Deck 5: Basic Organization Designs

Question 1

In organizations, _________personnel provide expert advice and guidance to _________ personnel.

A)manufacturing; marketing
B)line; staff
C)staff; line
D)operating; sales

Answer 1

staff; line

Question 2

A telecommunications company that organizes into a wireless division, a home- use division, a long- lines division, and a corporate services division is using which approach to departmentalization?

A)A geographical structure
B)A divisional structure
C)A functional structure
D)A matrix structure

Answer 2

B

Question 3

A _________ span of control is associated with many levels of management, which gives rise to a _________ organizational structure.

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

Answer 3

narrow; tall

Question 4

_________s not an advantage of the matrix structure.

A)Development of cross- functional skills by employees
B)Reduced conflict about roles and responsibilities
C)Increased employee involvement
D)Efficient use of scarce resources

Question 5

Application of Bases of Power
Jerri is confused. She thought that once she had the title of manager, everyone would listen to her and accept her authority and power. However, she has noticed other employees that seem to have power. Whenever someone has a question about the computer system, they always go to Helen who actually established the current system they are using. Usually Helen can get things up and running quicker than going to the support staff for help. Then there is Joe who has a remarkable amount of charm and charisma. He seems to have a power based simply upon him. Then there is Jill, her secretary, who has a power entirely of her own. Jill turns in the timecards weekly, and Jerri has seen her more than once override the time clock and clock somebody in earlier than they actually arrived or clock out for them when the employee left work early. When Jerri questioned her about it, Jill just laughed and said that they had been doing it for years and the time all averaged out. The company allowed no overtime so any extra time spent after work was not compensated. Jerri sometimes wonders if she has any power at all.

-Helen has the ability to influence her coworkers to work harder because she has very strong problem- solving skills. Helen possesses _________ .

A)coercive power
B)legitimate power
C)expert power
D)referent power

Question 6

Application of Organizational Structure
Jim Johnson is the CEO of a major manufacturer of farming equipment. His company has been in business for the last 100 years and has been very profitable. The company is very formal and tall with formalized communication channels and rigid hierarchical relationships. Mr. Johnson makes all major decisions. This has worked very well until lately. It has begun to have some major global competition. Companies overseas are bringing new products into the United States at a lower price.
Furthermore, just yesterday, the new vice- president had mentioned that he felt that there was a major market overseas for the company's products. As its strategy was beginning to change, Mr. Johnson also realized its structure too would need to change, but to what? The company was large and, prior to these changes, the technology utilized, while extensive, had been very routine. What is he to do?

-Mr. Johnson's company probably needs to change from a(n) _________structure to a _________structure.

A)mechanistic; organic
B)organic; matrix
C)organic; mechanistic
D)mechanistic; bureaucracy

Question 7

Power based upon one's expertise, special skills, or knowledge is

A)referent power.
B)legitimate power.
C)expert power.
D)coercive power.

Question 8

Power can be viewed as a three- dimensional concept. It includes functional and hierarchical dimensions as well as a third dimension called

A)legitimacy.
B)centrality.
C)departmentalization.
D)influence.

Question 9

The number of employees a manager can direct efficiently and effectively is known as which of the following?

A)span of control
B)departmentalization
C)chain of command
D)work specialization

Question 10

The process of _________involves making decisions about how specialized jobs should be allocated, the rules to guide employees' behaviors, and at what level decisions are to be made.

A)planning
B)organization design
C)organizing
D)controlling

Question 11

When five differing workers each do one specific job preparing a Big Mac at McDonald's, they are engaging in

A)chain of command.
B)span of control.
C)departmentalization.
D)work specialization.

Question 12

Organizational structure should always _________organizational strategy.

A)occur at the same time as
B)be independent of
C)follow
D)precede

Question 13

Which of the following has not contributed to the boundaryless organization?

