Deck 13: Organisational Structure

Question 1

Formalisation represents the establishment of standardisation as a coordinating mechanism.

Answer 1

True

Question 2

Organisations tend to become less formalised as they age and grow in number of employees.

Answer 2

False

Question 3

The main reason why companies are moving toward flatter organisational structures is that it improves coordination through formal hierarchy.

Answer 3

False

Question 4

A narrower span of control is consistent with the trend towards employee involvement and teamwork.

Question 5

Division of labour leads to increased job specialisation.

Question 6

One of the main benefits of formal hierarchy as a coordinating mechanism is that it increases flexibility and responsiveness to customer needs.

Question 7

Functional structures foster professional identity and permit greater specialisation than most other forms of departmentalisation.

Question 8

As external environments become more complex and dynamic,organisational structures should become more mechanistic and less organic.

Question 9

Integrator roles increase informal communication as a coordinating mechanism.

Question 10

When work activities are too complex to standardise through extensively training employees,companies need to coordinate work effort through precise job descriptions.

Question 11

Large organisations encourage informal communication as a coordinating mechanism by keeping each workplace small.

Question 12

The two fundamental requirements of all organisational structures are divisionalisation and decentralisation.

Question 13

Organisations tend to centralise as their external environment becomes more complex.

Question 14

One problem with departmentalisation is that it discourages coordination through informal communication.

Question 15

An organisation's structure is mainly its organisational chart.

Question 16

Organisational structures are tools for change.

Question 17

Job descriptions and training are examples of coordination through standardisation.

Question 18

Formal hierarchy is the most effective coordinating mechanism where employees work in non-routine and ambiguous situations.

Question 19

When work is divided among people,a coordinating mechanism is needed to ensure that everyone works in concert.

Question 20

Mechanistic structures operate best in stable environments.

Question 21

Larger firms tend to be more centralised and make greater use of direct supervision than do smaller firms.

Question 22

Organisations move towards a team-based structure by flattening the hierarchy,reducing formalisation and making extensive use of self-directed work teams.

Question 23

Integrator roles are a coordinating mechanism strategy under:

A) Formal hierarchy
B) Informal communication
C) Standardisation
D) Concurrent engineering

Question 24

One problem with the divisional structure is that it increases the risk of duplication and under-utilisation of resources.

Question 25

The formal hierarchy has traditionally been applauded as the optimal coordinating mechanism for:

A) Small organisations
B) Large organisations
C) Start-ups
D) All of the options listed here are correct

Question 26

A problem with the divisional organisational structure is that it does not allow the organisation to grow within that structure.

Question 27

Team-based organisational structures are usually found within larger divisionalised structures.

Question 28

Organisations that follow a cost leadership strategy should apply an organic organisational structure.

Question 29

An organic structure works better than a mechanistic structure where tasks have high variety and low analysability.

Question 30

One of the main forces pushing organisations towards a network structure is the recognition that an organisation has only a few core competencies.

Question 31

Decentralisation is the preferred strategy for organisations in simple,integrated (one market)and hostile environments.

Question 32

Job specialisation as part of the organisational process increases:

A) Work cycles
B) Work efficiency
C) Costs
D) Job incumbents

Question 33

Functional structures tend to have higher dysfunctional conflict and poorer coordination across units than other forms of departmentalisation.

Question 34

Organic structures are better suited to dynamic environments than to routine environments.

Question 35

People who feel comfortable working in structured bureaucracies tend to experience greater satisfaction working in a matrix structure.

Question 36

When traditional supervision is used as the coordinating mechanism,it tends to conflict with:

A) Non-routine and complex work
B) Employee autonomy and involvement
C) Clearly defined goals and output measures
D) None of the options listed here is correct

Question 37

Two fundamental processes in organisation structure are:

A) Span of control and centralisation
B) Division of labour and coordination
C) Organisational design and organisational size
D) None of the options listed here is correct

Question 38

Network structures come close to the perfect example of a mechanistic organisational structure.

Question 39

A widely accepted scholarly view of an organisation's structure and its environment is that organisational decision makers can choose the environments in which they want to operate.

Question 40

A virtual corporation is a form of network structure that reshapes itself quickly to fit immediate needs,usually for a specific client.

