Deck 14: Organizational Structure Design

Question 1

The idea that each person has only one direct supervisor is known as chain of command.

Answer 1

False

Question 2

Formalization is the degree to which decision-making authority is concentrated in an organization.

Answer 2

False

Question 3

Hollow structures are an outsourcing approach in which organizations keep their essential, core tasks internal to the organization and then outsource any noncore tasks.

Answer 3

True

Question 4

Organizational design is just one component of the much larger organizational structure process.

Question 5

Regarding departmentalization, the five most common ways of grouping employees are by function, product, geography, process, and customer.

Question 6

Departmentalization is the degree to which work rules are written and explicitly communicated.

Question 7

An important disadvantage of divisional structures is that they are less efficient because people are not able to work together as closely.

Question 8

Organic structures have high specialization of labor and many hierarchical levels.

Question 9

The policy decisions of the STAR model include: strategy, structure, process, rewards, and people.

Question 10

High centralization is typically associated with increased control, easy coordination, and lower costs.

Question 11

A virtual organization is a "soft structure" of informal relationships, networks, teams, groups, and committees connected by the demands of the task.

Question 12

A flatarchy is a hybrid approach using a functional structure and a relatively flat hierarchy, with a correspondingly wide span of control.

Question 13

Which is not one of the selected trends identified in a recent survey of business leaders conducted by Deloitte?

A)increased employee longevity
B)executive teams leading teams
C)managing beyond the organization
D)new rewards (personalized, agile, and holistic)
E)the move from careers to experiences

Question 14

A hybrid organizational structure combines functional and divisional structures.

Question 15

Downsizing is often associated with long-term organizational success.

Question 16

The number of people that report to an individual manager is known as the span of control.

Question 17

In modern careers, the focus has shifted away from progressing through formal positions to acquiring experiences and achievements.

Question 18

A virtual organization is an alliance in which companies form partnerships with others to cooperate and deliver a product or service under an operating agreement.

Question 19

A modular structure is like an extremely organic organization on the mechanistic-versus-organic continuum.

Question 20

Hollow structures outsource components of a product, usually by keeping a core part of it in-house and outsourcing noncore portions.

Question 21

The degree to which decision-making authority is concentrated in an organization is known as

A)managerial control.
B)labor specialization.
C)centralization.
D)formalization.
E)departmentalization.

Question 22

In a retail clothing store with high ________, one person will greet customers and others will help customers find specific items, while still others will work the cash register.

A)formalization
B)centralization
C)labor concentration
D)labor specialization
E)departmentalization

Question 23

In ________ organizational structures, the biggest hurdle is that promotion and career opportunities may be severely limited.

A)flat
B)tall
C)short
D)smooth
E)round

Question 24

Which type of organizational structure organizes people around a form of departmentalization (e.g., product, process)?

A)matrix
B)functional
C)flatarchy
D)divisional
E)network

Question 25

Organic structures are partly characterized by

A)high specialization of labor.
B)rigid chain of command.
C)many hierarchical levels.
D)narrow spans of control.
E)low formalization.

Question 26

When companies have a workflow with defined steps, they may use ________ departmentalization.

A)functional
B)divisional
C)process
D)product
E)geographic

Question 27

Which is not a type of departmentalization?

A)functional
B)divisional
C)product
D)geographic
E)process

Question 28

Regarding the key building blocks for organizational structure, high ________ is normally associated with increased control, easy coordination, and lower costs.

A)labor specialization
B)managerial control
C)formalization
D)centralization
E)departmentalization

Question 29

Which of the six key blocks of organizational structure groups people into an area or unit within the overall organizational structure?

A)departmentalization
B)formalization
C)centralization
D)hierarchical levels
E)labor specialization

Question 30

The degree to which people perform the same specific tasks is known as

A)formalization.
B)centralization.
C)labor specialization.
D)labor concentration.
E)departmentalization.

Question 31

In a(n)________ organization, there are no titles, nor chains of command, nor predetermined channels of communication.

A)flat lattice
B)matrix
C)hybrid
D)network
E)flatarchy

Question 32

Bob is stressed out at work because he seems to have two bosses, and they often give him conflicting information and orders. Bob's company is violating the principle known as

A)chain of command.
B)unity of command.
C)decentralized control.
D)span of control.
E)hierarchical control.

Question 33

The biggest downside of ________ organizational structure is the creation of a "silo" mindset.

A)hybrid
B)matrix
C)functional
D)network
E)flatarchy

Question 34

Mechanistic structures are partly characterized by

A)low specialization of labor.
B)fewer hierarchical levels.
C)unclear chains of command.
D)narrow spans of control.
E)low centralization.

Question 35

An organizational structure that combines different traditional structures in an attempt to gain their advantages and minimize their disadvantages is known as a ________ structure.

A)hybrid
B)network
C)fused
D)conjoined
E)collective

Question 36

The degree to which work rules are written and explicitly communicated is known as

A)labor specialization.
B)managerial control.
C)departmentalization.
D)centralization.
E)formalization.

Question 37

Which is not one of the six, key blocks that play a role in the appearance of almost every final organizational structure?

A)degree of labor specialization
B)compartmentalization
C)chain of command
D)centralization
E)formalization

Question 38

An important disadvantage of ________ organizational structures is that they are less efficient because people are not able to work together as closely, and work may be duplicated.

A)flatarchy
B)functional
C)matrix
D)network
E)divisional

Question 39

Which of the six key building blocks for organizational structure distinguishes between tall versus flat organizations?

