Deck 7: Designing Organizational Structure

Question 1

According to ________ theory, managers should choose a structure that fits the circumstances affecting their organization the most.

A)contingency
B)design
C)agency
D)equity

Answer 1

A

Question 2

Organizational ________ is the formal system of task and job reporting relationships that determines how employees use resources to achieve organizational goals.

A)structure
B)strategy
C)mission
D)policy

Answer 2

A

Question 3

Which of the following is a characteristic of a stable external environment?

A)an inflexible structure
B)constant change
C)decentralized authority
D)low uncertainty

Answer 3

D

Question 4

When managers organize divisions according to the types of customer to whom they market their products, they are focusing on a product structure.

Question 5

The number of new or unexpected problems or situations that a person or function encounters in performing tasks or jobs is task

A)volatility.
B)predictability.
C)analyzability.
D)variety.

Question 6

The degree to which programmed solutions are available to people or functions to solve the problems they encounter is task

A)uncertainty.
B)stability.
C)analyzability.
D)creativity.

Question 7

A differentiation strategy aimed at increasing the customer's perception of an organization's services usually succeeds even with an inflexible structure.

Question 8

The more complex an organization, the less important the use of cross-functional teams becomes to the organization.

Question 9

The nature of an organization's human resources is an important determinant of the organization's structure.

Question 10

Managers should design flexible structures, characterized by decentralized authority and empowered employees, for their organization when its

A)environment is stable.
B)technology is simple.
C)workforce is highly skilled.
D)strategy is well understood.

Question 11

Too much decentralization has disadvantages for an organization because it can lead to a lack of communication among functions or divisions.

Question 12

The job characteristics model explains how managers can make jobs more interesting and motivating.

Question 13

Team members in a market structure are known as two-boss employees.

Question 14

The "chain of command" of an organization is the hierarchy of authority for that organization.

Question 15

The process by which managers establish the structure of working relationships among the workers of the organization is known as

A)planning.
B)leading.
C)organizing.
D)controlling.

Question 16

According to Charles Perrow, the routineness of technology is determined by task

A)volatility.
B)analyzability.
C)performance.
D)commitment.

Question 17

A business-to-business (B2B)network is a company-specific virtual information system that allows workers to share their knowledge and expertise and find others to help solve ongoing problems.

Question 18

Organizational ________ is the process by which managers create an organizational structure and culture that helps a company operate in the most efficient and effective way.

A)strategy
B)policy
C)design
D)tactics

Question 19

The degree to which a job design gives a worker the freedom to schedule his or her tasks and to decide how to carry them out is known as the task identity.

Question 20

The greater the level of uncertainty in the organization's environment, the

A)less likely managers are to design a structure and a culture that are innovative.
B)less likely managers are to design a structure and a culture that change quickly.
C)more likely managers are to design an organizational structure that is formal and controlling.
D)more likely managers are to design a structure and a culture that are flexible.

Question 21

Karabo wants to start a graphic design company that will have employees who are highly skilled at using complex computer programs. For this type of company, Karabo would most likely want to

A)give upper-level managers the responsibility for most client-related decisions but handle corporate decisions himself.
B)make sure that all design decisions are run by him before they are implemented by employees.
C)give lower-level managers and the graphic designers the authority to make important decisions.
D)give graphic designers the ability to make decisions, but insist that they get approval from upper management.

Question 22

Which of the following explains Hackman and Oldham's theory of how the job characteristics model affects three critical psychological states?

A)The more employees are given work responsibility, the more frustrated they become because they know that they will never get additional remuneration for it.
B)The more employees feel that they are responsible for work outcomes and how it affects their positions in the company, the less motivating their work becomes.
C)The more employees feel that they are being used efficiently by the company, the more their expectation of better compensation and higher position increases.
D)The more employees feel that they are responsible for work outcomes and for knowing how those outcomes affect others, the more motivating their work becomes.

Question 23

The extent to which a job gives the worker direct and clear information about how well the worker is performing the job is known as

A)task identity.
B)feedback.
C)autonomy.
D)task significance.

Question 24

Freya is dissatisfied with her work as an office supply clerk for a large telecommunications company. She explains her feelings about her work to the human resource manager, who gives her an aptitude test. Based on this test, the satisfaction Freya gets from her job and how she views her job depend largely on how what she does impacts other people. Considering this, what job should the human resource manager recommend Freya get training for and pursue?

