Deck 9: Organisational Structure and Design

Question 1

Organizational structure is the degree to which tasks in an organization are divided into separate jobs.

Answer 1

False

Question 2

Joan Woodward attempted to view organizational structure from a technological perspective.

Answer 2

True

Question 3

Grouping jobs on the basis of product or customer flow is termed 'customer departmentalization'.

Answer 3

False

Question 4

Many of today's organizations are extremely reliant on strict rules and standardization to guide and regulate employee behavior.

Question 5

Innovators need the efficiency, stability, and tight controls of the mechanistic structure.

Question 6

When decisions tend to be made at lower levels in an organization, the organization is said to be decentralized.

Question 7

The concept of work specialization can be traced back a couple of centuries to Adam Smith's discussion of division of labor.

Question 8

Organizational design is the organization's formal framework by which job tasks are divided, grouped, and coordinated.

Question 9

Large organizations, such as Aramco, tend to have more specialization and centralization compared to small organizations.

Question 10

Today, most managers see work specialization as a source of ever-increasing productivity.

Question 11

The relationship between organizational size and structure tends to be linear.

Question 12

The concept of centralization-decentralization is absolute.

Question 13

A simple structure is an organizational design that groups similar or related occupational specialties together.

Question 14

An organic organization would likely be very flexible.

Question 15

An organic organization tends to be characterized by high specialization, extensive departmentalization, narrow spans of control, high formalization, a limited information network, and little participation in decision making by low-level employees.

Question 16

A term for increased decentralization is employee empowerment, which is giving employees more authority to make decisions.

Question 17

Since Woodward's initial work, numerous studies have demonstrated that organizations adapt their structures to their technology.

Question 18

The strength of the functional structure is that it focuses on results.

Question 19

Woodward's findings support that there is "one best way" to organize a manufacturing firm.

Question 20

When effective implementation of company strategies depends on managers having involvement and flexibility to make decisions, the company is probably more decentralized.

Question 21

Which statement accurately defines work specialization?

A) It clarifies who reports to whom.
B) The degree to which tasks are grouped together.
C) Individual employees specialize in doing part of an activity rather than the entire activity.
D) Jobs are ranked relative only to their worth or value to the businesses.

Question 22

________ departmentalization is based on the product or customer flow through the organization.

A) Product
B) Organizational structure
C) Functional
D) Process

Question 23

Many organizational design concepts are not applicable to twenty-first century companies.

Question 24

Organizational design is based on decisions about ________.

A) work specialization and mechanisms
B) centralization and matrices
C) strategy and structure
D) chain of command and span of control

Question 25

To minimize or eliminate boundaries, managers might use virtual or network structural designs.

Question 26

Functional departmentalization groups jobs by ________.

A) tasks they perform
B) type of customer they serve
C) territories they serve
D) products or services they manufacture or produce

Question 27

On what basis are jobs grouped in order to accomplish organizational goals?

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

Question 28

In describing the degree to which tasks in an organization are divided into separate jobs, managers use the term ________.

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

Question 29

Project structures tend to be rigid and inflexible organizational designs.

Question 30

A matrix design creates a dual chain of demand.

Question 31

________ departmentalization is used more in recent years to better monitor the needs of customers and to respond to changes in those needs.

A) Needs-based
B) Functional
C) Customer
D) Process

Question 32

It is critical for members in a virtual organization to collaborate on work activities throughout the entire organization.

Question 33

Structures of organizations in the Arab world differ remarkably from those in other countries.

Question 34

The inspiration of the virtual organization structural approach is the film industry.

Question 35

What kind of departmentalization would be in place in a government organization where different public service responsibilities are divided into activities for employers, children, and the disabled?

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

Question 36

________ is the formal arrangement of jobs within an organization.

A) Organizational structure
B) Organizational design
C) Work specialization
D) Departmentalization

Question 37

Employee empowerment is a crucial aspect of team structure because there is no line of managerial authority from top to bottom.

Question 38

In divisional structures, the parent corporation typically acts as an external overseer to coordinate and control the various divisions.

Question 39

Internal boundaries are boundaries that separate the organization from its customers, suppliers, and other stakeholders.

Question 40

Departmentalization based on ________ groups' jobs is based on the territory or physical location.

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

Question 41

At a company like Eldiar Furniture Manufacturing Company, workers may be assigned specific duties in order to meet the requirements of quality conscious clients. This is called ________.

A) job enhancement
B) labor intensification
C) task specification
D) work specialization

Question 42

Concepts such as chain of command and authority are considerably less relevant today because of things like ________.

A) information technology
B) empowerment
C) conflicting demands of multiple bosses
D) span of control

Question 43

When the span of control ________, employee performance suffers due to a lack of time, leadership, and support.

A) becomes less cost efficient
B) becomes moderate
C) becomes too large
D) remains too small

Question 44

Work teams composed of individuals from various functional specialties are known as ________ teams.

A) differentiated
B) weak
C) product
D) cross-functional

Question 45

What factor influences the amount of decentralization an organization uses?

A) The company is large.
B) Lower level managers are not as capable at making decisions as upper-level managers.
C) Lower-level managers want a voice in decisions.
D) Effective implementation of company strategies depends on managers retaining say over what happens.

Question 46

A(n) ________ organization is rigidly controlled and efficient.

A) horizontal
B) mechanistic
C) organic
D) learning

Question 47

Which one of Fayol's 14 principles of management helps preserve the concept of a continuous line of authority?

A) Unity of command.
B) Unity of demand.
C) Demand structure.
D) Continuous demand.

Question 48

What factor influences the amount of centralization an organization uses?

A) The environment is complex.
B) Decisions are significant.
C) The organization is facing the risk of company failure.
D) The company is geographically dispersed.