A)centralization
B)formalization
C)departmentalization
D)labor specialization
E)hierarchical levels

Question 40

Which type of organizational structure organizes employees based on the tasks they perform for the organization?

A)matrix
B)functional
C)hybrid
D)network
E)flatarchy

Question 41

Which organizational structure is designed to take advantage of scarce resources and provide a better accounting of the costs associated with specific projects or products?

A)functional
B)divisional
C)network
D)matrix
E)flatarchy

Question 42

Which is not one of the five management decisions underlying the STAR model?

A)strategy
B)structure
C)policy
D)process
E)people

Question 43

Which type of organizational structure is an alliance in which companies form partnerships to cooperate and deliver a product or service under an operating agreement?

A)networked
B)hollow
C)modular
D)virtual
E)boundaryless

Question 44

List and discuss the six, key building blocks that differentiate organizations.

Question 45

Which organizational structure has the advantages of being able to transcend national borders, respond quickly to change, and can harness the efforts of their numerous members?

A)networked
B)hollow
C)modular
D)boundaryless
E)virtual

Question 46

Which organizational structure is a "soft structure" of informal relationships, and communities connected by the demands of the task?

A)networked
B)hollow
C)modular
D)boundaryless
E)virtual

Question 47

The biggest disadvantage of ________ organizational structures is that they violate the unity of command by giving every employee two managers instead of one.

A)flatarchy
B)network
C)divisional
D)functional
E)matrix

Question 48

Which organizational structure has the advantages of reduced overhead, increased focus on assembly, and reduced need for highly-skilled specialists necessary to produce an entire product in-house?

A)networked
B)hollow
C)modular
D)boundaryless
E)virtual

Question 49

Which type of organizational structure is a hybrid, using a functional structure and a relatively level hierarchy, with a correspondingly wide span of control?

A)flatarchy
B)network
C)matrix
D)functional
E)divisional

Question 50

Which type of organization needs people who can manage conflict and get things done without possessing formal authority?

A)networked
B)boundaryless
C)flatarchy
D)hollow
E)matrix

Question 51

Which organizational structure has the key disadvantage of losing control over potentially important jobs, which could cause serious problems for the organization?

A)hollow
B)virtual
C)networked
D)modular
E)boundaryless

Question 52

A major disadvantage of the ________ organizational structure is that it creates confusion due to large spans of control and the amount of freedom provided to employees.

A)divisional
B)functional
C)flatarchy
D)matrix
E)network

Question 53

Two key features of ________ organizations are small multidisciplinary teams and divisions, and a decentralized structure.

A)hollow
B)networked
C)modular
D)boundaryless
E)virtual

Question 54

In the STAR model, the decision about ________ directs the way work and information are going to flow through the organization.

A)structure
B)strategy
C)policy
D)process
E)people

Question 55

A major benefit of the ________ organizational structure is that it encourages company-wide innovation.

A)network
B)flatarchy
C)matrix
D)functional
E)divisional

Question 56

Proctor and Gamble and NASA are famous examples of organizations that use a ________ organizational structure.

A)network
B)divisional
C)matrix
D)flatarchy
E)functional

Question 57

Some of the major hurdles faced by a ________ organization are that the process of implementing new roles and responsibilities can be time consuming and confusing, and employees may resist the changes and leave the organization.

A)hollow
B)matrix
C)network
D)boundaryless
E)flatarchy

Question 58

Which type of organization combines functional and divisional organizational structures?

A)network
B)matrix
C)flatarchy
D)divisional
E)functional

Question 59

Which type of organizational structure uses an outsourcing approach in which organizations keep their essential core tasks internal to the organization, and then outsource any noncore tasks?

A)networked
B)virtual
C)modular
D)boundaryless
E)hollow

Question 60

Which organizational structure involves outsourcing components of a product, usually by keeping a core part of it in-house and outsourcing noncore portions?

A)boundaryless
B)modular
C)networked
D)virtual
E)hollow

Question 61

Compare and contrast a matrix organization to a flatarchy. Be sure to mention the advantages and disadvantages of each.

Question 62

List and discuss the questions you would ask to determine whether a company's reward system is doing its job. Use these questions to analyze the rewards system at your current (or former)job.

Question 63

Contrast organizational structure to organizational design. How are the two related?

Question 64

What is a virtual organization? Name an example of a company or an industry that uses one. List its strengths and weaknesses.

Question 65

List and describe the five policy decisions at the heart of the STAR model.

Question 66

A company's span of control is inversely related to the number of hierarchical levels a company has. Explain what this means. The answer should also define span of control and hierarchical levels (and the trade-off between having tall versus flat structures).

Question 67

What is a networked organization? Name an example of a company or industry that uses one. List its strengths and weaknesses.

Question 68

What is a hollow structure? Name an example of a company or an industry that uses one. List its strengths and weaknesses.

Question 69

Compare and contrast functional to divisional structures. Be sure to mention the advantages and disadvantages of each.

Question 70

What is a modular structure? Name an example of a company or an industry that uses one. List its strengths and weaknesses.

Question 71

List and discuss any four of the forces reshaping organizations, as identified by the recent Deloitte survey of 11,000 business leaders.

Question 72

What are the characteristics of both mechanistic and organic structures?

Question 73

What is departmentalization? List and define the five most common ways of grouping employees by departmentalization. For each of these five ways, list an example company or industry groups employees in this way.

Question 74

Should an organization centralize or decentralize its decision making? What are three questions (identified by McKinsey Consulting)that can assist in answering this question?