Deck 5: Designing Organizational Structure: Authority and Control

Question 1

An arithmetic increase in the number of managers is accompanied by a geometric increase in the number of subordinates.

Answer 1

False

Question 2

Through various mergers and acquisitions, Pfizer's structure had become too tall, which was hindering the creativity of the R&D function.

Answer 2

True

Question 3

EMI drastically reduced the number of levels in their hierarchy in order to improve entrepreneurship.

Answer 3

True

Question 4

An organization can do two things to improve its ability to control. They can either increase the number of managers, or increase the number of levels in the hierarchy.

Question 5

If an organization has too many levels in the hierarchy, communication and coordination problems grow.

Question 6

Increasing horizontal differentiation increases vertical differentiation.

Question 7

As the number of levels in the hierarchy increases, the relative difference in the authority possessed by managers at each level decreases.

Question 8

The hierarchy begins to emerge when subunit orientations become so prevalent that the organization cannot control employees.

Question 9

The Walt Disney organization eliminated an unnecessary layer in the hierarchy, and this resulted in an increased level of innovation.

Question 10

Research and development laboratories use small spans of control.

Question 11

The Walt Disney organization eliminated an unnecessary layer in the hierarchy, but this resulted in a span of control that was too wide, hindering decision making.

Question 12

Parkinson's Law states that it is a natural human tendency to try and reduce bureaucratic costs.

Question 13

Managers in a flat organization are generally more motivated than managers in a tall organization.

Question 14

If an organization with 3,000 employees has seven levels in its hierarchy, research would predict that if the organization tripled in size to 9,000 employees, it would have approximately 21 levels in its hierarchy.

Question 15

Companies with tall organizational structures have a minimum of 10 hierarchical levels.

Question 16

With a growth in organizational size, there is a design choice between increasing the number of levels in management and decreasing the span of control.

Question 17

Parkinson's Law states that "Work expands so as to fill the time available."

Question 18

The principle of minimum chain of command states that an organization should avoid hierarchies because individuals prefer to be empowered.

Question 19

As the number of levels in the hierarchy increases, motivation problems occur because workload tends to increase.

Question 20

A manager's span of control includes subordinates he or she supervises directly and subordinates he or she supervises indirectly (by supervising their direct boss).

Question 21

Research evidence suggests that the average number of levels for an organization employing 3,000 people is ________.

A) seven
B) six
C) nine
D) five

Question 22

Contingent workers are workers whose pay is contingent upon their performance.

Question 23

Strikes occurred at the Gypsum plant because the informal organization was disrupted.

Question 24

Contingent workers are employees who belong to self-managed teams.

Question 25

An organization that has few levels in its hierarchy relative to its size is called ________.

A) flat
B) tall
C) standardized
D) formalized

Question 26

Union Pacific centralized operations to reduce costs.

Question 27

According to Weber, rational-legal authority emerges as managers develop a reputation for making rational decisions.

Question 28

Weber was against putting rules in writing, because he was in favor of an empowered workforce making its own decisions about how to best accomplish the task.

Question 29

Management by objectives is a form of goal setting in an organizational setting.

Question 30

Standardization makes it easier to increase span of control.

Question 31

According to Weber, rational-legal authority emerges due to qualities that the leaders possess, such as charisma.

Question 32

Weber's bureaucracy should reduce both role conflict and role ambiguity.

Question 33

It has been estimated that 20% of the U.S. workforce consists of contingent workers.

Question 34

What does an organization not do to improve control?

A) Make the hierarchy taller
B) Increase the number of levels
C) Increase the number of managers
D) Increase the number of employees

Question 35

One advantage of bureaucracy is that it separates the position from the person.

Question 36

In a bureaucratic structure, norms should be used to control relationships between roles.

Question 37

Sony's structure is a balance between a mechanistic structure and an organic structure.

Question 38

Most large companies have a maximum of ________ hierarchical levels.

A) ten
B) seven
C) twelve
D) eight

Question 39

According to Weber, rational-legal authority emerges from the level of authority that is associated with the position a person occupies.

Question 40

An organization in which the hierarchy has many levels relative to the size of the organization is called ________.

