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Chapter 10
–
Organizational Structure and Design
True/False Questions
A MANAGER’S DILEMMA
1.
According to the boxed feature, “A Manager’s Dilemma,” Nokia was once involved in industries ranging
from paper to chemicals and rubber.
True (moderate)
2.
A
ccording
to
the
boxed
feature,
“A
Manager’s
Dilemma,”
Nokia
has
been
competing
in
the
telecommunications industry since 1965.
False (moderate)
DEFINING ORGANIZATIONAL STRUCTURE
3.
Organizational design is the organization's formal framework by which job tasks are divided, grouped, and
coordinated.
False (difficult)
4.
The concept of work specialization can be traced back a couple of centuries to Adam Smith's discussion of
division of labor.
True (moderate)
5.
The degree to which tasks in an organization are divided into separate jobs is division of labor.
True (moderate)
6.
Historically, many organizations have grouped work actions by function departmentalization.
True (moderate)
7.
Grouping jobs on the basis of product or customer flow is termed customer departmentalization.
False (moderate)
8.
Geographic
departmentalization
has
greatly
increased
in
importance
as
a
result
of
today’s
competitive
business environment
False (moderate)
9.
A group of individuals who are experts in various specialties and who work together is a cross-functional
team.
True (moderate)
10.
Authority is the individual's capacity to influence decisions.
False (difficult)
11
.
Authority is synonymous with responsibility.
False (easy)
12.
Responsibility is the rights inherent in a managerial position.
False (easy)
13.
A manager's span of control refers to the number of subordinates who can be effectively and efficiently
supervised.
True (moderate)
14.
The classical view of unity of command suggests that subordinates should have only one superior to whom
they report.
True (easy)
15.
The trend in recent years has been toward smaller spans of control.
False (easy)
16.
When
decisions
tend
to
be
made
at
lower
levels
in
an
organization,
the
organization
is
said
to
be
decentralized.
True (moderate)
17.
Decentralization
describes
the
degree to which
decision making
is
concentrated
at
a
single
point
in the
organization.
False (moderate)
18.
In the last 35 years, there has been a trend of organizations moving toward increased decentralization.
True (easy)
19.
Appropriate
organizational
structure
depends
on
four
variables:
the
organization's
strategy,
size,
technology, and degree of environmental uncertainty.
True (difficult)
20
.
Standardization refers to the degree to which jobs within the organization are standardized and the extent
to which employee behavior is guided by rules and procedures.
False (moderate)
ORGANIZATIONAL DESIGN DECISIONS
21.
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)
22.
An organic organization would likely be very flexible.
True (moderate)
23.
Innovators need the efficiency, stability, and tight controls of the mechanistic structure.
False (easy)
24.
The relationship between organizational size and structure tends to be linear.
False (difficult)
25
.
Joan Woodward attempted to view organizational structure from a technological perspective.
True (moderate)
26.
Woodward demonstrated that organizational structures adapted to their technology.
True (moderate)
27
.
Woodward's findings support that there is
False (moderate)
28.
The strength of the functional structure is that it focuses on results.
False (moderate) it is the strength of divisional structure.
29.
According to the text, a functional structure creates strategic business units.
False (moderate)
COMMON ORGANIZATIONAL DESIGNS
30.
Project structures tend to be rigid and inflexible organizational designs.
False (easy)
Multiple Choice
A MANAGER’S DILEMMA
31.
According
to the company profile in “A Manager’s Dilemma,” the organizational structure of Nokia is best
described as ______________.
a.
mechanistic
b.
organic (moderate)
c.
centralized
d.
formalized
32.
The
factor
contributing
the
most
to
Nokia’s
success
in
the
mobile
phone
industry
according
to
the
company profile in “A Manager’s Dilemma” is ______________.
a.
new product development (moderate)
b.
government subsidies
c.
national trade barriers
d.
weak competition
33.
______________ is the process of creating an organization's structure.
a.
Human resource management
b.
Leading
c
.
Organizing (moderate)
d.
Planning
e.
Departmentalization
DEFINING ORGANIZATIONAL STRUCTURE
34
.
