Deck 7: Designing Organization Structure

Question 1

Reengineering basically means preserving the past by establishing the sequence of activities by how work was done.

Answer 1

False

Question 2

Aspects of both functional and divisional structures simultaneously in the same part of the organization are combined in the virtual network approach.

Answer 2

False

Question 3

Traditional views of organizational design recommend a span of management of about 7 to 10 subordinates per manager.

Answer 3

True

Question 4

Certainty in the environment is usually associated with decentralization.

Question 5

The functional structure is appropriate when the primary goal is innovation and flexibility.

Question 6

At Fox End,people are grouped together in departments by common skills and work activities,including a sales department and a production department.This is an example of vertical functional approach.

Question 7

Service firms include banks,hotels,and law firms.

Question 8

In the divisional approach,coordination across divisions is great whereas coordination within divisions is often poor.

Question 9

Quick response to external changes is an advantage of vertical functional structure.

Question 10

When an organization uses a differentiation strategy,it strives for internal efficiency.

Question 11

Organizing defines what to do while strategy defines how to do it.

Question 12

The principle of unity of command suggests that managers within an organization should reach agreement on the goals and objectives of the organization.

Question 13

The trend in recent years has been toward narrower spans of control as a way to facilitate delegation.

Question 14

The pure functional structure is appropriate for achieving internal efficiency goals.

Question 15

For companies to operate effectively,the amount of centralization or decentralization should fit the firm's strategy.

Question 16

Collaboration refers to the managerial task of adjusting and synchronizing the diverse activities among different individuals and departments.

Question 17

The confusion and frustration caused by the dual chain of command is a major problem of the matrix structure.

Question 18

The framework in which the organization defines how tasks are divided,resources are deployed and departments are coordinated is called organizational structure.

Question 19

The _____ delineates the chain of command,indicates departmental tasks and how they fit together,and provides order and logic for the organization.

A)management chart
B)employee directory
C)structural table
D)administrative chart
E)organizational chart

Question 20

The distinctive feature of the project manager position is that the person is not a member of one of the departments begin coordinated.

Question 21

Which of the following factors is NOT associated with larger span of control?

A)Work performed by subordinates is stable and routine.
B)Subordinates perform similar work tasks.
C)Subordinates are located at various different locations.
D)Subordinates are highly trained and need little direction.
E)Rules and procedures defining task activities are available.

Question 22

All of the following are advantages of a divisional structure,except:

A)high concern for customers' needs.
B)fast response, flexibility in an unstable environment.
C)emphasis on overall product and division goals.
D)development of general management skills.
E)there is little duplication of services across divisions.

Question 23

Which of the following is a contemporary approach to structural design in departmentalization?

A)Functional
B)Divisional
C)Traditional divisions
D)Teams
E)Geographic-based

Question 24

The functional,_____,and _____ are traditional approaches that rely on the chain of command to define departmental groupings and reporting relationships along the hierarchy.

A)divisional; teams
B)divisional; matrix
C)matrix; teams
D)matrix; networks
E)teams; networks

Question 25

The matrix structure violates which of the following principles of management?

A)Unity of direction
B)Unity of command
C)Work specialization
D)Division of labor
E)Span of management

Question 26

Walt works for a large company.Recently,his organization began to contract out such functions as training,engineering,and computer service.This approach is consistent with a _____ structure.

A)functional
B)team
C)divisional
D)virtual network
E)service

Question 27

Organ Rentals Corporation has been having numerous problems.Communication across departments is poor and decisions are backing up at the top of the organization.Organ Rentals uses a _____ structure.

A)geographic
B)product
C)functional
D)matrix
E)team-based

Question 28

_____ departments include all of those that provide specialized skills in support of _____ departments.

A)Line; staff
B)Staff; line
C)Primary; functional
D)Functional; primary
E)Line; functional

Question 29

Which of the following structures works best in an uncertain organizational environment?

A)A tight structure
B)A mechanistic structure
C)A horizontal structure
D)A functional structure
E)A vertical structure

Question 30

Stephanie works in one of seven research and development departments at Tara's Terrace,Inc.This would suggest that Tara's Terrace has a:

A)functional structure.
B)divisional structure.
C)wide span of control.
D)high degree of centralization.
E)matrix structure.

Question 31

Louise works in the manufacturing department at Ice Sculptures.The work in Louise's department is low in task specialization.As a result,Louise:

A)usually performs a single task.
B)does a variety of tasks and activities.
C)is often bored.
D)is rarely challenged.
E)generally goofs-off.

