Deck 10: Designing Organisation Structure

Question 1

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

Answer 1

False

Question 2

Line authority relates to the number of employees to report to a supervisor,whereas staff authority relates to the manner in which individuals in management positions have formal power to direct and control immediate employees.

Answer 2

False

Question 3

Formalisation refers to the process of creating written documentation to direct and control employees.

Answer 3

True

Question 4

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

Question 5

The degree to which organisational tasks are subdivided into individual jobs is known as work specialisation.

Question 6

The duty to perform the task or activity an employee has been assigned is called accountability.

Question 7

A structure characterised by an overall narrow span of management is considered to be a tall structure.

Question 8

The visual representation of an organisation's chain of command is known as the organisation chart.

Question 9

In a horizontal matrix approach to departmentalisation,two chains of command exist,with top priority given to the team managers.

Question 10

Organisational structure refers to the framework in which the organisation defines the way tasks are divided,resources are deployed and departments are coordinated.

Question 11

Authority is the right to use resources,make decisions and issue orders in an organisation.

Question 12

Relatively few hierarchical levels and a correspondingly narrow span of management characterises a flat structure.

Question 13

The deployment of organisational resources to achieve strategic goals is known as organising.

Question 14

Given the challenges to meet customer needs and adapt to the environment,most organisations today discourage managers to delegate authority to the lower levels.

Question 15

The duty to perform the task or activity an employee or other stakeholder has been assigned is known as responsibility.

Question 16

In structures based on centralisation,the location of decision authority is usually at a single point,and usually near the middle to lower levels of the organisation.

Question 17

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

Question 18

An unbroken line of authority that links all individuals in the organisation and specifies who reports to whom is known as the chain of command.

Question 19

At Sicey's Salmon Products in Sydney,departments are grouped together into separate self-contained groups based on common products and product lines.This is an example of departmental approach.

Question 20

The number of employees reporting to a supervisor is known as his or her span of management.

Question 21

A cross-functional team normally has two or more groups of employees who are in continuing conflict because of a difference in goals and values.

Question 22

The divisional structure fosters excellent coordination within divisions,but coordination across divisions is often poor.

Question 23

Relational coordination refers to frequent horizontal coordination and communication carried out through ongoing relationships of shared goals,shared knowledge and mutual respect.

Question 24

The three contingency factors that impact on an organisation's structure are: strategy,the environment and technology.

Question 25

Work specialisation is the degree to which organisational tasks are subdivided into separate jobs.

Question 26

Horizontal structures organise employees based on their work processes rather than on a departmental functions.

Question 27

Which of these refers to the deployment of organisational resources to achieve strategic goals?

A) Planning
B) Organising
C) Controlling
D) Leading
E) Strategic management

Question 28

Engineering refers to the radical redesign of the business process to achieve dramatic improvements in cost,quality,service and speed.

Question 29

A top leader is an overseer of both the product and the functional chains of command,and is responsible for the entire set of relationships in the matrix structure.

Question 30

A task force is a permanent team or committee designed to solve a short-term problem involving several departments.

Question 31

A major difference between divisional and functional structures is that the chain of command from each function converges lower in the hierarchy.

Question 32

The success of matrix structure depends on the abilities of people in key matrix roles.

Question 33

An advantage of vertical functional structure is its quick response to external changes.

Question 34

Having reduced administrative overheads is considered disadvantage of the network structure.

Question 35

One of the disadvantages of team approach is that employees often experience conflicts and dual loyalties.

Question 36

The nature of the network structure means that the subcontractor becomes a permanent part,and an internal division of the organisation.

Question 37

'Line authority' refers to the form of authority granted to staff specialists in their area of expertise.

Question 38

The greatest advantage of the network approach to structure is competitiveness on a global scale.

Question 39

Collaboration refers to the managerial task of adjusting and synchronising the diverse activities among different individuals and departments,whereas coordination refers to a joint effort between people (usually from two or more separate departments)to produce outcomes that meet a shared goal.

Question 40

The functional structure offers a way to decentralise decision making and provide direction from the teams in the field.

