Deck 6: Organization Structure and Design

Question 1

Relish Inc. is a large corporation in the food industry that manufactures canned foods, confectionery, and baked?foods. The organization has a separate department for each of these types of food manufactured. Each department integrates all the activities required to manage their respective line of food. Which of the following types of departmentalization is illustrated in the scenario?

A) Sequential departmentalization
B) Customer departmentalization
C) Product departmentalization
D) Location departmentalization
E) Functional departmentalization

Answer 1

C
Product departmentalization, a second common approach, involves grouping and arranging activities around products or product groups. Most larger businesses adopt this form of departmentalization for grouping activities at the business or corporate level.

Question 2

At Gamma Inc., there are separate departments of employees who specialize in sales, service maintenance, customer service, and accounting. What form of departmentalization does Gamma use?

A) Functional departmentalization
B) Product departmentalization
C) Location departmentalization
D) Customer departmentalization
E) Sequential departmentalization

Answer 2

A
Functional departmentalization groups together those jobs involving the same or similar activities.

Question 3

Job enrichment:

A) does not increase the number of tasks that workers perform.
B) requires the organization to be highly centralized.
C) requires delegation of authority.
D) requires workers to perform a single task.
E) involves workers moving from job to job in a predetermined manner.

Answer 3

C
To implement job enrichment, managers remove some controls from the job, delegate more authority to employees, and structure the work in complete, natural units.

Question 4

_____ attempts to increase both the number of tasks a worker does and the control the worker has over the job.

A) Job deskilling
B) Job enrichment
C) Job specialization
D) Job rotation
E) Job entropy

Question 5

Creating different teams for finance, production, and marketing is consistent with _____ departmentalization.

A) location
B) product
C) functional
D) sequential
E) customer

Question 6

_____ is the degree to which the overall task of the organization is broken down and divided into smaller component parts.

A) Job specialization
B) Job enrichment
C) Job rotation
D) Job enlargement
E) Task identity

Question 7

One of the benefits of job specialization is that:

A) it makes employees proficient at a task.
B) it significantly increases employee satisfaction.
C) it offers new challenges and stimulation to the workers.
D) it decreases boredom and absenteeism among workers.
E) it eliminates job monotony and fatigue.

Question 8

_____ departmentalization groups together those jobs involving the same or similar activities.

A) Product
B) Functional
C) Location
D) Customer
E) Sequential

Question 9

_____ involves systematically moving employees from one job to another.

A) Job enlargement
B) Job rotation
C) Job deskilling
D) Job specialization
E) Job enrichment

Question 10

One of the disadvantages of job specialization is that:

A) it increases the transfer time between tasks.
B) it makes it difficult to develop specialized equipment to assist with a job.
C) it does not help a worker become proficient at a task.
D) it does not offer challenges or stimulation to workers.
E) it requires workers to handle different tasks at a time.

Question 11

_____ was developed to increase the total number of tasks workers perform. As a result, all workers perform a wide variety of tasks, which presumably reduces the level of job dissatisfaction.

A) Job enlargement
B) Job rotation
C) Job enrichment
D) Job specialization
E) Job deskilling

Question 12

Which of the following would require continually adding new tasks and challenges as part of the job design?

A) Job enlargement
B) Job specialization
C) Job rotation
D) Job enrichment
E) Job deskilling

Question 13

Which of the following is an advantage of job specialization?

A) It decreases transfer time between tasks.
B) It increases the level of employee satisfaction.
C) It eliminates monotony and boredom.
D) It provides stimulation and challenges to employees.
E) It significantly reduces employee turnover rates.

Question 14

According to the job characteristics approach, task identity is _____.

A) the number of things a person does in a job
B) the extent to which a worker does a complete portion of the total job
C) the extent to which a worker knows how well the job is being performed
D) the perceived importance of the task
E) the degree of control a worker has over how the work is performed

Question 15

In the context of the job characteristics approach, _____ refers to the extent to which a worker knows how well the job is being performed.

