Question 1

Organizational structure does not influence employee attitudes and behavior.

Accepted Answer

Organizational structure can have a significant impact on employee attitudes and behavior. The ways in which work is divided, roles are defined, and communication flows within an organization can all affect how employees feel about their work and the organization as a whole. A well-designed and effective organizational structure can promote positive attitudes and behavior, while a flawed or dysfunctional structure can have the opposite effect.

Question 2

Decentralized organizational structures tend to concentrate power and authority within a relatively tight group of individuals in the firm.

Accepted Answer

Decentralized organizational structures distribute power and authority among multiple individuals or teams, rather than concentrating it within a small group. This allows for more flexibility and agility in decision-making and can foster a sense of empowerment and ownership among employees.

Question 3

Organizational structure differs from country to country based on the traditional architecture forms in each country.

Accepted Answer

Organizational structure is influenced by cultural, economic, and legal factors rather than traditional architectural forms.

Question 4

Wide spans of control allow managers to be much more hands-on with employees.

Accepted Answer

Wide spans of control usually mean that managers have a larger number of subordinates to oversee, which can make it challenging to be hands-on with each individual employee. Narrow spans of control, on the other hand, typically allow for more direct supervision and interaction with employees.

Question 5

Henry Ford was a strong believer in work specialization.

Accepted Answer

Henry Ford is known for implementing assembly line production, which involves dividing tasks among workers to increase efficiency and productivity. This is a form of work specialization.

Question 6

Companies that focus on a differentiation strategy are more likely to take a mechanistic approach to organizational design.

Accepted Answer

A differentiation strategy typically requires a more organic approach to organizational design to foster creativity and innovation.

Question 7

Every employee in a traditional organizational structure has one person to whom they report.

Accepted Answer

In a traditional organizational structure, each employee usually has one designated supervisor or manager to whom they report.

Question 8

High levels of specialization are more acceptable in smaller firms in which employees must be more flexible in their job duties.

Accepted Answer

In smaller firms, employees often need to be more flexible and take on a variety of tasks, which is contrary to high levels of specialization.

Question 9

There are trade-offs when organizations make jobs highly specialized.

Accepted Answer

Highly specialized jobs may result in employees becoming experts in their respective fields, leading to increased efficiency and productivity. However, this can also lead to boredom, low job satisfaction, and a lack of flexibility in responding to changing work demands. Additionally, if an employee leaves or is absent, it may be difficult to find a replacement with the necessary expertise.

Question 10

Once a company becomes large, it is impossible to retain a centralized structure. Large companies must use decentralized structures.

Accepted Answer

While it is challenging, some large companies manage to retain a centralized structure, although many do opt for decentralization to improve efficiency and decision-making.

Question 11

Organizational performance increases as span of control increases, but only up to a certain point.

Accepted Answer

This statement is true. As span of control increases, managers have more direct reports and can better coordinate and supervise their activities. However, there is a limit to how many direct reports a manager can effectively oversee, beyond which performance may start to decrease due to overload and difficulty in providing individualized attention and support. This optimal span of control varies depending on the organization's size, complexity, and nature of the work being performed.

Question 12

Organizations which do not proactively develop designs may be forced to change their structure to become more effective.

Accepted Answer

Without a proactive approach to design, organizations may struggle to adapt to changes in the market, industry, or other external factors. This can lead to inefficiencies, redundancies, and other issues that may require a restructuring of the organization to improve effectiveness. Therefore, organizations that do not develop designs proactively may face the need for restructuring.

Question 13

As companies grow larger, their organizational charts get simpler.

Accepted Answer

As companies grow larger, their organizational charts tend to get more complex, not simpler.

Question 14

Dynamic environments allow organizations to focus on efficiency and require little change over time.

Accepted Answer

Dynamic environments are characterized by rapid change and unpredictability, which can make it difficult for organizations to maintain efficiency and require ongoing adaptation and adjustment.

Question 15

Organic organizations are efficient, rigid, predictable, and standardized organizations that thrive in stable environments.

Accepted Answer

Organic organizations are actually the opposite. They are flexible, adaptable, unpredictable, and thrive in environments that are constantly changing. They are often characterized by decentralized decision-making, a flat organizational structure, and a focus on teamwork and collaboration.

Question 16

The chain of command signifies the flow of authority to attain order, control, and predictable performance.

Accepted Answer

The chain of command establishes a clear line of authority where tasks, directives, and communications flow from the top of the hierarchy down to the lower levels. This helps to ensure that everyone knows their roles and responsibilities, and that decisions are made efficiently and effectively.

Question 17

Organic organizations encourage lateral communication.

Accepted Answer

Organic organizations value collaborative and flexible approaches to work, and therefore encourage lateral communication between employees across departments and levels of hierarchy. This helps to foster creativity, innovation, and cross-functional problem-solving.

Question 18

A company's chain of control determines how many employees report to each manager.

Accepted Answer

Chain of command details who reports to whom. Span of control describes how many employees report to each manager.

Question 19

Companies that follow a low-cost producer strategy believe that people will pay more for a product that is unique in some way.

Accepted Answer

Companies that follow a low-cost producer strategy aim to produce products at a lower cost than their competitors, often by reducing manufacturing or operational costs. They compete based on price rather than uniqueness or differentiation of their product.

Question 20

Employees tend to be more satisfied with jobs that require them to perform a specialized kind of activity.

Accepted Answer

Organizations may struggle with employee job satisfaction when they make jobs highly specialized. Employees tend to be more satisfied with jobs that require them to perform a number of different kinds of activities.

Quiz 15: Organizational Structure