Deck 10: Designing Organization Structure

Question 1

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

Answer 1

False

Question 2

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

Answer 2

True

Question 3

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

Answer 3

True

Question 4

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

Question 5

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

Question 6

Most organizations today discourage managers to delegate authority to the lower levels given the challenges to meet customer needs and adapt to the environment.

Question 7

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

Question 8

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

Question 9

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

Question 10

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

Question 11

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

Question 12

Certainty in the environment is usually associated with decentralization.

Question 13

The basis for grouping positions into departments and departments into the total organization is referred to as departmentalization.

Question 14

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

Question 15

Despite the apparent advantages of specialization, many organizations are moving away from this principle.

Question 16

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

Question 17

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

Question 18

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

Question 19

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

Question 20

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

Question 21

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

Question 22

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 23

Reengineering is the outcome of information and cooperation.

Question 24

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 25

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

Question 26

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 27

Coordination is the quality of collaboration across departments.

Question 28

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

Question 29

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

Question 30

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

Question 31

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

Question 32

The divisional structure encourages decentralization.

Question 33

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

Question 34

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

Question 35

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

Question 36

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

Question 37

The modular approach is similar to virtual networking.

Question 38

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

Question 39

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

Question 40

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

Question 41

A vertical structure that emphasizes specialization and centralization is appropriate when environmental uncertainty is high.

Question 42

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 43

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 44

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 45

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

Question 46

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 47

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 48

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 49

Organizational structure includes which of these?

A) The set of formal tasks assigned to individuals
B) The set of formal tasks assigned to departments
C) The design of systems to ensure effective coordination of employees across departments
D) Formal reporting relationships
E) All of these are part of organizational structure.

Question 50

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

Question 51

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 52

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

Question 53

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 54

The organization chart:

A) shows the characteristics of the organization's vertical structure.
B) is a visual representation of the organization's structure.
C) details the formal reporting relationships that exist within an organization.
D) all of these.
E) both shows the characteristics of the organization's vertical structure and is a visual representation of the organization's structure.

Question 55

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

Question 56

_____ is also referred to as work specialization.

A) Division of labor
B) Unity of command
C) Scalar chain
D) Esprit de corps
E) Virtual network approach

Question 57

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

Question 58

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

Question 59

Small-batch production is distinguished by standardized production runs.

Question 60

A rigid, vertical structure in an uncertain environment prevents the organization form adapting to change.

Question 61

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 62

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 63

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 64

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 65

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 66

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 67

_____ 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 68

_____ 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 69

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 70

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 71

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 72

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 73

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

Question 74

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 75

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

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

Question 76

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 77

_____ 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 78

How does managerial authority flow through the organizational hierarchy?

A) Vertically
B) Sporadically
C) Horizontally
D) In a circular fashion
E) Authority is static - it does not flow

Question 79

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 80

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

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