Deck 14: Organizational Structure and Design

Question 1

Departmentalization by customer is based heavily on geography.

Answer 1

False

Question 2

Centralization is the system of reporting relationships in the organization.

Answer 2

False

Question 3

It's impossible for managers to create effective communities of practice, only the conditions necessary for them to exist.

Answer 3

True

Question 4

The purpose of organizational structure is to appeal to external competitors.

Question 5

When a manager has a large span of control, she can maintain close control over workers and stay in contact with daily operations.

Question 6

Although it is difficult to determine, there exists an optimal organizational size.

Question 7

Efficient use of labor is one of the advantages of division of labor.

Question 8

Division of labor is the separation of work into different jobs to be done by different people.

Question 9

Formalization tends to delineate rules and procedures for employees' jobs.

Question 10

A company's pre-structural characteristics, which are determined largely by the founder's personality and values, often stay with the company even after it grows.

Question 11

A virtual organization may not even have a permanent office.

Question 12

If there is much employee participation in decision making, the organization structure is decentralized, regardless of the nature of the decisions being made.

Question 13

One downside of a high division of labor is that it tends to isolate employees.

Question 14

Most organizational problems can be fixed with restructuring.

Question 15

Span of control is the degree to which rules and procedures shape employees' jobs and activities.

Question 16

An organizational chart illustrates the chain of command and reporting relationships in a company.

Question 17

Responsibility cannot be delegated down to others, but authority can.

Question 18

It is impossible for a large firm to retain elements of an organic structure.

Question 19

A centralized organization concentrates decision making at the top of its hierarchy.

Question 20

Implicit rules are set down in job descriptions, policy and procedure manuals, and office memos.

Question 21

____ is the extent to which workers in an organization specialize as opposed to performing a variety of tasks as generalists.

A) Segregation
B) Departmentalization
C) Differentiation
D) Administrative component
E) Division of labor

Question 22

Division of labor is often referred to as ____.

A) departmentalization.
B) the organizational chart.
C) specialization.
D) configuration.
E) the administrative hierarchy.

Question 23

Jobs grouped according to traditional business tasks such as marketing and human resources are grouped by

A) work process.
B) employee knowledge and skills.
C) business function.
D) client.
E) location.

Question 24

The ____ shows all people, positions, reporting relationships, and lines of formal communication in the organization.

A) objectives chart
B) organizational chart
C) position chart
D) PERT chart
E) activities chart

Question 25

The organizational ____ is defined as the system of task, reporting, and authority relationships within which the work of the organization is done.

A) goal system
B) management
C) structure
D) community
E) matrix

Question 26

Dividing an organization's manufacturing jobs into drill press, milling, heat treat, and assembly areas is an example of grouping employees by

A) work process.
B) employee knowledge and skills.
C) business function.
D) client.
E) location.

Question 27

Grouping employees by ___________ is similar to grouping them by output, except that the focus is on specific job tasks rather than on what the final product is.

A) work process
B) employee knowledge and skills
C) business function
D) client
E) location

Question 28

When there is a small span of control, there is likely to be

A) an increase in the number of workers.
B) less control over production workers.
C) more administrative levels.
D) less bureaucracy.
E) looser managerial control.

Question 29

In Tom's company, employees are given an opportunity to participate in decision-making related to policy development, which is known as

A) formalized concentration.
B) formalized concentration.
C) decentralization.
D) formalization.
E) centralization.

Question 30

Communities of practice are not an official part of organizational structure, but they can make money for the organization.

Question 31

The system of reporting relationships in the organization, from the first level up through the president or CEO is known as

A) informal communication channels.
B) hierarchy.
C) bureaucracy.
D) administrative interdependence.
E) formal communication channels.

Question 32

Which of the following is a potential disadvantage of division of labor?

A) slower response to environmental changes
B) organizational flexibility
C) decreased potential for conflict, both constructive and destructive
D) greater isolation of employees
E) All of these are potential disadvantages of division of labor.

Question 33

When individuals or groups throughout the hierarchy are not given an opportunity to participate in decision making, authority is

A) centralized.
B) efficient.
C) specialized.
D) flexible.
E) decentralized.

Question 34

Formalization reflects the extent to which organizational rules, procedures, and communications are

A) ethical.
B) fair.
C) written down.
D) comprehensive.
E) top-down.

Question 35

Organizational structure can be analyzed by examining all of the following EXCEPT

A) division of labor.
B) span of control.
C) hierarchy.
D) centralization.
E) All of these can be examined.

Question 36

In Jack's organization, the span of control is very wide.In Pam's organization, the span of control is rather narrow.The number of levels of managers in Jack's organization is likely to be ____ in Pam's organization.

A) greater than
B) smaller than
C) the same as that
D) narrower than
E) wider than

Question 37

____ is the number of people reporting to a manager.

A) Administrative intensity
B) Span of control
C) Work group size
D) Organizational control
E) Organizational management

Question 38

The main advantage of division of labor is that it promotes

A) worker satisfaction.
B) worker autonomy.
C) the creation of stimulating jobs.
D) efficient use of labor.
E) increased employee motivation.

Question 39

The structure of an organization is defined as

A) the basic purpose of the organization.
B) the sum of the individual working arrangements in place in an organization.
C) a system of task, reporting, and authority relationships.
D) a system of relationships that provides a framework of people.
E) the basis through which individual activities are monitored.

Question 40

Grouping employees by ___________ means that groups are organized according to a region of the country or world.

A) business function
B) location
C) output
D) work process
E) client

Question 41

_________ organizations are flexible anddecentralized, have open communication channels, and focus on adaptability in helping employees accomplish their goals.

A) Organic
B) Mechanistic
C) Matrix
D) Simple
E) Bureaucratic

Question 42

If employees are to be encouraged to make decisions and work collaboratively, a more _________ and _________ structure is appropriate.

A) centralized, narrower
B) centralized, flatter
C) decentralized, narrower
D) decentralized, flatter
E) none of these

Question 43

A flatter, team-based structure is appropriate for firms that rely on

A) unskilled workers.
B) highly skilled workers.
C) mass production.
D) continuous production.
E) none of these

Question 44

Which type of production relies the most heavily on employee talent?

A) unit production
B) mass production
C) continuous production
D) a primary production system
E) a matrix structure

Question 45

Delegation is the transfer of ____ to make decisions and use organizational resources.

A) responsibility
B) authority
C) leadership
D) operational control
E) none of the above

Question 46

​Which of the following is NOT a factor that influences organizational structure?

A) ​external environment
B) ​organization's production technology
C) ​organizational age
D) ​organizational size
E) ​business strategy

Question 47

Smaller organizations with low standardization, total centralization, and mostly one-on-one communication have a

A) matrix structure.
B) functional structure.
C) bureaucratic structure.
D) prebureaucratic structure.
E) lattice structure.

Question 48

The benefits of a matrix organization include all of the following EXCEPT

A) it is flexible.
B) it can provide coordinated responses to pressures.
C) it is cheaper.
D) it improves project coordination.
E) it improves communication.

Question 49

When a firm uses _________, it makes large volumes of identical products, typically using assembly lines and machines.

A) unit production
B) mass production
C) continuous production
D) a primary production system
E) a matrix structure

Question 50

When a firm uses _________, it produces in small batches or makes one-of-a-kind custom products.

A) unit production
B) mass production
C) continuous production
D) a primary production system
E) a matrix structure

Question 51

One factor influencing organizational structure is the organization's technology, which is also called its

A) hours of operation.
B) business strategy.
C) organizational chart.
D) primary production system.
E) secondary production system.

Question 52

Which type of production requires low levels of supervision because machines do most of the work?

A) unit production
B) mass production
C) continuous production
D) a primary production system
E) a matrix structure

Question 53

Large organizations tend to have a _________ hierarchy and_________specialization than small organizations.

A) smaller, more
B) smaller, less
C) greater, more
D) greater, less
E) none of these

Question 54

If a firm uses unit production and makes custom products, it should have a _________ structure with a _________ managerial span of control is most appropriate.

A) flatter, smaller
B) flatter, larger
C) taller, smaller
D) taller, larger
E) none of these

Question 55

A mechanistic structure can be characterized by all of the following EXCEPT

A) it is primarily hierarchical.
B) communication is typically vertical.
C) knowledge is concentrated at the top.
D) instructions come from the boss.
E) a high focus on adaptability.

Question 56

When a firm uses _________, machines constantly make the product while employees monitor the machines and plan changes.

A) unit production
B) mass production
C) continuous production
D) a primary production system
E) a matrix structure

Question 57

To succeed in a rapidly changing environment, an organization needs to have a more _________ structure.

A) centralized
B) formalized
C) bureaucratic
D) mechanistic
E) flexible

Question 58

Which element of organizational structure would a firm pursuing an innovation strategy be most likely to have?

A) centralization
B) decentralization
C) low specialization
D) high formalization
E) none of these

Question 59

As organization size increases, each of the following increases as well EXCEPT

A) centralization.
B) the number of rules.
C) the number of levels in the hierarchy.
D) flexibility.
E) specialization of labor.