A)changes in technology
B)complex and dynamic environments
C)increases in telecommunication
D)static environments

Question 14

Application of Organizational Structure
Jim Johnson is the CEO of a major manufacturer of farming equipment. His company has been in business for the last 100 years and has been very profitable. The company is very formal and tall with formalized communication channels and rigid hierarchical relationships. Mr. Johnson makes all major decisions. This has worked very well until lately. It has begun to have some major global competition. Companies overseas are bringing new products into the United States at a lower price.
Furthermore, just yesterday, the new vice- president had mentioned that he felt that there was a major market overseas for the company's products. As its strategy was beginning to change, Mr. Johnson also realized its structure too would need to change, but to what? The company was large and, prior to these changes, the technology utilized, while extensive, had been very routine. What is he to do?
Which type of decision- making authority is currently being used in the company?

A)acceptance theory
B)centralization
C)decentralization
D)span of control

Question 15

A purchasing department may be created because the hospital administrator cannot effectively handle all purchasing. What type of position authority has been created?

A)responsibility
B)staff authority
C)line authority
D)accountability

Question 16

Stanley Milgram, a Yale University social psychologist, performed an experiment in which subjects were instructed to administer a shock to learners when they made a mistake. What can be concluded from his experiments?

A)Most subjects refused to shock the learner on the basis of ethical considerations.
B)A subject's stage of moral development can be used to explain his or her response to being directed to shock the learners.
C)The base of the experimenter's power determines the subject's response to instructions.
D)Authority is a potent source for getting things done.

Question 17

Jack has just been promoted to line manager for the assembling plant. Since Jack is now a manager, which of the following automatically also goes with the title of manager?

A)span of control
B)authority
C)acceptance by the employees
D)respect

Question 18

_________entitles a manager to direct the work of an employee.

A)Line authority
B)Span of control
C)Responsibility
D)Staff authority

Question 19

_________is a characteristic of the matrix organizational structure.

A)A dual- reporting relationship
B)A high degree of centralization
C)A lack of functional specialization
D)A lack of flexibility

Question 20

Which of the following structures is loose and flexible allowing it to change rapidly as the need arises?

A)bureaucracy
B)organic organization
C)mechanistic organization
D)strategic organization

Question 21

The culture of an organization is largely determined by

A)the company founders.
B)top management.
C)employees.
D)stockholders.

Question 22

Those managers whose organizational function contributes directly to the achievement of organizational objectives have

A)span of control.
B)line authority.
C)responsibility.
D)staff authority.

Question 23

Which of the elements of structure includes making efficient use of workers' diverse skills?

A)chain of command
B)departmentalization
C)work specialization
D)authority

Question 24

Which of the following is not a contingency variable that affects the appropriate structure for an organization?

A)size
B)technology
C)sales
D)strategy

Question 25

Leadership in a learning organization must have a shared vision and a _________environment.

A)future- oriented
B)culturally favorable
C)collaborative
D)global

Question 26

Early writers favored a span of control that was no more than

A)two.
B)four.
C)six.
D)eight.

Question 27

French and Raven identified five sources, or bases, of power. Which of the following is not included?

A)referent
B)influence
C)expert
D)coercive

Question 28

Terri must constantly report to the department chair as well as her immediate supervisor. Which of the following is being violated?

A)chain of command
B)work specialization
C)span of control
D)departmentalization

Question 29

The major disadvantage of the divisional structure is

A)employee satisfaction.
B)duplication of activities and resources.
C)minimization of duplication.
D)diseconomies of scale.

Question 30

Application of Bases of Power
Jerri is confused. She thought that once she had the title of manager, everyone would listen to her and accept her authority and power. However, she has noticed other employees that seem to have power. Whenever someone has a question about the computer system, they always go to Helen who actually established the current system they are using. Usually Helen can get things up and running quicker than going to the support staff for help. Then there is Joe who has a remarkable amount of charm and charisma. He seems to have a power based simply upon him. Then there is Jill, her secretary, who has a power entirely of her own. Jill turns in the timecards weekly, and Jerri has seen her more than once override the time clock and clock somebody in earlier than they actually arrived or clock out for them when the employee left work early. When Jerri questioned her about it, Jill just laughed and said that they had been doing it for years and the time all averaged out. The company allowed no overtime so any extra time spent after work was not compensated. Jerri sometimes wonders if she has any power at all.
What type of power does Jerri actually possess?

A)legitimate power
B)reward power
C)referent power
D)expert power

Question 31

Application of Bases of Power
Jerri is confused. She thought that once she had the title of manager, everyone would listen to her and accept her authority and power. However, she has noticed other employees that seem to have power. Whenever someone has a question about the computer system, they always go to Helen who actually established the current system they are using. Usually Helen can get things up and running quicker than going to the support staff for help. Then there is Joe who has a remarkable amount of charm and charisma. He seems to have a power based simply upon him. Then there is Jill, her secretary, who has a power entirely of her own. Jill turns in the timecards weekly, and Jerri has seen her more than once override the time clock and clock somebody in earlier than they actually arrived or clock out for them when the employee left work early. When Jerri questioned her about it, Jill just laughed and said that they had been doing it for years and the time all averaged out. The company allowed no overtime so any extra time spent after work was not compensated. Jerri sometimes wonders if she has any power at all.

-In Jerri's organization most decision- making authority is concentrated at the top levels of the organization, and most managers rely on their position as a source of power. In this organization power is _________and is referred to as _________ .

A)centralized; legitimate power
B)decentralized; referent power
C)centralized; formal power
D)decentralized; legitimate power

Question 32

An organization that has four sales regions, North, Midwest, South, and Southwest is using _________departmentalization.

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

Question 33

Which type of power is not displayed in Jerri's organization?

A)coercive
B)expert
C)reward
D)referent

Question 34

Which of the following is not a contingency variable that determines the appropriate span of control for managers?

A)task complexity
B)employee training
C)expenses
D)management style preferences

Question 35

An organization that groups activities according to women's footwear, men's footwear, apparel, accessories, and leggings would use ________departmentalization.

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

Question 36

Application of Organizational Structure
Jim Johnson is the CEO of a major manufacturer of farming equipment. His company has been in business for the last 100 years and has been very profitable. The company is very formal and tall with formalized communication channels and rigid hierarchical relationships. Mr. Johnson makes all major decisions. This has worked very well until lately. It has begun to have some major global competition. Companies overseas are bringing new products into the United States at a lower price.
Furthermore, just yesterday, the new vice- president had mentioned that he felt that there was a major market overseas for the company's products. As its strategy was beginning to change, Mr. Johnson also realized its structure too would need to change, but to what? The company was large and, prior to these changes, the technology utilized, while extensive, had been very routine. What is he to do?
What qualifies the company to be a mechanistic structure?

A)The company is tall with formalized communication channels.
B)The company is very formal.
C)The company has rigid hierarchical relationships.
D)all of the above

Question 37

Application of Departmentalization
John is aware that the structure of his organization must change in order to compete more effectively in today's global market. However, he is not sure which structure would work best for his company. His company is currently organized around an accounting, human resource, sales, purchasing, and manufacturing departments. However, there are other choices available. He has considered reorganizing around their primary products, which are frames, silk flowers, dried flowers, art supplies, craft supplies, and material. However, equally important are the differing clientele they serve, who are homemakers that do arts/crafts, interior decorators, large institutions, and professional consultants. Since the business is growing, they now have stores across the United States primarily in the Northwest, Midwest, South, and Southwest areas.
Plus, his customers seldom shop for just one type of item. Frequently they purchase not only the flowers, but also the vases and other supplies that are needed in order to complete the arrangement, which means oftentimes shopping in most of the areas in the store.
Which of the following departmental structures would be used if the grouping were based on the areas served in the United States?

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

Question 38

Jim has the ability to "dock" paychecks of employees who arrive at work past 9:05 AM. What kind of power does Jim possess?

A)coercive power
B)expert power
C)referent power
D)legitimate power

Question 39

Jerri could enhance her or build her power by capitalizing on _________.