A)a job as a computer programmer who designs software for autistic children
B)a position as a salesperson with the ability to plan her own schedule
C)a job as a graphic designer who often works on a project from beginning to end
D)a position as a marketing researcher, which requires a variety of skills

Question 25

Carlos, a manager, redesigns the job of Dani, a subordinate, so that she has more responsibility over her job. This is the process of job

A)enlargement.
B)simplification.
C)enrichment.
D)reduction.

Question 26

If a company has a stable external environment and resources are easily available, then the human resource manager for this company would most likely want to

A)encourage managers to empower lower-level employees.
B)allow managers to make their own guidelines.
C)set up flexible norm guides.
D)set up detailed standard operating procedures (SOPs).

Question 27

Eduardo works a salesperson at a prescription drug store; Marietta works as a doctor, helping people who suffer from malignant diseases. Marietta most likely has

A)a low degree of feedback.
B)less autonomy.
C)less skill variety.
D)higher task significance.

Question 28

A manager increases the number of tasks that a subordinate has to do in order to make the job more interesting for the subordinate. This is known as

A)job simplification.
B)job enlargement.
C)job enrichment.
D)task identity.

Question 29

The goal of job enlargement is to increase

A)the quantity of work assigned and thus reduce manpower.
B)both the scope of a job and salaries.
C)quality assurance measures, thereby reducing mistakes.
D)the range of tasks and thus reduce boredom.

Question 30

Increasing workers' responsibility and involvement in their jobs in order to increase their interest in the quality of their output is a strategy known as job

A)expansion.
B)enlargement.
C)development.
D)enrichment.

Question 31

The degree to which a job allows the worker to schedule the tasks of the job and to decide how to carry out these tasks is known as

A)autonomy.
B)task identity.
C)task significance.
D)skill variety.

Question 32

The extent to which a job requires a worker to perform all of the tasks that are required to complete the job is known as

A)skill variety.
B)task identity.
C)task significance.
D)feedback.

Question 33

The extent to which a job requires a worker to use a wide range of knowledge and abilities is known as

A)task identity.
B)task significance.
C)autonomy.
D)skill variety.

Question 34

The process by which managers decide how to divide into specific jobs the tasks that have to be performed to provide customers with goods and services is known as job

A)design.
B)delegation.
C)organization.
D)policy.

Question 35

The degree to which a manager feels that his or her job is "meaningful" because of the way in which the job affects other people is known as

A)skill variety.
B)feedback.
C)autonomy.
D)task significance.

Question 36

George is an order taker at a restaurant; Audrey is a sales executive who is given the authority to choose the prospective customers she will visit on personal sales calls. Audrey has

A)less autonomy.
B)less task significance.
C)less task identity.
D)more autonomy.

Question 37

Because he has high autonomy, Santiago coaxes his manager to

A)allow him work at home, where he can work during any time of the day.
B)give him a variety of jobs that require a wide skill set.
C)let him focus on one assignment at a time.
D)give him more input on how his work affects customers.

Question 38

The Pizza Man implemented job design by

A)having the food servers wear uniforms.
B)buying a new vehicle for the food delivery people.
C)increasing the chef's annual salary to reflect the skills required by the job.
D)combining the jobs of chef and food server into a single job description

Question 39

Chiara's Pizza established a basic division of labor among "chefs" and "food servers" in which chefs perform all tasks involved in actual cooking, and food servers carry out all tasks involved in giving food to the customers. Chiara's Pizza implemented

A)a matrix structure.
B)job design.
C)a divisional structure.
D)a product structure.

Question 40

Mr. Pierson reads an article in the newspaper about one of his students who has been appointed CEO of a multinational corporation. At this moment, Mr. Pierson is experiencing

A)autonomy.
B)task identity.
C)task significance.
D)skill variety.

Question 41

When managers pursue a multidomestic strategy, they most likely use a ________ strategy.

A)market
B)customer
C)global geographic
D)global transitional

Question 42

What structure do organizations adopt when they organize divisions according to the type of customers they focus on?

A)market
B)geographic
C)product
D)functional

Question 43

Which of the following structures groups together people who perform similar jobs?

A)divisional
B)transitional
C)organic
D)functional

Question 44

In the design of an organization, another name for "market structure" is "________ structure."

A)product
B)geographic
C)customer
D)functional

Question 45

How does the product team structure differ from the matrix structure?

