Question 1

Refer to the Scenario below to answer the question that follows.
Departmentalization at Art & Craft Depot (Scenario)
John is president of a chain of stores called Art & Craft Depot.He is aware that the structure of his organization must change in order to compete more effectively in today's global marketplace.However,he is not sure which structure would work best for his company.His company is currently organized under the following departments: accounting,human resources,sales,purchasing,and distribution.However,there are other choices available.He has considered reorganizing around their primary product groups: silk flowers,art supplies,craft supplies,pottery,and fabric.However,equally important are the different types of clients they serve,including homemakers,artists,interior decorators,industrial display contractors,and art schools.The business is growing,and they now have stores in six provinces across Canada.Furthermore,his customers seldom shop for just one type of item.For example,a customer who buys flowers will frequently purchase a vase and other supplies that are required to create a full floral arrangement.This means that individual customers often shop in several merchandise areas of the store.
-If Art & Craft Depot organized its structure based on homemakers,artists,interior decorators,industrial display contractors,and art schools,it would be using ________ departmentalization.

Accepted Answer

The scenario states that equally important are the different types of clients they serve, including homemakers, artists, interior decorators, industrial display contractors, and art schools. If the company organizes its structure based on these client types, it would be using customer departmentalization. This would allow the company to tailor its products and services to the specific needs of each customer group, which would be beneficial in a competitive marketplace. Furthermore, the fact that individual customers often shop in several merchandise areas of the store supports the idea of customer departmentalization, as it would allow the company to provide a more cohesive and comprehensive shopping experience for its customers.

Question 2

Which of the following contingency factors is having the biggest impact on the need for structural changes at Prairie?

Accepted Answer

Environmental uncertainty refers to the unpredictability of the external environment, which can have a significant impact on an organization's operations and performance. In the case of Prairie, the changing market conditions and increasing competition suggest high environmental uncertainty, which may require structural changes to adapt and remain competitive. While the other factors may also be relevant, they are not as directly linked to the need for structural changes in response to environmental uncertainty.

Question 3

Standish is planning to double the size of his workforce to accompany an expansion in the number of retail outlets that carry Custom Leather products.Lacey tells him that he should expect the organizational design to become more ________ as a result of this change.

Accepted Answer

Doubling the workforce and expanding retail outlets typically leads to a more mechanistic structure, which is characterized by increased standardization, formalization, and a clear hierarchy to manage the larger, more complex organization.

Question 4

Which of the following best describes the type of organizational design at Metro General Hospital?

Accepted Answer

Metro General Hospital is described as having a centralized hierarchy with clear lines of authority and a focus on efficiency and standardization. This aligns with characteristics of a mechanistic organizational design.

Question 5

The current organizational design at Prairie is best described as ________.

Accepted Answer

The mechanistic design is characterized by a highly structured hierarchical organization with clear rules, procedures, and specialized roles. This design is suitable for Prairie, as it is a manufacturing company that requires a high level of standardization and control over its processes. The other options (organic, rational, intuitive, and flexible) are not the best matches as they do not fit with the characteristics of the mechanistic organizational design.

Question 6

Many of Custom Leather's 75 employees are highly skilled and experienced artisans.While there is a division of labour,the jobs of most production workers are not highly standardized.Management has found that employees take great pride in their craft,thus requiring minimal formal rules and little direct supervision.These traits are most typical of a(n)________ organization.

Accepted Answer

The characteristics mentioned - skilled and experienced employees, division of labor, non-standardized jobs, pride in craft, minimal formal rules and little direct supervision - are typical of an organic organization, which values autonomy, flexibility, and creativity in its employees. Mechanistic organizations, on the other hand, have a high degree of standardization, formalization, and centralization, with employees expected to follow strict rules and procedures. Therefore, options A and B can be eliminated. Network and modular organizations are different types of organizational structures, and their traits are not mentioned in the given scenario.

Question 7

The many rules and policies designed to standardize jobs relates most closely to which of the following elements of structure?

Accepted Answer

Formalization refers to the degree to which jobs within an organization are standardized, meaning there are rules and policies in place that dictate how tasks are performed. The use of many rules and policies to standardize jobs indicates a high level of formalization.

Question 8

Joyce wants to convince her boss to adopt a more decentralized structure.Which of the following factors will support her argument?

Accepted Answer

Lower-level staff and nurses are capable of making decisions.

Question 9

Refer to the Scenario below to answer the question that follows.
Departmentalization at Art & Craft Depot (Scenario)
John is president of a chain of stores called Art & Craft Depot.He is aware that the structure of his organization must change in order to compete more effectively in today's global marketplace.However,he is not sure which structure would work best for his company.His company is currently organized under the following departments: accounting,human resources,sales,purchasing,and distribution.However,there are other choices available.He has considered reorganizing around their primary product groups: silk flowers,art supplies,craft supplies,pottery,and fabric.However,equally important are the different types of clients they serve,including homemakers,artists,interior decorators,industrial display contractors,and art schools.The business is growing,and they now have stores in six provinces across Canada.Furthermore,his customers seldom shop for just one type of item.For example,a customer who buys flowers will frequently purchase a vase and other supplies that are required to create a full floral arrangement.This means that individual customers often shop in several merchandise areas of the store.
-If Art & Craft Depot based its structure on silk flowers,art supplies,craft supplies,pottery,and fabric,it would be using ________ departmentalization.

Accepted Answer

Based on the scenario, if Art & Craft Depot reorganizes around their primary product groups (silk flowers, art supplies, craft supplies, pottery, and fabric), it would be using product departmentalization. This choice makes sense because the company currently has departments for sales, purchasing, and distribution, which can be easily aligned with the different product groups. Additionally, customers often shop for multiple product groups, so having departments based on products instead of customers allows for more efficient and cohesive operations.