A) feedback
B) task identity
C) task significance
D) autonomy
E) skill variety

Question 16

In the context of the job characteristics approach, skill variety refers to:

A) the extent to which a worker knows how well the job is being performed.
B) the degree of control a worker has over how the work is performed.
C) the perceived importance of a task.
D) the extent to which a worker does a complete or identifiable portion of the total job.
E) the number of things a person does in a job.

Question 17

_____ is the process of grouping jobs according to some logical arrangement.

A) Job rotation
B) Job enrichment
C) Departmentalization
D) Centralization
E) Industrialization

Question 18

Jimmy owns an ice cream parlor. He designs a schedule for the different tasks the employees have to perform in order to prevent monotony at work. According to the schedule, if an employee makes waffle cones on a day, he serves ice creams the next day and clears the tables on the day after that. Jimmy is using the _____ approach at his ice cream parlor.

A) job enrichment
B) job enlargement
C) job rotation
D) job deskilling
E) job specialization

Question 19

In _____, the jobs do not change, but instead workers move from job to job.

A) job rotation
B) job specialization
C) job enrichment
D) job deskilling
E) job enlargement

Question 20

Which of the following is a disadvantage of functional departmentalization?

A) Supervision becomes difficult as managers will need to have skills in several areas.
B) Coordinating activities inside each department becomes difficult.
C) Decision making may tend to become slower as the organization grows.
D) Employees tend to focus on the overall organization rather than their specific jobs.
E) Functional departmentalization cannot be implemented for smaller organizations.

Question 21

Janice owns a bakery that has only ten employees, out of which three are bakers, four are waiters, and the rest belong to the housekeeping staff. Which of the following approaches to departmentalization would work best for the bakery?

A) Functional departmentalization
B) Product departmentalization
C) Customer departmentalization
D) Location departmentalization
E) Sequential departmentalization

Question 22

Gadgetbug Inc. manufactures home appliances. All the decisions are made by the top managers at the company. The middle and lower managers follow the instructions given by top managers rather than making decisions by themselves. Which of the following concepts is illustrated in the scenario?

A) Self-dealing
B) Synergy
C) Centralization
D) Specialization
E) Delegation

Question 23

Researchers have found that a flat organization structure _____.

A) fosters more communication problems
B) is more expensive to maintain than a tall structure
C) leads to higher levels of employee morale
D) fosters bureaucracy
E) leads to lower levels of employee productivity

Question 24

_____ is the process by which a manager assigns a portion of his or her total workload to others.

A) Micromanagement
B) Delegation
C) Entropy
D) Synergy
E) Centralization

Question 25

_____ is defined as a clear and distinct line of authority among the positions in an organization.

A) Chain of command
B) Span of management
C) Job deskilling
D) Flat structure
E) Synergy

Question 26

The term span of management refers to the:

A) extent to which authority is delegated at the individual level.
B) extent to which authority is systematically delegated to middle and lower levels of management.
C) number of people reporting to a particular manager.
D) process of grouping jobs according to some logical pattern.
E) number of managers assigned to a department.

Question 27

One disadvantage of using product departmentalization is that:

A) decision making tends to become slower and more bureaucratic.
B) the performance of individual products or product groups becomes difficult to assess.
C) administrative costs rise because each department must have its own functional specialists.
D) all activities associated with one product or product group cannot be easily integrated and coordinated.
E) accountability of departments becomes very difficult to monitor.

Question 28

_____ is power that has been legitimized by the organization.

A) Entropy
B) Process gain
C) Synergy
D) Authority
E) Process loss

Question 29

When compared to flat organizations, tall organizations:

A) foster fewer communication problems.
B) foster more employee productivity.
C) are more expensive.
D) place excessive responsibilities on managers.
E) are less bureaucratic.

Question 30

Which of the following concepts suggests that there must be a clear and unbroken line of authority that extends from the lowest to the highest position in the organization?

A) The scalar principle
B) Unity of command
C) Entropy
D) Synergy
E) Decentralization

Question 31

A wide span of management in a flat organization may result in a manager having _____.

