Deck 13: Designing Organizational Structures

Question 1

________ is the subdivision of work into separate jobs assigned to separate people.

A) Job specialization
B) Division of labor
C) Role coordination
D) Informal coordination
E) Process standardization

Answer 1

Division of labor

Question 2

As the division of labor increases

A) coordination becomes unnecessary.
B) coordination becomes less costly.
C) formal coordination is the only required coordination.
D) coordination becomes more difficult.
E) companies move towards a simple structure.

Answer 2

coordination becomes more difficult.

Question 3

What is concurrent engineering?

A) Assigning people to coordinate a work process by encouraging employees in each work unit to share information and informally coordinate work activities.
B) People who are expected to communicate and share information with coworkers in other work units.
C) Organizing employees from several departments into temporary cross-disciplinary teams.
D) Standardizing the output of a company's processes.
E) A coordinating mechanism that is outdated and no longer used.

Answer 3

Organizing employees from several departments into temporary cross-disciplinary teams.

Question 4

The formal hierarchy assigns ________ power to individuals.

A) legitimate
B) reward
C) coercive
D) referent
E) expert

Question 5

One problem with the chain of command is that

A) most managers do not want the responsibility of legitimate power.
B) as companies grow, levels of management decrease.
C) today's workforce values autonomy.
D) it relies on indirect supervision.
E) employees overall want to be micromanaged.

Question 6

Standardized output requires

A) clearly defined goals.
B) routine tasks.
C) less concern for quality.
D) informal coordination.
E) in-house training.

Question 7

Which coordination mechanism has liaison roles?

A) division of labor
B) standardization
C) informal communication
D) formal hierarchy
E) chain of command

Question 8

Coordination through formal hierarchy relies on

A) informal communication.
B) standardization.
C) concurrent engineering.
D) formal communication channels.
E) specialized skills of the employees.

Question 9

When companies assign sales targets, they are using which type of coordination?

A) standardized outputs
B) standardized skills
C) standardized processes
D) formal hierarchy
E) temporary teams

Question 10

Where coordination is required among several work units, companies create

A) liaison roles.
B) integrator roles.
C) mediators.
D) concurrent engineering.
E) temporary teams.

Question 11

Rosa was just hired to be the manager at the local retail store. One of her first decisions is to create temporary teams. She is using which coordinating mechanism?

A) informal communication
B) formal hierarchy
C) standardized processes
D) standardized outputs
E) standardized skills

Question 12

Liam is frustrated that there appears to be no one who has the authority to make decisions on his team. Which coordinating mechanism is lacking on his team?

A) informal communication
B) formal hierarchy
C) standardized processes
D) standardized outputs
E) standardized skills

Question 13

A narrower span of control is necessary where managers supervise employees who

A) work in self-directed teams with minimal supervision.
B) perform complex tasks.
C) coordinate mainly through standardized skills.
D) perform jobs that require minimal interaction with each other (i.e. low interdependence).
E) perform routine tasks.

Question 14

As organizations grow larger, they tend to

A) become more formalized.
B) have a more centralized structure.
C) move toward a simple structure.
D) shift from a mechanistic to an organic structure.
E) operate with a wide span of control and less standardization.

Question 15

________ are organizational forms surrounded by a cluster composed of span of control, centralization, and formalization.

A) Hierarchical and delayered structures
B) Networked and team-based structures
C) Geographic and product/client divisions
D) Organic and mechanistic structures
E) Diverse and integrated structures

Question 16

________ refers to the number of people directly reporting to the next level above in the hierarchy.

A) Tall hierarchies
B) Centralization
C) Flat structures
D) Span of control
E) Formalization

Question 17

Which of the following should occur in work units where managers supervise employees who mostly perform routine jobs?

A) The employees should coordinate almost completely through formal hierarchy.
B) The work unit of those employees should be located in a divisional structure.
C) The manager should have a wide span of control over those employees.
D) The employees should be organized into self-directed work teams.
E) The work unit should be designed as an organic structure.

Question 18

A narrow span of control is necessary when employees do all of the following except

A) perform complex tasks.
B) perform novel tasks.
C) perform routine jobs.
D) require coaching.
E) require supervisor involvement.