According
to
the
text,
a(n)
______________
is
the
formal
framework
by
which
job
tasks
are
divided,
grouped, and coordinated.
a.
mission statement
b.
environmental scan
c.
internal resource analysis
d.
organizational structure (moderate)
35.
Which of the following is not one of the six key elements in organizational design
a.
work specialization
b.
departmentalization
c.
chain of command
d.
bureaucratic design (difficult)
e.
span of control
36.
Work specialization is also known as ______________.
a.
departmentalization.
b.
centralization.
37.
c.
span of control.
d.
formalization.
e.
division of labor. (easy)
The term ______________ is used to describe the degree to which tasks in an organization are divided
into separate jobs.
a.
work ethics
b.
managerial capitalism
c.
social responsibility
d.
work specialization (moderate)
When did the idea of enlarging, rather than narrowing, job scope begin
a.
1950s
b.
1960s (moderate)
c.
1970s
d.
1980s
e.
1990s
Which of the following is not an example of the classical view of division of labor
a.
assembly-line production
b.
Burger King
c.
Taco Bell
d.
TQM (moderate)
e.
Kentucky Fried Chicken
______________ is the basis on which jobs are grouped in order to accomplish organizational goals.
a.
Departmentalization (moderate)
b.
Centralization
c.
Formalization
d.
Coordination
e.
Efficiency
A
local
manufacturing
organization
has
groups
of
employees
who
are
responsible
for
sales,
marketing,
accounting, human resources, etc. These are examples of what concept
a.
authority
b.
chain of command
c.
empowerment
d.
departmentalization (moderate)
e.
social grouping
38.
39.
40.
41.
42.
Grouping sporting equipment in one area, men's clothing in another area, and cosmetics in a third area, is
an example of what kind departmentalization
a.
customer
b.
product (easy)
c.
geographic
d.
process
e.
outcome
43.
Sales responsibilities divided into the southwest, midwest, southern, northern, and western regions would
be an example of ______________ departmentalization.
a.
product
b.
geographic (easy)
c.
process
d.
outcome
e.
customer
44.
45.
Grouping activities on the basis of customer flow is ______________.
a.
functional departmentalization.
b.
product departmentalization.
c.
geographical departmentalization.
d.
process departmentalization. (moderate)
e.
technological departmentalization.
What type of departmentalization expects that each department will specialize in one specific phase of
the process or product production
a.
product
b.
geographic
c.
process (easy)
d.
outcome
e.
customer
46.
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.
process
d.
outcome
e.
customer (moderate)
47.
Which of the following is not a form of departmentalization suggested by your text
a.
functional departmentalization
b.
product departmentalization
c.
geographical departmentalization
d.
process departmentalization
e.
technological departmentalization (difficult)
48.
Today's
competitive
business
environment
has
greatly
increased
the
importance
of
what
type
of
departmentalization
a.
geographic
b.
customer (difficult)
c.
product
d.
process
e.
outcome
49
.
According
to
the
text,
managers
are
using
______________,
which
are
groups
of
individuals
who
are
experts in various specialties and who work together.
a.
specialized teams
b.
cross-demanded teams
c.
cross- functional teams (moderate)
d.
simple structured teams
50.
Which of the following is a contemporary addition to the historical view of departmentalization
a.
increased rigidity
b.
cross-functional teams (moderate)
c.
enhanced centralization
d.
elimination of product departmentalization
e.
addition of sales departmentalization
51.
Bringing together the company's legal counsel, research engineer, and marketing specialist for a project is
an example of a(n) ______________.
a.
empowered team.
b.
process departmentalization.
c.
product departmentalization.
d.
cross- functional team. (moderate)
e.
continuous improvement team.
52.
The ______________ is the continuous line of authority that extends from upper organizational levels to
the lowest levels and clarifies who reports to whom.
a.
chain of demand
b.
chain of command (easy)
c.
demand hierarchy
d.
continuous design structure
53.
To whom a worker reports concerns which aspect of organizational structure
a.
chain of command (moderate)
b.
departmentalization
c.
pay structure
d.
line of command
e.
authority framework
54.