A) tall
B) organic
C) decentralized
D) flat

Question 41

Company A has 1,000 employees and six hierarchical levels. Company B has 3,000 employees and seven levels. What is the relationship between Company A's and Company B's hierarchies?

A) Company A's hierarchy is considered to be relatively taller than Company B's.
B) Company B's hierarchy is considered to be relatively taller than Company A's.
C) Both A and B have average size hierarchies for their size.
D) Both A and B have hierarchies that are too tall.

Question 42

At Company ABC, fast decision making is a prerequisite for success, so the company has five hierarchical levels because many levels ________.

A) speed decision making
B) clarify information
C) hinder communication
D) improve communication

Question 43

Rose supervises Iris, who in turn supervises Violet and Daisy. Violet has four subordinates and Daisy has six. Present spans of control are as follows:

A) Rose 1, Iris 2, Violet 4, Daisy 6.
B) Rose 13, Iris 12, Violet 4, Daisy 6.
C) Rose 3, Iris 12, Violet 4, Daisy 6.
D) Rose 13, Iris 2, Violet 4, Daisy 6.

Question 44

The problem with too many levels in the hierarchy is that:

A) the span of control has to increase.
B) too much subordinate authority may lead to the development of subgoals.
C) it reduces the scope for subordinates to take initiative.
D) it becomes difficult to implement Parkinson's Law.

Question 45

Motivation problems occur as the number of levels in the hierarchy increases because:

A) Parkinson's law is activated.
B) responsibility and authority at each level decreases.
C) downsizing and restructuring tends to occur at this stage.
D) managers' workload tends to increase.

Question 46

________ states that an organization should choose the minimum number of hierarchical levels consistent with its goals and the environment in which it operates.

A) Span of control
B) Organizational theory
C) Parkinson's Law
D) The Principle of the minimum chain of command

Question 47

________ states that work expands to fill the time available.

A) The Principle of the minimum chain of command
B) Organizational theory
C) Span of control
D) Parkinson's Law

Question 48

How did Bob Iger reshape Walt Disney?

A) He centralized decision making, which resulted in a more consistent experience for the consumer.
B) He eliminated a layer of management, which resulted in faster decision making.
C) He created a "customer service" department designed to solve consumer complaints.
D) He recognized that the span of control was too wide, and added a layer of management.

Question 49

Parkinson's Law states that:

A) the hierarchy should be based on rational-legal authority.
B) organizations should have a maximum of 10 hierarchical levels.
C) a division of labor increases efficiency.
D) hierarchies grow because managers make work for one another.

Question 50

A nuclear power plant has a very tall managerial hierarchy for all the following reasons except:

A) to empower employees to make decisions.
B) to cross-check the work of lower managers.
C) to ensure that rules are followed.
D) to maintain effective supervision of activities.

Question 51

Adding more managers to a company results in:

A) better decision making.
B) improved communication.
C) flattening of the organizational structure.
D) higher bureaucratic costs.

Question 52

Tall hierarchies are associated with all of the following problems except:

A) motivation problems.
B) communication problems.
C) a wide span of control.
D) high bureaucratic costs.

Question 53

Which of the following principles can help an organization avoid unnecessary layoffs?

A) The minimum chain of command
B) Rational-legal authority
C) Loosely defined rules
D) Parkinson's Law

Question 54

If the span of control is too wide:

A) the division of labor will be too low.
B) bureaucratic costs will increase.
C) subordinates may shirk responsibility.
D) the hierarchy will be too tall.

Question 55

Parkinson said that the number of managers grows because:

A) more decisions can be made.
B) managers want fewer subordinates.
C) efficiency can be improved.
D) managers want to multiply subordinates not rivals.

Question 56

Which of the following statements describes the relationship between organizational size and the number of managers? As an organization grows:

A) an increase in the number of managers is more than proportional to the increase in size.
B) an increase in the number of managers is less than proportional to the increase in size.
C) it does not increase the number of managers.
D) an increase in the number of managers is proportional to the increase in size.

Question 57

Motivation problems occur in a tall hierarchy because:

A) managers have more authority at each level.
B) managers have less authority at each level.
C) managers have more responsibility at each level.
D) managers make more decisions.

Question 58

It is easier to increase the span of control when tasks:

A) are dissimilar.
B) are highly interrelated.
C) are routine or similar.
D) are complex.