Question 19

A narrow span of control is necessary for highly interdependent jobs because employees

A) are clear on their personal work performance.
B) require less direction or advice from supervisors.
C) are self-managing and coordinate mainly through standardized skills.
D) tend to experience more conflict with each other.
E) perform routine tasks.

Question 20

The local county government is flattening its hierarchy to address a budget crisis. As a result, they must

A) adopt a matrix form of departmentalization.
B) widen the span of control.
C) rely more on direct supervision than on standardization to coordinate the resulting structure.
D) centralize decision making.
E) discourage employee empowerment.

Question 21

Which of the following is a benefit of flatter hierarchies?

A) It takes more people to administer the company.
B) This type of hierarchy has a lower quality and less timely information available.
C) A flatter hierarchy's information is manipulated less often.
D) Employees are less empowered and more engaged in their work.
E) This hierarchy results in a reduction in staff.

Question 22

When larger organizations disperse decision authority and power throughout the organization, they

A) decentralize.
B) flatten.
C) centralize.
D) formalize.
E) simplify.

Question 23

________ means that formal decision-making authority is held by a small group of people.

A) Departmentalization
B) Span of control
C) Formalization
D) Centralization
E) Division of labor

Question 24

________ work better in rapidly changing environments because they are more flexible and responsive to the changes.

A) Mechanistic structures
B) Formalization structures
C) Departmentalization structures
D) Centralization structures
E) Organic structures

Question 25

A(n) ________ exists when a manager has many direct reports.

A) narrow span of control
B) wide span of control
C) tall organization
D) mechanistic structure
E) centralized structure

Question 26

Companies that rely on direct supervision for coordination tend to

A) remove layers of management.
B) build taller structures.
C) rely mainly on informal coordination.
D) have an organic structure.
E) empower their employees.

Question 27

Which of the following is true of flattened hierarchies?

A) Managers have more time to coach employees.
B) Managers are better able to resolve conflicts.
C) There are many layers of management.
D) Promotions become riskier.
E) Managerial skills become less important.

Question 28

Companies become ________ as they rely on standardization to coordinate work.

A) formalized
B) decentralized
C) organic
D) inefficient
E) taller

Question 29

A chain of command is established through

A) span of control.
B) formalization.
C) centralization.
D) departmentalization.
E) standardization.

Question 30

Compared with divisional structures, functional structures tend to

A) create better economies of scale.
B) be more responsive to local markets.
C) create less dysfunctional conflict.
D) make direct supervision more difficult.
E) be more responsive to client needs.

Question 31

Team-based organizational structures have

A) centralized decision making.
B) supervisors as the main source of direction and control.
C) a tall hierarchy.
D) mechanistic structures.
E) a wide span of control.

Question 32

Which of the following is most likely to have low formalization, high decentralization, and a wide span of control?

A) a mechanistic structure
B) a matrix structure organized by product and geography
C) a team-based structure
D) a functional structure
E) a divisional structure

Question 33

Which form of departmentalization tends to have a very flat hierarchy, to have little formalization, and in which work units complete an entire piece of work?

A) geographical structure
B) functional structure
C) team-based structure
D) matrix structure
E) network structure

Question 34

Which of the following is one of the common pure types of departmentalization?

A) complex
B) dysfunctional
C) matrix
D) organic
E) formalized

Question 35

A wholesale florist operates in one state and provides one service-floral design for delivery. The company's aim is to create specialized pools of talent. Which of the following forms of departmentalization would be most appropriate here?

A) simple structure
B) matrix structure
C) geographical divisional structure
D) functional structure
E) product divisional structure

Question 36

The ________ organizational structure accommodates growth relatively easily.

A) network
B) matrix
C) simple
D) divisional
E) functional

Question 37

Which one of the following is a limitation of the divisional structure?

A) The divisional structure tends to duplicate resources.
B) The divisional structure motivates people to share knowledge.
C) The divisional structure integrates knowledge across the organization.
D) The divisional structure pools resources.
E) The divisional structure segregates cultures.

