Deck 7: Designing Organizational Structures

Question 1

The nature of the task and the location of the workers affect the size of a manager's span of control.

Answer 1

True

Question 2

The line organization is designed with direct, clear lines of authority and communication flowing from the top managers downward.

Answer 2

True

Question 3

Cross-functional teams are made up of employees from about the same hierarchical level but different functional areas within the organization.

Answer 3

True

Question 4

A company that uses departmentalization groups jobs under the authority of one manager for the purposes of planning, coordination, and control.

Question 5

An example of a staff position would be the job of district sales manager with twenty people working for him or her.

Question 6

Since the McDonald's shift manager has eight subordinates reporting to him, his span of control is eight.

Question 7

The informal channels of communication of an organization are often referred to as the grapevine, the rumor mill, or the intelligence network.

Question 8

The informal organization can help the formal organization to achieve its goals.

Question 9

One of the problems with setting up groups is the strong likelihood for the organization to experience decreased productivity.

Question 10

A manager in a centralized organization tends to allow subordinates to assume authority and to make most of the decisions.

Question 11

Process departmentalization is a grouping of jobs by activity, such as marketing, finance, and production.

Question 12

Though the informal organization may be a force in an organization, it has no real power; so managers don't need to worry much about it.

Question 13

The matrix structure is a combination of a line and a staff organization.

Question 14

When workers in a union elect their officers to represent them, it is an example of division of labor.

Question 15

The time that an employee spends on a particular job determines his or her specialization of labor.

Question 16

A company that is centralized has given a great deal of decision-making authority to lower-level managers.

Question 17

A tall organization structure has many managerial levels and a long chain of command.

Question 18

Organization charts show the formal and informal relationships among people, jobs, and departments.

Question 19

Managerial hierarchy refers to the number of subordinates overseen by each supervisor.

Question 20

The standards used to determine actions acceptable to the group are called norms.

Question 21

A supervisor engaged in ______ is grouping people, tasks, and resources into organizational units to facilitate the planning, leading, and control processes.

A)task design
B)job enrichment
C)functionalization
D)task integration
E)departmentalization

Question 22

One of the primary goals of Burberry, a British retailer, is to expand its market.When the company allocated resources so that it could open two stores in Japan, it was engaged in which management function?

A)organizing
B)implementing
C)resource planning
D)benchmarking
E)operational planning

Question 23

At your neighborhood Burger King, some employees take and fill orders, others prepare food, a few clean and maintain equipment, and some supervise.This process of dividing work into separate jobs and assigning tasks to workers is called:

A)functional design
B)division of labor
C)task division
D)group division
E)worker cooperation

Question 24

_____ involves coordinating and allocating a firm's resources so that the firm can carry out its plans and achieve its goals.

A)Organizing
B)Implementing
C)Resource planning
D)Controlling
E)Operational planning

Question 25

Specialization refers to the:

A)depth of the organization chart
B)width of the managerial hierarchy
C)degree to which tasks are subdivided into smaller groups
D)process to dividing work into separate jobs
E)size of the span of management

Question 26

_____ is the process of grouping jobs together so that similar or associated tasks and activities can be coordinated.

A)Standardization
B)Centralization
C)Specialization
D)Departmentalization
E)Functionalism

Question 27

There is no way to embrace any one of the characteristics of a virtual corporation without embracing them all.

Question 28

_____ is the degree to which tasks are subdivided into smaller jobs.

A)Task subdivision
B)Functional divisionalization
C)Specialization
D)Task-objective division
E)Task breakdown

Question 29

Division of labor refers to:

A)how the unity of command is assigned
B)the width of the managerial hierarchy
C)the degree to which tasks are subdivided into smaller groups
D)the process to dividing work into separate jobs
E)the size of the span of management

Question 30

In 2005, BridgePort Brewing Company expanded sales of its BridgePort India Pale Ale, and BridgePort Black Strap Stout into Alabama, Georgia, Kansas, Minnesota, Missouri, North Carolina, Oklahoma, Tennessee and Texas.These states will join BridgePort's current distribution markets of Alaska, Arizona, California, Colorado, Idaho, Montana, New Mexico, Oregon, and Washington.When the brewery allocated resources to increase its production and distribution, it would have relied on which of the following management functions?

