Question 1

Which of the following generalisations about organisational structures and employee performance and satisfaction is most true?
A)It is probably safe to say that no evidence supports a relationship between span of control and employee performance.
B)No one wants work that makes minimal intellectual demands and is routine.
C)There is fairly strong evidence linking decentralisation and job satisfaction.
D)The evidence generally indicates that work specialisation contributes to lower employee productivity.

Accepted Answer

A

Question 2

The of an environment refers to the degree of heterogeneity and concentration among environmental elements.
A)volatility
B)creativity
C)complexity
D)capacity

Accepted Answer

The term "complexity" is commonly used in environmental studies to refer to the level of heterogeneity and concentration among environmental elements. Volatility refers to the rapid and unpredictable changes in an environment, creativity implies a level of innovation and originality, and capacity typically refers to the maximum amount or load that an environment can handle.

Question 3

refers to how an organisation transfers its inputs into outputs.
A)Imitation
B)Technology
C)Operations
D)Innovation

Accepted Answer

B

Question 4

The structure that creates dual lines of authority and combines functional and product departmentalisation is the:
A)simple structure.
B)bureaucracy.
C)matrix structure.
D)virtual organisation.

Accepted Answer

The matrix structure creates dual lines of authority by combining functional and product departmentalisation. It allows for individuals with expertise to work on multiple projects simultaneously and enhances cross-functional communication and collaboration. The other options do not incorporate both functional and product departmentalisation.

Question 5

departmentalisation seeks to achieve economies of scale by placing people with common skills and orientations into common units.
A)Process
B)Geographic
C)Product
D)Functional

Accepted Answer

Functional departmentalization groups together people with similar skills, expertise, or work activities, allowing for specialization and efficiency in that area. This often leads to economies of scale since employees share the same resources and can learn from each other's experiences.

Question 6

Which of the following is a drawback of a narrow span of control?
A)It encourages overly tight supervision and discourages employee autonomy.
B)It is inexpensive.
C)It empowers employees.
D)Managers can maintain closer control.

Accepted Answer

A narrow span of control creates a hierarchical structure where there are more levels of management, resulting in employees being closely supervised and having less autonomy. This can lead to dissatisfaction and limit creativity and innovation among employees.

Question 7

Which one of the following is consistent with a simple structure?
A)high centralisation
B)high formalisation
C)high horizontal differentiation
D)high departmentalisation

Accepted Answer

A simple structure is characterized by high centralization, where decision-making authority is concentrated at the top levels of the organization.

Question 8

We- Train- Em has hired you to develop training materials for their seminars.Your first assignment is to write a training manual that will assist new managers in designing an appropriate structure for their part of an organisation.Included in the manual will be information about the key questions that they must answer in deciding about the best organisational structure. One of the questions included in the training manual is "To what degree are tasks subdivided into separate jobs?" This question addresses the issue of:
A)span of control.
B)formalisation.
C)chain of command.
D)work specialisation.

Accepted Answer

The question "To what degree are tasks subdivided into separate jobs?" addresses the issue of work specialisation, which refers to the degree to which tasks are divided into separate jobs. Span of control pertains to the number of employees that a manager can effectively supervise. Formalisation refers to the degree to which rules and procedures guide work and decision-making. Chain of command refers to the hierarchy of authority within an organization.

Question 9

The strength of the simple structure lies in its:
A)simplicity.
B)formalisation.
C)information processing.
D)centralisation.

Accepted Answer

The strength of the simple structure lies in its simplicity. It involves a small, centralised managerial hierarchy, with little formalisation and few rules and procedures. This simplicity enables quick decision-making and flexibility in response to changing circumstances.

Question 10

The organisation is typically small and highly centralised with little or no departmentalisation.
A)limitless
B)team
C)virtual
D)matrix

Accepted Answer

A virtual organization is typically small and highly centralized with little or no departmentalization, relying on technology to operate.

Question 11

You have divided the jobs done by your department through work specialisation and are now trying to decide how to best group them for efficiency and service to the customer.You are considering grouping activities by function,product,process,or customer. You have decided that since you are a novice at departmentalisation,you will go with the most popular method.You will probably choose departmentalisation.
A)product
B)process
C)function
D)customer

Accepted Answer

Functional departmentalization is the most common method, where jobs are grouped based on the functions performed, such as marketing, finance, and production.

Question 12

You have divided the jobs done by your department through work specialisation and are now trying to decide how to best group them for efficiency and service to the customer.You are considering grouping activities by function,product,process,or customer. You find that there seems to be a common set of problems among certain types of buyers of your product.You will probably choose:
A)product departmentalisation.
B)customer departmentalisation.
C)function departmentalisation.
D)process departmentalisation.

Accepted Answer

Since there are common set of problems among certain types of buyers of your product, it would be best to group the activities by customer. This way, the department can focus on addressing the needs and concerns of specific types of customers and provide them with better service. Customer departmentalisation allows for a more personalised approach to the customers and can lead to greater customer satisfaction.

