Question 1

The ________ is an organizational structure made up of separate business units with each unit having limited autonomy.
A) bureaucratic structure
B) simple structure
C) functional structure
D) divisional structure

Accepted Answer

A divisional structure is characterized by separate business units that have limited autonomy. Each unit focuses on a specific product or service, and has its own operations, sales, and marketing teams. This structure allows for greater flexibility and responsiveness to market changes, but can also result in duplication of resources and difficulty in achieving economies of scale.

Question 2

High vertical differentiation, low horizontal differentiation, and low formalization are characteristics of an organization that indulges in ________.
A) mass production
B) serial production
C) process production
D) unit production

Accepted Answer

The answer of High vertical differentiation, low horizontal differentiation, and...

Question 3

Eric is offered a chance to help direct the efforts of some employees assigned to his work group.This is a chance for Eric to experience ________.
A) self actualization
B) groupthink
C) referent power
D) authority

Accepted Answer

Eric is being offered the opportunity to direct the efforts of his employees, which implies that he is being given authority over them.

Question 4

A ________ is an organizational design that groups similar or related occupational specialties together.
A) matrix structure
B) functional structure
C) divisional structure
D) simple structure

Accepted Answer

A functional structure groups together job positions that are related and perform similar tasks or functions. This is a common organizational design used in larger businesses or corporations to maximize efficiency and allow for specialization within different departments. The other choices (matrix structure, divisional structure, simple structure) do not necessarily group occupational specialties together in the same way as a functional structure.

Question 5

According to Woodward's studies, what type of production technology is best suited for a mechanistic structure?
A) unit
B) process
C) product
D) mass

Accepted Answer

Woodward found that a mass production technology is best suited for a mechanistic structure. Mass production involves standardized, repetitive tasks that can be easily coordinated and controlled by hierarchical levels of management within a mechanistic structure.

Question 6

Which of the following is a weakness of the simple structure?
A) Duplication of activities and resources increases costs and reduces efficiency.
B) Specialists become insulated and have little understanding of what other units are doing.
C) Pursuit of functional goals causes managers to lose sight of what is best for the overall organization.
D) It relies too much on one person which is very risky.

Accepted Answer

The simple structure typically centralizes decision-making in a single person, making the organization heavily reliant on that individual. This can be risky if that person is unavailable or leaves the organization.

Question 7

The greater the environmental uncertainty, the more an organization needs to become ________.
A) organic
B) mechanistic
C) specialized
D) departmentalized

Accepted Answer

Organic structures are more flexible, adaptable, and decentralized, which makes them better suited for uncertain and dynamic environments. Mechanistic structures, on the other hand, are more rigid, centralized, and highly specialized, which makes them better suited for stable and predictable environments. Specialization and departmentalization can be beneficial in both stable and uncertain environments, but they may hinder flexibility and adaptability in highly uncertain situations. Therefore, organic structure is the best choice for organizations facing high levels of environmental uncertainty.

Question 8

When Eric is offered a chance to help direct the efforts of some employees assigned to his work group, he sees this new assignment as a(n) ________.
A) decrease in authority
B) increase in departmentalization
C) increase in his responsibility
D) decrease in work specialization

Accepted Answer

When Eric is offered a chance to help direct the efforts of some employees assigned to his work group, it means he has been given a higher level of responsibility. He now has the opportunity to oversee and steer the work of his team members, which is an increase in his responsibilities.

Question 9

Eric majored in engineering and really enjoyed his work.After the reorganization, Eric was required to work with a team that included production workers as well as marketing specialists to design the latest products the company was planning to offer.This implies ________.
A) the company is becoming more centralized
B) that Eric's job responsibilities have been reduced
C) the company is becoming more mechanistic
D) that Eric is a part of a cross-functional team

Accepted Answer

Eric is now required to work with a team that includes production workers and marketing specialists, indicating that he is part of a cross-functional team. This suggests that the company is implementing a more integrated approach to product development rather than a more centralized or mechanistic structure. Option B cannot be true as there is no information suggesting that Eric's job responsibilities have been reduced. Therefore, the correct answer is D.

Question 10

As the number of employees in an organization grows, structure tends to become more ________.
A) specialized
B) informal
C) centralized
D) relaxed

Accepted Answer

The answer of As the number of employees in an...

Question 11

A company with low departmentalization, wide spans of control, centralized authority, and little formalization possesses a ________ structure.
A) simple
B) functional
C) divisional
D) matrix

Accepted Answer

A structure with low departmentalization, wide spans of control, centralized authority, and little formalization is characteristic of a simple structure. A simple structure is most common in small organizations where the owner or manager makes most of the decisions and has a tight control over operations.

Question 12

In an attempt to reorganize, the assembly-line activity was divided into separate job tasks.Individual employees were trained to become specialists in specific tasks rather than the entire activity.The company seems to have adopted ________.
A) work specialization
B) departmentalization
C) cross-functional teams
D) centralization

Accepted Answer

The company has adopted work specialization by training employees to become specialists in specific tasks rather than the entire activity.

Question 13

In a ________ structure the parent corporation typically acts as an external overseer to coordinate and control the various divisions and provide financial, legal, or other such support services.
A) divisional
B) simple
C) functional
D) matrix

Accepted Answer

In a divisional structure, each division operates as a semi-autonomous unit with its own functional resources, allowing for more flexibility and adaptation to local markets. The parent corporation typically acts as an external overseer to coordinate and control the various divisions and provide financial, legal, or other such support services. Simple structures have little or no formal hierarchy, while functional structures group employees by similar skills or expertise. A matrix structure combines aspects of both divisional and functional structures, with employees belonging to both a division and a functional group.

