-
Chapter 10 Organizational Structure and
Design
TRUE/FALSE QUESTIONS
DEFINING ORGANIZATIONAL
STRUCTURE
1.
Organizational
design
is
the
organization’s
formal
framework
by
which
job
tasks
are
divided,
grouped, and coordinated.
(
False; difficult; p. 266)
2.
Organizational structure is the degree
to which tasks in an organization are divided into
separate jobs.
(False; moderate; p.
266)
3.
The
concept
of
work
specialization
can
be
traced
back
a
couple
of
centuries
to
Adam
Smith’s
discussion of division of labor.
(
True; moderate; p. 267)
4.
Originally,
when
work
specialization
was
implemented,
employee
productivity
rose
because
it
wasn’t widely used.
(True; moderate; p. 267)
5.
Today, most
managers see work specialization as a source of
ever-increasing productivity.
(False;
moderate; p. 267)
6.
Grouping jobs
on the basis of product or customer flow is termed
customer departmentalization.
(False;
moderate; p. 268)
7.
When decisions
tend to
be made at
lower
levels
in
an organization,
the organization is
said
to
be
decentralized.
(True; moderate; p. 272)
8.
The concept of
centralization-decentralization is absolute.
(False; moderate; p. 272)
9.
When effective
implementation of company strategies depends on
managers having involvement and
flexibility to make decisions, the
company is probably more decentralized.
(True; moderate; p. 272)
10.
A term for
increased decentralization is employee
empowerment, which is giving employees more
authority to make decisions.
(True; easy; p. 273)
258
11.
The degree of
formalization varies widely between organizations
and even within organizations.
(True;
moderate; p. 274)
12.
Many of
today’s organizations are extremely reliant on
strict rules and standardization to guide and
regulate employee behavior.
(False; moderate; p. 274)
ORGANIZATIONAL DESIGN DECISIONS
13.
An
organic
organization
tends
to
be
characterized
by
high
specialization,
extensive
departmentalization, narrow spans of
control, high formalization, a limited information
network, and
little participation in
decision making by low-level employees.
(False; moderate; p. 275)
14.
An organic
organization would likely be very flexible.
(True; moderate; p. 275)
15.
Innovators
need the efficiency, stability, and tight controls
of the mechanistic structure.
(False;
easy; p. 276)
16.
The
relationship between organizational size and
structure tends to be linear.
(False;
difficult; p. 276)
17.
Joan Woodward
attempted to view organizational structure from a
technological perspective.
(True;
moderate; p. 276; AACSB: Technology)
18.
Woodward’s
findings support that there is ―one best way‖ to
organize a manufacturing firm.
(False; moderate; p. 277; AACSB:
Technology)
19.
Since Woodward’s initial work, numerous
studies have demonstrated that organizations adapt
their
structures to their technology.
(True; moderate; p. 277; AACSB:
Technology)
COMMON
ORGANIZATIONAL DESIGNS
20.
The strength
of the functional structure is that it focuses on
results.
(False; moderate; p. 278)
21.
A
simple structure is an organizational design that
groups similar or related occupational specialties
together.
(False; easy; p.
279)
259
22.
In divisional
structures, the parent corporation typically acts
as an external overseer to coordinate and
control the various divisions.
(True; easy; p. 279)
23.
Employee
empowerment is a crucial aspect of team structure
because there is no line of managerial
authority from top to bottom.
(True; moderate; p. 279)
24.
A matrix
design creates a dual chain of demand.
(True; easy; p. 281)
25.
Project
structures tend to be rigid and inflexible
organizational designs.
(False; easy;
p. 281)
26.
Internal
boundaries are boundaries that separate the
organization from its customers, suppliers, and
other stakeholders.
(False;
moderate; p. 282)
27.
To minimize
or eliminate boundaries, managers might use
virtual or network structural designs.
(True; easy; p. 282)
28.
The
inspiration of the virtual organization structural
approach is the film industry.
(True;
moderate; p. 282)
29.
Many
organizational design concepts are not applicable
to twenty-first century companies.
(True; moderate; p. 283)
30.
It is
critical for members in a virtual organization to
collaborate on work activities throughout the
entire organization.
