Deck 10: Organising

Question 1

Which of the following is NOT a potential advantage of using a divisional structure?

A) Clear points of responsibility for product or service delivery
B) Duplication of resources and efforts across divisions
C) Expertise focused on specific customers, products or regions
D) More flexibility in responding to environmental changes
E) Greater ease in changing size by adding or deleting divisions

Answer 1

B

Question 2

The process of learning that occurs as people interact informally throughout the workday is called __________ learning.

A) social
B) formal
C) informal
D) interactive
E) causal

Answer 2

C

Question 3

The process of grouping work positions into formal teams and departments, and then linking them together vertically and horizontally within the organisation, is known as:

A) organising.
B) departmentalisation.
C) structural team development.
D) differentiation.
E) functional team management.

Answer 3

B

Question 4

Given a clear mission, core values, objectives and strategy, __________ begins the process of implementation by clarifying jobs and working relationships.

A) planning
B) leading
C) coordinating
D) controlling
E) organising

Question 5

Levels of management, superior-subordinate relationships and formal communication channels are often demonstrated for a company by drawing a special diagram. This diagram is called a(n):

A) PERT diagram.
B) structural diagram.
C) input-output diagram.
D) organisation chart.
E) factual flow chart.

Question 6

The __________ of the organisation represents the way the organisation is intended to function in terms of jobs, lines of authority and patterns of communication.

A) hierarchy or authority
B) formal structure
C) management chart
D) informal structure
E) channel outline

Question 7

The following five examples describe different types of relationships between employees in XYZ Company. Which set of relationships indicates the existence of a shadow organisation?

A) An employee asks questions of an immediate supervisor, gets answers and works closely with this person.
B) Department managers report directly to the directors in charge of their division.
C) The CEO delegates authority to division managers, division managers delegate authority to department managers, and department managers delegate authority to support staff.
D) Members of a word processing pool provide secretarial services for all divisions on a first-come, first-served basis.
E) In one department, superior-subordinate relationships are strained. Subordinates take direction from the manager of another division.

Question 8

In the management process of organising, the strategic leadership challenge is to:

A) choose the best organisational form to fit the strategy and other situational demands.
B) choose the organisational form that employees will like the best.
C) choose the organisational form that adapts the strategy to the demands of the situation.
D) choose strategy to best fit the established organisational form.
E) choose the strategy and organisational form that are easiest to implement.

Question 9

__________ is the system of tasks, workflows, reporting relationships and communication channels that link together the work of diverse individuals and groups.

A) Organisational structure
B) Job design
C) A work plan
D) Management
E) Strategy

Question 10

Which of the following is TRUE regarding the purpose of an organisation structure?

A) To divide up and coordinate resources and tasks to be done for performance success
B) To identify relationships between suppliers and company buyers
C) To design titles for different types of workers
D) To assign daily work tasks to workers
E) To allocate management authority to department heads

Question 11

Changing an organisation's structure in the attempt to improve performance is called:

A) upsizing.
B) strategic planning.
C) organising.
D) restructuring.
E) tactical planning.

Question 12

__________ are particularly appealing because they can best serve the special needs of different customer groups.

A) Process structures
B) Customer structures
C) Matrix structures
D) Product structures
E) Geographical structures

Question 13

Bill, a recent MBA graduate in the field of accounting, is the finance manager of ABC Company. Bill has a problem with a shadow organisation in his division. One sensible first step in Bill's management strategy might be:

A) assuming his staff are trying to undermine him and act accordingly.
B) promising bonuses only to those employees who agree with him and work with him.
C) seeking to understand and work with the shadow organisation.
D) meeting with his employees to let them know he is the boss.
E) firing the people who are members of the shadow organisation.

Question 14

The _________ problem refers to the lack of communication, coordination and collaborative problem-solving across functions.

A) horizontal silos
B) matrix identity
C) divisional smokestack
D) vertical bugaboo
E) functional chimneys

Question 15

The __________ is a 'shadow' organisation made up of the unofficial, but often critical, working relationships between organisational members.

A) formal structure
B) horizontal organisation structure
C) adaptive organisation structure
D) organisation chart
E) informal structure

Question 16

XYZ Company manufactures a variety of highly technical automobile parts, which are sold at home and in five foreign countries. The company is large and growing rapidly. Which is the best structure for this company?

A) Functional structure
B) Divisional structure
C) Matrix structure
D) Project structure
E) Cross-sectional structure

Question 17

Which of the following pieces of information cannot be determined from an organisation chart?

A) Informal decision-making coalitions
B) Type of work performed
C) Division of work
D) Formal communication channels
E) Levels of management

Question 18

The process of making decisions on how to link departments together so they operate in a coordinated manner within the larger organisation is called:

A) restructuring.
B) integration.
C) differentiation.
D) departmentalisation.
E) organising.

Question 19

When an organisation chart shows managers of marketing, manufacturing, finance and human resources reporting directly to the CEO of a company, the top management group is organised as a __________ structure.

A) horizontal
B) matrix
C) divisional
D) vertical
E) functional

Question 20

When a manager divides work up into manageable components and coordinates results to achieve a common purpose, the manager is practising a(n) __________ function.

A) leadership
B) setting objectives
C) forecasting
D) organising
E) strategic planning

Question 21

A mechanistic design has all the following characteristics EXCEPT:

A) narrow spans of control.
B) specialised tasks.
C) informal and personal coordination.
D) many rules and procedures.
E) few teams and task forces.

Question 22

Which of the following statements accurately describes the nature of functional structures?

A) When each function does its jobs properly, the business should operate successfully.
B) Members of functional departments share technical expertise, interests and responsibilities.
C) Members of each function work within their areas of expertise.
D) All of the options listed
E) None of the options listed

Question 23

The basic organisational design of a fast food franchise is most likely:

A) organic.
B) strategic.
C) neither organic nor mechanistic.
D) mechanistic.
E) a combination of both organic and mechanistic.

Question 24

__________ structures are typically used when there is a need to differentiate products or services in various locations, such as in international operations where there is a need to focus on the requirements of particular cultures and regions of the world.

A) Geographical
B) Product
C) Market
D) Process
E) Customer

Question 25

A highly adaptive organisation can become one that is designed for continuous adaptation through problem solving, innovation and learning. This type of organisation is known as a:

A) new age organisation.
B) matrix organisation.
C) learning organisation.
D) change management organisation.
E) contemporary organisation.

Question 26

An organic design has all the following characteristics EXCEPT:

A) many teams and task forces.
B) shared tasks.
C) few rules and procedures.
D) narrow spans of control.
E) decentralised authority.

Question 27

A(n) _________ groups together people who work on the same product or process, serve similar customers and/or work in the same area or geographic region.

A) divisional structure
B) informal structure
C) matrix structure
D) functional structure
E) integration structure

Question 28

If an organisation is concerned about frequently adding and deleting new products or services, and also wants to make sure that customers or clients always have a program manager available to respond to the questions and concerns, the__________ structure is a good choice.

A) matrix
B) vertical
C) functional
D) horizontal
E) divisional

Question 29

Which of the following accurately describes the impact of change on organisational design?

A) There is more sharing of tasks, greater emphasis on lateral communication and more teamwork.
B) There is a basic shift in emphasis away from vertical or authority-driven structures to ones that are more horizontal and task-driven.
C) Developments in organisational design can be framed in terms of mechanistic and organic designs.
D) All of the options listed
E) None of the options listed

Question 30

The organisational design that is much less bureaucratic is called the __________ design.

A) mechanistic
B) divisional
C) organic
D) machine
E) professional

Question 31

As an 'ideal organisational form', bureaucracy is characterised by all of the following EXCEPT:

A) a clear-cut division of labour.
B) promotions based on seniority.
C) positions arranged in a hierarchy of authority.
D) rationality, fairness and efficiency.
E) a system of formal rules and standards.

Question 32

Which of the following is NOT a potential disadvantage of functional structures?

A) Too many decisions referred upward in the hierarchy
B) Narrow view of performance objectives
C) Provides for clear career paths
D) The sense of cooperation and common purpose tends to break down
E) Difficulties in pinpointing responsibilities for cost containment, product or service quality, timeliness and innovation in response to environmental changes

Question 33

According to the work of Burns and Stalker, a(n) __________ organisational design thrives when the external environment is stable, but struggles when the environment is changing and uncertain.

A) organic
B) machine
C) professional
D) divisional
E) mechanistic

Question 34

Adaptive organisations emphasise more empowerment for the employees. This approach can be described as a movement towards:

A) employee-centred organisations.
B) advocacy organisations.
C) loose organisations.
D) simple organisations.
E) self-organisation.

Question 35

Organisations that operate with a minimum of bureaucratic features and encourage employee participation and empowerment are called:

A) adaptive organisations.
B) networks.
C) new bureaucracies.
D) organic organisations.
E) mechanistic organisations.

Question 36

Which of the following is NOT an advantage of matrix organisations?

A) Creates permanent cross-functional teams
B) More responsive to customer needs
C) Managerial accountability is increased
D) Prevents power struggles from erupting
E) Promotes inter-functional cooperation

Question 37

A __________ is a group of tasks related to one another that collectively creates something of value to a customer.

A) manufacturing system
B) work group
C) work process
D) job
E) work team

Question 38

Successful organisations are often distinguished from less successful ones by:

A) how fast they assimilate new technology.
B) their ability to respond quickly to today's rapidly changing environment.
C) how well they can control the environment.
D) their use of multiple organisational forms.
E) their adherence to traditional values.

Question 39

Specialised tasks, few groups and task forces, and formal/impersonal coordination are characteristics of the __________ design.

A) organic
B) mechanistic
C) traditional
D) transformational
E) adaptive

Question 40

__________ is the process of choosing and implementing structures that best arrange resources to serve the organisation's mission and objectives.

A) Structural strategising
B) Cultural management
C) Organisational design
D) Cultural adaptation
E) Mechanising the organisation

Question 41

Which statement about human resources and organisational design is FALSE?

A) Organic designs with their emphasis on empowerment are of little value in an age of information and knowledge workers.
B) Modern management theory views people-structure relationships in a contingency fashion.
C) There should be a good 'fit' between organisation structures and the people who staff them.
D) The characteristics of individuals are important variables in organisational design.
E) The organisational structure should support people's attempts to achieve both high performance and satisfaction.

Question 42

Organisations operating in external environments that have little significant change should:

A) use an organic organisational design.
B) promote a multicultural environment.
C) have an ethical organisational culture.
D) use a mechanistic organisational design.
E) use a growth-oriented strategy.

Question 43

Which of the following accurately describes the relationship between strategy and organisational design?

A) Growth-oriented strategies are better supported with a mechanistic organisational design.
B) Strategy follows structure.
C) Stability-oriented strategies are better supported with an organic organisational design.
D) All of the options listed
E) None of the options listed

Question 44

All except one of the following are potential advantages of using a team structure. Which one is NOT a potential advantage?

A) Improving the quality and speed of decisions
B) Spending much time in meetings
C) Gaining increased knowledge of different work responsibilities
D) Breaking down barriers between operating departments
E) Boosting the morale of members

Question 45

Potential disadvantages of network structures include which of the following?

A) The more complex the business or mission, the more complicated the network.
B) If one part of the network breaks down or fails to deliver, the entire system suffers.
C) It may be difficult to exercise effective control and coordination among different parts of a complex network.
D) All of the options listed
E) None of the options listed

Question 46

Which of the following statements provide an accurate description of the organisational life cycle?

A) In the birth stage of the organisational life cycle, the organisation is relatively small and the structure is quite simple.
B) In the youth stage of the organisational life cycle, the organisation starts to grow rapidly and management responsibilities extend among more people.
C) In the midlife stage of the organisational life cycle, the organisation has grown large, with a more complex and increasingly formal structure.
D) In the maturity stage of the organisational life cycle, the organisation stabilises at a large size, typically with a mechanistic structure.
E) All of these statements are accurate.

Question 47

Network organisations own only the __________ and outsource __________.

A) essential core functions; all customer contacts
B) intellectual property; the manufacturing of products
C) essential core functions; the support functions
D) support functions; core functions
E) information technology; actual production work

Question 48

Which of the following statements is TRUE regarding the forces influencing developments in organisation structures?

A) Structural innovation is an important part of meeting the demands of complex and changeable environments.
B) The global economy and hypercompetition are putting increasing pressures on organisation structures.
C) Managers need to design organisation structures to respond to performance demands for more speed to market, greater customer orientation, constant productivity improvements and better technology use.
D) All of the options listed
E) None of the options listed

Question 49

A good organisational design provides people with the supporting structures they need to achieve __________ and __________ in their work.