Question 14

Moderate vertical differentiation, high horizontal differentiation, and high formalization are characteristics of an organization that indulges in ________.
A) small-batch production
B) mass production
C) unit production
D) process production

Accepted Answer

Mass production is characterized by moderate to high vertical differentiation, high horizontal differentiation, and high formalization. Vertical differentiation refers to the number of hierarchical levels in the organization, and mass production typically has a large number of levels. Horizontal differentiation refers to the extent to which tasks are specialized or differentiated, and mass production involves a high degree of specialization. Formalization refers to the extent to which an organization relies on rules and procedures, and mass production is highly formalized to ensure consistent and efficient production processes. Small-batch production and unit production typically involve lower levels of vertical differentiation and formalization, while process production typically involves low levels of horizontal differentiation.

Question 15

Worldwide economic downturn, global competition, accelerated product innovation by competitors, and increased demands from customers for high quality and faster deliveries encourage organizations to become more ________.
A) organic
B) mechanistic
C) centralized
D) formalized

Accepted Answer

In times of economic downturn and increased competition, organizations need to be more flexible, innovative and adaptable. Organic structures, which are characterized by decentralized decision-making, cross-functional teams, and a focus on innovation, are better suited to these challenges than mechanistic, centralized or formalized structures.

Question 16

In stable and simple environments, ________.
A) organic designs are most effective
B) mechanistic designs are most effective
C) low formalization is necessary
D) decentralization is necessary

Accepted Answer

In stable and simple environments, mechanistic designs are most effective because they rely on formalization, centralization, and clear hierarchies to maintain stability and control standard processes. Organic designs, on the other hand, are better suited for complex and unpredictable environments where flexibility and adaptability are necessary. Low formalization and decentralization may be appropriate in certain cases but are not the most effective overall in stable and simple environments.

Question 17

Which of the following traditional organizational designs focuses on results by holding division managers responsible for what happens to their products and services?
A) simple structure
B) functional structure
C) divisional structure
D) matrix structure

Accepted Answer

The divisional structure is organized around divisions, which may correspond to different products, services, or geographic areas. Each division is responsible for its own results, with division managers accountable for what happens to their products and services. This design is often used when a company has diversified its product lines or operates in multiple locations.

Question 18

Which of the following is a strength of simple structures?
A) Employees are grouped with others who have similar tasks.
B) It focuses on results.
C) It is inexpensive to maintain.
D) It remains appropriate even as the organization changes as it grows.

Accepted Answer

The answer of Which of the following is a strength...

Question 19

In which of the following traditional organizational designs does duplication of activities and resources lead to an increase in costs and reduced efficiency?
A) divisional structure
B) team structure
C) matrix structure
D) project structure

Accepted Answer

In a divisional structure, departments are created based on product, geography, or customer type. Each department operates as a separate unit, resulting in duplication of activities and resources, which can increase costs and reduce efficiency.

Question 20

What are the different structures that traditional organizations can have?
A) simple, functional, and corporate structures
B) simple, functional, and business unit structures
C) functional, strategic, and business unit structures
D) simple, functional, and divisional structures

Accepted Answer

Traditional organizations can have simple structures, where there is no formal division of labor and decision-making is centralized. They can also have functional structures, where employees are organized based on their specialty areas such as finance, marketing, and operations. Finally, organizations can have divisional structures where different product lines or geographic regions are each run as a separate unit with its own divisional manager. Therefore, the best choice would be D, which includes these three common structures - simple, functional, and divisional. Business unit and strategic structures are not commonly used traditional structures.

Quiz 11: Basic Organizational Design

The ________ is an organizational structure made up of separate business units with each unit having limited autonomy.

High vertical differentiation, low horizontal differentiation, and low formalization are characteristics of an organization that indulges in ________.

Eric is offered a chance to help direct the efforts of some employees assigned to his work group.This is a chance for Eric to experience ________.

A ________ is an organizational design that groups similar or related occupational specialties together.

According to Woodward's studies, what type of production technology is best suited for a mechanistic structure?

Which of the following is a weakness of the simple structure?

The greater the environmental uncertainty, the more an organization needs to become ________.

When Eric is offered a chance to help direct the efforts of some employees assigned to his work group, he sees this new assignment as a(n) ________.

Eric majored in engineering and really enjoyed his work.After the reorganization, Eric was required to work with a team that included production workers as well as marketing specialists to design the latest products the company was planning to offer.This implies ________.

As the number of employees in an organization grows, structure tends to become more ________.

A company with low departmentalization, wide spans of control, centralized authority, and little formalization possesses a ________ structure.

In an attempt to reorganize, the assembly-line activity was divided into separate job tasks.Individual employees were trained to become specialists in specific tasks rather than the entire activity.The company seems to have adopted ________.

In a ________ structure the parent corporation typically acts as an external overseer to coordinate and control the various divisions and provide financial, legal, or other such support services.

Moderate vertical differentiation, high horizontal differentiation, and high formalization are characteristics of an organization that indulges in ________.

Worldwide economic downturn, global competition, accelerated product innovation by competitors, and increased demands from customers for high quality and faster deliveries encourage organizations to become more ________.

In stable and simple environments, ________.

Which of the following traditional organizational designs focuses on results by holding division managers responsible for what happens to their products and services?

Which of the following is a strength of simple structures?

In which of the following traditional organizational designs does duplication of activities and resources lead to an increase in costs and reduced efficiency?

What are the different structures that traditional organizations can have?