Question 32

Swift Move Facilities manufacturers two different bicycle models.The company produces a high volume of products using standardized production runs.The company does very little product customization.Swift Move uses what type of technology structure?

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

Question 33

Makai's Marketing Mix (MMM)does not use its resources wisely.The employees at MMM spend too much time in meetings and not enough time focusing on the task at hand.MMM's management should consider changing the organizational structure from _____ to _____.

A)horizontal; vertical
B)team based; horizontal
C)vertical; team based
D)mechanistic; rigid
E)team-based; virtual network

Question 34

Which of the following structures is most consistent with a strategy of stability?

A)Team based structure
B)Organic structure
C)Matrix structure
D)Functional structure
E)Learning structure

Question 35

With a(n)_____ strategy,the organization attempts to develop innovative products unique to the market.

A)differentiation
B)integration
C)reengineering
D)cost leadership
E)defensive

Question 36

Innovative Creations Corporation is designed along functional lines.New product development is very slow and the process is plagued by many problems.One of the problems is that the people in marketing never communicate with the people in production.This is an example of poor:

A)coordination.
B)planning.
C)motivating.
D)leading.
E)controlling.

Question 37

Jacob,a customer service representative for AB Retailers,has seven levels of management between himself and the company's CEO.In contrast,his friend Rhonda,a customer service representative for YZ Retailers,has only four levels of management between her and the company CEO.Compared to YZ,Jacob's company has what type of organizational structure?

A)Narrow
B)Wide
C)Flat
D)Tall
E)Identical

Question 38

Which of the following typically is NOT considered a staff department?

A)Strategic planning
B)Accounting
C)Manufacturing
D)Human resources
E)Research and development

Question 39

Rebecca works for a company that has clearly defined lines of authority.Each employee knows that he or she has authority and responsibility for a distinct set of tasks.Employees are also aware of the company's reporting structure as well as successive management levels all the way to the top.Rebecca's company follows which principle?

A)Specialization principle
B)Unity of command principle
C)Scalar principle
D)Authority principle
E)Responsibility principle

Question 40

Flash Card Inc.recently underwent a significant company-wide change that involved revision of its manufacturing and leadership processes.The result of this was a stronger emphasis on horizontal coordination.This level of change is referred to as:

A)reorganization.
B)reengineering.
C)e-engineering.
D)strategic planning.
E)corporate structuring.

Question 41

_____ refers to services that are perishable and,unlike physical products,cannot be stored in inventory.

Question 42

The _____ is the number of employees reporting to a supervisor.

Question 43

The _____ combines aspects of both functional and divisional structures simultaneously,in the same part of the organization.

Question 44

A(n)______ structure is the grouping of positions into departments based on similar skills,expertise,and resource use.

Question 45

_____ production involves the production of goods in batches of one or a few products designed to customer specifications.

Question 46

_____ is the radical redesign of business processes to achieve dramatic improvements in cost,quality,service,and speed.

Question 47

A(n)_____ structure has a wide span,is horizontally dispersed,and has fewer hierarchical levels.

Question 48

The degree to which organizational tasks are subdivided into individual jobs is called _____.

Question 49

The visual representation of an organization's structure is called the _____.

Question 50

_____ teams consist of employees from various functional departments who are responsible to meet as a team and resolve mutual problems.

Question 51

A(n)_____ is a temporary team designed to solve a short-term problem involving several departments.

Question 52

_____ is characterized by intangible outputs.

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

Question 53

A(n)_____ is a person who is responsible for coordinating the activities of several departments for the completion of a specific project.

Question 54

List three disadvantages of the divisional structure.

Question 55

When people from two or more departments work together to produce outcomes that meet a common goal,this is referred to as _____.

Question 56

With _____ decision authority is pushed downward to lower organization levels.

Question 57

List the advantages of the virtual network structure.

Question 58

_____ is the formal and legitimate right of a manager to make decisions,issue orders,and allocate resources to achieve organizationally desired outcomes.

Question 59

In the _____ approach of structural design,departments are independent,contracting services to the central hub for a profit.

Question 60

_____ is the process managers use to transfer authority and responsibility to positions below them in the hierarchy.

Question 61

Compare and contrast authority,responsibility,accountability,and delegation.

Question 62

List the three basic types of production technology.

Question 63

What is the team approach to departmentalization and what are its main disadvantages?

Question 64

Describe service technology.

Question 65

What is(are)the difference(s)between cross-functional and permanent teams?