A)criticality
B)centrality
C)visibility
D)all of the above

Question 40

In a consulting firm, the consultants have _________ authority since their work directly contributes to the bottom line, whereas consultants in a manufacturing firm have _ authority because they are used in an advisory capacity.

A)planning; line
B)controlling; line
C)organizing; staff
D)line; staff

Question 41

Which of the following departmental structures would be used if the grouping were based on work or customer flow?

A)customer departmentalization
B)functional departmentalization
C)geographic departmentalization
D)process departmentalization

Question 42

Which of the following is the primary strength of the matrix structure?

A)Propensity to foster power struggles.
B)Duplication of activities and resources.
C)Employee satisfaction.
D)Economies of scale and the ability to coordinate interdependent projects.

Question 43

_________structures group together jobs and activities that are performed in the same region or location.

A)Market
B)Geographic
C)Customer
D)Product

Question 44

Application of Bases of Power
Jerri is confused. She thought that once she had the title of manager, everyone would listen to her and accept her authority and power. However, she has noticed other employees that seem to have power. Whenever someone has a question about the computer system, they always go to Helen who actually established the current system they are using. Usually Helen can get things up and running quicker than going to the support staff for help. Then there is Joe who has a remarkable amount of charm and charisma. He seems to have a power based simply upon him. Then there is Jill, her secretary, who has a power entirely of her own. Jill turns in the timecards weekly, and Jerri has seen her more than once override the time clock and clock somebody in earlier than they actually arrived or clock out for them when the employee left work early. When Jerri questioned her about it, Jill just laughed and said that they had been doing it for years and the time all averaged out. The company allowed no overtime so any extra time spent after work was not compensated. Jerri sometimes wonders if she has any power at all.
What type of power does Helen possess?

A)referent power
B)expert power
C)reward power
D)coercive power

Question 45

Application of Departmentalization
John is aware that the structure of his organization must change in order to compete more effectively in today's global market. However, he is not sure which structure would work best for his company. His company is currently organized around an accounting, human resource, sales, purchasing, and manufacturing departments. However, there are other choices available. He has considered reorganizing around their primary products, which are frames, silk flowers, dried flowers, art supplies, craft supplies, and material. However, equally important are the differing clientele they serve, who are homemakers that do arts/crafts, interior decorators, large institutions, and professional consultants. Since the business is growing, they now have stores across the United States primarily in the Northwest, Midwest, South, and Southwest areas.
Plus, his customers seldom shop for just one type of item. Frequently they purchase not only the flowers, but also the vases and other supplies that are needed in order to complete the arrangement, which means oftentimes shopping in most of the areas in the store.
Which of the following structures would be used if the grouping of activities were centered on homemakers, interior decorators, institutions, and consultants?

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

Question 46

Power based upon identification with a person who has desirable resources or personal traits is known as

A)referent power.
B)expert power.
C)coercive power.
D)legitimate power.

Question 47

The grouping of activities by work or customer flow is which of the following?

A)process departmentalization
B)functional departmentalization
C)customer departmentalization
D)geographic departmentalization

Question 48

The system or patterns or values, symbols, rituals, myths, and practices that have evolved over time are an organization's

A)control factors.
B)history.
C)culture.
D)characteristics.

Question 49

A(n) _________structure involves creating work units based on product, process, customer, or geographic territory.

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

Question 50

A construction supervisor site who sees an impending thunderstorm, tells workers to go home, and secures the site is demonstrating

A)delegation.
B)authority.
C)accountability.
D)responsibility.

Question 51

_________refers to the concentration of decision authority at the top levels of the organizational hierarchy.

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

Question 52

Three basic approaches to departmentalization are by:

A)formalization, decentralization, and centralization.
B)geography, customer, and product.
C)authority, accountability, and responsibility.
D)function, division, and matrix.

Question 53

Two of the most popular bureaucratic design options grew out of the function and product departmentalizations. They are called _________ structures.