A)organizing
B)implementing
C)resource planning
D)benchmarking
E)operational planning

Question 31

On an automotive assembly line, Naif Marrot checks to make sure that recently painted car bodies are free of paint bubbles.Other people are assigned the task of seeing that other parts of the car are built to specifications.The task of building an automobile has been subdivided into a series of subtasks.The concepts of _____ have been employed in this situation.

A)specialization and division of labor
B)product design and structured manufacturing
C)centralization and product departmentalization
D)decentralization and unity of command
E)functionalism and specialization

Question 32

The virtual corporation is one way that organizations can transform information technology into a competitive advantage.

Question 33

The primary purpose for any reengineering is to make an organization compliant with changes in its external environment.

Question 34

An organization that has undergone reengineering has completely redesigned its business structures and processes in order to improve operations.

Question 35

One of the most difficult challenges when merging two global companies is uniting the two company's organizational culture.

Question 36

The management activity of organizing.

A)determines, groups, and assigns work activities
B)plans and monitors strategy implementation
C)determines goals, strategies, and tactics
D)results in a more productive workforce due to increased levels of compensation
E)compares expected performances with actual performances

Question 37

A(n) _____ is a picture of the relationships among tasks and those employees given authority to do those tasks.

A)informal chart
B)organization chart
C)formal picture
D)relationship chart
E)functional chart

Question 38

The virtual corporation expands the traditional boundaries of an organization.

Question 39

An excellent way of putting the informal organization to work for the good of the company is to bring informal leaders into the decision-making process.

Question 40

_____ is the process of dividing the work and assigning tasks to workers.

A)Division of labor
B)Grouping of workers
C)Task division
D)Functional division
E)Worker breakdown

Question 41

Kohber is a Swiss-company that makes medical equipment.It recently purchased a company, which manufactures packaging for high-value drugs.Since it will run the packaging company as a separate division, it would seem that Kohber is departmentalized by:

A)customer
B)function
C)size
D)geography
E)product

Question 42

The Cooke family has worked for various General Motors's divisions for over four decades.Bennett Cooke works at the Cadillac division.Rondella Cooke works at the Buick division.Their son Tyrone works at the Corvette plant, and their daughter Niome works at the Saturn plant.The Cooke family could tell you that GM is departmentalized by:

A)customer
B)size
C)geography
D)product
E)process

Question 43

A structure in which authority and responsibility are held by a group of workers rather than a single manager is called a _____ structure.

A)matrix
B)committee
C)functional
D)subordinated
E)cluster

Question 44

As part of her marketing project, Lily Unruh is studying how Marriott operates.Since she thought it was simply a hotel chain, she was amazed to learn that its food divisions provide food for school cafeterias, airlines, hotels, and fast-food restaurants.Marriott's food divisions are departmentalized by:

A)product
B)function
C)geography
D)customer
E)process

Question 45

Coca-Cola Enterprises (CCE) is the largest bottler and distributor of Coke products in the world.It is organized around its North America division and its European division.This departmentalization by _____ allows CCE to respond to the demands of different markets.

A)process
B)customer
C)geography
D)function
E)product

Question 46

One of the disadvantages of the matrix structure is:

A)inflexibility
B)inability to use teamwork
C)reduce performance
D)lack of cohesiveness
E)all of the above

Question 47

An advertising agency that has separate departments for artwork, creative design, print advertising, radio advertising, television advertising, and specialty advertising is using _____ departmentalization.

A)customer
B)functional
C)size
D)geographic
E)hierarchical

Question 48

A network of Bennetton retail sales agents select the Bennetton designs that they feel will appeal to Bennetton retail customers.The responsibility for picking the next "hot style" is in the hands of this group.This is an example of a _____ structure.

A)matrix
B)committee
C)functional
D)subordinated
E)cluster

Question 49

_____ could be used to explain why members of the night shift at a textile mill refuse to fill openings on the day shift even though most of the people who work at the plant feel day work is preferable to night work.

A)Team synergy
B)Group cohesiveness
C)Organizational philosophy
D)Group custom
E)Group resistance

Question 50

American Express is organized into four divisions that cater to businesses, consumers, travelers, and investors.American Express uses _____ departmentalization.

A)process
B)customer
C)geographic
D)functional
E)product

Question 51

Which of the following statements about the committee structure is true?

A)Committees limit the range of possible solutions to a problem.
B)Committees can be slow to reach a decision.
C)Committee structures are not dominated by any single individual.
D)Committee meetings are typically short and reach solutions quickly.
E)All of the above statements about the committee structure are true.

Question 52

_____ is a permanent organization structure that combines functional and product departmentalization.

A)A functional organization
B)Subordinated management
C)A cartel
D)A matrix structure
E)A committee structure

Question 53

Which of the following is NOT an advantage associated with matrix structures?

A)The company can tackle more complex tasks through teamwork.
B)Managers can build large, permanent teams of specialists.
C)Employees are more productive when they work on a special project.
D)Special projects give employees opportunities for personal and professional development.
E)The group can be disbanded if it is no longer needed.

Question 54

Gambrinus is a large company that owns and operates the breweries that produce Moosehead Lager, Bridgeport Ale, Pete's Wicked Ale, Corona beer, Trumer Pilsner, and Shiner Bock.Each brewery is run as an independent division and each produces a malt liquor that appeals to a different market.This is an example of departmentalization by:

A)customer
B)size
C)geography
D)product
E)process

Question 55

Which of the following is NOT a commonly used method for departmentalizing a firm?

A)by customer
B)by product
C)by function
D)by managerial level
E)by geography

Question 56

_____ is the degree to which group members want to stay in the group and tend to resist outside influences.

A)Team synergy
B)Group cohesiveness
C)Organizational culture
D)Group norming
E)Group resistance

Question 57

One of the advantages of the matrix structure is:

A)the ability to balance conflicting objectives
B)higher performance
C)flexibility
D)teamwork
E)all of these

Question 58

Both Kennedy and LaGuardia Airports have established airport management committees.These structures are advantageous because it:

A)makes the coordination of activities much easier
B)the decision-making process faster
C)does not require employees to waste time in meetings
D)encourages individual accountability
E)reduces dependence on group norms

Question 59

Another name for the matrix structure is the:

A)quality management approach
B)line-and-staff structure
C)project management approach
D)networking approach
E)committee structure

Question 60

Pharmacie & Upjohn, a pharmaceutical company, uses a functional structure (research, development, manufacturing, and marketing) within each of its three largest major product divisions.This company is an example of a:

A)functional organization
B)product organization
C)committee structure
D)networked organization
E)matrix structure

Question 61

The three basic levels of the managerial hierarchy are:

A)functional, process, and product
B)strategic, tactical, and functional
C)top, middle, and supervisory
D)planning, coordinating, and controlling
E)none of the above

Question 62

One of the advantages of work group cohesiveness is:

A)the absence of conflict with other work groups
B)formalized group norms
C)reduced employee turnover
D)the absence of resistance to change
E)groupthink

Question 63

Many organizations that experienced success using problem-solving teams expanded the team concept to allow team members to have greater responsibility in making decisions, implementing solutions, and monitoring outcomes.These highly autonomous groups are called:

A)independent groups
B)functional groups
C)work groups
D)project committees
E)self-managed work teams

Question 64

The _____ defines the relationships of authority from one level of organization to the next, from top to bottom.

A)chain of command
B)functional chain
C)chain of accountability
D)chain of order
E)structural chain

Question 65

Which of the following statements describes one the weaknesses of group decision making?

