Question 1

Which of the following factors would require a more decentralized organizational structure?
A) when the lower-level managers want a voice in decisions
B) when the lower-level managers are not capable of making decisions
C) when the decisions to be made are not significant
D) when the company is large

Accepted Answer

When lower-level managers want a voice in decisions, it would require a more decentralized structure because decision-making responsibilities would be shared among different levels of the organization. A more centralized structure would concentrate decision-making power at the top levels of the organization.

Question 2

Bob works in a mid-sized organization with other skilled workers who all pitch in to do what needs to be done to satisfy the customer. It is likely Bob works in a ________ organization.
A) formalized
B) decentralized
C) departmentalized
D) cross-functional

Accepted Answer

A decentralized organization is one in which decision-making authority is dispersed throughout the organization, allowing employees at all levels to make decisions and contribute to the overall success of the organization. This description fits with the situation in which Bob works, as he and his coworkers all work together to meet customer needs without strict formalized structures or departmentalization.

Question 3

When Bryan 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

Bryan is being offered an opportunity to direct the efforts of employees, which implies an increase in responsibility. The other options are not applicable in this scenario.

Question 4

Willard has been assigned to a project development team in addition to his regular duties as a quality engineer. During this assignment he will report to both the project manager and his quality department manager. This situation ________.
A) violates span of control
B) violates unity of command
C) violates chain of command
D) violates the acceptance theory of authority

Accepted Answer

This situation violates the principle of unity of command, which states that an employee should only have one direct supervisor to avoid confusion and conflict. Willard is receiving instructions and feedback from two different managers, which may cause conflicting priorities and expectations.

Question 5

According to the traditional view, managers could not-and should not-directly supervise more than ________ subordinates.
A) four or five
B) five or six
C) ten or eleven
D) fifteen or sixteen

Accepted Answer

According to the traditional view of management, it was believed that managers could not and should not directly supervise more than five or six subordinates. This guideline aimed to ensure effective oversight and communication.

Question 6

Paul, the HR manager, works in the Townsville plant and reports to the plant manager there, but he also reports to the corporate HR director in Cityburg. This reporting structure violates the principle of ________.
A) division of authority
B) unity of purpose
C) chain of command
D) unity of command

Accepted Answer

Unity of command states that an employee should have only one direct supervisor who they report to. In this case, Paul reports to two different supervisors, which violates this principle.

Question 7

Wilson is offered a chance to help direct the efforts of some employees assigned to his work group. This is a chance for Wilson to experience ________.
A) responsibility
B) leadership
C) command
D) authority

Accepted Answer

The answer of Wilson is offered a chance to help...

Question 8

________ is the degree to which decision making takes place at upper levels of the organization.
A) Centralization
B) Decentralization
C) Formalization
D) Departmentalization

Accepted Answer

Centralization refers to the degree to which decision making is concentrated at the upper levels of an organization. Therefore, this is the best choice for the given statement. Decentralization, on the other hand, refers to the degree to which decision making is distributed throughout the organization. Formalization refers to the extent to which rules, procedures, and policies are used to standardize behavior and decision making. Departmentalization refers to the grouping of similar activities or functions into units or departments.

Question 9

Which of the following factors calls for a more centralized organizational structure?
A) when the decisions to be taken are significant
B) when the company is geographically dispersed
C) when the organization is facing a crisis
D) when the environment is complex

Accepted Answer

The answer of Which of the following factors calls for...

Question 10

In highly ________ organizations, there are explicit job descriptions, numerous organizational rules, and clearly defined procedures covering work processes.
A) formalized
B) decentralized
C) departmentalized
D) specialized

Accepted Answer

Highly formalized organizations have explicit job descriptions, numerous rules, and clearly defined procedures to ensure consistency and efficiency in work processes. Decentralized organizations have greater autonomy in decision-making, departmentalized organizations are structured around specific functions or tasks, and specialized organizations focus on a narrow range of products or services. None of these characteristics imply a high level of explicit job descriptions or rules.

Question 11

________ refers to how standardized an organization's jobs are and the extent to which employee behavior is guided by rules and procedures.
A) Specialization
B) Centralization
C) Decentralization
D) Formalization

Accepted Answer

Formalization refers to the extent to which an organization's jobs are standardized and employee behavior is guided by rules and procedures.

Question 12

After extensive job cuts to reduce costs, upper level managers are spending significant amounts of time solving problems in the production units. Lower level managers are resentful that they cannot make decisions for their own units. What recommendation would you make for this firm?
A) Reorganize; departmentalize around customers instead of products.
B) Formalize; write explicit job descriptions, rules, and procedures so the upper managers won't have to decide each case individually.
C) Centralize; create a department that does nothing but make decisions.
D) Decentralize; give authority to the lower level managers regarding events in their own units.

Accepted Answer

Decentralizing would allow for lower level managers to make decisions for their own units, freeing up upper level managers to focus on larger issues and reducing resentment amongst lower level managers. This can improve efficiency and productivity overall.

