Deck 6: Organizational Structure and Design

Question 1

Output goals define the types of business an organization is in.

Answer 1

True

Question 2

System goals are goals concerned with how things run in the organization.

Answer 2

False

Question 3

Rules that become ends in themselves are among the dysfunctions often associated with bureaucracy.

Answer 3

True

Question 4

Organigraphs are exactly the same as organizational charts.

Question 5

The number of immediate subordinates that a manager supervises is referred to as the span of control.

Question 6

Line units and personnel in an organization provide specialised expertise and services to staff units and personnel.

Question 7

Staff personnel in organizations are groups that assist the line units by performing specialised services for the organization.

Question 8

Human resource managers in a bed linen production company would be line personnel.

Question 9

One of the advantages of the functional structure is that it provides an excellent training ground for new managers, who must translate their academic training into organizational action.

Question 10

One of the advantages of a matrix structure is that it helps provide a blending of technical and market emphasis in organizations operating in exceedingly complex environments.

Question 11

Mechanistic organizations stress rules, policies and procedures.

Question 12

Organic organizations tend to favour vertical specialisation and control.

Question 13

A divisionalised organization consolidates all divisions within an organization under a single, unitary design.

Question 14

Strategic alliances are announced cooperative arrangements or joint ventures between two independent companies.

Question 15

Virtual organizations have certain aspects in common, like an actual physical space and boundary.

Question 16

Peripheral workers for the flexible ring and are thereby more easily outsourced.

Question 17

The process of choosing and implementing structural configuration is called:

A) planning
B) control
C) organizational design
D) staffing

Question 18

The formal structures of organizations may be shown in a(n):

A) organization chart
B) horizontal diagram
C) matrix depiction
D) labour assignment chart

Question 19

The combination of resources knowledge and techniques that creates a product or service output is called:

A) the environment
B) technology
C) formalisation
D) organizational design

Question 20

The set of cultural, economic, educational and legal-political forces in a given geographical area is called the __________ of an organization.

A) environmental complexity
B) environmental interdependence
C) specific environment
D) general environment

Question 21

In order to increase survival potential, organizations create:

A) process controls
B) matrix specialisations
C) systems goals
D) line and staff units

Question 22

Rules and procedures:

A) are written statements of organizational purpose
B) are flexible enough to accommodate unique conditions
C) allow for individual discretion without direct clearance from a higher-level authority
D) describe in detail how a task is to be performed

Question 23

Control involves all of the following EXCEPT:

A) measuring results
B) taking corrective action
C) comparing results with goals
D) selecting manpower

Question 24

Common signs of too much control include all of the following EXCEPT:

A) too much confusing of documentation with action
B) too much focus on one goal to the exclusion of others
C) too many realistic expectations
D) too much rigidity and inflexibility

Question 25

The degree to which authority to make decisions is given to lower levels in an organization's hierarchy is referred to as:

A) bureaucracy
B) decentralisation
C) line units
D) empowerment

Question 26

A manager with a wide span of control is most likely to have:

A) many subordinates and high levels of authority
B) few subordinates and low levels of authority
C) many subordinates
D) few subordinates

Question 27

Staff personnel:

A) directly link clients and/or suppliers to the organization
B) conduct the major business that directly affects the organization
C) work independently of line personnel
D) include such departments as public relations and accounting in a manufacturing firm

Question 28

When action is needed quickly in a crisis situation, which design is typically most appropriate?

A) conglomerate
B) free form
C) organic
D) mechanistic

Question 29

Which of the following characterises a mechanistic organization?

A) many rules and procedures
B) ambiguous division of labour
C) informal coordination and control
D) emphasis on coordination

Question 30

Departmentalisation for division does which of the following?

A) groups individuals and resources by product service, client, territory or legal entity
B) groups individuals and resources by skill knowledge and action
C) groups individuals and resources by the goals of an organization
D) provides written documentation of work rules, policies and procedures

Question 31

Grouping resources into departments by skill, knowledge and action is known as a __________ pattern.

A) functional
B) divisional
C) vertical
D) matrix

Question 32

Which of the following does your text list as a disadvantage of functional structure?