A)It allows dual reporting relationships.
B)It permanently assigns employees to cross-functional teams.
C)It focuses on designing and marketing quality products.
D)It allows team members to work with other teams.

Question 46

PlayBall Enterprises produces baseball mitts in the United States, including the ones used in the major leagues. Baseball teams around the world usually want to use the same mitts as the major league teams in America. As a result, the managers of PlayBall have decided to use a ________ structure.

A)global product
B)customer
C)global geographic
D)global transitional

Question 47

What is the main problem with the matrix structure's dual reporting relationship?

A)tracking responsibilities
B)tasks are more complex
C)conflicting demands can arise
D)deciding which job will finish faster

Question 48

An organizational structure consisting of all the departments within the company that are needed to produce its goods or services is a ________ structure.

A)functional
B)geographic
C)divisional
D)product

Question 49

When designing an organization, if managers are grouped both by function and by product at the same time, the organizational structure being used is the ________ structure.

A)market
B)geographic
C)functional
D)matrix

Question 50

CrossBorders Delivery Corporation organizes its managers according to the different regions of the world in which the managers work. This is an example of a ________ structure.

A)geographic
B)customer
C)product
D)matrix

Question 51

When different managers from different functional areas are brought together to work on an organizational task, they are known as a(n)________ team.

A)functional
B)co-dependent
C)cross-functional
D)independent

Question 52

Juliette has been hired as a business consultant for ChocoChip, Inc., a company that specializes in making chocolate chip cookies. The success of ChocoChip has created a problem for the company's CEO, Andrew. The demand for ChocoChip's cookies has increased significantly worldwide. As a result, the company has established cookie factories in various countries, which are doing fairly well but need customized attention for each country. Also, because of this expansion, the functional structure of the company has developed problems with communication between divisions. Andrew wants Juliette's advice on how the company should accommodate its expansion. Juliette most likely suggests that ChocoChip set up a

A)matrix structure and form temporary cross-functional teams.
B)global market structure and form a centralized and bureaucratic hierarchy.
C)global geographic structure and form strategic alliances with suppliers in various nations.
D)product structure and form special, temporary tasks forces to deal with various challenges.

Question 53

At Cosmeto & Co., Ignas, a marketing specialist, usually works with other marketers. However, he has recently been assigned to a team to develop a new kind of shampoo. Cosmeto has a complex organizational structure, and the team developing the new shampoo has members who specialize in a variety of functions for the company, including research and design, production, and packaging. Ignas and these other members will rotate in and out of the shampoo team as their specific tasks are completed. Ignas has to report to

A)both the marketing manager and the personal care product manager.
B)Angelique, the CEO of Cosmeto, but only while the shampoo is being marketed.
C)the geographic distribution manager, who will help Ignas determine a target market.
D)to either the marketing manager or the chemical formula manager.

Question 54

Which of the following structures is an organizational structure composed of separate business units within which are the functions that work together to produce a specific product for a specific customer?

A)divisional
B)transitional
C)organic
D)functional

Question 55

The organizational design in which employees are correctly referred to as two-boss employees is a ________ structure.

A)product
B)matrix
C)geographic
D)functional

Question 56

The units of Effron, Ltd., are grouped such that the functions that work together to produce a product are grouped together. This is an example of a(n)________ structure.

A)divisional
B)transitional
C)organic
D)functional

Question 57

VRT, Inc., started out just making hair dryers. However, as the company expanded, it produced automobiles, life insurance, and furniture. Considering this, the CEO has decided to change from a functional structure to a ________ structure.

A)geographic
B)product
C)market
D)hierarchical

Question 58

Managers are able to be responsive to the needs of their customers and maintain flexibility in making decisions regarding customers' changing needs with a ________ structure.

A)market
B)geographic
C)functional
D)matrix

Question 59

At Xen, Ltd., each product line is managed within a division. In each of these divisions, the division manager is responsible for

A)giving each employee in the division a large amount of autonomy.
B)devising a corporate-level plan with the managers of other divisions.
C)creating a separate business-level strategy for its division.
D)making sure each job in the division has high skill variety.

Question 60

Employees organized according to a matrix structure are grouped by

A)functions and by experience.
B)product and by geographic location.
C)functions and by product.
D)geographic location.

