Question 1

Which of the following statements is True?

Accepted Answer

A high level of work specialization tends to bring about a high level of formalization.

Question 2

In a mechanistic organization, employees are

Accepted Answer

Mechanistic organizations are characterized by a high degree of work specialization; employees are given a very narrow view of the tasks they are to perform.

Question 3

Current research suggests that

Accepted Answer

A moderate span of control is best for an organization's productivity.

Question 4

Organizational design is the process of

Accepted Answer

Organizational design is the process of creating, selecting, or changing the structure of an organization.

Question 5

Paul's Creations makes handcrafted furniture out of vine twisted sassafras wood. Paul's could make the furniture more efficiently, but the individual touch and specially selected wood draws in customers who are willing to pay a premium for Paul's Creations' furniture. Paul's Creations is an example of a

Accepted Answer

Companies that focus on a low-cost producer strategy rely on selling products at the lowest possible cost. To do this well, they have to focus on being as efficient as they can be. Such companies are more likely to take a mechanistic approach to organizational design. Other companies might follow a differentiation strategy. Rather than focusing on supplying a product or service at the lowest cost, these companies believe that people will pay more for a product that is unique in some way. It could be that their product has a higher level of quality or offers features that a low-cost product does not.

Question 6

In an organic organization,

Accepted Answer

One of the characteristics of organic organizations is that the employees are encouraged to develop knowledge and expertise outside of their specialization.

Question 7

Centralization reflects

Accepted Answer

Centralization reflects where decisions are formally made in organizations.

Question 8

A ________ span of control creates a ________ organization structure.

Accepted Answer

A wide span of control creates a flat organization structure.

Question 9

Talia formed a technology start-up in her garage, and it has grown more rapidly than she ever imagined. She has always kept tabs on all of her people, and her company has just passed 150 employees. What should she do now?

Accepted Answer

Startup CEOs relate that after they pass 150 employees, weird stuff starts to happen. The weird stuff means the company needs more structure for communications and decision-making.

Question 10

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.

Accepted Answer

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

Question 11

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

Accepted Answer

Formalization is a necessary coordination mechanism that organizations rely on to get a standardized product or deliver a standardized service.

Question 12

Organic organizations are typified by a structure that relies on

Accepted Answer

Organic organizations are typified by a structure that relies on low levels of formalization, weak or multiple chains of command, low levels of work specialization, and wide spans of control.

Question 13

Formalization refers to

Accepted Answer

The degree to which rules and procedures are used to standardize behaviors and decisions in an organization refers to formalization.

Question 14

At Pleasant Pools Inc., there is a total focus on providing care and satisfaction to each customer. In the Prominent Clients division, each manager is assigned 3 employees to supervise, whereas in the Component Assembly division, each manager supervises about 15 employees. The Prominent Clients division managers can be described as having ________ as opposed to ________ for the Component Assembly division managers.

Accepted Answer

Span of control is the number of employees a manager is responsible for. If a manager is responsible for leading 2 subordinates, in most instances, this level would be considered a narrow span of control. If a manager is responsible for 10 employees, typically, this number would be considered a wide span of control.

Question 15

In Big Bluff Heirlooms, 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

Accepted Answer

A company is high in formalization when there are many specific rules and procedures used to standardize behaviors and decisions.

Question 16

The relationship between performance and span of control is graphed as a(n)

Accepted Answer

The relationship between performance and span of control is curvilinear and results in an "arch"-shaped diagram.

Question 17

Jeff and Matthew, father and son, opened a large boutique named Modus in Chicago. Being the owners of the business, they decide all of 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 Jeff's and Matthew's instructions and orders. Which of the following is True about Modus?

Accepted Answer

Centralization reflects where decisions are formally made in organizations. If only the top managers within a company have the authority to make final decisions, it is a highly "centralized" structure.

Question 18

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

Accepted Answer

Some elements of an organization's structure seem to go hand-in-hand with other elements. For example, wide spans of control tend to be associated with decentralization in decision making.

Question 19

Michelle's Universal Boat Fins makes one product, a type of boat fin designed to fit on any pontoon boat, over and over again. The fins never change, because the unique design fits all boats. Given the nature of its business, Michelle's should

Accepted Answer

If a company makes the exact same thing over and over, it should focus on creating that one thing as efficiently as possible by having high levels of specialization, formalization, and centralization. However, if technologies need to be changed or altered to suit the needs of various consumers, it follows that decisions would be more decentralized and the rules and procedures the organization relies on would need to be more flexible.

Question 20

Organic organizations are

Accepted Answer

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

Quiz 15: Organizational Structure