A)Groups bring less information and knowledge to the decision process.
B)Groups tend to generate significantly fewer alternatives than an individual.
C)The participation of group members decreases the likelihood that a decision will be accepted by the employees.
D)Group members may pressure others to conform to decrease the possibility of disagreement.
E)All of the above statements describe weaknesses of group decision making.

Question 66

Which of the following statements describes one the strengths of group decision making?

A)Group decision making results in a higher-quality decision then individual decision making.
B)Groups typically take much less time to reach a solution than an individual.
C)In a group, no one person or group will ever dominate the decision making process.
D)Conformity is not important when it comes to making a group decision.
E)When making decisions, groups have greater accountability than individuals.

Question 67

Work group cohesiveness can benefit the organization by doing all of the following EXCEPT:

A)increased productivity
B)enhanced worker self-image because of group success
C)decreased resistance to change
D)reduced employee turnover
E)reduced employee absenteeism

Question 68

Which of the following statements about the management pyramid is true?

A)All companies use the management pyramid structure.
B)The span of management is clearly defined in the management pyramid.
C)The person with the most formal authority is at the top of the pyramid.
D)The management pyramid typically eliminates the need for a clear chain of command.
E)The management pyramid typically eliminates the need for unity of command.

Question 69

Self-managed work teams:

A)are highly autonomous teams
B)work without any formal supervision
C)take responsibility for setting their own goals
D)plan and schedule their own work activities
E)are accurately described by all of the above

Question 70

A team made up of employees from about the same hierarchical level, but different functional areas of an organization is called a:

A)cross-functional team
B)horizontally-organized team
C)vertically-organized team
D)problem-resolution team
E)project committee

Question 71

The managerial hierarchy is also called the:

A)managerial continuum
B)management pyramid
C)control continuum
D)management matrix
E)span of management

Question 72

_____ are groups of employees who share resources and coordinate efforts so as to help members better perform their individual duties and responsibilities.The performance of this group can be evaluated by adding up the contributions of the individual group members.

A)Autonomous teams
B)Functional groups
C)Work groups
D)Project committees
E)Work teams

Question 73

Hugh Larrimore, Wilson Knight, and Frieda Perez have worked together for twelve years.They always clock in and clock out together.If one of the threesome happens to be late, the others will wait for him or her.This commonly accepted behavior for this informal group is called a(n):

A)group norm
B)organizational policy
C)work procedure
D)self-mandated regulation
E)company policy

Question 74

The standards used to determine whether a group member's actions are acceptable are called group:

A)deviations
B)controls
C)mores
D)norms
E)means

Question 75

Which of the following statements about the managerial hierarchy is true?

A)The lower a manager, the more power he or she has.
B)The amount of power decreases as you move up the managerial hierarchy.
C)The number of employees being managed decreases as you move down the managerial hierarchy.
D)The managerial hierarchy is also called the management pyramid.
E)All of the above statements about the managerial hierarchy are true.

Question 76

A large furniture and appliance rental business is considering sponsorship options.It has brought together vice-presidents from the various functional areas of the company to determine which sponsorships will most effectively reach the rental company's prospective customers.The rental company has established a:

A)cross-functional team
B)horizontally-organized team
C)vertically-organized team
D)problem-resolution team
E)project committee

Question 77

The disadvantages of group cohesiveness include:

A)increased absenteeism
B)decreased productivity
C)conflict with other work groups in the organization
D)increased employee turnover
E)increased willingness to accept change

Question 78

The ______ refers to the levels of management within the organization.These levels usually conform to the shape of a pyramid.

A)functional group
B)managerial hierarchy
C)subordinated unit
D)authoritative span
E)control matrix

Question 79

To be a high-performance team, a team:

A)needs to practice good communication
B)needs to give appropriate feedback to each other
C)should contain members with a variety of skills
D)must have a great leader
E)is accurately described by all of these

Question 80

The typical problem-solving team:

A)makes final decisions
B)allocates resources
C)is comprised of employees from several different functional areas
D)meets on a regular basis to share information and discuss ways to improve processes
E)is accurately described by all of the above