(False;
moderate; p. 284)
MULTIPLE-
CHOICE QUESTIONS
For each of the
following choose the answer that
most
completely
answers the question.
DEFINING ORGANIZATIONAL
STRUCTURE
31.
_______________ is the formal
arrangement of jobs within an organization.
a.
Departmentalization
b.
Organizational
design
c.
Organizational structure
d.
Work
specialization
(c; easy; p. 266)
260
32.
Organizational design is based on
decisions about ____________.
a.
work
specialization and mechanisms
b.
chain of
command and span of control
c.
centralization
and matrices
d.
strategy and structure
(b;
moderate; p. 266)
33.
In describing
the degree to which tasks in an organization are
divided into separate jobs, managers
use the term ___________.
a.
work
specialization
b.
departmentalization
c.
chain of
command
d.
span
of control
(a; moderate; p. 267)
34.
Which statement accurately defines work
specialization?
a.
It is the degree to which tasks are
grouped together.
b.
Individual employees specialize in
doing part of an activity rather than the entire
activity.
c.
Jobs
are ranked relative only to their worth or value
to the businesses.
d.
It clarifies who reports to whom.
(b; difficult; p. 267)
35.
During
the
_______________,
managers
viewed
work
specialization
as
an
unending
source
of
increased productivity.
a.
first half of
the twentieth century
b.
1960s
c.
1970s and 1980s
d.
1990s and
beginning of the twenty-first century
(a; moderate; p. 267)
36.
In some jobs,
_______________ work specialization more than
offset the economic advantages.
a.
distrust of
b.
human
diseconomies from
c.
disgust of
d.
employee
s’ excitement about
(b; difficult; p. 267)
37.
On what basis are jobs grouped in order
to accomplish organizational goals?
a.
departmentalization
b.
centralization
c.
formalization
d.
coordination
(a; moderate; p. 268)
261
38.
Functional
departmentalization groups jobs by ______________.
a.
tasks they
perform
b.
territories they serve
c.
products or
services they manufacture or produce
d.
type of
customer they serve
(a; moderate; p.
268)
39.
Departmentalization based
on
_______________ groups’ jobs
is based
on the territory or physical
location.
a.
functional
b.
product
c.
geographic
d.
matrix
(c; easy; p. 268)
40.
______________
departmentalization
is
based
on
the
product
or
customer
flow
through
the
organization.
a.
Product
b.
Functional
c.
Process
d.
Organizational structure
(c; moderate; p. 268)
41.
What kind of
departmentalization would be in place in a
government organization where different
public service responsibilities are
divided into activities for employers, children,
and the disabled?
a.
product
b.
geographic
c.
outcome
d.
customer
(d; moderate; p.
268)
42.
______________
departmentalization
is
used
more
in
recent
years
to
better
monitor
the
needs
of
customers and to respond to changes in
those needs.
a.
Needs-based
b.
Functional
c.
Process
d.
Customer
(d; moderate; p.
268)
262
43.
Work
teams
composed
of
individuals
from
various
functional
specialties
are
known
as
________________ teams.
a.
differentiated
b.
product
c.
cross-
functional
d.
weak
(c; moderate; p. 268)
44.
The line of authority that extends from
the upper levels of management to the lowest
levels of the
organization is
____________.
a.
authorized line of responsibility
b.
unity of
command
c.
responsibility factor
d.
chain of
command
(d; moderate; p. 270)
45.
______________ refers to the rights
inherent to a position that allows a manager to
tell subordinates
what to do and expect
them to do it.
a.
Responsibility
b.
Unity of
command
c.
Chain
of command
d.
Authority
(d; moderate; p.
270)
46.
________________ is the obligation or
expectation to perform a duty.
a.
Responsibility
b.
Unity of
command
c.
Chain
of command
d.
Span of control
(a;
moderate; p. 270)
47.
Which one of
Fayol’s 14 principles of management helps preserve
the concept of a continuous line
of
authority?
a.
unity of demand
b.
unity of
command
c.
demand structure
d.
continuous
demand
(b; moderate; p. 270)
263
48.
