Deck 15: Organizational Design and Structure

Question 1

When considering the importance of structure in relation to strategy, goals, mission and purpose statements, it is most accurate to think of:

A)strategy following structure
B)function following form
C)structure leading to goals
D)form follows function

Answer 1

D

Question 2

The process of constructing and adjusting an organization's structure to achieve its goals is:

A)strategic management
B)strategy-structure fit
C)organizational design
D)organizational reconfiguration

Answer 2

C

Question 3

Groupon has stated that they seek to organization around market demands that transcend national borders and include countries such as Canada, Brazil, Argentina, Chile, France, England, Ireland, and Spain which are only a few of the company's global locations. Which of the following structures would best fit with Groupon's strategy?

A)network
B)virtual
C)circle
D)self contained local groupings based on customer needs

Answer 3

D

Question 4

Departmentation on a college or university campus is most commonly based on:

A)student classification (freshman, sophomore, etc.)
B)time of day of course offerings
C)academic discipline or subject matter
D)building location and physical space

Question 5

The difference between the authority and responsibility in the organizational hierarchy is called:

A)horizontal differentiation
B)spatial differentiation
C)gap of accountability
D)vertical differentiation

Question 6

The process of breaking organizational goals into tasks and dividing work is:

A)integration
B)coordination
C)differentiation
D)organization charting

Question 7

Lawrence and Lorsch suggest that an organization's complexity should mirror:

A)its strategy
B)the degree of specialization within the organization
C)the amount of integration within an organization
D)the complexity of the environment

Question 8

Organizational design is a process of specifying structural features of an organization.This process begins with:

A)the organization's goals
B)task specifications of each job
C)arranging jobs into departments
D)diagramming formal channels of communication

Question 9

In their research on differentiation, Lawrence and Lorsch found all of the following dimensions reflected differentiation except:

A)goal orientation
B)interpersonal orientation
C)formality of structure
D)hierarchical control

Question 10

The particular grouping of activities performed by an individual or the division of labor refers to:

A)horizontal differentiation
B)vertical differentiation
C)standardization
D)specialization

Question 11

Groupon's business model is one that is simple and relatively easy to copy.As a result if imitators across the globe Groupon's strategic response to imitators has been to buy or acquire copycats.This strategy has correspondingly resulted in the organization design problem of:

A)standardization
B)centralization
C)integration
D)formalization

Question 12

The thousands of State Farm Insurance Company agents' offices scattered throughout the United States are an example of:

A)vertical differentiation
B)spatial differentiation
C)a tall structure with narrow spans of control
D)departmentation by product

Question 13

Organization complexity would be considered greatest in which of the following organizations?

A)a university
B)a high school basketball team
C)an office of a car rental agency at a busy airport
D)an auto repair shop of an auto dealership

Question 14

Span of control defines:

A)the number of organization levels
B)vertical differentiation
C)who reports to whom in the chain of command
D)the number of employees a manager supervises

Question 15

An organization chart shows:

A)formal lines of authority and supervisor-employee reporting relationships
B)how many people are employed by an organization
C)the tasks for each job
D)the number of positions in each department

Question 16

Which of the following contextual variables are LEAST controllable by the organization?

A)strategy
B)internal labor market
C)technology
D)environment

Question 17

The degree of differentiation most affected by employee's specialized knowledge, education, or training is:

A)spatial differentiation
B)vertical differentiation
C)horizontal differentiation
D)departmental differentiation

Question 18

Complexity refers to:

A)the number of activities, subunits, or subsystems within the organization
B)the process of coordinating the different parts of an organization
C)the number of employees in the organization
D)the number of levels within the organization

Question 19

When comparing the time orientation of a production supervisor and corporate president, the supervisor is more likely to concentrate on:

A)long-run product development
B)weekly production targets
C)annual profit and loss experiences
D)semi-annual sales forecasts

Question 20

Flat organization structures are characterized by:

A)narrow spans of control
B)close supervision
C)long communication channels
D)high ratios of employees to supervisors

Question 21

The faculty of a university comprises which of Mintzberg's fundamental elements of the organization?