Question 13

If top managers make key decisions with little input from below, then the organization is ________.
A) less mechanistic
B) more decentralized
C) less formalized
D) more centralized

Accepted Answer

If top managers make key decisions with little input from below, it means that decision-making authority is concentrated in the hands of a few individuals at the top. This is the characteristic of a centralized organization where power and control are concentrated in a few hands.

Question 14

The fact that Monica's signature is required on all documents and her word is the last word on all decisions relating to her department suggests that ________.
A) her employer has a centralized structure
B) her employer has a decentralized structure
C) her employer has a simple structure
D) her employer has an organic structure

Accepted Answer

Monica's signature being required on all documents and her having the final say on decisions suggests a centralized structure where decision-making authority is concentrated at higher levels of management, rather than being distributed throughout the organization.

Question 15

________ is the obligation or expectation to perform a duty.
A) Responsibility
B) Authority
C) Commitment
D) Duty

Accepted Answer

Responsibility is the term that best fits the definition of an obligation or expectation to perform a duty. Authority refers to the power or right to make decisions and enforce rules, but does not necessarily imply a duty. Commitment refers to a pledge or devotion to a particular cause, but does not necessarily imply an obligation or expectation to perform a duty. Duty itself refers to a task or action that one is required to perform, but does not necessarily imply an outside expectation or obligation.

Question 16

The ________ determines the number of levels and managers in an organization.
A) delegation of authority
B) unity of command
C) chain of command
D) span of control

Accepted Answer

The span of control determines the number of levels and managers in an organization. It refers to the number of subordinates that a manager can effectively manage. A wide span of control means fewer levels of management and a flatter organization, while a narrow span of control means more levels of management and a taller organization.

Question 17

Which one of Fayol's 14 principles of management states that a person should report to only one manager?
A) unity of direction
B) unity of command
C) division of work
D) division of authority

Accepted Answer

The principle of unity of command states that an employee should report to only one manager to avoid confusion and conflict. This ensures clear communication and accountability.

Question 18

________ refers to the rights inherent in a managerial position to tell people what to do and to expect them to do it.
A) Responsibility
B) Liability
C) Bureaucracy
D) Authority

Accepted Answer

Authority refers to the rights inherent in a managerial position to tell people what to do and to expect them to do it. Responsibility refers to the obligation to answer for the results of an assigned task, while liability refers to the legal responsibility for something, such as damages or injuries. Bureaucracy refers to a complex administrative system with rigid rules and procedures.

Question 19

All other things being equal, the wider or larger the span of control, the more ________ an organization is.
A) ambitious
B) rigid
C) mechanistic
D) cost efficient

Accepted Answer

A wider or larger span of control means that each manager is responsible for overseeing a larger number of subordinates, which can result in a leaner organization with fewer layers of management. This generally leads to cost efficiency as fewer managers are needed to oversee the same number of employees.

Question 20

As organizations become more flexible and responsive to environmental trends, there is a distinct shift toward ________ decision making.
A) centralized
B) decentralized
C) concentrated
D) departmentalized

Accepted Answer

As organizations become more flexible and responsive to environmental trends, there is a distinct shift toward decentralized decision making. Decentralization allows for faster response times, more input from front-line employees, and greater adaptability to changing circumstances. Centralized decision making, on the other hand, can be slower and less responsive, as it typically involves decisions being made at the top of the organization and then communicated down the chain of command. Concentrated decision making and departmentalized decision making are not commonly used terms in organizational theory.

Quiz 11: Designing Organizational Structure

Which of the following factors would require a more decentralized organizational structure?

Bob works in a mid-sized organization with other skilled workers who all pitch in to do what needs to be done to satisfy the customer. It is likely Bob works in a ________ organization.

When Bryan 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) ________.

Willard has been assigned to a project development team in addition to his regular duties as a quality engineer. During this assignment he will report to both the project manager and his quality department manager. This situation ________.

According to the traditional view, managers could not-and should not-directly supervise more than ________ subordinates.

Paul, the HR manager, works in the Townsville plant and reports to the plant manager there, but he also reports to the corporate HR director in Cityburg. This reporting structure violates the principle of ________.

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

________ is the degree to which decision making takes place at upper levels of the organization.

Which of the following factors calls for a more centralized organizational structure?

In highly ________ organizations, there are explicit job descriptions, numerous organizational rules, and clearly defined procedures covering work processes.

________ refers to how standardized an organization's jobs are and the extent to which employee behavior is guided by rules and procedures.

After extensive job cuts to reduce costs, upper level managers are spending significant amounts of time solving problems in the production units. Lower level managers are resentful that they cannot make decisions for their own units. What recommendation would you make for this firm?

If top managers make key decisions with little input from below, then the organization is ________.

The fact that Monica's signature is required on all documents and her word is the last word on all decisions relating to her department suggests that ________.

________ is the obligation or expectation to perform a duty.

The ________ determines the number of levels and managers in an organization.

Which one of Fayol's 14 principles of management states that a person should report to only one manager?

________ refers to the rights inherent in a managerial position to tell people what to do and to expect them to do it.

All other things being equal, the wider or larger the span of control, the more ________ an organization is.

As organizations become more flexible and responsive to environmental trends, there is a distinct shift toward ________ decision making.