Question 41

Matthew's subordinates are highly trained and all perform similar tasks.Jessica's subordinates are spread over two locations and she has little available in the way of support systems.Which of the following statements is most correct?

A) Jessica's span of management can be larger than Matthew's.
B) Jessica will have problems with unity of command.
C) Matthew's span of management can be larger than Jessica's.
D) Matthew has more problems with work specialisation.
E) None of these choices.

Question 42

Relative to a flat organisational structure,a tall structure has a __________ span of management and __________ hierarchical levels.

A) wide; fewer
B) narrow; fewer
C) narrow; wide
D) narrow; more
E) wide; more

Question 43

Which of the following characteristics distinguishes authority?

A) It is vested in people, not positions.
B) Subordinates accept it.
C) It flows across the horizontal hierarchy.
D) It emerges from the organisational values.
E) Individuals are born with this power.

Question 44

Which of these refers to the amount of written documentation used to direct and control employees?

A) Centralisation
B) Differentiation
C) Specialisation
D) Formalisation
E) None of these choices.

Question 45

Change and uncertainty in the environment are usually associated with:

A) work specialisation
B) decentralisation
C) centralisation
D) tight vertical control
E) division of labour.

Question 46

Ben was recently looking at his company's organisation chart in an attempt to discover who reports to whom.Ben is studying his organisation's:

A) degree of formalisation
B) amount of differentiation
C) degree of centralisation
D) chain of command
E) division of labour.

Question 47

'Work specialisation' is also known as:

A) job design
B) lines of authority
C) division of labour
D) line specialisation
E) team structure.

Question 48

An unbroken line of authority that links all individuals in the organisation is known as the:

A) amount of work specialisation in an organisation
B) degree of formalisation
C) amount of bureaucracy in the organisation
D) chain of command
E) matrix structure.

Question 49

Organisation structure is defined as:

A) the visual representation of the organisation
B) the framework in which the organisation defines how tasks are divided, resources are deployed and departments are coordinated
C) the division of labour
D) the unbroken line of authority that links all individuals in the organisation
E) None of these choices.

Question 50

Jim of National Park Tours Ltd wishes to empower his subordinates to make decisions.This process is known as:

A) accountability
B) coordination
C) delegation
D) departmentalisation
E) passing the buck.

Question 51

Ben and Bill work at Melbourne Corporation.Although they both work on the assembly line,they have the authority to make many decisions about their job.Melbourne Corporation can be said to have:

A) a wide span of management
B) a high degree of decentralisation
C) a high degree of centralisation
D) a narrow span of management
E) no management.

Question 52

The organisation chart:

A)shows the characteristics of the organisation's vertical structure
B)is a visual representation of the organisation's structure
C)details the formal reporting relationships that exist within an organisation
D)All of these choices.
E)A and B.

Question 53

Rugged Comfort Ltd manufactures outdoor adventure equipment.Which of the following departments for Rugged Comfort can be considered a line department?

A) Manufacturing department
B) Human resources department
C) Research and development department
D) Finance department
E) Marketing department

Question 54

__________ is the duty to perform the task or activity that an employee has been assigned by their senior managers.

A) Delegation
B) Responsibility
C) Authority
D) Leadership
E) Span of management

Question 55

Which of these is the degree to which organisational tasks are subdivided into individual jobs?

A) Work specialisation
B) Autonomy
C) Lines of authority
D) Multitasking
E) Team structure

Question 56

Which of the following factors is not associated with larger span of management?

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 57

Unity of command and the scalar principle are both closely related to the:

A) amount of work specialisation in an organisation
B) degree of formalisation
C) chain of command
D) amount of bureaucracy in the organisation
E) matrix structure.

Question 58

__________ is the formal and legitimate right of a manager to make decisions.

A) Delegation
B) Responsibility
C) Authority
D) Leadership
E) Span of management

Question 59

Strategy defines __________ to do,while organising defines __________ to do it.