A) high performance; high compensation
B) self-management; satisfaction
C) high performance; satisfaction
D) satisfactory performance; satisfaction
E) satisfaction; effective interpersonal relationships

Question 50

Compared to mechanistic designs, organic designs have:

A) personal means of coordination.
B) many rules and procedures to apply to individual components.
C) more centralised authority.
D) very similar means of coordination.
E) narrower spans of control.

Question 51

When managers think contingently about the design of an organisation, they should ask certain questions. Which of the following best describes the types of question managers should ask?

A) Does the design respond to social forces but not environmental forces?
B) What are the individual choices for organisational design in the manager's department?
C) Does the design respond to cultural diversity?
D) Does the design respond to environmental forces but not social forces?
E) Does the design support the implementation of strategies and the attainment of key operating objectives?

Question 52

__________ is entrepreneurial behaviour by individuals and subunits within large organisations.

A) Creative activity
B) Change leadership
C) Innovation
D) Intrapreneurship
E) Leadership

Question 53

What are the contingency factors that managers should consider in organisational design?

A) Strategy, objectives, structure and product
B) Environment, strategy, technology, size and life cycle, and human resources
C) General environment, specific environment, sociocultural factors and management talent
D) Operations, manufacturing ability and marketing know-how
E) Environment, technology, geography and history

Question 54

Which of the following are negative characteristics of bureaucracies?

A) Bureaucracies tend to be rigid and formal.
B) Bureaucracies may become unwieldy by relying too heavily on rules and procedures.
C) Bureaucracies are slow to respond to change.
D) All of the options listed
E) None of the options listed

Question 55

Which statement concerning company size (as measured by number of employees) is true?

A) Larger organisations tend to have more mechanistic structures than smaller organisations.
B) Organisations tend to adopt more organic structures as they increase in size.
C) Size is an incidental factor in organisational design because basic organisational forms can fit any size.
D) A company's creation of a new venture unit is an example of an attempt to enhance the effects of increasing size.
E) Pressures to increase specialisation and differentiation lessen as an organisation grows in size.

Question 56

Which of the following is NOT a characteristic of a simultaneous 'loose-tight' structure?

A) Good for production efficiency as well as innovation and creativity
B) Serves the interests of shareholders and employees
C) Both limited information-processing capability and expanded information-processing capability are present.
D) Excels at simple and repetitive tasks and complex and unique tasks
E) Work efforts are both centrally coordinated and highly interdependent.

Question 57

__________ will be more successful when supported by adaptive organisations using organic designs.

A) Stability strategies
B) Organisation-wide strategies
C) Long-term strategies
D) Growth strategies
E) Business strategies

Question 58

The goal of __________ is to achieve the best fit among structure and the unique situation faced by each organisation.

A) organisational design
B) structural strategising
C) mechanising the organisation
D) cultural management
E) cultural adaptation

Question 59

The notion that __________ follows __________ is an important premise of organisational design.

A) culture; structure
B) mission; structure
C) strategy; structure
D) structure; leadership
E) structure; strategy

Question 60

As organisations grow in size, they tend to become __________ and subsequently tend to have __________ in adapting to a changing environment.

A) more bureaucratic; less difficulty
B) more organic; more difficulty
C) more bureaucratic; more difficulty
D) less bureaucratic; more difficulty
E) more organic; less difficulty

Question 61

Organisations with narrow spans of control tend to:

A) be more costly than organisations with wide spans of control.
B) have many middle managers.
C) have tall structures.
D) have many levels of management.
E) have flat structures.

Question 62

The use of rules and procedures, hierarchical referral and planning work best as integrating mechanisms when:

A) differentiation is high.
B) differentiation is low.
C) process value is low.
D) process value is high.
E) process value is moderate.

Question 63

Which of the following is NOT a mechanism for improving subsystems integration?

A) Teams
B) Liaison roles
C) Planning
D) Hierarchical referral
E) Indirect contact among managers

Question 64

Organisations that are set up with a central core that is linked with outside contractors and suppliers of essential business services are called __________ structures.