The theory
that a person should report to only one manager is
called ____________.
a.
authorized line of responsibility
b.
unity of
command
c.
responsibility factor
d.
chain of
command
(b; moderate; p. 270)
49.
Concepts such as chain of command and
authority are considerably less relevant today
because of
things like _______________.
a.
information
technology
b.
span of control
c.
conflicting
demands of multiple bosses
d.
empowerment
(a; difficult; p. 270; AACSB:
Technology)
50.
The
traditional
view
was
that
managers
could
not
—
and
should
not
—
directly
supervise
more
than
______________
subordinates.
a.
three or four
b.
five or six
c.
seven or eight
d.
nine or ten
(b; moderate;
pp. 270-271)
51.
The
concept
that
defines
the
number
of
subordinates
that
report
to
a
manager
and
that
indirectly
specifies the
number of levels of management in an organization
is called _____________.
a.
authorized line of responsibility
b.
unity of
command
c.
responsibility factor
d.
span of
control
(d; difficult; p. 271)
52.
All
other
things
being
equal,
as
the
span
of
control
grows
wider
or
larger,
organizational
design
becomes more _____________.
a.
bureaucratic
b.
democratic
c.
effective
d.
efficient
(d; difficult; p. 271)
264
53.
When the span
of control _______________, employee performance
suffers due to a lack of time,
leadership, and support.
a.
remains too
small
b.
becomes
moderate
c.
becomes too large
d.
becomes less
cost efficient
(c; moderate; p. 271)
54.
Trends in the past few years have
centered on a ____________ span of control to
reduce costs and
speed decision making.
a.
narrower
b.
wider
c.
deeper
d.
stable
(b; moderate; p. 271)
55.
The degree to
which decision making is confined at a single
point in an organization is described as
____________.
a.
unity of command
b.
chain of
command
c.
span
of management
d.
centralization
(d; moderate;
p. 272)
56.
What factor
influences the amount of centralization an
organization uses?
a.
Decisions are significant.
b.
The company is
geographically dispersed
c.
The organization is facing the risk of
company failure.
d.
The environment is complex.
(c; moderate; p. 272)
57.
What factor
influences the amount of decentralization an
organization uses?
a.
Lower-level managers want a voice in
decisions.
b.
Lower level managers are not as capable
at making decisions as upper-level managers.
c.
Effective
implementation
of
company
strategies
depends
on
managers
retaining
say
over
what
happens.
d.
The company is large.
(a;
moderate; p. 272)
265
58.
In
recent
years,
there
has
been
a
movement
to
make
organizations
more
flexible
and
responsive
through
_____________.
a.
centralization
b.
decentralization
c.
alternative
organizational structure
d.
customer-based structure
(b;
moderate; p. 273)
59.
The
degree
to
which
jobs
are
standardized
and
guided
by
rules
and
procedures
is
called
______________.
a.
work
specialization
b.
centralization
c.
decentralization
d.
formalization
(d; difficult; p. 273)
60.
When managers
standardize employee behavior through rules and
procedures, the jobs are becoming
more
_____________.
a.
diversified
b.
formalized
c.
vertical
d.
horizontal
(b; difficult; p.
273)
ORGANIZATIONAL DESIGN
DECISIONS
61.
A(n) ____________ organization is
rigidly controlled and efficient.
a.
organic
b.
horizontal
c.
learning
d.
mechanistic
(d; moderate; p. 275)
62.
Organizations
that work like efficient, well-oiled machines are
described as ______________.
a.
organic
b.
mechanistic
c.
rational
d.
intuitive
(b; moderate; p. 275)
266
63.
Which of the
following would likely be found in mechanistic
organizations?
a.
wide span of control
b.
empowered
employees
c.
decentralized responsibility
d.
standardized
job specialties
(d; difficult; p.
275)
64.
A(n) ____________ organization is able
to change rapidly as needs require.
a.
organic
b.
horizontal
c.
vertical
d.
mechanistic
(a; moderate; p. 275)
65.
GlaxoSmithKline became more
_______________ when it restructured to allow lab
scientists to set
the priorities and
allocate the resources.
a.
bureaucratic
b.
mechanistic
c.
volatile
d.
organic
(d; difficult; p.
275)
66.
