Deck 11: Basic Organizational Design

Question 1

Work specialization is also known as division of labor.

Answer 1

True

Question 2

The strength of the functional structure is that it focuses on results because managers are responsible for what happens to their products and services.

Answer 2

False

Question 3

The more the decision-making power of lower-level employees, the more decentralized the organization is.

Answer 3

True

Question 4

All other things unchanged, the narrower the span of control, the more efficient the organization is.

Question 5

A simple structure is characterized by low spans of controls and high formalization.

Question 6

Managers today continue to see work specialization as important because it helps employees be more efficient.

Question 7

Once an organization grows past a certain size, the impact of size on organization structure strengthens.

Question 8

Given other things unchanged, managers with well-trained and experienced employees can function well with a wider span of control than those with a less talented workforce.

Question 9

An organic organization is low in centralization.

Question 10

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

Question 11

Customer departmentalization works well because it emphasizes monitoring and responding to changes in customers' need.

Question 12

Today's organizations mostly rely on strict rules and standardization to guide and regulate employee behavior.

Question 13

In highly formalized organizations, employees have more discretion in how they do their work.

Question 14

Organizational structure is defined as the formal arrangement of jobs within an organization.

Question 15

Employee empowerment gives employees more authority to make decisions.

Question 16

Organizational structure is the degree to which standardized procedures are in place in an organization.

Question 17

An organic organization strictly adheres to the chain-of-command principle and has a small span of control.

Question 18

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

Question 19

At one end of the spectrum, organizations can be absolutely centralized, while at the other end, they can be completely decentralized.

Question 20

The chain of command is a principle that states that a person should report to only one boss.

Question 21

A disadvantage of ________ departmentalization is poor communication across the different groups.

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

Question 22

Which of the following statements accurately defines work specialization?

A) It is the basis of grouping jobs together.
B) Individual employees specialize in doing part of an activity rather than the entire activity.
C) It is the line of authority extending from upper organizational levels to the lower levels.
D) It clarifies who reports to whom.

Question 23

________ is the formal arrangement of jobs within an organization.

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

Question 24

In case of functional departmentalization, jobs are grouped according to ________.

A) tasks
B) territories
C) product lines
D) customer flow

Question 25

The process of dividing work activities into separate job tasks is known as ________.

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

Question 26

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

A) cross-control
B) cross-training
C) cross-functional
D) cross-command

Question 27

If top managers make key decisions with little input from below, then the organization is ________.

A) not mechanistic
B) more decentralized
C) not formalized
D) more centralized

Question 28

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

A) Product
B) Functional
C) Process
D) Customer

Question 29

________ is the obligation or expectation to perform a duty.

A) Responsibility
B) Authority
C) Ascendancy
D) Preponderance

Question 30

All other things being equal, the wider or larger the span, the more ________ an organization is.

A) ambitious
B) rigid
C) mechanistic
D) efficient

Question 31

Organizational design is a process that involves decisions about ________.

A) work specialization and cost-leadership
B) chain of command and span of control
C) centralization and differentiation
D) departmentalization and diversification

Question 32

The ________ determines the number of levels and managers in an organization.

A) delegation of authority
B) unity of command
C) chain of command
D) span of control

Question 33

________ refers to the rights inherent in a managerial position to tell people what to do and to expect them to do it.

A) Responsibility
B) Liability
C) Bureaucracy
D) Authority

Question 34

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

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

Question 35

According to the traditional view, managers could not-and should not-directly supervise more than ________ subordinates.

A) nineteen or twenty
B) five or six
C) ten or eleven
D) fifteen or sixteen

Question 36

The line of authority that extends from upper organizational levels to lower levels, clarifying who reports to whom, is known as the ________.

A) employee power distance
B) unity of command
C) span of control
D) chain of command

Question 37

Departmentalization based on ________ groups jobs on the basis of territory or physical location.

A) customer
B) product
C) geography
D) process

Question 38

The process of grouping jobs together is known as ________.

A) departmentalization
B) centralization
C) formalization
D) decentralization

Question 39

Which one of Fayol's 14 principles of management states that a person should report to only one manager?

A) unity of direction
B) unity of command
C) division of work
D) division of authority

Question 40

________ is the degree to which decision making takes place at upper levels of the organization.

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

Question 41

________ refers to how standardized an organization's jobs are and the extent to which employee behavior is guided by rules and procedures.

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

Question 42

A(n) ________ organization is highly formalized and centralized.

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

Question 43

As organizations become more flexible and responsive to environmental trends, there is a distinct shift toward ________ decision making.

A) centralized
B) decentralized
C) concentrated
D) amalgamated

Question 44

________ is a type of technology that centers on small-batch production.

A) Unit production
B) Mass production
C) Process production
D) Flow production

Question 45

In highly ________ organizations, there are explicit job descriptions, numerous organizational rules, and clearly defined procedures covering work processes.

A) formalized
B) decentralized
C) leveraged
D) capitalized

Question 46

Large organizations tend to have more ________ than smaller organizations.

A) specialization
B) departmentalization
C) centralization
D) rules and regulations

Question 47

Low vertical differentiation, low horizontal differentiation, and low formalization are characteristics of an organization that carries out ________.