A)support staff
B)technical staff
C)middle level
D)operating core

Question 22

The process of coordinating the different parts on an organization is:

A)horizontal differentiation
B)integration
C)horizontal complexity
D)known as the hierarchy of authority

Question 23

As an organization increases differentiation given increases in external complexity, it will need to increase efforts to:

A)clarify roles
B)train employees in communication
C)develop teams
D)improve and/or increase integration

Question 24

The degree to which the organization has official rules, regulations, and procedures is called:

A)standardization
B)complexity
C)formalization
D)specialization

Question 25

Which of the following can function as a vertical and horizontal integrating device?

A)a well-defined chain of command
B)cross-functional teams
C)an assistant to the president
D)management information systems

Question 26

The extent to which work activities are defined and routinely performed the same way is known as:

A)centralization of decisional authority
B)standardization
C)complexity
D)formalization

Question 27

The FBI is in the process of a transformation from a compartmentalized, highly decentralized organization to an organization which requires a very different form that relies on the latest information technology and the systemic capacity to place single events or occurrences into a broader and emerging pattern.Which of the following structural configurations would be most appropriate?

A)Adhocracy
B)Professional bureaucracy
C)Machine bureaucracy
D)Simple structure

Question 28

The strongest method of horizontal integration is through:

A)liaison roles
B)a designated integrator
C)task forces
D)teams

Question 29

Which of the following departments would probably have the most flexible structure?

A)marketing
B)operations
C)research & development
D)human resource management

Question 30

A major league baseball team most closely approximates a/an:

A)adhocracy
B)simple structure
C)professional bureaucracy
D)machine bureaucracy

Question 31

The most organic form of organization under Mintzberg's structural configurations would be:

A)the simple structure
B)the professional bureaucracy
C)the adhocracy
D)the divisional form

Question 32

Which of the following can function as a vertical and horizontal integrating device?

A)a well-defined chain of command
B)cross-functional teams
C)an assistant to the president
D)management information systems

Question 33

A tall hierarchy of authority is usually associated with:

A)decentralization
B)informal and unofficial work roles
C)a loose chain of command
D)centralization

Question 34

A centralized form of organization that emphasizes the upper echelon and direct supervision under Mintzberg's configurations is:

A)the simple structure
B)the machine bureaucracy
C)the professional bureaucracy
D)the adhocracy

Question 35

A Domino's pizza outlet is an example of a/an:

A)adhocracy
B)divisional form
C)machine bureaucracy
D)simple structure

Question 36

The Science Feature of Chapter 15 reported the results of a study that examined various ways in which "distributed" work might be most effectively integrated. The "Distributed" work involved the need for coordination between offshore and onshore processes and included IT and Call Center work. The study compared task design, communication, and tacit coordination as ameliorating mechanisms or integrative devices and their relative effectiveness. Which of the following best reflects the result(s) of this study?

A)Designing tasks to minimize the need for coordination was found to be the most effective form if integration.
B)Tacit coordination was found to be more effective than communication.
C)Tacit coordination was found to complement task design and communication.
D)A & B

Question 37

A highly bureaucratized organization, such as the Social Security Administration, exhibits all of the following characteristics except:

A)specialization
B)standardization
C)formalization
D)loose controls

Question 38

In general, the flatter an organization the more necessary are:

A)vertical integrators
B)higher degrees of formalization
C)differentiation activities
D)integration mechanisms

Question 39

Which differentiation could give an organization political and legal advantages in the market place?

A)spatial differentiation
B)vertical differentiation
C)horizontal differentiation
D)market differentiation

Question 40

The Royal Bank of Canada decided to move its loan-processing work from headquarters to branch banks in order to avoid bottlenecks.This is an example of:

A)specialization
B)formalization
C)decentralization
D)standardization

Question 41

The introduction and use of computer-aided manufacturing and networked information and communication systems have been associated with all of the following except:

A)broadened span of control
B)flattened or delayered organization structures
C)greatly increased upward mobility or promotion opportunities
D)enhanced technical knowledge requirements

Question 42

Avon uses the matrix structure which allows them more flexibility in the use of resources. Unfortunately, the matrix also presents challenges. Which of the following was the major challenge for Avon as demonstrated in Real World 15.1?

A)Delays in decision making
B)Individual stress due to role conflict
C)Internal conflict and competitiveness
D)All the above

Question 43

The organization approach most appropriate for a small batch type of technology would be:

A)mechanistic
B)functional
C)organic
D)virtual

Question 44

When examining the relationship between size and basic design dimensions, small organizations have more _____ than large organizations?

A)formalization
B)centralization
C)specialization
D)standardization

Question 45

The most appropriate measure of organization size when considering alternative structural designs is:

A)number of units produced
B)total assets
C)sales volume
D)number of employees

Question 46

Utilizing Perrow's framework of technology, problem analyzability refers to:

A)the amount and type of information needed to solve problems associated with the throughput
B)the type of technology
C)whether the solution can be reduced by quantitative methods
D)the degree of computer technology that is being used in the transformation process

Question 47

The tools, techniques, and actions used by an organization to transform inputs into outputs is called:

A)an organization's technology
B)the throughput
C)the transformation process
D)work design

Question 48

Which of the following basic design dimensions would be most appropriate for decentralizing the decision making within an organization?

A)formalization and specialization
B)formalization and standardization
C)standardization and specialization
D)complexity and specialization

Question 49

Avon is among several companies that employ the matrix structure to do more with less and bring products to market quickly and efficiently. Alignment across various ways of departmentalizing is a strength of the matrix. Given departmentalization can be by product, function, service, client, geography, and process; Avon's matrix emphasizes:

A)function X product
B)function X geography
C)function X process
D)function X client

Question 50

The configuration that would best fuse interdisciplinary experts through ad hoc project teams and mutual adjustment is the:

A)simple structure
B)adhocracy
C)professional bureaucracy
D)divisional form

Question 51

NASA, which is composed of many talented experts who work in small teams on a wide range of projects, is probably organized as a(n):

A)simple structure
B)professional bureaucracy
C)divisional form
D)adhocracy

Question 52

Of the following, which is NOT a major contextual variable of organizational design?

A)external environment
B)leadership style
C)strategy and goals
D)technology

Question 53

A moderately decentralized form of organization that emphasizes the technical staff and standardization of work processes defines:

A)the machine bureaucracy
B)the professional bureaucracy
C)the adhocracy
D)the divisional form

Question 54

An automobile plant with routinized operating tasks should probably use what type of complementary structure?

A)simple
B)machine
C)professional
D)adhocracy

Question 55

Woodward's classification theme of technology (large batch, small batch, and continuous process) led to the conclusion that the more complex the technology, the:

A)more investment capital the organization needed
B)more needed to be invested in training
C)more complex the administrative component of the organization needs to be
D)more a participative leadership style would lead to organizational effectiveness

Question 56

Mass customization is largely due to:

A)better integration devices
B)advances in information technology and flexible manufacturing
C)more sophisticated differentiation approaches
D)adhocracy designs

Question 57

An organization with high task variability and unanalyzable problems should:

A)have a functional type of structure
B)use an engineering approach
C)be more craft oriented
D)have an organic approach to structuring

Question 58

In a small organization (cafe, service station, or real estate office), supervision of employees and management control are most commonly done through:

A)detailed descriptions
B)personal observation by the manager
C)written policies and procedures
D)rule books

Question 59

According to Woodward's classification of different technologies, the technology of custom home building is:

A)unit or small batch in nature
B)a continuous production process
C)a large batch or assembly line type of operation
D)non-sequential in nature

Question 60

For an organization to take advantage of its larger size into the 21st century, it must become:

A)centerless with a global core
B)centralized with a technology critical mass
C)cellular with strong elements of the horizontal form
D)more like an adhocracy

Question 61

The choice of structure for managing an international business is generally based on choices concerning which set of the following three factors?

A)level of vertical differentiation; level of integration; and degree of formalization, specialization, standardization, and centralization
B)level of integration; level of horizontal differentiation; and degree of formalization, specialization, standardization, and centralization
C)hierarchy, global product, and global division
D)level of vertical differentiation; level of horizontal differentiation; and degree of formalization, specialization, standardization, and centralization

Question 62

The manager's role in the context of shorter life cycles becomes:

A)one of constant confusion and greater ambiguity
B)one of creating congruency among various organizational design dimensions to fit continuously changing markets and locations
C)one of a boundary spanner
D)more dependent on creativity and investment in R&D in order to develop new products

Question 63

Anything outside the boundaries of an organization is considered:

A)a contextual variable
B)its technology
C)the environment
D)the market

Question 64

Acer's responses to the competitive challenge of Apple's iPAD was to:

A)Develop a joint venture with BlackBerry
B)Create a separate tablet division that encompasses tablets and smartphones
C)Spinoff its tablet and smartpones in order to focus on PCs
D)Consolidate the operations of the notebook, tablet, and smartphones in order to capture synergy (better integrate) across all three areas

Question 65

Which of the following competitive or market environments would be considered relatively stable?

A)commercial airline
B)casual and sports clothing
C)can manufacturing
D)computer and consumer electronics

Question 66

If an organization confronts a situation with scarce resources, large amounts of change, and many competitors, the situation would be considered one:

A)with strategic disadvantage
B)where profit will be difficult to achieve
C)of high environmental uncertainty
D)where a task oriented leadership style is necessary

Question 67

Which of the following statements regarding the fit between structure and relevant contextual dimensions is NOT true?

A)The better the fit, the more likely that the organization will achieve its short-run goals.
B)The better the fit, the more likely the organization will process information and design appropriate organizational roles for long-term prosperity.
C)It is apparent there must be some level of fit between the structure and the contextual dimensions of the organization.
D)The better the fit, the more the structure will determine the strategy and goals of the organization.

Question 68

An organization that faces considerable environmental uncertainty and rapid change is more likely to be successful with:

A)a rigid and tall structure
B)an organic structure
C)a highly defined set of policies and procedures
D)high levels of job specialization and low levels of job interdependence

Question 69

All of the following are basic design dimensions that have been affected by advanced information technologies except:

A)the hierarchy of authority has been flattened
B)the basis of centralization has been changed and decision making is now made at lower levels of the organization
C)less specialization and standardization are needed
D)complexity has decreased

Question 70

A business organization that continuously faces an environment of considerable uncertainty is more likely to pursue a strategy and set of goals characterized by:

A)innovation
B)inflexibility
C)following other firms
D)frequent workforce expansion and retrenchment

Question 71

The construct of environmental uncertainty is typically composed or assessed using which of the following set of variables?

A)capacity, demand and supply, and economic growth
B)global GDP, domestic GDP, and local market conditions
C)volatility, capacity, and complexity
D)volatility, complexity, and analyzability

Question 72

All of the following are forces causing managers to go beyond traditional frameworks except:

A)globalization
B)rapid changes in information technology
C)shorter life cycles
D)size

Question 73

According to Stanley M.Davis, all of the following are features of a new economy due to the emergence of digital technologies and globalization except:

A)any play
B)any time
C)no matter
D)mass customization

Question 74

A mechanistic structure is most reflected when:

A)specialization is high, standardization is low, and complexity is high
B)formalization is low, specialization is low, and complexity is high
C)specialization is high, formalization is high, and centralization is low
D)formalization is high, specialization is high, and centralization is high

Question 75

An organization pursuing a market differentiation strategy should have structural characteristics that include:

A)low formalization and moderate to high complexity
B)decentralization and high standardization
C)moderate to high complexity and moderate centralization
D)low formalization and high decentralization

Question 76

The part of an organization's external environment which the organization claims for itself with respect to how it fits into its relevant environments is known as the:

A)task environment
B)context
C)general environment
D)domain

Question 77

Short product and organizational life cycles place considerable emphasis on:

A)increasing formalization of job requirements and interpersonal relationships at work
B)hierarchical control and centralized decision making
C)greater specialization and standardization
D)flexibility and efficiency

Question 78

When ski enthusiast Bryce Phillips started EVO, the hugely successful e-commerce site, he consistently looked for ways to delegate responsibilities to capable managers. He recently showcased the flat functional structure at a company wide meeting and pointed out this structure had served them well up to this point. What type of structure would you expect to accommodate future growth?

A)mechanistic
B)organic
C)centralized
D)more formalized

Question 79

Conditions that include political considerations, broad economic factors, ecological changes, sociocultural demands, and government regulation are considered to be part of the:

A)task environment
B)operational environment
C)general environment
D)immediate environment

Question 80

Which of the following statements regarding complexity and the strategic decision process is NOT true?

A)As complexity increases, the strategic decision process will become more politicized.
B)The organization will find it more difficult to recognize environmental opportunities and threats as complexity increases.
C)As complexity increases, the strategic process will be constrained by the limitations of top managers.
D)The constraints on good decision processes will be multiplied by the limitations of each individual within the organization.