A) how; what
B) how; why
C) what; how
D) what; why
E) when; what

Question 60

_______________ means that decision authority is located near the ________________ of the organisation.

A) Centralisation; bottom
B) Decentralisation; top
C) Centralisation; top
D) Centralisation; middle
E) None of these choices.

Question 61

Relative to the functional structure,the divisional structure:

A) encourages decentralisation
B) has a higher degree of work specialisation
C) has a more pronounced division of labour
D) has excellent coordination within functions
E) results in an efficient use of resources.

Question 62

Tristate Toasters Corporation has a finance department,a marketing department and a production department.Tristate uses a __________ structure.

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

Question 63

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

A) efficient use of resources
B) career progress within functional departments
C) decisions concentrated the top of the hierarchy
D) top manager direction and control
E) high quality technical problem solving.

Question 64

Vipac Engineers and Scientists Ltd are Australian consultants specialising in a broad range of technology areas,with offices throughout Asia and development laboratories in Australia.According to the text,this company has adopted a __________ structure.

A) product-orientated
B) divisional
C) regimental
D) horizontal matrix
E) team-based

Question 65

The team approach to departmentalisation is a response to:

A)lengthy decision making
B)centralised decision making
C)the competitive global environment
D)All of these choices.
E)A and B.

Question 66

Which of these are brought together as a formal department in the organisation?

A) Cross-functional teams
B) Permanent teams
C) Formal teams
D) Ad hoc teams
E) Task teams

Question 67

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

A) economies of scale
B) excellent coordination between functions
C) in-depth skill specialisation and development
D) high quality technical problem solving
E) career progress within functional departments.

Question 68

When its departments are grouped together on the basis of the organisation's outputs,the organisation is using a:

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

Question 69

An advantage of the divisional structure is:

A) concern for customers' needs is high
B) there is little duplication of services across divisions
C) there is good coordination across divisions
D) top management retains tight control of the organisation
E) there is no competition for corporate resources.

Question 70

An advantage of functional structures is the:

A) resulting economies of scale
B) enlarged tasks for employees
C) easy pinpointing of responsibility for product problems
D) development of general management skills
E) flexibility in an unstable environment.

Question 71

Kempsey Herbal Solutions has been having numerous problems.Communication across departments is poor and decisions are backing up at the top of the organisation.Kempsey Herbal Solutions uses a __________ structure.

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

Question 72

Sean works for Better Bloke Paints,an organisation where coordination across organisational units is poor and the units perceive themselves as being in competition with one another for organisational resources.These characteristics are consistent with which of the following structures?

A) Matrix structure
B) Functional structure
C) Divisional structure
D) Team-based structure
E) Network structure

Question 73

All of the following are disadvantages of a matrix structure,except:

A) many meetings, and more discussion and action
B) frustration and confusion from dual chains of command
C) high conflict between two sides matrix
D) enlarged tasks for employees
E) extensive human relations training needed.

Question 74

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

A) faster response in an unstable environment
B) foster's concerned to customer needs
C) emphasis on overall product and vision goals
D) development of general management skills
E) less top management control.

Question 75

Advantages of the matrix structure include:

A) it increases employee participation
B) it makes efficient use of human resources
C) it works well in a changing environment
D) it develops both general and specialist management skills
E) All of these choices.

Question 76

The cross-functional team approach assumes:

A) workers must be in teams to be motivated
B) centralisation of authority is good
C) all employees, regardless of function, can contribute and help to solve problems
D) ideal organisational structure to be tall structure
E) management cannot function without them.

Question 77

In a __________ structure,all functions in a specific country or region report to the same division manager.

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

Question 78

An organisation that uses functional and divisional chains of command simultaneously is said to have a __________ structure.

A) functional
B) divisional
C) product-based
D) matrix
E) process-based

Question 79

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

A) Unity of direction
B) Unity of command
C) Work specialisation
D) Division of labour
E) Span of management

Question 80

The __________ approach to structure provides a formal chain of command for both functional and divisional relationships.

A) horizontal matrix
B) vertical functional
C) divisional
D) product
E) team-based