A) less authority over subordinates
B) more administrative responsibility
C) less accountability to a higher-up
D) less supervisory responsibility
E) more officers at different levels to report to

Question 32

When compared to tall organizations, flat organizations:

A) are more expensive.
B) place more supervisory responsibilities on managers.
C) have more layers of managers.
D) place minimal administrative responsibilities on managers.
E) have lower levels of employee morale and productivity.

Question 33

_____ is the process of systematically delegating power and authority throughout the organization to middle- and lower-level managers.

A) Deskilling
B) Decentralization
C) Self-dealing
D) Divesting
E) Specialization

Question 34

At Supertech Inc., a technology company, employees are given more authority and are allowed to make their own decisions. Supertech operates in a business environment that is not predictable. The middle managers, supervisors, and employees have a degree of autonomy and are encouraged to make decisions. Which of the following concepts is illustrated in the scenario?

A) Deskilling
B) High power distance
C) Micromanagement
D) Decentralization
E) Job specialization

Question 35

_____ suggests that each person within an organization must have a clear reporting relationship to one and only one boss.

A) Span of management
B) Entropy
C) Flat hierarchy
D) Unity of command
E) Scalar principle

Question 36

Which of the following is an accurate comparison between tall organizations and flat organizations?

A) Tall organizations foster employee morale better than flat organizations.
B) Tall organizations have fewer managers than flat organizations.
C) Tall organizations foster more communication problems than flat organizations.
D) Tall organizations place excessive administrative responsibilities on managers than flat organizations.
E) Tall organizations foster more productivity than flat organizations.

Question 37

Tall organizations:

A) have more managers than flat organizations.
B) foster employee morale better than flat organizations.
C) place excessive supervisory responsibilities on managers.
D) have very few communication problems.
E) have less managerial expenses than flat organizations.

Question 38

_____ is defined as the process of linking the activities of the various departments of an organization.

A) Centralization
B) Specialization
C) Decentralization
D) Coordination
E) Delegation

Question 39

The advantage of using the functional departmentalization approach is that:

A) supervision is facilitated because an individual manager needs to be familiar with only a small set of skills.
B) the speed and effectiveness of decision making increase as the organization grows.
C) accountability and performance become easier to monitor.
D) employees get a better view of the total organization.
E) decision making becomes less bureaucratic as the organization grows.

Question 40

_____ is the process of systematically retaining power and authority in the hands of higher-level managers.

A) Specialization
B) Delegation
C) Centralization
D) Self-dealing
E) Deskilling

Question 41

Jeanne owns a boutique in Paris and is best known for the formal suits that she stitches for working women. She makes customized suits for each of her customers, keeping their age, body type, and their appearance in mind. Which of the following technologies is Jeanne using in her boutique?

A) Standardized-process technology
B) Large-batch technology
C) Continuous-process technology
D) Small-batch technology
E) Mass-production technology

Question 42

_____ exists when activities flow both ways between units.

A) Sequential interdependence
B) Pooled interdependence
C) Structural interdependence
D) Reciprocal interdependence
E) Total interdependence

Question 43

In _____ technology, raw materials are transformed to a finished product by a series of machine transformations in such a way that the composition of the materials themselves is changed.

A) product-customization
B) large-batch
C) mass-production
D) continuous-process
E) small-batch

Question 44

Alpha Electronics assembles different parts to make standardized laptops. Alpha Electronics uses _____ technology.

A) job rotation
B) mass-production
C) unit
D) continuous-process
E) small-batch

Question 45

In _____, the output of one unit becomes the input for another in a serial fashion.

A) pooled interdependence
B) sequential interdependence
C) structural interdependence
D) total interdependence
E) reciprocal interdependence

Question 46

At Synergy School, Math, English, Science and Social Studies departments operate separately. Student test scores in each area are gathered to evaluate the effectiveness of the school. What level of interdependence does this represent?

A) Pooled interdependence
B) Complex interdependence
C) Reciprocal interdependence
D) Sequential interdependence
E) Absolute interdependence

Question 47

According to Weber, in a bureaucracy:

A) there should not be any arbitrary dismissals.
B) there should be no rules and regulations.
C) promotions should not be given based on technical expertise.
D) there should not be a social distance between supervisors and subordinates.
E) there should be a chain of command.