The appropriate structure for an
organization is based on four contingency
variables: strategy, size,
degree of
environmental uncertainty, and _________________.
a.
technology
b.
history
c.
leadership
d.
intensity of
competition
(a; easy; p. 275; AACSB:
Technology)
67.
In describing the relationship between
structure and strategy, it can be said that
_____________ .
a.
structure follows strategy
b.
strategy
follows structure
c.
strategy and structure are always
handled equally
d.
strategy follows structure in smaller
organizations
(a; moderate; p. 276)
68.
In linking strategy and structure, most
strategic frameworks tend to focus on
______________.
a.
the pursuit of meaningful renewal of
old ideas
b.
cost
maximization
c.
minimizing risk and maximizing profit
opportunities by copying market leaders
d.
the pursuit of
imitation
(c; difficult; p. 276)
267
69.
Structure
is
related
to
the
size
of
the
organization,
such
that
larger
organizations
tend
to
have
____________ than smaller
organizations.
a.
more specialization
b.
less
departmentalization
c.
less centralization
d.
fewer rules
and regulations
(a; moderate; p. 276)
70.
Structure
is
related
to
the
size
of
the
organization,
such
that
larger
organizations
are
more
_____________.
a.
mechanistic
b.
organic
c.
structurally
weak
d.
decentralized
(a; moderate;
p. 276)
71.
Joan Woodward’s study
of the
relationship between technology and structure is
based upon her study
of small
manufacturing firms in _________________.
a.
the
northeastern United States
b.
the south of
Wales
c.
France
d.
southern
England
(d; difficult; pp. 276-277;
AACSB: Technology)
72.
As a type of
technology, _____________ centers on large-batch
production and requires moderate
levels
of complexity and sophistication.
a.
unit
production
b.
mass production
c.
process
production
d.
service production
(b;
moderate; p. 277; AACSB: Technology)
73.
In Joan
Woodwa
rd’s study of the relationship
between technology and structure, the structure
that
was the most technically complex
was ______________.
a.
unit production
b.
mass
production
c.
process production
d.
technological
production
(c; moderate; p. 277; AACSB:
Technology)
268
74.
According to
Woodward’s studies, what type of production works
best with a mechanistic structure?
a.
unit
b.
process
c.
product
d.
mass
(d; moderate; p. 277)
75.
The
greater
the
environmental
uncertainty,
the
more
an
organization
needs
to
become
_______________.
a.
organic
b.
mechanistic
c.
technologically pure
d.
supportive of
technological change
(a; moderate; p.
277)
76.
Global
competition,
accelerated
product
development
by
competitors,
and
increased
demands
by
customers for better
service have encouraged organizations to become
more _____________.
a.
organic
b.
mechanistic
c.
technologically pure
d.
task oriented
(a; moderate; p. 277)
COMMON ORGANIZATIONAL DESIGNS
77.
Traditional organizational designs tend
to be more mechanistic, and include
_______________.
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
(d; moderate; p. 278)
78.
What is a strength of a simple
structure?
a.
Employees are grouped with others who
have similar tasks.
b.
It focuses on results.
c.
It is
inexpensive to maintain.
d.
There are cost-saving advantages from
specialization.
(c; easy; p. 278)
269
79.
What is a
weakness of a simple structure?
a.
Duplication of
activities and resources increases costs and
reduces efficiency.
b.
Functional
specialists
become
insulated
and
have
little
understanding
of
what
other
units
are
doing.
c.
Pursuit
of
functional
goals
can
cause
managers
to
lose
sight
of
what’s
best
for
the
overall
organization.
d.
Reliance on
one person is risky.
(d; easy; p. 278)
80.
The strength of a _____________
structure is based on results of managers, but it
has a weakness
because duplication can
occur easily within the organization
a.
simple
b.
functional
c.
divisional
d.
matrix
(c; difficult; p. 278)
81.
A
small
business
with
low
departmentalization,
wide
spans
of
control,
centralized
authority,
and
limited formalization
can be said to possess a ________________
structure.
a.
simple
b.
functional
c.
divisional
d.
matrix
(a; easy; p. 278)
82.