Question 61

To speed up the communication from the top managers down to the lower-level employees and vice versa, a CEO would most likely

A)reorganize the chain of command, thereby decreasing the flatness of the company.
B)expand the chain of command, thereby increasing the tallness of the company.
C)centralize the company, thereby changing it from a flat organization to a tall organization.
D)decentralize the company, thereby changing it from a tall organization to a flat organization.

Question 62

CoreSol Ltd. implements a liaison role by

A)creating a team that includes employees from three departments (marketing, engineering, and production)to manage a product to the launch stage.
B)having a representative in each of three departments (marketing, engineering, and production)meet to discuss the launching of a new product.
C)giving one manager in each of three departments (marketing, engineering, and production)the responsibility of coordinating with each other to brainstorm new product ideas.
D)providing a team consisting of members of three departments (marketing, engineering, and production)with status reports from senior managers of other departments.

Question 63

An organization that allows its employees to behave in a flexible way, even as the organization grows and becomes taller, is utilizing

A)managing as a rule.
B)decentralizing authority.
C)decreasing the span of control.
D)decreasing autonomy.

Question 64

Organizations can keep their hierarchy flat by

A)decreasing the span of control.
B)increasing the number of levels of management.
C)decentralizing authority.
D)centralizing authority.

Question 65

Jason has been hired by Praltiz Inc., an IT firm, to perform an integrating role by

A)determining which threats in the external environment should be taken most seriously.
B)conducting an in-house study to determine which departments can be trimmed.
C)advising the manager of the marketing department on how to appeal to teenage consumers.
D)increasing coordination between the marketing and research departments to achieve performance gains.

Question 66

The idea that an organization's hierarchy should be designed with as few levels of authority as are necessary to use the organization's resources in an efficient and effective manner falls under which of the following principles?

A)integration
B)allocation
C)minimum chain of command
D)consolidation of command

Question 67

At Able Electronics, the person in charge of advertising is a staff manager, who reports to

A)the stockholders.
B)a manager in the direct chain of command.
C)the CEO.
D)a co-manager in the division.

Question 68

An organization's hierarchy of authority is also known as its

A)chain of command.
B)span of control.
C)task-flow command.
D)matrix of control.

Question 69

Which of the following is often known as an ad hoc committee?

A)a functional team
B)a cross-functional team
C)a task force
D)managers with integrating roles

Question 70

The number of subordinates who report directly to a manager is known as the manager's

A)unity of command.
B)hierarchy of authority.
C)chain of command.
D)span of control.

Question 71

Fern Motor Co. brings together senior managers from its marketing, R-D, manufacturing, accounting, and finance departments to work together as a team to design a new type of sport utility vehicle. In this scenario, Fern Motor Co. creates a

A)cross-functional team.
B)vertically integrated team.
C)mass-production team.
D)standing committee.

Question 72

In which mechanism do senior managers provide members of a cross-functional team with relevant information from other teams and divisions?

A)liaison roles and departments
B)task forces
C)functional forces
D)integrating roles and departments

Question 73

Allocating authority in an organization, which gives lower-level managers and nonmanagerial employees the right to make important decisions about how to use organizational resources, is an example of

A)decentralization of authority.
B)a high span of control.
C)centralization of authority.
D)maximum chain of command.

Question 74

An organizational structure becomes taller when it

A)grows in size and the hierarchy of authority lengthens.
B)maintains its original size and the hierarchy remains constant.
C)hires more employees while keeping the same number of managers.
D)expands its product base but maintains its staff size.

Question 75

The kitchen workers at Joe's Coffee Shop and Bakery report directly to Zara, the kitchen manager. Zara is a ________ manager.

A)line
B)product
C)staff
D)task force

Question 76

Organizing tools that managers use to increase communication among functions and divisions are known as ________ mechanisms.

A)expansion
B)interaction
C)integrating
D)synchronizing

Question 77

The major goals of the manufacturing function are to keep costs under control and

A)prepare products on schedule.
B)keep employees happy.
C)develop new products.
D)use the latest production methods.

Question 78

The relative authority that each manager in the organization has from the CEO down to the lowest-level manager is called the

A)span of control.
B)chain of command.
C)corporate ladder.
D)unity of direction.

Question 79

A team of managers from different functions or divisions is temporarily formed to solve a specific, mutual problem. This is known as a

A)standing committee.
B)confederate committee.
C)functional force.
D)task force.

Question 80

Riku is a project manager who has 15 employees reporting directly to him. Those 15 employees represent Riku's

A)unity of command.
B)span of control.
C)chain of command.
D)unity of direction.