Question 48

Durban Cafe takes one order at a time and customizes the coffee as per the customer's requirement . The cafe uses _____ technology.

A) small-batch
B) mass-production
C) continuous-process
D) standardized process
E) large-batch

Question 49

_____ represents the lowest level of interdependence.

A) Pooled interdependence
B) Reciprocal interdependence
C) Sequential interdependence
D) Synergetic interdependence
E) Structural interdependence

Question 50

At Heritage Chocolates, the raw materials are processed at a plant and then sent to the manufacturing plant. The manufactured chocolates are finally sent to the packaging plant. This scenario illustrates _____ at Heritage Chocolates.

A) pooled interdependence
B) two-way interdependence
C) reciprocal interdependence
D) sequential interdependence
E) structural interdependence

Question 51

A(n) _____ is a model of organization design based on a legitimate and formal system of authority.

A) adhocracy
B) bureaucracy
C) entropy
D) autocracy
E) theocracy

Question 52

Cuisine Royale is a restaurant chain that has many outlets. Each outlet has a separate budget and a set of staff. To determine the success of the entire chain, the profits made by all the outlets are put together. Which of the following concepts is illustrated in the scenario?

A) Pooled interdependence
B) Reciprocal interdependence
C) Job rotation
D) Sequential interdependence
E) Specialization

Question 53

At Delta Corp. the manufacturing and design department frequently consults with the research and development department and the marketing and sales department regularly interacts with the manufacturing and design department. This scenario illustrates _____ at Delta.

A) coordination
B) delegation
C) job rotation
D) job specialization
E) centralization

Question 54

_____ encompasses the conversion processes used to transform inputs (such as materials or information) into outputs (such as products or services).

A) Deskilling
B) Entropy
C) Synergy
D) Technology
E) Divestiture

Question 55

Units with _____ operate with little interaction-the output of the units is put together at the organizational level.

A) pooled interdependence
B) total interdependence
C) reciprocal interdependence
D) sequential interdependence
E) structural interdependence

Question 56

At Libra Motors Inc. operations managers give availability information to the dealerships department. When the dealerships department has a specific order, it is sent to the operations department. Which of the following concepts is illustrated in the scenario?

A) Sequential interdependence
B) Product departmentalization
C) Pooled interdependence
D) Reciprocal interdependence
E) One-way interdependence

Question 57

Reciprocal interdependence:

A) is found in product and not service-based companies.
B) involves one-way interdependence.
C) represents the lowest level of interdependence.
D) involves minimal communication among departments.
E) is the most complex form of interdependence.

Question 58

Sequential interdependence:

A) typically involves no interaction among departments.
B) generally involves one-way interdependence.
C) is the most complex form of interdependence.
D) is a level of interdependence in which the performance of one department is not affected by the performance of other departments.
E) represents the lowest level of interdependence.

Question 59

Which of the following is one of the characteristics of Weber's bureaucracy?

A) Distinct division of labor
B) Close personal relationships between supervisors and subordinates
C) Absence of rules and regulations
D) Maximum level of decentralization
E) Presence of cross-departmental teams

Question 60

Which of the following is a characteristic of Weber's bureaucracy?

A) Promotions based on technical expertise
B) Absence of rules and regulations
C) Arbitrary dismissals
D) Random work assignment
E) A high level of decentralization

Question 61

A mechanistic organization is most likely to:

A) have the least level of job specialization.
B) have a flexible structure.
C) have centralized authority.
D) have an informal organizational design.
E) operate in an unstable environment.

Question 62

Which of the following statements is true about an organic organization?

A) It has a flexible and informal organizational design.
B) It is most likely to be operating in a very stable and predictable environment.
C) It has a structure that is similar to a bureaucracy.
D) It is most likely to have centralized authority.
E) It has higher levels of job specialization than a mechanistic organization.

