Deck 7: Designing Organization Structure

Question 1

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

Answer 1

False

Question 2

The principle of unity of command states that employees in an organization should be held accountable to multiple supervisors.

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

Service firms include banks, hotels, and law firms.

Question 5

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

Question 6

In a virtual network, aspects of both functional and divisional structures exist simultaneously in the same part of the organization.

Question 7

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

Question 8

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

Question 9

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

Question 10

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

Question 11

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

Question 12

An advantage of vertical functional structure is the ability to respond quickly to external changes.

Question 13

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

Question 14

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

Question 15

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

Question 16

The distinctive feature of the project manager position is that the project manager is located outside the departments being coordinated.

Question 17

The pure functional structure is appropriate for achieving internal efficiency goals in a stable environment.

Question 18

Reengineering means preserving the past by establishing the sequence of activities through which work was done.

Question 19

Small-batch manufacturing is close to traditional skilled-craft work.

Question 20

Certainty in the environment is usually associated with decentralization.

Question 21

Continuous process production is characterized by organic structure.

Question 22

__________ 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 23

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 24

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

Question 25

Service technology is characterized by limited customer contact.

Question 26

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 locations.
D)Subordinates are highly trained and need little direction.
E)Rules and procedures defining task activities are available.

Question 27

Vertical hierarchies are no longer considered appropriate, and they often produce significant impairments in organizational functioning.

Question 28

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 29

In mass production, each customer receives a unique, one-of-a-kind product.

Question 30

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 31

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 of the following principles?

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

Question 32

A task force is a temporary team or committee formed to solve a specific short-term problem involving several departments.

Question 33

Small-batch production is characterized by high centralization.

Question 34

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 35

Mass production is characterized by high centralization.

Question 36

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

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

Question 37

In continuous process production, the entire workflow is mechanized in a sophisticated and complex form of production technology.

Question 38

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 which of the following types of organizational structure?

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

Question 39

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

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

Question 40

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 most likely uses a __________ structure.

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

Question 41

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

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

Question 42

In small-batch technology, _____ communication is high; in mass production technologies, _____ communication is high; in continuous process technologies, _____ communication is high.

A)verbal; verbal; verbal
B)verbal; written; verbal
C)written; verbal; verbal
D)written; written; verbal
E)verbal; written; written

Question 43

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 44

Which structure is illustrated in this diagram?

A)Vertical
B)Divisional
C)Team
D)Matrix
E)Virtual

Question 45

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 46

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 47

The highest level of horizontal coordination is ______.

A)relational coordination
B)teamwork
C)networking
D)coordination
E)controlling

Question 48

Which structure is illustrated in this diagram?

A)Vertical
B)Divisional
C)Team
D)Matrix
E)Virtual

Question 49

Coordination is to _____ as cooperation is to _____.

A)relationships; responsibilities
B)synchronization; joint effort
C)Intradepartmental duties; interdepartmental duties
D)function; structure
E)line departments; staff departments

Question 50

__________ is characterized by intangible outputs.

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

Question 51

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 52

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 53

Typically, strategic goals of cost efficiency occur in more _____ environments; goals of innovation and flexibility occur in more _____ environments.

A)dynamic; stable
B)uncertain; uncertain 
C)stable; uncertain 
D)uncertain; stable 
E)dynamic; uncertain 

Question 54

Which structure is illustrated in this diagram?

A)Vertical
B)Divisional
C)Team
D)Matrix
E)Virtual

Question 55

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 which of the following types of technology structure?

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

Question 56

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 57

Which structure is illustrated in this diagram? 

A)Vertical
B)Divisional
C)Team
D)Matrix
E)Virtual

Question 58

Which types of teams most are appropriate when the primary goal is innovation and the organization needs flexibility to cope with an uncertain environment?

A)Tight
B)Mechanistic
C)Horizontal
D)Functional
E)Vertical

Question 59

Which structure is illustrated in this diagram?

A)Vertical
B)Divisional
C)Team
D)Matrix
E)Virtual

Question 60

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 61

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

Question 62

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

Question 63

A __________ structure is the grouping of positions into departments based on similar skills, expertise, work activities, and resource use.

Question 64

A __________ is a temporary team or committee designed to solve a short-term problem involving several departments.

Question 65

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

Question 66

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

Question 67

A __________ structure has a wide span, is horizontally dispersed, and has fewer hierarchical levels.

Question 68

With __________, decision authority is pushed downward to lower organization levels.

Question 69

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

Question 70

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

Question 71

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

Question 72

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

Question 73

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

Question 74

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

Question 75

List three disadvantages of the divisional structure.

Question 76

List three advantages of the virtual network structure.

Question 77

Small-batch technology organization is best described as _____; mass production technology organization is best described as _____; continuous process technology organization is best described as _____.

A)organic; organic; mechanistic
B)mechanistic; mechanistic; organic
C)organic; mechanistic; organic
D)mechanistic; organic; organic
E)mechanistic; organic; mechanistic

Question 78

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

Question 79

A __________ is a person who is responsible for coordinating the activities of several departments for the completion of a specific project.

Question 80

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