Deck 9: Managing the Structure and Design of Organizations

Question 1

Fayol's concept that a subordinate should have only one direct supervisor is referred to as

A) authority.
B) accountability.
C) unity of command.
D) organization structure.

Answer 1

C

Question 2

While strategy indicates what needs to be done in the organization, organizing shows

A) how much to spend.
B) when to do it.
C) how to do it.
D) if it can be done.

Answer 2

C

Question 3

The basis for dividing work into specific jobs and tasks and assigning those jobs into units such as departments is know as

A) unity of command.
B) responsibility.
C) the horizontal dimension.
D) the vertical dimension.

Answer 3

C

Question 4

Managers who assist others in achieving bottom-line results, but don't contribute directly to the outcomes might include which of the following?

A) Accounting managers
B) Legal department managers
C) Human resource managers
D) all of the above

Question 5

Advice to managers who wish to be more effective in managing their work responsibilities might include which of the following?

A) Divide time equally between those tasks that are important and urgent.
B) Delegate lower priority tasks to subordinates.
C) Avoid using the informal organization to get work tasks done.
D) Keep your door open at all times to be sure you are always available to subordinates.

Question 6

Which of the following statements is true concerning authority?

A) Authority is given to the position and not the person.
B) Authority originates at the top of the organization based on the property rights of the owners and flows down the vertical organizational hierarchy from top to middle to operative employees.
C) Positions at the top of the hierarchy have more authority than positions at lower levels.
D) all of the above

Question 7

________ spans of control result in ________ management levels.

A) Large; fewer
B) Small; fewer
C) Small; more skilled
D) Centralized; fewer

Question 8

The number of subordinates and the number of manager levels in the organization is determined by

A) unity of command.
B) span of control.
C) the organization chart.
D) the chain of command.

Question 9

The superior-subordinate authority relationship is referred to as

A) the chain of command.
B) staff authority.
C) unity of command.
D) the horizontal dimension.

Question 10

Decision-making authority is pushed to lower levels in the organization with

A) formalization.
B) centralization.
C) decentralization.
D) unity of command.

Question 11

________ companies can coordinate activities in a consistent way across diverse departments of an organization.

A) Decentralized
B) Centralized
C) Formal
D) Divisional

Question 12

The formal right of a manager to make decisions, give orders, and expect the orders to be carried out is

A) authority.
B) responsibility.
C) accountability.
D) unity of command.

Question 13

Production managers and sales managers who contribute directly to the bottom line of a manufacturing firm are considered

A) staff manager.
B) staff authority
C) line managers.
D) all of the above

Question 14

Accountability

A) means that a manager or other employees with authority and responsibility must be able to justify results to a manager at a higher level in the organizational hierarchy.
B) can be reflected in periodic performance appraisals.
C) is retained by the manager even if the responsibilities are delegated to subordinates.
D) all of the above

Question 15

When managers must work with managers of other units or with customers outside of their organization, they have been given ________ without equal levels of ________.

A) authority; responsibility
B) accountability; responsibility
C) responsibility; authority
D) responsibility; accountability

Question 16

Small spans of control

A) are usually associated with flatter organizational structures.
B) may yield tall vertical structures that have too many levels of management separating front-line employees from top executives.
C) mean more responsibility is pushed to lower levels.
D) are generally seen in well-managed companies such as General Electric and NuCor.

Question 17

If John is supervised by a project manager and his functional manager, this violates the concept of

A) authority.
B) unity of command.
C) accountability.
D) responsibility.

Question 18

A large span of control works best when

A) there are routine tasks.
B) there are highly trained subordinates.
C) there are similar jobs with comparable performance measures.
D) all of the above

Question 19

Organizing is reflected in

A) the organization's division of labor that forms jobs and departments.
B) formal lines of authority.
C) the mechanisms used for coordinating diverse jobs and roles in the organization.
D) all of the above

Question 20

Which dimension of organizational structure indicates who has the authority to make decisions and who is expected to supervise which subordinates?

A) Unity of command
B) Responsibility
C) Horizontal dimension
D) Vertical dimension

Question 21

Which of the following is an advantage of the functional approach to departmentalization?