Question 13

John and Alex both work for large organisations.John's organisation is highly departmentalised and everything is fairly formal.All decisions are made at the top of the hierarchy.Alex,on the other hand,works for an organisation that is low in formalisation and composed of numerous cross- functional teams.Employees in this organisation frequently get to make their own decisions. John is likely working for:
A)a matrix organisation.
B)an organic organisation.
C)a mechanistic organisation.
D)a boundaryless Organisation.

Accepted Answer

John works for a highly departmentalised organisation where all decisions are made at the top of the hierarchy. This suggests that the organisation is mechanistic in nature, with a rigid structure and formal procedures for decision-making.

Question 14

The major advantage of the virtual organisation is its:
A)flexibility.
B)predictability.
C)control.
D)empowerment.

Accepted Answer

The major advantage of virtual organization is flexibility. Virtual organizations allow teams to work together seamlessly even when the members are geographically dispersed. This enhances the flexibility of the organization to adapt to changing market conditions or customer demands.

Question 15

If there is low formalisation,a comprehensive information network,and high participation in decision making,one would expect a(n):
A)bureaucracy.
B)organic structure.
C)mechanistic structure.
D)stable structure.

Accepted Answer

Low formalization, comprehensive information network, and high participation in decision making are characteristics of an organic structure. An organic structure is less hierarchical, less bureaucratic, and more adaptable to change, and it values participation and flexibility.

Question 16

John and Alex both work for large organisations.John's organisation is highly departmentalised and everything is fairly formal.All decisions are made at the top of the hierarchy.Alex,on the other hand,works for an organisation that is low in formalisation and composed of numerous cross- functional teams.Employees in this organisation frequently get to make their own decisions. Alex is likely working for:
A)a mechanistic organisation.
B)a matrix organisation.
C)a boundaryless Organisation.
D)an organic organisation.

Accepted Answer

An organic organisation is characterized by flexible roles, shared authority, decentralized decision-making, and a low degree of formalization. The description of Alex's organisation aligns well with the characteristics of an organic organisation, making option D the best choice.

Question 17

Simple structures are characterised by:
A)a narrow span of control.
B)shared authority.
C)lots of formalisation.
D)a low degree of departmentalisation.

Accepted Answer

Simple structures are characterized by a low degree of departmentalization, which means that there are fewer levels of hierarchy and authority is centralized. They also tend to have a broader span of control and less formalization. Shared authority is typically not a key feature of simple structures.

Question 18

We- Train- Em has hired you to develop training materials for their seminars.Your first assignment is to write a training manual that will assist new managers in designing an appropriate structure for their part of an organisation.Included in the manual will be information about the key questions that they must answer in deciding about the best organisational structure. The degree of rules and regulations that direct employees and managers is termed:
A)departmentalisation.
B)span of control.
C)formalisation.
D)chain of command.

Accepted Answer

The degree of rules and regulations is referred to as formalisation. Departmentalisation refers to the grouping of jobs into units, span of control refers to the number of employees that a manager can effectively oversee, and chain of command refers to the hierarchy of authority in the organisation.

Question 19

You have learned about the traditional and new design options for organisational structures.You have decided that one of the designs developed during the last decade or two is probably the most appropriate for your newly formed organisation. Your new organisation is looking for maximum flexibility.The most appropriate structure is probably the:
A)matrix organisation.
B)matrix structure.
C)team structure.
D)virtual organisation.

Accepted Answer

The virtual organisation is the most flexible option as it operates through communication technology and does not require physical proximity. This allows for the formation of teams and collaborations that are not limited by geographical or temporal constraints. Thus, it provides maximum flexibility in terms of operations and structure.

Question 20

All of the following are characteristics of the organic model except:
A)cross hierarchical teams.
B)rigid departmentalisation.
C)cross- functional teams.
D)free flow of information.

Accepted Answer

The characteristic of rigid departmentalisation goes against the organic model, which emphasizes more flexible and cross-functional structures.

Quiz 11: Organisational Structure

Which of the following generalisations about organisational structures and employee performance and satisfaction is most true?

The of an environment refers to the degree of heterogeneity and concentration among environmental elements.

refers to how an organisation transfers its inputs into outputs.

The structure that creates dual lines of authority and combines functional and product departmentalisation is the:

departmentalisation seeks to achieve economies of scale by placing people with common skills and orientations into common units.

Which of the following is a drawback of a narrow span of control?

Which one of the following is consistent with a simple structure?

The strength of the simple structure lies in its:

The organisation is typically small and highly centralised with little or no departmentalisation.

The major advantage of the virtual organisation is its:

If there is low formalisation,a comprehensive information network,and high participation in decision making,one would expect a(n) :

Simple structures are characterised by:

All of the following are characteristics of the organic model except: