Deck 5: Designing Organizational Structure: Coordination, Communication, and Control

Question 1

Which of the following is a potential disadvantage of a bureaucratic structure?

A)Separation of the position from the person
B)Increased operating costs
C)Role ambiguity
D)Excessive bending of the rules

Answer 1

B

Question 2

Joe, an accountant, works for Jack and Judy. Jack told Joe to use the straight- line method for calculating depreciation, and Judy told Joe to use the double- declining- balance method to compute depreciation. This situation is an example of .

A)role conflict
B)rational- legal authority
C)role ambiguity
D)bureaucracy

Answer 2

A

Question 3

Which is not associated with a bureaucracy?

A)Required behaviors
B)Accountability
C)Agreed- upon rules and procedures
D)Independent decision- making

Answer 3

D

Question 4

Which of the following principles can help an organization avoid unnecessary layoffs?

A)Loosely defined rules
B)Rational- legal authority
C)The minimum chain of command
D)Parkinson's Law

Question 5

Which of the following does not reduce the need for direct supervision?

A)The informal organization
B)Centralization
C)Rules
D)Norms

Question 6

Which of the following is one of Weber's bureaucratic principles?

A)Authority should be based on tradition.
B)Horizontal tasks are loosely defined because vertical roles are clearly defined.
C)Employees should be hired based on their competence.
D)Work expands to fill the time.

Question 7

Which of the following organizations will most likely have the narrowest span of control?

A)A science lab that does complex genetic research
B)A police force that has a team of officers working on a murder investigation
C)A plant that produces hammers
D)A plant that manufactures airplanes

Question 8

Which of the following organizations will most likely have the widest span of control?

A)A police force that has a team of officers working on a murder investigation
B)A science lab that does complex genetic research
C)A plant that manufactures airplanes
D)A plant that produces hammers

Question 9

Research evidence suggests that the average number of levels for an organization employing 3,000 people is .

A)seven
B)five
C)six
D)nine

Question 10

One of the benefits to the flat organizational structure at Eagle Trust is....

A)saving money.
B)to improve centralization.
C)winning awards.
D)to facilitate communication.
E)to increase hierarchy.

Question 11

occurs when two or more people have different views of what another person should do, and as a result, make conflicting demands on the person.

A)Technical competence
B)Differentiation
C)Integration
D)Role conflict

Question 12

Coca- Cola could not respond quickly to the needs of different regions because they had all of the following except:

A)decentralized decision- making.
B)an expensive hierarchy.
C)a long chain of command.
D)slow decision- making.

Question 13

An organization that has few levels in its hierarchy relative to its size is called .

A)standardized
B)flat
C)tall
D)formalized

Question 14

Rose supervises Iris, who in turn supervises Violet and Daisy. Violet has four subordinates and Daisy has six. Present spans of control are as follows:

A)Rose 1, Iris 2, Violet 4, Daisy 6
B)Rose 13, Iris 12, Violet 4, Daisy 6
C)Rose 3, Iris 12, Violet 4, Daisy 6
D)Rose 13, Iris 2, Violet 4, Daisy 6

Question 15

Sales has a relatively hierarchy because it uses .

A)flat/standardization
B)flat/mutual adjustment
C)tall/standardization
D)tall/mutual adjustment

Question 16

An advantage of bureaucratic structure is that it:

A)enables employees to teach skills to successors.
B)reduces the need for integration.
C)promotes mutual adjustment instead of standardization.
D)reduces operating costs.

Question 17

Weber's bureaucratic model is based on authority.

A)elected
B)traditional
C)rational- legal
D)charismatic

Question 18

is the process of giving employees throughout the organization the authority to make important decisions and to be responsible for their outcomes.

A)Team work
B)Empowerment
C)Downsizing
D)Role conflict

Question 19

Which of the following is not a potential disadvantage of a bureaucratic structure?

A)Unresponsiveness to customer needs
B)Increased operating costs
C)Stagnation
D)Role ambiguity

Question 20

We obey a police officer because of the position of authority that compels obedience. This is an example of Weber's principle of:

A)technical competence.
B)rational- legal authority.
C)control through written rules.
D)decentralized authority to promote flexibility.

Question 21

Organizations that empower workers will typically:

A)downsize to give middle managers more opportunity to scan the environment for growth.
B)have a mechanistic structure.
C)downsize in order to survive.
D)have an organic structure.

Question 22

Which of the following functions will most likely have the tallest hierarchy?

A)Sales
B)R&D
C)Accounting
D)Manufacturing

Question 23

states that work expands to fill the time available.

A)Span of control
B)The Principle of the minimum chain of command
C)Parkinson's Law
D)Organizational theory

Question 24

Most large companies have a maximum of hierarchical levels.

A)eight
B)ten
C)twelve
D)seven

Question 25

A nuclear power plant has a very tall managerial hierarchy for all the following reasons except:

A)to ensure that rules are followed.
B)to maintain effective supervision of activities.
C)to empower employees to make decisions.
D)to cross- check the work of lower managers.

Question 26

states that an organization should choose the minimum number of hierarchical levels consistent with its goals and the environment in which it operates.

A)Span of control
B)The Principle of the minimum chain of command
C)Parkinson's Law
D)Organizational theory

Question 27

At Company ABC, fast decision- making is a prerequisite for success, so the company has five hierarchical levels because many levels .

A)clarify information
B)speed decision- making
C)hinder communication
D)improve communication

Question 28

It is more difficult to increase the span of control when:

A)tasks are highly interrelated.
B)tasks are routine or similar.
C)tasks are not interrelated.
D)rules and procedures can be used as the primary means of control.

Question 29

Which of the following prevents subordinates from neglecting tasks that are a part of their jobs?

A)Rules and norms
B)Rational- legal authority
C)Parkinson's Law
D)Technical competence

Question 30

An organization in which the hierarchy has many levels relative to the size of the organization is called .

A)flat
B)decentralized
C)tall
D)organic

Question 31

Which of the following is not an advantage of a bureaucratic structure?

A)Increased integration
B)Flexibility
C)Reduced transaction costs
D)Increased ability to compete for scarce resources

Question 32

occurs when a person's tasks or authority are not clearly defined and the person becomes afraid to act on or take authority for anything.

A)Control
B)Role conflict
C)Role ambiguity
D)Standardization

Question 33

If the span of control is too wide,

A)subordinates may shirk responsibility.
B)the hierarchy will be too tall.
C)bureaucratic costs will increase.
D)the division of labor will be too low.

Question 34

The problem with too many levels in the hierarchy is that:

A)it becomes difficult to implement Parkinson's Law.
B)the span of control has to increase.
C)it reduces the scope for subordinates to take initiative.
D)too much subordinate authority may lead to the development of subgoals.

Question 35

Bob and Amy are simply instructed to attract new clients, but are not given specific guidelines to use to accomplish this goal. Because they work for a conservative company, they are afraid to take risks. This situation is an example of .

A)role conflict
B)mutual adjustment
C)role ambiguity
D)bureaucracy

Question 36

Parkinson's Law states that:

A)organizations should have a maximum of 10 hierarchical levels.
B)a division of labor increases efficiency.
C)hierarchies grow because managers make work for one another.
D)the hierarchy should be based on rational- legal authority.

Question 37

Parkinson said that the number of managers grows because:

A)efficiency can be improved.
B)managers want fewer subordinates.
C)managers want to multiply subordinates not rivals.
D)more decisions can be made.

Question 38

Which of the following statements describes the relationship between organizational size and the number of managers? As an organization grows,

A)an increase in the number of managers is proportional to the increase in size.
B)an increase in the number of managers is less than proportional to the increase in size.
C)it does not increase the number of managers.
D)an increase in the number of managers is more than proportional to the increase in size.

Question 39

It is easier to increase the span of control when tasks:

A)are highly interrelated.
B)are dissimilar.
C)are routine or similar.
D)are complex.

Question 40

Clearly defined roles and accountability are advantages of structure.

A)an organic
B)a bloated
C)a flat
D)a bureaucratic

Question 41

Standardization:

A)can be used only in a centralized hierarchy.
B)enables a manager to increase his or her span of control.
C)causes a manager to reduce his or her span of control.
D)increases the number of managers needed.

Question 42

Motivation problems occur as the number of levels in the hierarchy increases because:

A)Parkinson's law is activated.
B)downsizing and restructuring tends to occur at this stage.
C)responsibility and authority at each level decreases.
D)managers' workload tends to increase.

Question 43

Which is not associated with centralization?

A)Delegating authority
B)Increased monitoring and supervision
C)Communication problems
D)Coordination problems

Question 44

R&D typically has a relatively _ _ hierarchy and a _ span of control.

A)tall/narrow
B)tall/wide
C)flat/narrow
D)flat/wide

Question 45

refers to the number of subordinates a manager directly supervises.

A)Parkinson's Law
B)Effectiveness
C)Vertical differentiation
D)Span of control

Question 46

Until 1850 an officer's commission in the British Army could by bought by anyone. This violates Weber's principle that:

A)work expands to fill time.
B)social status, kinship, or heredity should determine hiring.
C)job- related skills should determine hiring.
D)decentralization is important.

Question 47

Motivation problems occur in a tall hierarchy because:

A)managers make more decisions.
B)managers have more responsibility at each level.
C)managers have less authority at each level.
D)managers have more authority at each level.