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

Question 54

Application of Organizational Structure
Jim Johnson is the CEO of a major manufacturer of farming equipment. His company has been in business for the last 100 years and has been very profitable. The company is very formal and tall with formalized communication channels and rigid hierarchical relationships. Mr. Johnson makes all major decisions. This has worked very well until lately. It has begun to have some major global competition. Companies overseas are bringing new products into the United States at a lower price.
Furthermore, just yesterday, the new vice- president had mentioned that he felt that there was a major market overseas for the company's products. As its strategy was beginning to change, Mr. Johnson also realized its structure too would need to change, but to what? The company was large and, prior to these changes, the technology utilized, while extensive, had been very routine. What is he to do?
The large size of the company and the use of routine technology are indicators that which type of structure would be most effective?

A)mechanistic organization
B)organic organization
C)matrix
D)strategic organization

Question 55

In a team- based structure, _________ make(s)the decisions that affect the team.

A)middle management
B)team members
C)first- line management
D)top management

Question 56

Organization design decisions are typically made by

A)operatives.
B)lower- level management.
C)mid- level management.
D)senior management.

Question 57

Application of Departmentalization
John is aware that the structure of his organization must change in order to compete more effectively in today's global market. However, he is not sure which structure would work best for his company. His company is currently organized around an accounting, human resource, sales, purchasing, and manufacturing departments. However, there are other choices available. He has considered reorganizing around their primary products, which are frames, silk flowers, dried flowers, art supplies, craft supplies, and material. However, equally important are the differing clientele they serve, who are homemakers that do arts/crafts, interior decorators, large institutions, and professional consultants. Since the business is growing, they now have stores across the United States primarily in the Northwest, Midwest, South, and Southwest areas.
Plus, his customers seldom shop for just one type of item. Frequently they purchase not only the flowers, but also the vases and other supplies that are needed in order to complete the arrangement, which means oftentimes shopping in most of the areas in the store.
Which of the following structures would be used if the grouping were done by frames, silk flowers, dried flowers, art supplies, craft supplies, and material?

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

Question 58

The number of persons reporting directly to a single manager is an organizational issue relating to _________ .

A)line and staff relationships
B)span of control
C)centralization
D)functional authority

Question 59

_________is the formal right to give orders, make decisions, and see that tasks are completed.

A)Authority
B)Decentralization
C)Centralization
D)Responsibility

Question 60

The rights inherent in a managerial position to give orders and expect them to be obeyed is known as

A)authority.
B)accountability.
C)span of control.
D)responsibility.

Question 61

Organizations with narrower spans of control tend to _________.

A)have many levels of management
B)have tall structures
C)be more costly than organizations with narrower spans of control
D)have flat structures

Question 62

_________involves the delegation of decision- making and authority to lower levels in the organization.

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

Question 63

Application of Bases of Power
Jerri is confused. She thought that once she had the title of manager, everyone would listen to her and accept her authority and power. However, she has noticed other employees that seem to have power. Whenever someone has a question about the computer system, they always go to Helen who actually established the current system they are using. Usually Helen can get things up and running quicker than going to the support staff for help. Then there is Joe who has a remarkable amount of charm and charisma. He seems to have a power based simply upon him. Then there is Jill, her secretary, who has a power entirely of her own. Jill turns in the timecards weekly, and Jerri has seen her more than once override the time clock and clock somebody in earlier than they actually arrived or clock out for them when the employee left work early. When Jerri questioned her about it, Jill just laughed and said that they had been doing it for years and the time all averaged out. The company allowed no overtime so any extra time spent after work was not compensated. Jerri sometimes wonders if she has any power at all.
Jerri's success as a manager depends on acquiring and appropriately utilizing

A)legitimate and referent power.
B)expert power.
C)reward power and coercive power.
D)all sources of power.

Question 64

What type of power does a manager exercise when he or she offers pay raises, bonuses, special assignments, or incentives to subordinates?

A)Expert power
B)Coercive power
C)Legitimate power
D)Reward power

Question 65

Narrow spans of control lead to a _________ organizational structure, whereas wider spans of control lead to a _________organizational structure.

