Deck 15: Organizational Structure

Question 1

The organization as a whole has no influence on employee attitudes and behavior.

Answer 1

False

Question 2

Organizational structure can have a significant impact on an organization's financial performance.

Answer 2

True

Question 3

Organic organizations encourage lateral communication.

Answer 3

True

Question 4

As companies grow larger, their organizational charts get simpler.

Question 5

Once a company becomes large, it is impossible to retain a centralized structure. Large companies must use decentralized structures.

Question 6

Companies that follow a low-cost producer strategy believe that people will pay more for a product that is unique in some way.

Question 7

There are trade-offs when organizations make jobs highly specialized.

Question 8

Companies that focus on a differentiation strategy are more likely to take a mechanistic approach to organizational design.

Question 9

High levels of specialization are more acceptable in smaller firms in which employees must be more flexible in their job duties.

Question 10

Dynamic environments allow organizations to focus on efficiency and require little change over time.

Question 11

Employees tend to be more satisfied with jobs that require them to perform a specialized kind of activity.

Question 12

Organizational performance increases as span of control increases, but only up to a certain point.

Question 13

Organic organizations are efficient, rigid, predictable, and standardized organizations that thrive in stable environments.

Question 14

The chain of command helps the organization to attain order, control, and predictable performance.

Question 15

Organizations that do not proactively develop designs may be forced to change their structure to become more effective.

Question 16

Wide spans of control allow managers to be much more hands-on with employees.

Question 17

In a traditional organizational structure, every employee has one person to whom they report.

Question 18

A company's chain of control determines how many employees report to each manager.

Question 19

Decentralized organizational structures tend to concentrate power and authority within a relatively tight group of individuals in the firm.

Question 20

Henry Ford was a strong believer in work specialization.

Question 21

As companies become larger, they tend to use a combination of specialization, formalization, and centralization to control their activities, thereby becoming more mechanistic in nature.

Question 22

For a restructuring to be successful, mere changes in the lines on an organizational chart are not sufficient; it demands a different way of working for the employees.

Question 23

If technologies need to be changed often to suit consumer needs, the decisions should be centralized.

Question 24

Companies that have a small number of customers with similar needs and tastes must develop client structures to organize their business.

Question 25

Many small companies evolve into functionally based structures as they grow larger.

Question 26

Matrix structures try to take advantage of two types of structure at the same time.

Question 27

Which of the following shows every job in the organization and the formal reporting relationships between those jobs?

A) The chain of command
B) The organizational chart
C) The structural map
D) The scalar chain
E) A Gantt chart

Question 28

Restructuring efforts typically enhance employees' trust in the organization.

Question 29

_____ formally dictates how jobs and tasks are divided and coordinated between individuals and groups within the company.

A) The span of control
B) Formalization
C) Centralization
D) An organizational structure
E) The chain of command

Question 30

Organizational restructuring has a moderate negative effect on organizational commitment.

Question 31

Product structures group business units around different products that the company produces.

Question 32

The degree to which tasks in an organization are divided into separate jobs refers to:

A) centralization.
B) chain of command.
C) span of control.
D) formalization.
E) work specialization.

Question 33

Although matrix structures have been around since the 1960s, the number of organizations using them has declined because organizations prefer to work in groups rather than in teams.

Question 34

A simple structure makes perfect sense for a large organization, with one person as the central decision-making person.

Question 35

To keep the stress level low and avoid multiple chains of command issues, managers should adopt the matrix structure.

Question 36

Which of the following elements of an organizational structure is also referred to as a company's division of labor?

A) Chain of command
B) Formalization
C) Centralization
D) Work specialization
E) Span of control

Question 37

Which of the following is Trueabout work specialization?

A) It creates more problems in larger firms where little flexibility is required.
B) It makes training new employees easier when replacements are needed.
C) It encourages employees to upgrade their skills in multiple disciplines.
D) It improves the flexible nature of workers.
E) It ensures that each worker performs different tasks every day.

Question 38

Many layoff survivors experience a great deal of guilt and remorse following a layoff.

Question 39

The most common kind of restructuring in recent years has been a "flattening" of the organization.

Question 40

Many restructuring efforts are designed to remove one or more organizational layers to reduce costs.

Question 41

At Cool Clothes, Inc., there is a total focus on providing care and satisfaction to each customer. In the Major Clients division, each manager is assigned 3 employees to supervise, whereas in the Product Assembly division, each manager supervises about 15 employees. The Major Clients division's managers can be described as having _____ as opposed to _____ for the Product Assembly division managers.

A) a narrow span of control; a wide span of control
B) tall formalization; flat formalization
C) narrow centralization; tall centralization
D) a wide span of control; a narrow span of control
E) flat formalization; tall formalization

Question 42

Which of the following is a characteristic of a mechanistic organization?