Question 38

The ________ structure usually makes very good use of resources and expertise, making it ideal for project-based organizations with fluctuating workloads.

A) network
B) matrix
C) functional
D) simple
E) team-based

Question 39

What is the most common matrix design for global companies?

A) functional departmentalization
B) a product-geographic matrix
C) a product-client matrix
D) a client-geographic matrix
E) a client-network matrix

Question 40

Executives who have worked in a global matrix say they have

A) more control.
B) more freedom.
C) more employees.
D) more complications.
E) more work.

Question 41

Which structure increases conflict among managers who equally share power?

A) simple
B) divisional
C) functional
D) matrix
E) network

Question 42

Ambiguous accountability is a challenge with ________ structures.

A) simple
B) divisional
C) functional
D) matrix
E) network

Question 43

One of the main forces pushing toward a ________ structure is the recognition that an organization has only a few core competencies.

A) simple
B) divisional
C) functional
D) matrix
E) network

Question 44

A potential disadvantage of ________ structures is that they expose the core firm to market forces.

A) simple
B) divisional
C) functional
D) matrix
E) network

Question 45

Due to the rapid changes in technology, and complex production processes, many companies are adopting a ________ structure.

A) matrix
B) team-based
C) network
D) simple
E) divisional

Question 46

Which structure approximates the metaphor that organizations are plasma-like organisms rather than rigid machines?

A) matrix
B) team-based
C) divisional
D) functional
E) network

Question 47

One concern regarding the ________ structure is that it creates silos of knowledge.

A) divisional
B) functional
C) simple
D) matrix
E) team-based

Question 48

The greater the variety of products, services, clients, or regions an organization serves, the more it needs to use a(n) ________ structure aligned with that diversity.

A) functional
B) divisional
C) network
D) organic
E) simple

Question 49

Organic structures are better suited to ________, so the organization can adapt more quickly to changes.

A) unknown environments
B) dynamic environments
C) stable environments
D) simple environments
E) routine environments

Question 50

________ are characterized by regular cycles of activity and steady changes in supply and demand for inputs and outputs.

A) Mechanistic environments
B) Dynamic environments
C) Stable environments
D) Simple environments
E) Routine environments

Question 51

When the environment is predictable, ________ environments are more efficient, so they tend to be more profitable than organic structures under these conditions.

A) mechanistic
B) dynamic
C) stable
D) simple
E) routine

Question 52

The more complex the environment, the more ________ the organization should become.

A) decentralized
B) centralized
C) standardized
D) formalized
E) networked

Question 53

The more diversified the environment, the more the firm needs to use a ________ aligned with that diversity.

A) team-based structure
B) formalized structure
C) centralized
D) divisional structure
E) decentralized

Question 54

A(n) ________ structure should be introduced where employees perform tasks with high variability and low analyzability.

A) team-based
B) formalized
C) organic
D) mechanistic
E) simple

Question 55

Where the technology has low variability and high analyzability, a(n) ________ structure is preferred.

A) team-based
B) formalized
C) organic
D) mechanistic
E) simple

Question 56

Emerging information technologies and increased emphasis on empowerment have caused large firms to reconsider the importance of ________ as a coordinating mechanism.

A) the chain of command
B) process standardization
C) the formal hierarchy
D) output standardization
E) informal communication

Question 57

Organizational structures don't evolve as a natural response to environmental conditions; they result from conscious human decisions. In other words,

A) strategy follows structure.
B) structure follows strategy.
C) structure and strategy are essentially the same thing.
D) structure exists independent of executive decisions.
E) strategy has no influence on structure.

Question 58

Betita recently earned her degree in nursing and has begun a career path in the surgical ward at a local hospital. Her training program consists of a year-long internship, working with senior nurses. While in school, Betita worked in a medical lab performing routine blood tests. The lab technician job required her to take a two-week course and refer to a procedures manual for her work on a daily basis.

-Which coordinating mechanism is most important in Betita's new career as a surgical nurse?