A) global
B) horizontal
C) network
D) geographic
E) hybrid

Question 65

When decision-making authority is dispersed by extensive delegation throughout all levels of management, the organisation is said to be:

A) centralised.
B) vertically coordinated.
C) control oriented.
D) horizontally coordinated.
E) decentralised.

Question 66

The __________ principle states that 'authority should equal responsibility when work is delegated from supervisor to subordinate'.

A) span of control
B) authority-and-responsibility
C) balance of command
D) scalar
E) responsible management

Question 67

The use of direct contact between managers, liaison roles, task forces, teams and matrix structures work best as integrating mechanisms when:

A) differentiation is low.
B) process value is high.
C) process value is moderate.
D) differentiation is high.
E) process value is low.

Question 68

If one unit manager has a strong 'task' orientation and a manager in another unit has a strong 'people' orientation, integration between these units most likely will have to overcome differences in:

A) formal structure.
B) interpersonal orientation.
C) strategic orientation.
D) objectives.
E) time orientation.

Question 69

If the manufacturing subsystem in a business has a more short-term action horizon than the research and development group, thus making it difficult for the two units to work together, they are experiencing differences in:

A) strategic orientation.
B) formal structure.
C) interpersonal orientation.
D) objectives.
E) time orientation.

Question 70

A __________ uses permanent and temporary cross-functional teams to create more effective lateral relations as well as to improve problem solving and work performance.

A) geographical structure
B) cross-functional structure
C) team structure
D) matrix structure
E) divisional structure

Question 71

Which of the following is NOT an advantage of the network structure?

A) Managers are subjected to greater demands of responsibility.
B) Managers can develop and maintain linkages for working with partners across great distances.
C) Computerised networking capabilities facilitate coordination.
D) Managers can seek ways to stay cost competitive through reduced overhead and increased operating efficiency.
E) A company can operate with fewer full-time employees and less complex internal systems.

Question 72

Which statement about integration is FALSE?

A) The goal in subsystem design is to use the mechanisms for lateral relations that accomplish the required level of integration.
B) Integration becomes more difficult as differentiation increases.
C) Increased differentiation creates a need for increased integration.
D) When differentiation is low, an organisation can use integrating mechanisms common to organic structures.
E) It represents the level of coordination achieved among subsystems in an organisation.

Question 73

The number of persons reporting directly to a single manager is an organisational issue relating to:

A) span of control.
B) centralisation.
C) line and staff relationships.
D) functional authority.
E) informal structures.

Question 74

In their study of systems and subsystems design, Paul Lawrence and Jay Lorsch found that:

A) subsystems in the successful companies worked well together, even though some had very different structures.
B) subsystems in successful companies matched challenges of their respective sub-environments.
C) successful companies had total system designs that matched their respective environments.
D) None of the options listed
E) All of the options listed

Question 75

__________ is a work unit or department headed by a manager and that operates as a smaller component of a larger and total organisational system.

A) A subsystem
B) An upside-down pyramid
C) An organisation chart
D) None of the options listed
E) All of the options listed

Question 76

Which of the following is NOT likely to accompany an increase in the number of levels in the chain of command?

A) The organisation gains additional competitive advantage.
B) Decision making can be slowed greatly.
C) The communication distance between the top and bottom levels of the organisation is increased.
D) Overhead costs increase.
E) Direct contact with the client or customer may be lost.

Question 77

Which of the following principles deals with the problem of people having 'too many bosses'?

A) Unity-of-command principle
B) Line of authority
C) Channel-of-communication principle
D) Chain of command
E) Span-of-control principle

Question 78

If production managers are cost conscious but marketing managers are volume conscious, making it difficult for them to agree on solutions to common problems, they are experiencing differences in:

A) formal structure.
B) interpersonal orientation.
C) strategic orientation.
D) objectives.
E) time orientation.

Question 79

Which one of the following statements accurately describes the process of delegation?

A) Responsibility, authority and accountability are the foundations of vertical coordination through delegation.
B) Accountability is an expectation for the other person to perform assigned tasks.
C) Responsibility is the right to act in ways to carry out the assigned tasks.
D) Empowerment is not an essential part of delegation.
E) Authority is the requirement to answer to a supervisor for performance results.

Question 80

__________ is the degree of difference that exists between the internal components of the organisation.

A) Structural elaboration
B) Departmentalisation
C) Differentiation
D) Internal elaboration
E) Job diversity