______________ entitles a manager to direct the work of a subordinate.
a.
Responsibility
b.
Legitimate power
c.
Rank
d.
Operating responsibility
e.
Authority (moderate)
55.
______________ is the obligation to perform assigned activities.
a.
Authority
b.
Responsibility (easy)
c.
Chain of command
d.
Unity of command
e.
Formalization
56.
The ______________ principle (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 (moderate)
c.
demand structure
d.
continuous demand
57.
Span of control refers to which of the following concepts
a.
how much power a manager has in the organization
b.
the geographic dispersion of a manager's subunits of responsibility
c.
how many subordinates a manager can effectively and efficiently supervise (moderate)
d.
the number of subordinates affected by a single managerial order
e.
the amount of time it takes to pass information down through a manager's line of command
58.
Other
things
being
equal,
the
wider
or
larger
the
span
of
control,
the
more
______________
the
organizational design.
a.
bureaucratic
b.
democratic
c.
effective
d.
efficient (difficult)
e.
classical
59
.
Wider spans of control may be viewed as more efficient, but eventually, wider spans tend to have what
effect on organizations
a.
reduced effectiveness (difficult)
b.
increased turnover
c.
loss of managerial power
d.
customer dissatisfaction
e.
rigid chains of command
60
.
An
organization
that
spends
money
on
maintaining
a
well-trained
work
force
can
expect
which
of
the
following span-of-control outcomes
a.
increased contempt for management
b.
increased voluntary turnover
c.
centralized authority
d.
less direct supervision (moderate)
e.
increased need for managerial-level employees
61
.
A high-tech manager who supervises the
development of a new computer chip needs ______________
compared
to
a
manager
who
supervises
the
mailing
of
unemployment
insurance
checks
at
the
local
government office.
a.
about the same span of control
b.
a narrower span of control (difficult)
c.
a wider span of control
d.
a more informal span of control
e.
elimination of the span of control
62.
In general, span of control is ______________ for managers.
a.
increasing (easy)
b.
decreasing
c.
staying the same
d.
significantly decreasing
e.
no longer important
63.
______________ describes the degree to which decision making is concentrated at a single point in the
organization.
a.
Decentralization
b.
Centralization (moderate)
c.
Transnationalism
d.
Cross sectional analysis
64.
If
lower-level
employees
provide
input
or
are
actually
given
the
discretion
to
make
decisions,
the
organization is ______________.
a.
formalized.
b.
centralized.
c.
decentralized. (easy)
65.
66.
d.
mechanistic.
e.
organic.
Recently, there has been a distinct trend toward ______________.
a.
smaller spans of control.
b.
decentralized decision-making. (moderate)
c.
decreased flexibility.
d.
emphasis on chain of command.
e.
mechanistic organizations.
Which
of
the
following
factors
WOULD
NOT
influence
an
organization
to
have
a
higher
degree
of
centralization
a.
Environment is stable.
b.
Company is geographically dispersed. (difficult)
c.
Company is large.
d.
Decisions are significant.
e.
Organization is facing a crisis.
67.
______________
refers
to
the
degree
to
which
jobs
within
the
organization
are
standardized
and
the
extent to which employee behavior is guided by rules and procedures.
a.
Standardization
b.
Centralization
c.
Chain of command
d.
Strategy
e.
Formalization (moderate)
68.
All
of
the
following
factors
indicate
that
a
decentralized
organization
would
be
most
effective
EXCEPT
when ______________.
a.
the environment is complex.
b.
decisions are relatively minor.
c.
the organization is facing a crisis. (difficult)
d.
the company is geographically dispersed.
e.
effective implementation of strategies depends on managers having involvement and flexibility
to make decisions.
69.
Which
of
the
following
factors
describes
an
environment
in
which
a
high
degree
of
decentralization
is
desired
a.
Environment is complex, uncertain. (moderate)
b.
Lower-level managers do not want to have a say in decisions.
c.
Decisions are significant.
d.
Company is large.
e.