Question 10

Decision-making authority at Prairie is highly ________.

Accepted Answer

The scenario clearly states that all major decisions are made by Mr. Johnson, indicating a highly centralized decision-making authority at Prairie Farm Equipment Corp. Therefore, option E, which states "centralized," is the correct answer. Options A, B, C, and D can be eliminated as they indicate different types of decision-making structures.

Question 11

To effectively compete against lower-priced foreign manufacturers,Mr.Johnson concludes that Prairie needs to pursue a strategy of cost minimization.The efficiency and tight controls associated with this strategy are best achieved through a(n)________ structure.

Accepted Answer

A mechanistic structure is characterized by centralized decision making, strict rules and procedures, and a clear hierarchy of authority. This type of structure is best suited for cost minimization as it allows for tight controls and efficient operations.

Question 12

Eric's management position gives him the right to delegate work to others and to expect them to complete it.This is called ________.

Accepted Answer

The right to delegate work and expect it to be completed is a sign of authority, which is the power given to someone in a management position to make decisions, give orders, and enforce them. Responsibility and accountability refer to the obligation to complete tasks or answer for one's actions, while span of control and unity of command relate to the structure of an organization and how tasks are assigned and supervised.

Question 13

Which of the following best describes the type of organizational design at the small community hospital where Joyce worked as a nurse?

Accepted Answer

Small community hospitals typically have an organic organizational design, which is characterized by flexibility, decentralized decision-making, and a more informal structure, allowing for adaptability and close communication among staff.

Question 14

At her first meeting with Standish,Lacey provided an overview of the work of Joan Woodward,which examined the relationship between a firm's ________.

Accepted Answer

Joan Woodward's work focused on the relationship between a firm's technology and its organizational structure, exploring how different types of production technology influenced the structure of organizations.

Question 15

Refer to the Scenario below to answer the question that follows.
Departmentalization at Art & Craft Depot (Scenario)
John is president of a chain of stores called Art & Craft Depot.He is aware that the structure of his organization must change in order to compete more effectively in today's global marketplace.However,he is not sure which structure would work best for his company.His company is currently organized under the following departments: accounting,human resources,sales,purchasing,and distribution.However,there are other choices available.He has considered reorganizing around their primary product groups: silk flowers,art supplies,craft supplies,pottery,and fabric.However,equally important are the different types of clients they serve,including homemakers,artists,interior decorators,industrial display contractors,and art schools.The business is growing,and they now have stores in six provinces across Canada.Furthermore,his customers seldom shop for just one type of item.For example,a customer who buys flowers will frequently purchase a vase and other supplies that are required to create a full floral arrangement.This means that individual customers often shop in several merchandise areas of the store.
-If Art & Craft Depot organized its structure based on the provinces served across Canada,it would be using ________ departmentalization.

Accepted Answer

The scenario states that Art & Craft Depot has stores in six provinces across Canada. Therefore, if the company organized its structure based on the provinces served, it would be using geographical departmentalization. This would allow for better management of resources and coordination of operations across different locations.

Question 16

In addition to his duties in the engineering department,Eric is also assigned to work on a team with production workers and marketing specialists to design new products for the company.This additional assignment is an example of a(n)________.

Accepted Answer

Eric's assignment to work with production workers and marketing specialists suggests that he is part of a cross-functional team, which is made up of employees from different departments or areas of specialization within the company who work together to achieve a common goal. This type of team is often used to develop new products or services, as it allows for a diversity of perspectives and expertise to be brought to the table.

Question 17

Although Eric's job gives him the right to delegate work to others,if the work performance is unsatisfactory it is Eric who will have to explain and justify the outcome to his superiors.This is called ________.

Accepted Answer

Accountability is the obligation to explain or justify actions or decisions, and in this case, Eric as the higher authority is responsible for the performance of the work he delegated to others. Therefore, if the work performance is unsatisfactory, Eric will be held accountable for it and will have to explain and justify the outcome to his superiors.

Question 18

In less than two years,Eric is promoted to a management position with five subordinates reporting directly to him.What about Eric's position has changed?

Accepted Answer

Eric's span of control has increased as he now has five subordinates reporting directly to him.

Question 19

The requirement that Joyce sign off on all decisions in her department specifically relates to which of the following elements of structure?

Accepted Answer

The answer of The requirement that Joyce sign off on...

Question 20

Refer to the Scenario below to answer the question that follows.
Departmentalization at Art & Craft Depot (Scenario)
John is president of a chain of stores called Art & Craft Depot.He is aware that the structure of his organization must change in order to compete more effectively in today's global marketplace.However,he is not sure which structure would work best for his company.His company is currently organized under the following departments: accounting,human resources,sales,purchasing,and distribution.However,there are other choices available.He has considered reorganizing around their primary product groups: silk flowers,art supplies,craft supplies,pottery,and fabric.However,equally important are the different types of clients they serve,including homemakers,artists,interior decorators,industrial display contractors,and art schools.The business is growing,and they now have stores in six provinces across Canada.Furthermore,his customers seldom shop for just one type of item.For example,a customer who buys flowers will frequently purchase a vase and other supplies that are required to create a full floral arrangement.This means that individual customers often shop in several merchandise areas of the store.
-The current structure of Art & Craft Depot is based on ________ departmentalization.

Accepted Answer

The current structure of Art & Craft Depot is based on functional departmentalization, as it is organized into departments like accounting, human resources, sales, purchasing, and distribution, which are typical functions within a company.

Quiz 5: Organizational Structure and Design