Question 41

Standardising work through job descriptions and procedures:

A) Is more common when the work is complex and ambiguous
B) Tends to reduce quality and consistency
C) Is unnecessary in large organisations
D) Is more common in organic rather than mechanistic structures

Question 42

McDonald's restaurants and most other efficient fast food chains typically have a high degree of:

A) Mechanism
B) Organisational flexibility
C) Formalisation
D) Decentralisation

Question 43

There is a wide span of control in team-based structure because teams operate with minimal:

A) Flexibility
B) Supervision
C) Conflict
D) All of the options listed here are correct

Question 44

The trend toward flatter organisational structures (delayering)has occurred because this action:

A) Tends to reduce overhead costs
B) Narrows the span of control for supervisors
C) Puts decision makers closer to front-line staff and information about customer needs
D) Reduces overhead costs AND puts decision makers closer to front-line staff and information about customer needs

Question 45

Dividing work into more specialised jobs tends to:

A) Increase training costs
B) Reduce work efficiency
C) Reduce the opportunity to match people with appropriate jobs
D) None of the options listed here is correct

Question 46

Employees are most likely to experience empowerment (least likely to experience powerlessness)when the organisation has:

A) High centralisation
B) High formalisation
C) A mechanistic structure
D) Low formalisation

Question 47

Which of the following is NOT a coordinating mechanism?

A) Job descriptions
B) Informal communication
C) Centralisation
D) Sales targets

Question 48

An organisation's decision to compete through innovation is an expression of its:

A) Technology
B) Influence on external environment
C) Strategy
D) Efficiency

Question 49

Many of the best-performing production plants are able to widen their span of control to more than 70 employees per supervisor by:

A) Teaching supervisors how to more efficiently monitor employees
B) Giving up on the idea that all employees must perform their fair share of work
C) Hiring supervisors who intimidate employees more often
D) Relying on self-directed work teams and other coordinating mechanisms

Question 50

Decentralisation is more likely to occur when:

A) An organisation becomes so complex that senior executives cannot process all the decisions that significantly influence the business
B) Corporate leaders want more consistent decisions across all work units
C) Corporate leaders want to increase consistency and reduce costs across the organisation
D) None of the options listed here is correct

Question 51

Coordination of work activities is required:

A) Whenever there is division of labour
B) Only in team-based organisations
C) Whenever the organisation has more than approximately 100 employees
D) Only when organisations operate in complex environments

Question 52

Coordination through formal hierarchy relies mainly on:

A) Informal communication
B) Job descriptions
C) Goals and objectives
D) Direct supervision

Question 53

Tall hierarchies tend to undermine employee empowerment and engagement because they focus on:

A) Delayering
B) Restricting managerial career development
C) Increasing workload stress
D) Power around managers rather than employees

Question 54

As organisations grow,which of the following does NOT typically occur?

A) Informal communication becomes more prevalent as a coordinating mechanism
B) There is increasing division of labour
C) The organisation becomes more decentralised
D) The organisation becomes more formalised

Question 55

To increase work efficiency and make it easier to match employee competencies with job requirements,companies tend to:

A) Divide work into more specialised jobs
B) Rely on formal hierarchy as a coordinating mechanism
C) Rely on a narrow span of control
D) Centralise decision making

Question 56

Integrator roles do which of the following?

A) They increase formalisation and centralisation
B) They support informal communication as a coordinating mechanism
C) They reduce the need for virtual corporations
D) They increase the amount of formal hierarchy

Question 57

Which coordinating mechanism is typically most important among people working in hospital surgical operations?

A) Direct supervision
B) Integrator roles
C) Job descriptions
D) Extensive training

Question 58

Dispersing decision authority and power throughout the organisation is called:

A) Optimisation
B) Formalisation
C) Centralisation
D) Decentralisation

Question 59

An organisational chart mainly illustrates which type of coordinating mechanism?

A) Formal hierarchy
B) Informal communication
C) Standardisation of skills
D) Standardisation of output

Question 60

All organisations have:

A) A formal hierarchy that includes supervisors and non-supervisory employees
B) A divisionalised structure
C) Some form of coordinating mechanism
D) A mechanistic structure

Question 61

A matrix structure often combines which two forms of departmentalisation?