Organization is facing a crisis or the risk of company failure.
70.
The
______________
organizational
structure
is
characterized
by
high
specialization,
extensive
departmentalization, narrow spans of control and high formalization.
a.
mechanistic (easy)
b.
organic
c.
contingency
d.
adhocracy
e.
functional
71.
Which of the following is NOT a characteristic of a mechanistic organization
a.
high specialization
b.
c.
d.
e.
wide spans of control (moderate)
high formalization
limited information network
extensive departmentalization
72
.
What type of organizational form follows classical principles such as unity of command
a.
organic
b.
linear
c.
decentralized
d.
mechanistic (moderate)
e.
adhocracy
ORGANIZATIONAL DESIGN DECISIONS
73.
Which of the following would likely be found in mechanistic organizations
a.
wide span of control
b.
empowered employees
c.
decentralized responsibility
d.
few rules and/or regulations
e.
standardized job specialties (difficult)
74.
All of the following are characteristics of an organic organization EXCEPT:
a.
narrow spans of control. (moderate)
b.
cross- hierarchical teams.
c.
free flow of information.
d.
low formalization.
e.
cross- functional teams.
75.
In
the
early
years
of
Apple
Computers,
its
desire
for
highly
proficient
and
creative
employees
who
operated with few work rules was an example of what type of organization
a.
bureaucratic
b.
mechanistic
c.
volatile
d.
nouvelle
e.
organic (difficult)
76
.
Which of the following is true concerning an organic organization's problem- response time
a.
It requires strict adherence to efficiently developed rules.
b.
Its speed demands clear lines of command.
c.
Response times are slower than mechanistic organizations, but answers tend to be more
accurate.
d.
Professional standards guide behavior. (difficult)
e.
The response time is quick due to the centralized design.
77.
Which
of
the
following
is
not
one
of
the
four
contingency
variables
that
help
determine
appropriate
organizational structure
a.
organizational size
b.
organizational strategy
c.
organizational technology
d.
organizational age (moderate)
e.
degree of environmental uncertainty
78.
Which of the following is an accurate statement
a.
Strategy follows structure.
b.
Strategy and structure are equal in temporal importance.
c.
Strategy and structure are not linked.
d.
Structure follows strategy. (moderate)
e.
Mechanistic and organic organizations have distinct differences in the application of the relationship
between strategy and structure.
79.
Most
current
strategy-structure
contingency
frameworks
tend
to
focus
on
three
strategy
dimensions.
These dimensions are ______________.
a.
revenue maximization, customer satisfaction, and visibility.
b.
customer satisfaction, employee satisfaction, and ethics.
c.
innovation, cost minimization, and imitation. (difficult)
d.
legal considerations, profit maximization, and innovation.
e.
long-term survival, profit maximization, and customer satisfaction.
80
.
What kind of relationship is there between organizational size and degree of mechanistic structure
a.
b.
unclear
c.
positive (moderate)
d.
bimodal
e.
exponential
81.
Joan
Woodward's
research
was
the
first
major
attempt
to
view
organizational
structure
from
a
______________ perspective.
a.
strategic
b.
contingency
c.
size
d.
departmental
e.
technological (easy)
82.
The
three
production
categories
that
Joan
Woodward
divided
organizations
into
in
order
to
uncover
relationships between organizational structure and technology are ______________.
a.
unit, mass, process (difficult)
b.
unit, product, cost
c.
product, cost, customer
d.
mass, process, cost
e.
process, unit, product
83.
According to Woodward's studies, what type of production works best with a mechanistic structure
a.
unit
b.
process
c.
product
d.
mass (moderate)
e.
just-in-time
84.
Which of the following is not a characteristic that would suggest unit production would be a best
a.
low horizontal differentiation
b.
low vertical differentiation
c.
small-batch, custom products
d.
low formalization
e.
mechanistic structure (difficult)
85.
A
characteristic
that
both
unit
production
and
process
production
have
is
that
the
most
effective
organizational structure for both technologies is ______________.
a.
organic. (difficult)
b.
mechanistic.
c.
adhocracy.
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