings most often used to departmentalize an organization include all of the following except

A)business function.
B)process.
C)system of reporting.
D)product or service.
E)customer.

Question 16

Organizational structure can be analyzed by examining all of the following except

A)separation of specialized tasks.
B)the degree of acceptance by employees.
C)the size and shape of the organization.
D)the organization's configuration.
E)responsibility and authority within the organization.

Question 17

Which of the following is not a potential disadvantage of division of labor?

A)Routine, repetitive jobs
B)Incompatibility with computer manufacturing
C)Reduced job satisfaction
D)Increased standardization
E)Decreased worker involvement

Question 18

The premise of organized effort is that

A)employees require managerial direction to achieve organizational goals.
B)the gains realized from coordination are lost from bureaucratic inefficiency.
C)organizational goals direct the activities of employees.
D)people working together can accomplish more than individuals working alone.
E)uncoordinated behavior thrives in the context of organizational structure.

Question 19

The main advantage of division of labor is that it promotes

A)worker satisfaction.
B)worker autonomy.
C)the creation of stimulating jobs.
D)efficient use of labor.
E)increased employee motivation.

Question 20

One of the problems associated with departmentalization by process includes

A)lack of communication.
B)decreased productivity.
C)lack of coordination.
D)increased need for training.
E)narrowness of focus.

Question 21

It is only when is part of an official organizational role that it becomes authority.

A)power
B)feedback
C)cooperation
D)awareness
E)responsibility

Question 22

The dot-com boom saw the promise of build-to-order PCs that was perfected by .

A)HP
B)Dell
C)Apple
D)E-Machines
E)Panasonic

Question 23

A common way of dividing sales or marketing territories is to use

A)geographic regions.
B)product issues.
C)natural physical conditions.
D)process issues.
E)functional boundaries.

Question 24

Delegation is the transfer of to make decisions and use organizational resources.

A)responsibility
B)authority
C)leadership
D)operational control
E)None of these.

Question 25

is the number of people reporting to a manager.

A)Administrative intensity
B)Span of control
C)Work group size
D)Organizational control
E)Organizational management

Question 26

Departmentalization according to is similar to functional departmentalization, except that the focus is much more on specific jobs grouped according to activity.

A)function
B)occupation
C)product or service
D)process
E)position

Question 27

Henry Mintzberg's research to determine the optimal span of control in an organization includes all of the following except

A)the coordination requirements within the unit.
B)the ease of sharing information.
C)the similarity of the tasks in the unit.
D)the type of information available or needed.
E)the differences in the members' need for autonomy.

Question 28

Likert's systems of organizing include all of the following except

A)the exploitive authoritative system.
B)the management system.
C)the participative group.
D)the benevolent authoritative system.
E)the consultative system.

Question 29

When individuals or groups throughout the hierarchy participate in decision making, authority is

A)formalized.
B)efficient.
C)specialized.
D)flexible.
E)decentralized.

Question 30

Which of the following is a disadvantage of customer-based departmentalization?

A)There is usually more process specialization by employees.
B)The coordination of the flow of work is decreased.
C)Employees are less flexible to help managers.
D)Employees may be isolated from others in their special areas of expertise.
E)Customers who differ substantially are ill served.

Question 31

The system of reporting relationships in the organization, from the first level up through the president or CEO is known as

A)informal communication channels.
B)administrative hierarchy.
C)administrative bureaucracy.
D)administrative interdependence.
E)formal communication channels.

Question 32

An organization is a collection of people working together to accomplish something.

Question 33

Fayol classified the essential elements of management to include all of the following except

A)coordination.
B)command.
C)planning.
D)control.
E)All of these are elements of management.

Question 34

Max Weber's ideal bureaucracy has essential characteristics.

A)eight
B)five
C)nine
D)seven
E)six

Question 35

When there is a small span of control, there is likely to be

A)an increase in the number of workers.
B)less control over production workers.
C)more administrative levels.
D)less bureaucracy.
E)looser managerial control.

Question 36

Responsibility ultimately derives from the of an organization.

