Deck 7: Designing Adaptive Organizations

Question 1

Line departments perform tasks that reflect the organization's primary goal and mission.

Answer 1

True

Question 2

The acceptance theory of authority argues that managers have authority because employees do not have a choice in choosing to accept their commands.

Answer 2

False

Question 3

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

Answer 3

True

Question 4

A tall structure is a management structure characterized by an overall narrow span of management and a relatively large number of hierarchical levels.

Question 5

The right to advise, recommend, and counsel in the staff specialists' area of expertise is included in staff authority.

Question 6

The deployment of organizational resources to achieve strategic goals refers to organizing.

Question 7

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

Question 8

Because the chain of command converges at the top, the functional structure provides a way to decentralize decision making and provide unified direction from all managers.

Question 9

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

Question 10

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

Question 11

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

Question 12

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

Question 13

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

Question 14

Many hierarchical levels and a correspondingly narrow span of management refers to a flat structure.

Question 15

Certainty in the environment is usually associated with decentralization.

Question 16

A organizational map is a visual representation of an organization's structure, showing communication and lines of power.

Question 17

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 18

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

Question 19

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

Question 20

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

Question 21

The matrix approach can be highly effective in a complex, rapidly changing environment in which the organization needs to be flexible and adaptable.

Question 22

The overseer of both the product and functional chains of command, responsible for the entire matrix is the matrix boss.

Question 23

The radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed is called reengineering.

Question 24

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

Question 25

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

Question 26

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

Question 27

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

Question 28

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

Question 29

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

Question 30

One major disadvantage of the virtual network approach is the lack of hands-on control.

Question 31

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

Question 32

Small-batch production is distinguished by standardized production runs.

Question 33

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

Question 34

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

Question 35

With a matix structure, the entire organization is made up of horizontal teams that coordinate their work and work
directly with customers to accomplish the organization's goals.

Question 36

Divisions are created, in functional structures, as self-contained units with separate functional departments for each division.

Question 37

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

Question 38

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

Question 39

The horizontal structure provides traditional control within functional departments, and the vertical structure provides coordination across departments.

Question 40

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

Question 41

When work specialization is extensive:

A) employees perform a single task.
B) employees perform many tasks.
C) employees are often highly challenged.
D) employees are often inefficient.
E) jobs tend to be large.

Question 42

means that each employee is held accountable to only one supervisor.

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

Question 43

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

A) delegation
B) responsibility
C) authority
D) span of management
E) leadership

Question 44

Organization structure is defined as the:

A) visual representation of the organization.
B) framework in which the organization defined how tasks are divided, resources are deployed, and departments are coordinated.
C) division of labor.
D) unbroken line of authority that links all individuals in the organization.
E) none of these.

Question 45

Which of the following refers to the deployment of organizational resources to achieve strategic goals?

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

Question 46

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 organizational values.
E) Individuals are born with this power.

Question 47

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

A) degree of formalization.
B) amount of differentiation.
C) degree of centralization.
D) chain of command.
E) division of labor.

Question 48

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

A) amount of work specialization in an organization.
B) degree of formalization.
C) chain of command.
D) amount of bureaucracy in the organization.
E) matrix structure.

Question 49

Which department performs tasks that reflect the organization's primary goals and mission?

A) Line
B) Staff
C) Primary
D) Functional
E) Strategic planning

Question 50

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 51

The people with authority and responsibility are subject to reporting and justifying task outcomes to those above them in the chain of command. This is called .

A) delegation
B) line authority
C) staff authority
D) accountability
E) hierarchy

Question 52

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 53

Carly's Clothes, Inc. manufactures children's clothes. Which of the following departments for Carly's Clothes can be considered a line department?

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

Question 54

Strategy defines to do it) while organizing defines to do it).

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

Question 55

Which of the following refers to the degree to which organizational tasks are subdivided into individual jobs?

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

Question 56

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 57

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 58

Gina wishes to transfer authority and responsibility to her subordinates. This process is known as:

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

Question 59

refers to a clearly defined line of authority in the organization that includes all employees.

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

Question 60

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 61

Barney and Betty work at Mountain Peak, Inc. Although they both work on the assembly line, they have the authority to make many decisions about their job. Mountain Peak can be said to have:

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

Question 62

Dustin's subordinates are highly trained and all perform similar tasks. Brittany'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) Nichole's span of management can be larger than Kevin's.
B) Nichole will have problems with unity of command.
C) Kevin's span of management can be larger than Nichole's.
D) Kevin has more problems with work specialization.
E) None of these

Question 63

All functions in a specific country or region report to the same division manager in divisions.

A) functional
B) matrix
C) geographic-based
D) teams
E) networks

Question 64

Which of the following is the basis for grouping positions into departments and departments into the total organization?

A) Departmentalization
B) Centralization
C) Decentralization
D) Formalization
E) Specialization

Question 65

Which of the following organizations have a flat structure compared to others?

A) Organization A with eleven hierarchical levels
B) Organization B with three hierarchical levels
C) Organization C with eight hierarchical levels
D) Organization D with six hierarchical levels
E) Organization E with seven hierarchical levels

Question 66

Self-contained unit structure is a term used for:

A) divisional structure.
B) functional structure.
C) term structure.
D) matrix structure.
E) virtual network structure.

Question 67

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 68

Shoshanna is manager of a customer service firm where she oversees five subordinates. To help her subordinates learn more about the different roles within the company, Shoshanna regularly assigns them tasks that are not part of their normal routine. This is an example of:

A) responsibility
B) delegation
C) authority
D) chain of command
E) irrational decision making

Question 69

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 70

Change and uncertainty in the environment are usually associated with .

A) work specialization
B) decentralization
C) centralization
D) tight vertical control
E) division of labor

Question 71

means that decision authority is located near the of the organization.

A) Centralization; bottom
B) Decentralization; top
C) Centralization; top
D) Centralization; middle
E) None of these

Question 72

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 73

Theresa works in an organization where coordination across organizational units is poor and the units perceived themselves to be in competition with one another for organizational resources. These characteristics are consistent with which of the following structures?

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

Question 74

When departments are grouped together on the basis of organizational outputs, the organization is using a:

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

Question 75

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

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

Question 76

Traditionally, a span of management of about has been recommended.

A) three
B) five
C) fifteen
D) seven
E) twenty

Question 77

Relative to the functional structure, the divisional structure:

A) encourages decentralization.
B) has a higher degree of work specialization.
C) has a more pronounced division of labor.
D) has excellent coordination across departments.
E) results in an efficient use of resources.

Question 78

Global companies often use a structure to achieve simultaneous coordination of products across countries.

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

Question 79

A formal chain of command for both functional and divisional relationships is provided by the approach to structure.

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

Question 80

Which of the following refers to the number of employees reporting to a supervisor?

A) The line of authority
B) The span of management
C) The chain of command
D) The management chain
E) Delegation