Question 49

The line of authority that extends from the upper levels of management to the lowest levels of the organization is called the ________.

A) chain of command
B) authorized line of responsibility
C) unity of command
D) responsibility factor

Question 50

The concept that defines the number of subordinates that report to a manager and that indirectly specifies the number of levels of management in an organization, is called ________.

A) authorized line of responsibility
B) span of control
C) unity of command
D) responsibility factor

Question 51

The theory that a person should report to only one manager is called ________.

A) responsibility factor
B) unity of command
C) authorized line of responsibility
D) chain of command

Question 52

In recent years, there has been a movement to make organizations more flexible and responsive through ________.

A) alternative organizational structure
B) decentralization
C) centralization
D) customer-based structure

Question 53

________ refers to the rights inherent to a position that allows a manager to tell subordinates what to do and expect them to do it.

A) Unity of command
B) Chain of command
C) Authority
D) Responsibility

Question 54

The degree to which jobs are standardized and guided by rules and procedures is called ________.

A) formalization
B) centralization
C) work specialization
D) decentralization

Question 55

________ is the obligation or expectation to perform a duty.

A) Span of control
B) Responsibility
C) Chain of command
D) Unity of command

Question 56

An example of ________ is when a hotel, such as Renaissance Dubai Hotel, conducts meetings with employees to gather their suggestions and ideas for implementation.

A) employee empowerment
B) staff stimulation
C) employee incentive scheme
D) employee inspiration

Question 57

When managers standardize employee behavior through rules and procedures, the jobs are becoming more ________.

A) formalized
B) horizontal
C) vertical
D) diversified

Question 58

The traditional view was that managers could not and should not directly supervise more than ________ subordinates.

A) five or six
B) nine or ten
C) seven or eight
D) three or four

Question 59

All other things being equal, as the span of control grows wider or larger, organizational design becomes more ________.

A) effective
B) democratic
C) efficient
D) bureaucratic

Question 60

Trends in the past few years have centered on a ________ span of control to reduce costs and speed decision making.

A) deeper
B) wider
C) stable
D) narrower

Question 61

In Joan Woodward's study of the relationship between technology and structure, the structure that was the most technically complex was ________.

A) mass production
B) technological production
C) process production
D) unit production

Question 62

Structure is related to the size of the organization, such that larger organizations tend to have ________ than smaller organizations.

A) fewer rules and regulations
B) less centralization
C) less departmentalization
D) more specialization

Question 63

Joan Woodward's study of the relationship between technology and structure is based upon her study of small manufacturing firms in ________.

A) southern England
B) the south of Wales
C) France
D) the northeastern United States

Question 64

As the number of employees in an organization grows, structure tends to become more ________.

A) relaxed
B) informal
C) centralized
D) specialized

Question 65

What is a strength of a simple structure?

A) It focuses on results.
B) Employees are grouped with others who have similar tasks.
C) It is inexpensive to maintain.
D) There are cost-saving advantages from specialization.

Question 66

According to Woodward's studies, what type of production works best with a mechanistic structure?

A) Process
B) Product
C) Mass
D) Unit

Question 67

The appropriate structure for an organization is based on four contingency variables: strategy, size, degree of environmental uncertainty, and ________.

A) history
B) technology
C) intensity of competition
D) leadership

Question 68

The greater the environmental uncertainty, the more an organization needs to become ________.

A) technologically pure
B) supportive of technological change
C) organic
D) mechanistic

Question 69

Global competition, accelerated product development by competitors, and increased demands by customers for better service have encouraged organizations to become more ________.

A) technologically pure
B) task oriented
C) mechanistic
D) organic

Question 70

Structure is related to the size of the organization, such that larger organizations are more ________.

A) mechanistic
B) decentralized
C) structurally weak
D) organic

Question 71

As a type of technology, ________ centers on large-batch production and requires moderate levels of complexity and sophistication.

A) service production
B) process production
C) mass production
D) unit production

Question 72

The strength of a ________ structure is based on results of managers, but it has a weakness because duplication can occur easily within the organization.

A) simple
B) divisional
C) functional
D) matrix

Question 73

Which of the following would likely be found in mechanistic organizations?

A) Decentralized responsibility.
B) Standardized job specialties.
C) Wide span of control.
D) Empowered employees.

Question 74

What is a weakness of a simple structure?

A) Reliance on one person is risky.
B) Functional specialists become insulated and have little understanding of what other units are doing.
C) Pursuit of functional goals can cause managers to lose sight of what's best for the overall organization.
D) Duplication of activities and resources increases costs and reduces efficiency.

Question 75

In describing the relationship between structure and strategy, it can be said that ________.

A) structure follows strategy
B) strategy and structure are always handled equally
C) strategy follows structure in smaller organizations
D) strategy follows structure

Question 76

Organizations that work like efficient, well-oiled machines are described as ________.

A) intuitive
B) organic
C) rational
D) mechanistic

Question 77

A small business with low departmentalization, wide spans of control, centralized authority, and limited formalization can be said to possess a ________ structure.

A) matrix
B) functional
C) divisional
D) simple

Question 78

A(n) ________ organization is able to change rapidly as needs require.

A) organic
B) mechanistic
C) vertical
D) horizontal

Question 79

An online Arabic sweets retailer that sells and ships sweets to customers all over the world and has a payroll of six employees, is likely to have which kind of organizational structure?

A) Simple
B) Divisional
C) Functional
D) Bureaucratic

Question 80

Traditional organizational designs tend to be more mechanistic, and include ________.

A) simple, functional, and divisional structures
B) functional, strategic, and business unit structures
C) simple, functional, and business unit structures
D) simple, functional, and corporate structures