A)tall; short
B)flat; tall
C)homogenous; diverse
D)short; tall

Question 66

A component of organization structure that involves having each discrete step of a job done by a different individual rather than having one individual do the whole job is known as

A)work specialization.
B)span of control.
C)departmentalization.
D)chain of command.

Question 67

_________is the ability to influence the behavior of other people because of one's capacity to offer rewards, or other desirable outcomes.

A)Legitimate power
B)Coercive power
C)Reward power
D)Expert power

Question 68

Application of Organizational Structure
Jim Johnson is the CEO of a major manufacturer of farming equipment. His company has been in business for the last 100 years and has been very profitable. The company is very formal and tall with formalized communication channels and rigid hierarchical relationships. Mr. Johnson makes all major decisions. This has worked very well until lately. It has begun to have some major global competition. Companies overseas are bringing new products into the United States at a lower price.
Furthermore, just yesterday, the new vice- president had mentioned that he felt that there was a major market overseas for the company's products. As its strategy was beginning to change, Mr. Johnson also realized its structure too would need to change, but to what? The company was large and, prior to these changes, the technology utilized, while extensive, had been very routine. What is he to do?
Which of the following contingency variables had the biggest impact on the need for changes in Mr. Johnson's organization?

A)technology
B)size
C)environment
D)management

Question 69

Jody Bartholomew is attempting to lead his company in a growth strategy by entering into global markets. He will need a structure that is flexible, fluid, and readily _________to the environment.

A)adaptable
B)responsive
C)stable
D)none of the above

Question 70

_________is an individual's capacity to influence decisions.

A)Staff authority
B)Line authority
C)Span of control
D)Power

Question 71

The wider the span of control, the more the organization will tend to _________ .

A)have tall structures
B)have many levels of management
C)be more costly than organizations with narrower spans of control
D)have flat structures

Question 72

The strength of the divisional structure is which of the following?

A)It focuses on results.
B)It is based solely on teams.
C)Employees have more than one boss.
D)It gains advantages due to work specialization.

Question 73

A _________ groups together people who have similar skills and who perform similar tasks.

A)divisional structure
B)integrated structure
C)functional structure
D)matrix structure

Question 74

Which of the following is not a result of work that has become too specialized?

A)fatigue
B)low productivity
C)lower turnover
D)poor quality

Question 75

Application of Departmentalization
John is aware that the structure of his organization must change in order to compete more effectively in today's global market. However, he is not sure which structure would work best for his company. His company is currently organized around an accounting, human resource, sales, purchasing, and manufacturing departments. However, there are other choices available. He has considered reorganizing around their primary products, which are frames, silk flowers, dried flowers, art supplies, craft supplies, and material. However, equally important are the differing clientele they serve, who are homemakers that do arts/crafts, interior decorators, large institutions, and professional consultants. Since the business is growing, they now have stores across the United States primarily in the Northwest, Midwest, South, and Southwest areas.
Plus, his customers seldom shop for just one type of item. Frequently they purchase not only the flowers, but also the vases and other supplies that are needed in order to complete the arrangement, which means oftentimes shopping in most of the areas in the store.
The current structure that is being used is which of the following?

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

Question 76

The process of assigning authority and responsibility to one's subordinates to manage a project is called

A)centralization.
B)specialization.
C)delegation.
D)supervision.

Question 77

Julie's organization has a very formal structure with strict lines of communication where there are many rules and duties are fixed. This is an example of which of the following?

A)organic organization
B)strategic organization
C)mechanistic organization
D)advocacy

Question 78

_________is a function of how much decision- making authority is pushed down to lower levels in the organization.

A)Centralization
B)Span of control
C)Power
D)Departmentalization

Question 79

_________is the type of authority held by an information systems manager who primarily renders technical advise to the corporation.

A)Line authority
B)Corporate responsibility
C)Staff authority
D)Management accountability

Question 80

_________facilitates effective coordination of the various organizational parts or functions in a consistent manner, while _________provides greater flexibility to respond to change.

A)Decentralization; centralization
B)Specialization, centralization
C)Centralization; decentralization
D)Specialization, decentralization