An online wine retailer that sells and
ships hundreds of wines to customers all over the
world with a
payroll of six employees,
most likely has what kind of organizational
structure?
a.
bureaucratic
b.
simple
c.
functional
d.
divisional
(b; difficult; p.
278; AACSB: Globalizations)
83.
As
the
number
of
employees
in
an
organization
grows,
structure
tends
to
become
more
______________.
a.
specialized
b.
informal
c.
centralized
d.
relaxed
(a; easy; p. 278)
270
84.
What type of
organizational structure is made up of autonomous,
self-contained units?
a.
bureaucratic
b.
simple
c.
functional
d.
divisional
(d; moderate;
p. 279)
85.
Managers
in
contemporary
organizations
are
finding
that
traditional
hierarchical
designs
__________________
for the environments they face.
a.
form a
foundation
b.
are somewhat suitable
c.
are perfectly
suitable
d.
often are not appropriate
(d; difficult; p. 279)
86.
In what type
of organizational structure is empowerment most
crucial?
a.
bureaucratic
b.
simple
c.
functional
d.
team
(d; easy; p. 279)
87.
In
large
organizations,
the
team
structure
complements
what
is
typically
a
_______________
structure.
a.
simple
b.
divisional
c.
matrix
d.
project
(b; moderate; p. 279)
88.
What is an
advantage of a team structure?
a.
Employees are
more involved and empowered.
b.
The fluid and
flexible design can respond to environmental
changes.
c.
It
draws on talent wherever it is found.
d.
It allows for
faster decision making.
(a; easy; p.
280)
89.
What is a disadvantage of a team
structure?
a.
There is an increased complexity of
assigning people to projects.
b.
There are task
and personality conflicts.
c.
There is no
clear chain of command.
d.
There are communication difficulties.
(a; easy; p. 280)
271
90.
When an
organization assigns
specialists to
groups according to
the
projects
they are working on,
this is called a ________________.
a.
divisional
structure
b.
functional structure
c.
product
structure
d.
matrix structure
(d;
difficult; p. 280)
91.
A matrix
structure mixes characteristics of functional
departmentalization and _______________.
a.
product
departmentalization
b.
process departmentalization
c.
a dual chain
of command
d.
a
narrow span of control
(a; difficult;
p. 281)
92.
A matrix structure violates a key
element of organizational design called
___________________.
a.
unity of command
b.
chain of
command
c.
span
of management
d.
decentralization
(a;
moderate; p. 281)
93.
A
____________
structure
is
an
advanced
version
of
the
matrix
organization,
where
employees
continuously work on assignments that
are oriented to completion of a task.
a.
weighted
b.
functional
c.
conservative
d.
project
(d; difficult; p. 281)
94.
A
_____________ design is not limited to horizontal,
vertical, or external boundary imposed by a
conventional structure.
a.
learning
organization’s
b.
threatened organization’s
c.
functional
d.
boundaryless
organization’s
(d;
difficult; pp. 281-282)
272
95.
A
______________
organization
consists
of
a
small
core
of
full-time
employees
and
temporarily
hires outside
specialists to work on emergent opportunities.
a.
network
b.
virtual
c.
modular
d.
learning
(b; moderate; p. 282)
96.
A
__________________
organization
is
a
small
core
organization
that
outsources
major
business
functions such as
manufacturing, allowing the firm to concentrate on
its core competencies.
a.
network
b.
virtual
c.
modular
d.
learning
(a; moderate; p.
282)
97.
A ________________ organization uses
outside suppliers to provide product components
which are
then assembled into final
products.
a.
network
b.
virtual
c.
modular
d.
learning
(c; moderate; p.
282)
98.
Why is keeping employees connected a
major structural design challenge for managers?
a.
Work tasks are
fairly predictable and constant.
b.
Most jobs are
full-time and continue indefinitely.
c.
Work is done
at the employer’s place of business under a
manager’s supervision.
d.
Employees are
widely dispersed.
(d; easy; p. 283)
99.
A
learning organization has developed its
_______________.
a.
educational department to keep
employees trained
b.
capacity to adapt and change
c.
barriers to
entry of its markets
d.
a sustainable competitive advantage
that is easy to maintain
(b; difficult;
p. 284)
273