Question 63

Organizational size is defined as:

A) the total number of investors and stockholders in an organization.
B) the total number of departments in an organization.
C) the total number of full-time or full-time-equivalent employees in an organization.
D) the total number of customers of an organization.
E) the total number of middle and first-line managers in an organization.

Question 64

_____ is the extent to which an organization is broken down into subunits.

A) Entropy
B) Differentiation
C) Integration
D) Synergy
E) Divestiture

Question 65

The _____ design is based on two overlapping bases of departmentalization.

A) H-form
B) matrix
C) functional
D) divisional
E) U-form

Question 66

Under the _____ arrangement, the members and units in an organization are grouped into functional departments such as marketing and production.

A) division form
B) Z-form
C) H-form
D) U-form
E) M-form

Question 67

Which of the following statements is true about organic organizations?

A) They are similar to bureaucracies.
B) They are formal and rigid.
C) They have centralized authority.
D) They operate in unstable environments.
E) They have an inflexible organizational design.

Question 68

A(n) _____ organization is similar to the bureaucratic model.

A) mechanistic
B) organic
C) continuous process
D) large-batch
E) unit

Question 69

According to Woodward's findings related to technology and organization design:

A) successful continuous-process organizations tended to have more bureaucracy.
B) unit-batch organizations had the highest level of specialization.
C) mass-production organizations tended to be the least bureaucratic.
D) unit-batch organizations tended to be the most bureaucratic.
E) mass-production organizations had a higher level of specialization.

Question 70

A finding of Woodward's study about forms of technology was that:

A) mass-production organizations tended to have the lowest level of specialization.
B) small-batch organizations tended to have minimal bureaucracy.
C) mass-production organizations tended to be the least bureaucratic.
D) continuous-process technology was the simplest of all forms of technology.
E) continuous-process organizations tended to be the most bureaucratic.

Question 71

The _____ of an organizational life cycle is characterized by growth and the expansion of organizational resources.

A) youth
B) birth
C) senescence
D) decline
E) divestiture

Question 72

_____ is the degree to which the various subunits must work together in a coordinated fashion.

A) Integration
B) Differentiation
C) Departmentalization
D) Specialization
E) Entropy

Question 73

In organizations using _____, the product is manufactured in assembly-line fashion by combining component parts into another part or finished product.

A) job rotation technology
B) large-batch technology
C) unit technology
D) continuous-process technology
E) small-batch technology

Question 74

As an organization passes from one stage of the organizational lifecycle to the next, _____.

A) it becomes smaller
B) it's coordination demands increase
C) it becomes more centralized
D) it's structure becomes less mechanistic
E) it's control systems become more limited

Question 75

Mechanistic organizations:

A) have the least level of specialization.
B) are least likely to have rules and regulations.
C) are most frequently found in stable environments.
D) are least likely to be bureaucratic.
E) are the most decentralized.

Question 76

Gemini Motors has an assembly-line structure. Workers combine separate parts into standardized finished motorbikes. Gemini Motors is most likely to be using _____ technology.

A) small-batch
B) mass-production
C) continuous-process
D) unit
E) job enrichment

Question 77

According to Woodward, which of the following is true about the relationship between organization design and core technology?

A) Organizations using mass production technology tend to have the least level of specialization.
B) Organizations using continuous-process technologies tend to be the most bureaucratic.
C) Organizations with large-batch technologies tend to be more bureaucratic.
D) Continuous-process technology is the least complex of all other technologies.
E) Organizations using unit or small-batch technology are the most bureaucratic.

Question 78

The _____ design is based on multiple businesses in related areas operating within a larger organizational framework.

A) conglomerate
B) divisional
C) H-form
D) matrix
E) functional

Question 79

Which of the following statements is true about mechanistic organizations?

A) They have a very flexible and informal structure.
B) They have the lowest level of job specialization.
C) They are highly decentralized.
D) They are most frequently found in unpredictable and unstable environments.
E) They structure their activities in predictable ways.

Question 80

_____ is a period of stability in an organizational lifecycle, eventually evolving into decline.

A) Maturity
B) Birth
C) Youth
D) Midlife
E) Synergy