A) Employees are given a very narrow view of the tasks they are to perform.
B) Employees think more broadly in terms of where their responsibilities lie.
C) Employees are encouraged to make their own decisions when appropriate.
D) Employees are encouraged to develop knowledge outside of their specialization.
E) Lateral communication is encouraged.

Question 43

_____ organizations are flexible, adaptive, outward-focused organizations that thrive in dynamic environments.

A) Mechanistic
B) Centralized
C) Hierarchical
D) Matrix
E) Organic

Question 44

Span of control:

A) is the degree to which tasks in an organization are divided into separate jobs.
B) answers the question of "who reports to whom?" and signifies formal authority relationships.
C) refers to where decisions are formally made in organizations.
D) refers to the number of employees each manager is responsible for in the organization.
E) is the degree to which rules and procedures are used to standardize behaviors and decisions in an organization.

Question 45

_____ reflects where decisions are formally made in organizations.

A) The chain of command
B) Formalization
C) Centralization
D) Work specialization
E) The span of control

Question 46

Which of the following is a necessary coordination mechanism that organizations rely on to get a standardized product or deliver a standardized service?

A) Formalization
B) Centralization
C) Span of control
D) Chain of command
E) Work specialization

Question 47

The more people under the control of one manager, the _____.

A) greater the decentralization
B) wider the span of control
C) taller the organizational structure
D) shorter the chain of command
E) greater the work specialization

Question 48

In Grand Stand Organization, a furniture manufacturing company, the arrival and departure times to and from work are specified to the minute, with time clocks used to control deviant behavior. It can be said that the company is high in:

A) formalization.
B) centralization.
C) decentralization.
D) work differentiation.
E) division of labor.

Question 49

When you graph the relationship between performance and span of control, the resulting diagram shows ______.

A) an "arch" shape
B) a "U" shape
C) a straight horizontal line
D) a straight vertical line
E) a diagonal line sloping up to the right

Question 50

Ross and Tony, father and son, opened a large boutique named Tradus in Chicago. Being the owners of the business concern, they decide about the important matters. All the rest of the decisions like product, finance, marketing, and personnel are carried out by the department heads, who have to act according to Ross's and Tony's instructions and orders. Which of the following is Trueabout Tradus?

A) It has a very tall organizational structure.
B) It has a centralized system of decision making.
C) It has a matrix organizational structure.
D) The degree of formalization is very low in the organization.
E) It has a narrow span of control.

Question 51

Melissa is describing her company's organizational structure. Which of the following terms and concepts would she not use in her description?

A) cultural values
B) work specialization
C) span of control
D) chain of command
E) centralization

Question 52

Which element of the organizational structure signifies formal authority relationships?

A) Chain of command
B) Formalization
C) Centralization
D) Work specialization
E) Span of control

Question 53

Which of the following is associated with decentralization in decision making?

A) Moderate spans of control
B) Tall spans of control
C) Wide spans of control
D) Narrow spans of control
E) Flat spans of control

Question 54

The degree to which a job requires a number of different activities involving a number of different skills and talents is referred to as:

A) task identity.
B) variety.
C) task significance.
D) autonomy.
E) feedback.

Question 55

Which of the following refers to the degree to which rules and procedures are used to standardize behaviors and decisions in an organization?

A) Chain of command
B) Formalization
C) Centralization
D) Work specialization
E) Span of control

Question 56

If decision making is pushed down to lower-level employees, and these employees feel empowered to make decisions on their own, an organization has a _____ structure.

A) flat
B) decentralized
C) wide
D) narrow
E) centralized

Question 57

Which of the following typifies the structure that organic organizations rely on?

A) High levels of formalization
B) A rigid and hierarchical chain of command
C) High degree of work specialization
D) Weak chains of command
E) Centralization of decision making

Question 58

Which of the following statements is True?

A) Wide spans of control tend to be associated with centralized decision making.
B) Narrow spans of control tend to be associated with decentralized decision making.
C) A high level of work specialization tends to bring about a high level of work formalization.
D) Mechanistic organizations are typified by a structure that relies on low levels of work formalization.
E) Organic organizations are typified by a structure that relies on high degrees of work specialization.

Question 59

A _____ span of control creates a _____ organization structure.

A) wide; flat
B) tall; flat
C) moderate; narrow
D) narrow; flat
E) flat; moderate

Question 60

Current research suggests that:

A) the narrower the span of control, the more productive employees become.
B) a moderate span of control is best for an organization's productivity.
C) spans of control in organizations have decreased significantly in recent years.
D) a wide span of control requires organizations to hire many managers.
E) a wide span of control is especially important if the manager has substantially more skill or expertise than the subordinates.

Question 61

A bureaucratic structure is an organizational form that exhibits many of the facets of the _____ organization.

A) simple
B) global
C) adaptive
D) organic
E) mechanistic

Question 62

At ABC Manufacturing, employees are grouped according to their expertise in an area. All marketing employees are in one department, all finance employees are grouped in another department, and similarly, all human resources and manufacturing employees are in their respective departments. Which of the following structures does ABC Manufacturing use?