A) Career paths foster professional identity with the business function.
B) They allow an organization to focus on customer needs.
C) They allow each division to satisfy customer tastes and preferences of different regions.
D) all of the above

Question 22

Duplication of resources by two or more departments is a disadvantage of which approach to departmentalization?

A) Functional
B) Divisional
C) Matrix
D) all of the above

Question 23

Which approach to departmentalization works best in small to medium-sized companies operating in somewhat stable business environments without a great deal of change and uncertainty?

A) Functional
B) Span of control
C) Divisional
D) Matrix

Question 24

The "we're in this together" mentality of profit sharing is an example of a

A) coordinating mechanism.
B) centralization mechanism.
C) Formalization mechanism.
D) task force.

Question 25

A management role used to facilitate communications between two or more departments is referred to as a

A) liaison role.
B) staff manager role.
C) line manager role.
D) brand manager role.

Question 26

An organization with high formalization

A) concentrates decisions at the top of the organizational hierarchy.
B) pushes decision making to lower levels in the organization.
C) has a large number of management levels in the organization.
D) provides employees with many documents that specify the right way to conduct business through such things as policy manuals.

Question 27

Coordination mechanisms include which of the following?

A) Meetings
B) Task forces
C) The organization's culture
D) all of the above

Question 28

A bank that organizes its services into divisions that serve personal banking, small business banking, and corporate banking is using

A) a functional approach.
B) a geographic-based divisional approach.
C) a customer-based division.
D) a matrix.

Question 29

The linking of activities so that diverse departments or divisions work in harmony and learn from each other is referred to as

A) chain of command.
B) unity of command.
C) coordination.
D) centralization.

Question 30

What is the key advantage of the matrix structure?

A) Flexibility makes it easier to start new projects or business ventures quickly with a minimum of bureaucratic inertia.
B) The dual chain of command provides for better training.
C) The conflict between product and functional managers creates faster delivery deadlines.
D) Meeting time is minimized since decisions are already coordinated.

Question 31

Nordstrom encourages their employees to improvise to deliver superior customer service in changing conditions and to use good judgment. Nordstrom has chosen a

A) low degree of formalization.
B) high degree of formalization.
C) small span of control.
D) large span of control.

Question 32

Similar jobs are grouped together into departments under which approach to departmentalization?

A) Functional
B) Span of control
C) Divisional
D) Matrix

Question 33

A fast food company with operations in the United States, Canada, Latin America and Europe might use which approach to departmentalization to allow the menus of each country to focus on regional customer preferences and tastes?

A) Functional approach
B) Geographic-based divisions
C) Customer-based divisions
D) Matrix

Question 34

A high degree of ________ encourages employees to do their jobs in ________ ways.

A) formalization; flexible
B) centralization; flexible
C) formalization; routine
D) decentralization; routine

Question 35

Which of the following is not one of the basic approaches to departmentalization?

A) Functional
B) Span of control
C) Divisional
D) Matrix

Question 36

Which of the following is an advantage of the divisional approach to departmentalization?

A) Coordination among different business functions
B) Improved and speedier service
C) Development of general manager and executive skills
D) all of the above

Question 37

The ________ is a variation of the product-based divisional structure that is made up of a set of unrelated businesses.

A) matrix
B) conglomerate
C) functional structure
D) team approach

Question 38

The divisional approach to departmentalization is sometimes called the

A) functional approach.
B) product approach.
C) matrix approach.
D) parallel team.

Question 39

Which of the following statements is true concerning centralization/decentralization?

A) Decentralized decision authority has become relatively common in organizations.
B) Centralization permits greater utilization of the talents and abilities of managers and teams of employees.
C) Centralization is often more effective in a rapidly changing environment where it is necessary to be responsive to changing customer needs and tastes.
D) By maintaining a highly centralized structure, the 3M Corporation has become one of the world's most innovative companies.

Question 40

Which approach to departmentalization violates the unity of command?

A) Functional
B) Divisional
C) Matrix
D) Product

Question 41

When Apple and AT&T partnered to bring the iPone to market, they used which organization design?

A) Mechanistic
B) Matrix
C) Boundaryless
D) Organic

Question 42

Which of the following is not one of the basic organization designs?

A) Mechanistic
B) Matrix
C) Boundaryless
D) Organic

Question 43

Small spans of control are usually associated with a tall vertical organization structure.