A) Divisional structure and simple structure
B) Network structure and cluster structure
C) Simple structure and hybrid structure
D) Geographic divisional structure and product divisional structure

Question 62

The current trend is for companies to shift their divisionalised structures away from:

A) Functional specialisations (marketing,accounting,production,etc.)
B) Clients
C) Geography
D) Products

Question 63

Which form of departmentalisation increases the risk of duplication and under-utilisation of resources?

A) Divisional structure
B) Functional structure
C) Simple structure
D) Matrix structure

Question 64

One common type of matrix structure overlays a functional structure with:

A) A network structure
B) Project teams
C) A simple structure
D) A mechanistic structure

Question 65

A team-based organisational structure has:

A) Inter-organisational networks configured in a tall hierarchy with high formalisation
B) Self-directed work teams in a flat hierarchy with little formalisation
C) Functional departments in a tall hierarchy with little formalisation
D) Divisional units in a flat hierarchy with high formalisation

Question 66

Departmentalisation does all of the following EXCEPT:

A) Establish a system of common supervision
B) Discourage coordination through informal communication
C) Create common measures of performance among employees in the unit
D) Typically determine which positions and units must share resources

Question 67

Organisations tend to form two clusters based on their span of control,centralisation and formalisation.The two clusters represented by these organisational design features are called:

A) Hierarchical versus delayered
B) Networked versus team-based
C) Geographic versus product/client divisions
D) Organic versus mechanistic

Question 68

Which form of departmentalisation organises employees around specific skills or other resources?

A) Divisional structure
B) Functional structure
C) Simple structure
D) Matrix structure

Question 69

One of the defining characteristics of a matrix organisational structure is that it:

A) Overlays two organisational structures in order to leverage the benefits of both types of structure
B) Has a narrow span of control and high degree of formalisation and centralisation
C) Is the only structure that organises employees around specific knowledge or other resources
D) Uses self-directed work teams rather than individuals as the basic building block of organisations

Question 70

Which of these statements about team-based organisational structures is FALSE?

A) Team-based structures have very little formalisation
B) Team-based structures make extensive use of formal hierarchy as a coordinating mechanism
C) Team-based structures improve communication and cooperation across skills and areas of expertise
D) Team-based structures are usually more responsive and flexible than functional structures

Question 71

Simple structures usually rely on which of the following to coordinate work activities?

A) Direct supervision
B) Standardisation through formal instructions
C) Formal training (standardising skills)
D) Standardisation of product or service outputs

Question 72

Compared with divisionalised structures,functional structures are known to:

A) Create better economies of scale
B) Be more responsive to local markets or clients
C) Encourage employees to focus on the organisation's superordinate goals
D) Reduce conflict and coordination problems across work units

Question 73

Mechanistic structures operate best:

A) In stable environments
B) Where employees dislike hierarchy and status
C) In rapidly changing environments
D) Where knowledge management is a competitive advantage to the organisation

Question 74

Which of the following is pressuring large global organisations to move from geographically based to more client-based divisionalised structures?

A) Advances in information technology
B) Increases in the number of truly global clients
C) Freer trade
D) All of the options listed here are correct

Question 75

Which form of departmentalisation tends to have a very flat hierarchy,little formalisation and organises employees around work processes?

A) Divisional structure
B) Functional structure
C) Team-based structure
D) Matrix structure

Question 76

Team-based organisations rely extensively on:

A) Hourly wages and generous employee benefits
B) Supervisors as the main source of direction and control
C) Communities of practice
D) Self-directed work teams

Question 77

Matrix structures tend to:

A) Focus technical specialists on their specialist knowledge rather than the goals of serving clients and creating marketable products
B) Prevent employees in a particular specialisation from sharing knowledge with each other
C) Require less coordination than functional or pure divisional structures
D) None of the options listed here is correct

Question 78

Which of the following is NOT typically a problem with a functional structure?

A) It tends to increase dysfunctional conflict across work units
B) It requires higher levels of interdependence than simple or divisionalised forms,thereby increasing potentially dysfunctional conflict
C) It is more difficult to directly supervise employees within each department
D) Employees are less likely to develop a broader understanding of the business

Question 79

____________ establishes the chain of command,that is,the system of common supervision among positions and units within the organisation.

A) Span of control
B) Formalisation
C) Job specialisation
D) Departmentalisation

Question 80

A team-based organisation usually has:

A) Self-directed work teams
B) Groups of employees with cross-functional skills
C) Tasks over which teams have semi-autonomous responsibility
D) All of the options listed here are correct