A) Client-based
B) Product
C) Geographic
D) Functional
E) Simple

Question 63

The most basic bureaucratic structure is the _____ structure.

A) client-based
B) matrix
C) organic
D) functional
E) simple

Question 64

The method by which an organization transforms its inputs into outputs refers to its:

A) structure.
B) technology.
C) specialization.
D) quality.
E) projects.

Question 65

_____ structures are perhaps the most common form of organizational design.

A) Simple
B) Functional
C) Client-based
D) Product
E) Matrix

Question 66

Which of the following statements is Trueabout functional organization structure?

A) Small companies experiencing rapid growth are the only organizations to benefit from a functional structure.
B) One of the main disadvantages of the functional structure is the lack of work specialization.
C) Functional structures are extremely efficient when the organization as a whole has a relatively wide focus.
D) One of the main advantages of the functional structure is that it encourages communication across functions.
E) Functional structures are extremely efficient when the organization has fewer product lines or services.

Question 67

Which of the following statements about companies that adopt a low-cost producer strategy is True?

A) They believe that people will pay more for a product that is unique in some way.
B) They rely on selling products at the lowest possible cost.
C) They often hinge on adjusting to changing environments quickly.
D) Such companies are more likely to take an organic approach to organizational design.
E) They focus on supplying high-quality differentiated products to customers.

Question 68

Of the following, which is a characteristic of an organic organization?

A) Employees know exactly whom they report to.
B) Employees are not encouraged to make decisions without their manager's consent.
C) Information is passed through vertical communication between an employee and his or her supervisor.
D) There are very clear lines of authority.
E) Employees are encouraged to develop knowledge and expertise outside of their specialization.

Question 69

A _____ structure makes perfect sense for a small organization because employees can come and go with no major ripple effects on the organization.

A) bureaucratic
B) matrix
C) multi-divisional
D) simple
E) geo-demographic

Question 70

A _____ structure is a flat organization with one person as the central decision-making figure.

A) functional
B) product
C) client-based
D) simple
E) matrix

Question 71

A firm's environment consists of many elements. Which of the following is not an element in a firm's environment?

A) Decentralization
B) Customers
C) Suppliers
D) Distributers
E) Owners

Question 72

Which of the following is one of the biggest factors of an environment's effect on structure that allows organizations to focus on efficiency?

A) Whether the outside environment is stable or dynamic
B) Whether the external culture clashes with intrinsic values
C) Whether the internal environment is stable or dynamic
D) Whether the competitor's structure matches industry needs
E) Whether the suppliers' cultures match the company's

Question 73

Which of the following statements about an organization in a dynamic business environment is True?

A) It does not change frequently.
B) It allows organizations to primarily focus on efficiency.
C) It requires organizations to have structures that are more rigid.
D) It requires little change over time.
E) It requires organizations to have structures that are more adaptive.

Question 74

Which of the following statements about companies that adopt a differentiation strategy is True?

A) They believe that people will pay more for a product that is unique in some way.
B) Their focus is on being as efficient as they can be.
C) They rely on selling products at the lowest possible cost.
D) They are more likely to take a mechanistic approach to organizational design.
E) They concentrate on developing large quantities of the same product, thereby providing cost advantages to their customers.

Question 75

TP Pencils is the low-cost producer of one type of standard pencils. Given that it operates in a fairly stable environment, the company focuses on making its product as efficiently as possible. Which of the following approaches to organizational design is likely to be appropriate for TP Pencils?

A) Multi-divisional
B) Global
C) Mechanistic
D) Matrix
E) Organic

Question 76

Homely Furniture is a custom manufacturer of hand-crafted furniture. The company has 94 locations throughout the country and relies on decentralized decision making to meet the needs of the dynamic environment and customer needs. Which of the following approaches to organizational design is likely to be appropriate for Homely Furniture?

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

Question 77

As organizations become larger, they tend to become more _____ in nature.

A) simple
B) cultural
C) mechanistic
D) organic
E) flat

Question 78

What is the primary reason for simple structures being perhaps the most common form of organizational design?

A) There are more small organizations than large ones.
B) Employees can come and go with no major ripple effects on the organization.
C) Changes in specialization lead to less confusion about how exactly employees are supposed to do their jobs.
D) Employees feel less emotionally attached to the firm.
E) Approval for decisions need not be authorized at every step of the hierarchy.

Question 79

Which of the following describes an organization's objectives and goals and how it tries to capitalize on its assets to make money?

A) Organizational structure
B) Company technology
C) Business environment
D) Company strategy
E) Organizational chart

Question 80

The process of creating, selecting, or changing the structure of an organization is called:

A) formalization.
B) organizational design.
C) specialization.
D) span of control.
E) work differentiation.