A)employees
B)middle managers
C)board of directors
D)owner or owners
E)president

Question 37

Formalization includes all of the following except

A)rules and procedures.
B)jobs and activities.
C)the locus of decision-making authority.
D)predict and control.
E)explicit and implicit rules.

Question 38

When decision-making authority is concentrated at the top of the organizational hierarchy, this is called

A)formalized centralization.
B)formalized decentralization.
C)decentralization.
D)formalization.
E)centralization.

Question 39

The perspective that authority originates in the individual who can choose whether or not to follow a directive from above is called the theory of authority.

A)operational
B)rejection
C)acceptance
D)personal interest
E)motivational

Question 40

In Jack's organization, the span of control is very narrow.In Pam's organization, the span of control is rather wide.The number of levels of managers in Jack's organization is likely to be than in Pam's organization.

A)greater
B)smaller
C)more flexible
D)narrower
E)wider

Question 41

Departmentalization by customer maximizes process specialization.

Question 42

A decentralized organization concentrates decision making at the top of its hierarchy.

Question 43

Departmentalization is a consequence of the division of labor.

Question 44

Span of control is the number of people reporting to a manager.

Question 45

When a manager has a small span of control; he or she can maintain close control over workers and stay in contact with daily operations.

Question 46

An example of process departmentalization is the reorganization of General Motors into two divisions, a large-car division and a small-car division.

Question 47

The purpose of organizational structure is to order and coordinate the actions of employees to achieve organizational goals.

Question 48

Goals keep the organization on track by focusing the attention and actions of the members.

Question 49

Explicit rules are set down in job descriptions, policy and procedure manuals, and office memos.

Question 50

Formalization is the degree to which rules and procedures shape employees' jobs and activities.

Question 51

Division of labor is the separation of work into different jobs to be done by different people.

Question 52

An organizational chart shows reporting relationships, work-group relationships, departments, and formal lines of communication.

Question 53

Departmentalization by product or service is often referred to as departmentalization by market.

Question 54

Departmentalization by function groups tasks according to the specific activities engaged in by workers.

Question 55

If there is little participation in decision making, the organization structure is centralized, regardless of the nature of the decisions being made.

Question 56

The administrative hierarchy is the system of reporting relationships in the organization.

Question 57

Process departmentalization encourages increased specialization and expertise among employees.

Question 58

Responsibility is an obligation to do something with the expectation of achieving some output.

Question 59

Formalized decentralization tends to reduce managerial control.

Question 60

Configuration refers to the shape of the organization.

Question 61

Span of control is also referred to as span of .

Question 62

Departmentalization according to enhances interaction and communication among employees working on the same product or service.

Question 63

Likert presented an approach to organization design that he called the human organization.

Question 64

The structure of an organization can be analyzed by examining its
; in other words, its shape.

Question 65

A complete shows all the people, positions, reporting relationships, and lines of formal communication in the organization.

Question 66

is a common way managers provide decision-making involvement for employees at many different levels in the organization while maintaining control and predictability.

Question 67

The is inversely related to the span of control.

Question 68

Increasingly, is discussed in terms of participation in decision making.

Question 69

In a departmentalization, employees who do similar work can learn from each other by sharing ideas, opportunities, and problems they encounter on the job.

Question 70

Fayol's classic principles included departmentalization, unity of command, and unity of direction.

Question 71

in organizations can be assessed by looking at the proportion of jobs that are governed by rules and procedures and the extent to which those rules permit variation.

Question 72

Max Weber considered bureaucracy to be an inefficient form of administration.

Question 73

Departmentalization by may result in significant cost savings and better coverage, but it may isolate work groups from activities in an organization's home office.

Question 74

Authority cannot be delegated down to others, but responsibility can.

Question 75

means decision making occurs throughout the organizational hierarchy.

Question 76

Grouping employees by encourages increased specialization and expertise among employees because they tend to concentrate on a single operation.

Question 77

As part of an organization's culture,
can contribute significantly to the long-term success of an organization.

Question 78

of refers to the way the organization's work is separated into different jobs to be done by different people.

Question 79

A hospital in which nurses are grouped according to types of treatment performed is an example of departmentalization.

Question 80

Departmentalization by customer is often referred to as departmentalization by .