Question 60

Large organizations tend to be _________ than small organizations.

A) more flexible
B) less centralized
C) less bureaucratic
D) more bureaucratic
E) none of these

Question 61

A _________ is a collection of autonomous units or firms that act as a single larger entity, using social mechanisms for coordination and control.

A) division
B) ​lattice
C) network organization
D) matrix
E) bureaucracy

Question 62

Organizations with a _________ are characterized by formal division of labor, hierarchy, and standardization of work procedures.

A) matrix structure
B) functional structure
C) bureaucratic structure
D) prebureaucratic structure
E) lattice structure

Question 63

A ____________ has abalanced, matrixed relationship between local managers and headquarters with a two-way flow of ideas, resources, and employees between the two locations.

A) global area division structure
B) regional lattice structure
C) regional headquarters structure
D) global product division structure
E) global transnational division structure

Question 64

A large organization's legal department is staffed solely with lawyers.This illustrates

A) matrix structure.
B) functional structure.
C) bureaucratic structure.
D) prebureaucratic structure.
E) lattice structure.

Question 65

A ________ is a collection of functions organized around a particular geographic area, product or service, or market.

A) division
B) ​lattice
C) network organization
D) matrix
E) bureaucracy

Question 66

_________ is an organizational structure that groups people with the same skills, or who use similar tools or work processes, together into departments.

A) Matrix structure
B) Functional structure
C) Bureaucratic structure
D) Prebureaucratic structure
E) Lattice structure

Question 67

In a ____________, regional and/or country managers are given substantial autonomy to adapt strategies to fit local situations.

A) global area division structure
B) regional lattice structure
C) regional headquarters structure
D) global product division structure
E) global transnational division structure

Question 68

In organizations with a _________, employees report to both a project or product team and to a functional manager.

A) matrix structure
B) functional structure
C) bureaucratic structure
D) prebureaucratic structure
E) lattice structure

Question 69

Organizations with a _________ create horizontal or vertical teams that can define part or all of the organization.

A) division structure
B) team-based structure
C) network structure
D) virtual structure
E) centralized structure

Question 70

Which type of structure is characterized by employees having two bosses at the same time?

A) matrix structure
B) functional structure
C) bureaucratic structure
D) prebureaucratic structure
E) lattice structure

Question 71

In organizations with a _________, cross-functional and cross-level subteams are formed and dissolved as necessary to complete specific projects and tasks.

A) matrix structure
B) functional structure
C) bureaucratic structure
D) prebureaucratic structure
E) lattice structure

Question 72

In which type of organization domanagers spend a lot of time coordinating and controlling the network of contractors and strategic alliances?

A) multinational organization
B) ​lattice organization
C) network organization
D) matrix organization
E) bureaucratic organization

Question 73

Which type of structure do new or young organizations typically have?

A) matrix structure
B) functional structure
C) bureaucratic structure
D) prebureaucratic structure
E) lattice structure

Question 74

Which type of organizational structure places a greater importance on employees higher in the structure, as reflected by centralized decision making and a strict chain of command?

A) matrix structure
B) functional structure
C) bureaucratic structure
D) prebureaucratic structure
E) lattice structure

Question 75

In a ____________, a headquarters is established in major geographical areas that works collaboratively with the product divisions to give the local units clearer operational goals and directions.

A) global area division structure
B) regional lattice structure
C) regional headquarters structure
D) global product division structure
E) global transnational division structure

Question 76

Which type of multinational organizational structureis best when a balance of global integration and local responsiveness is needed?

A) global area division structure
B) regional lattice structure
C) regional headquarters structure
D) global product division structure
E) global transnational division structure

Question 77

Which type of multinational organizational structureis appropriate when local differences are large and the benefits of global integration are small?

A) global area division structure
B) regional lattice structure
C) regional headquarters structure
D) global product division structure
E) global transnational division structure

Question 78

Which type of multinational organizational structureis appropriate when the benefits of global integration are large and local differences are small?

A) global area division structure
B) regional lattice structure
C) regional headquarters structure
D) global product division structure
E) global transnational division structure

Question 79

In a ____________, all functional activities are controlled by a product group at headquarters; local managers do not usually provide input into product decisions and are involved only in local administrative, legal, and financial affairs.

A) global area division structure
B) regional lattice structure
C) regional headquarters structure
D) global product division structure
E) global transnational division structure

Question 80

Which type of multinational organizational structureworks best when both global integration and local responsiveness are needed?

A) global area division structure
B) regional lattice structure
C) regional headquarters structure
D) global product division structure
E) global transnational division structure