A) direct supervision
B) an integrator role
C) the chain of command
D) standardized training
E) standardized outputs

Question 59

Betita recently earned her degree in nursing and has begun a career path in the surgical ward at a local hospital. Her training program consists of a year-long internship, working with senior nurses. While in school, Betita worked in a medical lab performing routine blood tests. The lab technician job required her to take a two-week course and refer to a procedures manual for her work on a daily basis.

-Which coordinating mechanism was most important in Betita's job as a lab technician?

A) direct supervision
B) integrator roles
C) job descriptions
D) standardized training
E) standardized outputs

Question 60

Betita recently earned her degree in nursing and has begun a career path in the surgical ward at a local hospital. Her training program consists of a year-long internship, working with senior nurses. While in school, Betita worked in a medical lab performing routine blood tests. The lab technician job required her to take a two-week course and refer to a procedures manual for her work on a daily basis.

-On the hospital floor, the senior nurse has set targets for each nurse with regard to how many patients are to be seen and how many charts are to be coded. This is an example of

A) direct supervision.
B) integrator roles.
C) job descriptions.
D) extensive training.
E) standardized outputs.

Question 61

Main Market, a wholesale grocery business, operates in one city and provides one service-stocking retailers with fresh produce. The company wants to ensure that employees develop expertise in their skill specialization and that these specializations are used efficiently.

-What form of departmentalization would be most appropriate here?

A) simple structure
B) matrix structure
C) geographic divisional structure
D) functional structure
E) product divisional structure

Question 62

Main Market, a wholesale grocery business, operates in one city and provides one service-stocking retailers with fresh produce. The company wants to ensure that employees develop expertise in their skill specialization and that these specializations are used efficiently.

-A potential problem with Main Market's form of structure is

A) inefficient resource utilization.
B) increased costs.
C) excessive focus on clients.
D) ambiguous accountability.
E) higher dysfunctional conflict.

Question 63

Main Market, a wholesale grocery business, operates in one city and provides one service-stocking retailers with fresh produce. The company wants to ensure that employees develop expertise in their skill specialization and that these specializations are used efficiently.

-A potential benefit with Main Market's form of structure is

A) being flexible and responsive in a turbulent environment.
B) accommodating growth relatively easily.
C) communicating with suppliers and customers from almost anywhere.
D) using a minimal hierarchy.
E) creating a specialized pool of talent.

Question 64

Consume, a consumer products firm with a functional structure, is expanding from a single product line into several diverse product groups, with most sales within one country.

-A potential problem with Consume's form of structure is

A) inefficient resource utilization.
B) it is outcome focused.
C) excessive focus on clients.
D) ambiguous accountability.
E) higher dysfunctional conflict.

Question 65

Consume, a consumer products firm with a functional structure, is expanding from a single product line into several diverse product groups, with most sales within one country.

-A potential benefit with Consume's form of structure is

A) being flexible and responsive in a turbulent environment.
B) accommodating growth relatively easily.
C) communicating with suppliers and customers from almost anywhere.
D) using a minimal hierarchy.
E) creating a specialized pool of talent.

Question 66

What do temporary teams typically consist of, and which coordinating strategy best suits this work methodology?

Question 67

In non-routine and ambiguous situations, informal communication is vital.

Question 68

Two ways to encourage formal communication in large organizations are to assign liaison roles and integrator roles.

Question 69

In a formal hierarchy work is coordinated through direct supervision.

Question 70

Coordination through standardization can be based on processes, skills, or outputs.

Question 71

One downside to job specialization is that it increases training costs.

Question 72

It is possible for an organization to divide work beyond its capacity to coordinate that work.

Question 73

When employees perform highly interdependent work, a narrow span of control is generally necessary.

Question 74

In tall organizational structures, executives tend to receive less timely and lower quality information.

Question 75

As companies become more standardized, they tend to become less formalized.

Question 76

Mechanistic structures have a narrow span of control.

Question 77

Companies with an organic structure have a wide span of control, decentralized decision making, and high levels of formalization.

Question 78

In a matrix structure, employees report to two bosses.

Question 79

Many companies are adopting a network structure by designing and building a product or serving a client through an alliance of several organizations.

Question 80

The two main technological contingencies on organizational structure are variability and analyzability.