Question 48

Weber said that an organizational structure should be based on:

A)loosely defined roles.
B)the use of rules and standard operating procedures.
C)a small span of control.
D)decentralization.

Question 49

are work groups consisting of people from different functions who are empowered to direct and coordinate different projects.

A)Middle managers
B)Contingent workers
C)Fixed workers
D)Cross- functional teams

Question 50

A bureaucracy:

A)has a minimum of 10 hierarchical levels.
B)provides guidelines for designing a hierarchy.
C)causes members of an organization to focus on short- term goals.
D)clearly specifies vertical authority, but loosely defines horizontal task relationships.

Question 51

Which of the following allows a low- level employee to bring a conflict to a high- level employee?

A)Parkinson's Law
B)A clear chain of command
C)Horizontal differentiation
D)Role ambiguity

Question 52

Adding more managers to a company results in:

A)better decision- making.
B)improved communication.
C)higher bureaucratic costs.
D)flattening of the organizational structure.

Question 53

Company A has 1,000 employees and six hierarchical levels. Company B has 3,000 employees and seven levels. What is the relationship between Company A's and Company B's hierarchies?

A)Both A and B have hierarchies that are too tall.
B)Company B's hierarchy is considered to be relatively taller than Company A's.
C)Both A and B have average size hierarchies for their size.
D)Company A's hierarchy is considered to be relatively taller than Company B's.

Question 54

Tall hierarchies are associated with all of the following problems except:

A)high bureaucratic costs
B)a wide span of control
C)communication problems
D)motivation problems

Question 55

Standardization reduces the need for managers because of all the following except

A)tasks are controlled by rules and norms.
B)rules and procedures substitute for direct supervision.
C)work activities are predictable.
D)performance is evaluated subjectively.

Question 56

Weber's principles can help a CEO with his or her responsibility for:

A)determining the goals of an organization.
B)selecting the top- management team.
C)allocating resources to divisions.
D)designing the organizational structure.

Question 57

The need for upper- level managers is:

A)decreased by standardization and decentralization.
B)increased by increased size and bureaucracy.
C)increased by formalization.
D)increased by standardization and decentralization.

Question 58

Which of the following was primarily used to control the behavior of Crew G?

A)Rules
B)The informal organization
C)Centralization
D)Decentralization

Question 59

What does an organization not do to improve control?

A)Make the hierarchy taller
B)Increase the number of levels
C)Increase the number of employees
D)Increase the number of managers

Question 60

Contingent workers:

A)may experience motivation problems.
B)can be used to help an organization develop core competences.
C)can be used to facilitated coordination between functions.
D)increase bureaucratic costs.

Question 61

One advantage of bureaucracy is that it separates the position from the person.

Question 62

Believing that top management was not reacting quickly enough to problems, Du Pont eliminated many of its top management levels.

Question 63

The principle of minimum chain of command states that an organization should avoid hierarchies because individuals prefer to be empowered.

Question 64

A new organization is experiencing coordination and motivation problems due to high differentiation. The CEO is in the process of designing the hierarchy. What do you recommend?

Question 65

Contingent workers are workers whose pay is contingent upon their performance.

Question 66

Companies with tall organizational structures have a minimum of 10 hierarchical levels.

Question 67

According to Weber, rational- legal authority emerges as managers develop a reputation for making rational decisions.

Question 68

The hierarchy begins to emerge when subunit orientations become so prevalent that the organization cannot control employees.

Question 69

In a bureaucratic structure, norms should be used to control relationships between roles.

Question 70

Company ABC developed a new product that has been very successful. To handle this growth, the CEO has insisted on hiring many new managers. The company is not concerned with costs, because sales are on the rise. What are some potential future problems that ABC will have to face?

Question 71

Weber was against putting rules in writing, because he was in favor of an empowered workforce making its own decisions about how to best accomplish the task.

Question 72

Research and development laboratories use small spans of control because the content of each member's work is unrelated.

Question 73

Weber's bureaucracy should reduce both role conflict and role ambiguity.

Question 74

Increasing horizontal differentiation increases vertical differentiation.

Question 75

An arithmetic increase in the number of managers is accompanied by a geometric increase in the number of subordinates.

Question 76

A manager's span of control includes subordinates he or she supervises directly and subordinates he or she supervises indirectly (by supervising their direct boss).

Question 77

Standardization makes it easier to increase span of control.

Question 78

It has been estimated that 20% of the U.S. workforce consists of contingent workers.

Question 79

Management by objectives is a form of goal setting in an organizational setting.

Question 80

The CEO of a mid- sized software company is determined to keep the hierarchy at a minimum number of levels. Will this affect the organization's ability to control activities? What do you suggest?