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

Question 48

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

A) Unit production
B) Mass production
C) Process production
D) Service production

Question 49

Paul Abdul Oil Corporation (PAOC) began as a relatively small oil company.As PAOC has grown, the company has gained a highly trained group of managers and analysts at the corporate headquarters.This group is highly adaptive in its structure.Members of this group do not have standardized jobs, but are empowered to handle diverse job activities and problems.PAOC seems to have a(n) ________ structure.

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

Question 50

A(n) ________ organization is highly adaptive, loose, and flexible.

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

Question 51

Which of the following factors calls for a more centralized organizational structure?

A) when the decisions to be taken are significant
B) when the company is geographically dispersed
C) when the organization is facing a crisis
D) when the environment is complex

Question 52

Which of the following is a characteristic of an organic organization?

A) high specialization
B) cross-functional teams
C) rigid departmentalization
D) narrow span of controls

Question 53

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

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

Question 54

Joan Woodward divided firms into three distinct technologies that had increasing levels of complexity and sophistication: unit production, mass production, and ________.

A) continuous production
B) repetitive flow production
C) series production
D) process production

Question 55

Large organizations are more ________.

A) mechanistic
B) organic
C) disorganized
D) decentralized

Question 56

GlaxoSmithKline would become more ________ if it starts allowing its lab scientists to set the priorities and allocate the resources.

A) bureaucratic
B) mechanistic
C) diversified
D) organic

Question 57

Which of the following factors would require a more decentralized organizational structure?

A) when the lower-level managers want a voice in decisions
B) when the lower-level managers are not capable of making decisions
C) when the decisions to be made are not significant
D) when the company is large

Question 58

A(n) ________ organization is highly specialized and rigidly departmentalized.

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

Question 59

What are the four contingency variables that an organization's structure depends on?

A) strategy, size, technology, and equity
B) management, technology, equity, and degree of environmental uncertainty
C) management, funding, technology, and degree of environmental uncertainty
D) strategy, size, technology, and environmental uncertainty

Question 60

Which of the following is a characteristic of a mechanistic organization?

A) cross-functional teams
B) free flow of information
C) wide spans of control
D) clear chain of command

Question 61

The ________ is an organizational structure made up of separate business units with each unit having limited autonomy.

A) bureaucratic structure
B) simple structure
C) functional structure
D) divisional structure

Question 62

High vertical differentiation, low horizontal differentiation, and low formalization are characteristics of an organization that indulges in ________.

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

Question 63

Eric is offered a chance to help direct the efforts of some employees assigned to his work group.This is a chance for Eric to experience ________.

A) self actualization
B) groupthink
C) referent power
D) authority

Question 64

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

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

Question 65

According to Woodward's studies, what type of production technology is best suited for a mechanistic structure?

A) unit
B) process
C) product
D) mass

Question 66

Which of the following is a weakness of the simple structure?

A) Duplication of activities and resources increases costs and reduces efficiency.
B) Specialists become insulated and have little understanding of what other units are doing.
C) Pursuit of functional goals causes managers to lose sight of what is best for the overall organization.
D) It relies too much on one person which is very risky.

Question 67

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

A) organic
B) mechanistic
C) specialized
D) departmentalized

Question 68

When Eric is offered a chance to help direct the efforts of some employees assigned to his work group, he sees this new assignment as a(n) ________.

A) decrease in authority
B) increase in departmentalization
C) increase in his responsibility
D) decrease in work specialization

Question 69

Eric majored in engineering and really enjoyed his work.After the reorganization, Eric was required to work with a team that included production workers as well as marketing specialists to design the latest products the company was planning to offer.This implies ________.

A) the company is becoming more centralized
B) that Eric's job responsibilities have been reduced
C) the company is becoming more mechanistic
D) that Eric is a part of a cross-functional team

Question 70

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

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

Question 71

A company with low departmentalization, wide spans of control, centralized authority, and little formalization possesses a ________ structure.

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

Question 72

In an attempt to reorganize, the assembly-line activity was divided into separate job tasks.Individual employees were trained to become specialists in specific tasks rather than the entire activity.The company seems to have adopted ________.

A) work specialization
B) departmentalization
C) cross-functional teams
D) centralization

Question 73

In a ________ structure the parent corporation typically acts as an external overseer to coordinate and control the various divisions and provide financial, legal, or other such support services.

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

Question 74

Moderate vertical differentiation, high horizontal differentiation, and high formalization are characteristics of an organization that indulges in ________.

A) small-batch production
B) mass production
C) unit production
D) process production

Question 75

Worldwide economic downturn, global competition, accelerated product innovation by competitors, and increased demands from customers for high quality and faster deliveries encourage organizations to become more ________.

A) organic
B) mechanistic
C) centralized
D) formalized

Question 76

In stable and simple environments, ________.

A) organic designs are most effective
B) mechanistic designs are most effective
C) low formalization is necessary
D) decentralization is necessary

Question 77

Which of the following traditional organizational designs focuses on results by holding division managers responsible for what happens to their products and services?

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

Question 78

Which of the following is a strength of simple structures?

A) Employees are grouped with others who have similar tasks.
B) It focuses on results.
C) It is inexpensive to maintain.
D) It remains appropriate even as the organization changes as it grows.

Question 79

In which of the following traditional organizational designs does duplication of activities and resources lead to an increase in costs and reduced efficiency?

A) divisional structure
B) team structure
C) matrix structure
D) project structure

Question 80

What are the different structures that traditional organizations can have?

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