Question 44

A change in organization structure might be triggered by a

A) merger.
B) acquisition.
C) divestiture.
D) all of the above

Question 45

The matrix approach superimposes a divisional structure over a functional structure.

Question 46

A manager may delegate responsibility to a subordinate, but the manager is still in control because the subordinate is subject to the manager's authority.

Question 47

Which organization design is based on the classical perspective of management?

A) Mechanistic
B) Matrix
C) Boundaryless
D) Organic

Question 48

Which of the following is a symptom of a malfunctioning organization design?

A) The organization design focuses employees on work that uses noncritical skills rather than emphasizing the opportunity to use their strengths.
B) The organization design has too few levels in the hierarchy.
C) The organization design is too flexible to deal with changes in strategy or the environment.
D) all of the above

Question 49

Standardized products using an assembly line with a heavy reliance on automated machines is

A) mass production technology.
B) continuous process technology.
C) small-batch technology.
D) digital technology.

Question 50

Which organization design has a high degree of formalization with centralized decision making and rigid hierarchical relationships?

A) Mechanistic
B) Matrix
C) Boundaryless
D) Organic

Question 51

In an accounting firm, the accountants have staff authority whereas accountants in a manufacturing firm have line authority.

Question 52

Which organization design is most effective in turbulent and uncertain environments?

A) Mechanistic
B) Matrix
C) Boundaryless
D) Organic

Question 53

The matrix organization structure utilizes ________ managers.

A) integrating
B) project
C) product
D) brand

Question 54

Jack Welch was one of the first executives to use which organization design?

A) Mechanistic
B) Matrix
C) Boundaryless
D) Organic

Question 55

Which organization design places an emphasis on teams that also may cross organization lines and relies on vertical and horizontal collaboration?

A) Mechanistic
B) Matrix
C) Boundaryless
D) Organic

Question 56

A management strategy used to reduce the scale and scope of a business to improve its financial performance is

A) divestiture.
B) downsizing.
C) acquisition.
D) merger.

Question 57

Organization culture

A) gives employees an internal gyroscope that directs them to do things that make the organization more effective.
B) is the system of shared values, assumptions, and beliefs that unite members of the organization.
C) reflects employees' views about the "way we do things around here."
D) all of the above

Question 58

A(n)________ manager coordinates work on scientific, aerospace, or construction project.

A) integrating
B) project
C) product
D) brand

Question 59

Which of the following statements is true about the strategic factors impacting the choice of organization design?

A) As organization size increases, work specialization decreases.
B) Large organizations need more coordinating mechanisms than small ones.
C) Centralized structures are used in turbulent environments.
D) Organizations that use digital technology tend to be structured on a centralized basis.

Question 60

General Motors was one of the companies that pioneered the divisional structure, creating divisions based on its different automobile brands.

Question 61

What are the three key strategic events that are likely to trigger change in the structure and design of an organization?

Question 62

What are some of the coordination mechanisms used in organizations?

Question 63

Decentralized structures that delegate authority to lower-level employees are used in turbulent environments to enable decisions to be made by those who are closest to the customer or the source of change.

Question 64

What is authority? How is it different from accountability?

Question 65

Who are line and staff managers? Give an example of each.

Question 66

Mergers, acquisitions, and divestitures may all trigger changes in the structure and design of an organization.

Question 67

What are the symptoms of a malfunctioning organization design?

Question 68

What are the advantages and disadvantages of the divisional approach?

Question 69

List the strategic factors that affect the choice of organization design.

Question 70

Some organizations, such as McDonald's, have a hybrid design in which mechanistic and organic designs are used in different parts of the organization.

Question 71

What are the three basic approaches to departmentalization?

Question 72

How can organizational culture act as a coordination mechanism?

Question 73

As a firm's strategy changes, organization structure and design must remain the same to implement the new strategy.

Question 74

What are the three basic organization designs? Describe their features.

Question 75

What is formalization?

Question 76

Describe a functional structure.

Question 77

Differentiate between the vertical and horizontal dimensions of organization structure.

Question 78

What is span of control? How does it impact management levels?

Question 79

The integrating manager is a member of one of the departments whose activities are being coordinated.

Question 80

What is the matrix approach to departmentalization? What are its advantages and disadvantages?