Question 59

It is more difficult to increase the span of control when:

A) tasks are highly interrelated.
B) rules and procedures can be used as the primary means of control.
C) tasks are routine or similar.
D) tasks are not interrelated.

Question 60

________ refers to the number of subordinates a manager directly supervises.

A) Span of control
B) Vertical differentiation
C) Effectiveness
D) Parkinson's Law

Question 61

Sales has a relatively ________ hierarchy because it uses ________.

A) flat/mutual adjustment
B) tall/mutual adjustment
C) tall/standardization
D) flat/standardization

Question 62

A bureaucracy:

A) has a minimum of 10 hierarchical levels.
B) causes members of an organization to focus on short-term goals.
C) clearly specifies vertical authority, but loosely defines horizontal task relationships.
D) provides guidelines for designing a hierarchy.

Question 63

Weber's principles can help a CEO with his or her responsibility for:

A) determining the goals of an organization.
B) designing the organizational structure.
C) allocating resources to divisions.
D) selecting the top-management team.

Question 64

R&D typically has a relatively ________ hierarchy and a ________ span of control.

A) tall/wide
B) flat/wide
C) tall/narrow
D) flat/narrow

Question 65

The need for upper-level managers is:

A) decreased by standardization and decentralization.
B) increased by increased size and bureaucracy.
C) increased by formalization.
D) increased by standardization and decentralization.

Question 66

Standardization:

A) causes a manager to reduce his or her span of control.
B) increases the number of managers needed.
C) enables a manager to increase his or her span of control.
D) can be used only in a centralized hierarchy.

Question 67

To control its activities, Quaker Oats relies heavily on ________.

A) vertical differentiation
B) centralization
C) standardization
D) decentralization

Question 68

Which of the following organizations will most likely have the narrowest span of control?

A) A police force that has a team of officers working on a murder investigation
B) A plant that produces hammers
C) A science lab that does complex genetic research
D) A plant that manufactures airplanes

Question 69

We obey a police officer because of the position of authority that compels obedience. This is an example of Weber's principle of:

A) technical competence.
B) rational-legal authority.
C) decentralized authority to promote flexibility.
D) control through written rules.

Question 70

Which of the following organizations will most likely have the widest span of control?

A) A plant that manufactures airplanes
B) A police force that has a team of officers working on a murder investigation
C) A science lab that does complex genetic research
D) A plant that produces hammers

Question 71

Which of the following functions will most likely have the tallest hierarchy?

A) Manufacturing
B) R&D
C) Sales
D) Accounting

Question 72

Until 1850 an officer's commission in the British Army could by bought by anyone. This violates Weber's principle that:

A) job-related skills should determine hiring.
B) social status, kinship, or heredity should determine hiring.
C) work expands to fill time.
D) decentralization is important.

Question 73

________ occurs when two or more people have different views of what another person should do, and as a result, make conflicting demands on the person.

A) Integration
B) Technical competence
C) Differentiation
D) Role conflict

Question 74

Which is not associated with a bureaucracy?

A) Required behaviors
B) Independent decision making
C) Accountability
D) Agreed-upon rules and procedures.

Question 75

Coca-Cola could not respond quickly to the needs of different regions because they had all of the following except:

A) slow decision making.
B) a long chain of command.
C) decentralized decision making.
D) an expensive hierarchy.

Question 76

Which of the following does not reduce the need for direct supervision?

A) The informal organization
B) Norms
C) Rules
D) Centralization

Question 77

Standardization reduces the need for managers because of all the following except:

A) performance is evaluated subjectively.
B) rules and procedures substitute for direct supervision.
C) work activities are predictable.
D) tasks are controlled by rules and norms.

Question 78

Which is not associated with centralization?

A) Increased monitoring and supervision
B) Communication problems
C) Coordination problems
D) Delegating authority

Question 79

Weber's bureaucratic model is based on ________ authority.

A) traditional
B) rational-legal
C) charismatic
D) elected

Question 80

Which of the following is one of Weber's bureaucratic principles?

A) Work expands to fill the time.
B) Authority should be based on tradition.
C) Employees should be hired based on their competence.
D) Horizontal tasks are loosely defined because vertical roles are clearly defined.