A) Difficult to retrain new managers
B) Often yields confusing task assignments
C) Too much time and effort spent by management
D) Too little emphasis on technical affairs

Question 33

The aerospace solution to the problem of a management structure placing emphasis both on technical development and on product development is called:

A) functional pattern of departmentalisation
B) departmentalisation by function
C) matrix organization
D) coordination organization

Question 34

The unity of command principle is not achieved in which form of departmentalisation?

A) functional
B) divisionalisation by product
C) divisionalisation by customer
D) matrix

Question 35

Bureaucracy is the theory proposed by:

A) Weber
B) Thompson
C) Burns/Stalker
D) Woodward

Question 36

Possible problems of bureaucracy include which of the following?

A) Inflexibility
B) Underspecialisation
C) Rules specifying minimum requirements
D) Dominance by the leaders

Question 37

Which design is appropriate for a huge corporation that produces many different products and services in many different industries?

A) conglomerate
B) quasi-autonomous
C) simple structure
D) machine bureaucracy

Question 38

The vertical emphasis of machine bureaucracy facilitates:

A) job satisfaction
B) control
C) higher profits
D) coordination across divisions

Question 39

Mechanistic design is characterised by:

A) high job satisfaction
B) effective use of human resources
C) creative solutions to problems
D) inflexibility

Question 40

In which design are managers most likely to run their own businesses and compete against one another for resources?

A) adhocracy
B) simple
C) professional bureaucracy
D) divisionalised

Question 41

A greater need for flexibility in production has led to a(n) ________________ organization structure?

A) mechanistic
B) organic
C) core-ring
D) divisional

Question 42

Harold Corporation is a firm dealing with food products, electronics and motor vehicles. This firm would be called:

A) a conglomerate
B) a strategic alliance
C) divisionalised
D) a bureaucracy

Question 43

Joe owns a gardening centre and employs six staff. This is an example of:

A) a matrix structure
B) a divisionalised structure
C) a simple structure
D) a functional structure

Question 44

Mel reports to two managers. This is an example of:

A) departmentalisation by function
B) departmentalisation by matrix
C) division of labour
D) span of control

Question 45

Sionne manages the production department in a company that makes golf balls. He has 44 subordinates. Which three attributes of organizations best describe this?

A) Functional departmentalisation, line personnel and narrow span of control
B) Product divisionalisation, line personnel and wide span of control
C) Functional departmentalisation, line personnel and wide span of control
D) Product divisionalisation, line personnel and wide span of control.

Question 46

General Motors divided the company's operations into separate businesses for each model of automobile. This demonstrates:

A) a conglomerate
B) divisionalised design
C) a bureaucracy
D) a core-ring organization

Question 47

Auditing the books of a company involves adherence to strict rules and policies. There is no room for flexibility in decision-making. This activity is best suited to which of the following structures?

A) matrix
B) divisional
C) core-ring
D) bureaucracy

Question 48

John's consultancy firm specialises in providing leadership and coaching for local businesses. This activity is best suited to which of the following structures?

A) bureaucracy
B) adhocracy
C) meritocracy
D) conglomerate

Question 49

The division of labour by grouping production staff and material resources deals with:

A) specialisation
B) co-ordination
C) divisionalisation
D) vertical specialisation

Question 50

David is team leader of a large production facility. His team consists of 46 staff. This is an example of:

A) a narrow span of control
B) a wide span of control
C) work specialisation
D) a vertical span of control

Question 51

Sue is the General Manager of Heap Manufacturing. She calls a meeting with Henry (head of manufacturing), Joe (manager of scheduling and planning), and Wendy (computer operations) to discuss rostering. The position titles suggest that:

A) Sue is line
B) Henry is staff
C) Joe is line
D) Wendy is line

Question 52

Henry is second line manager to Fred, who is the subordinate of Jane. Who is the lowest ranking person in this organizational bureaucracy?

A) Fred
B) Henry
C) Jane
D) No one, they are all equal ranking

Question 53

A Strategic Business Unit (SBU) would direct responsibility for its own:

A) Financial budgets
B) Trade Union Policy
C) Branding
D) Corporate Communication Strategy

Question 54

Explain the difference between output goals and system goals.
Output goals are the goals that define the organization's type of business, e.g. to increase market share by 10% per annum.

Question 55

Define and illustrate the concept of an organizational chart and compare it with the idea of an organigraph.

Question 56

What is meant by the concept of decentralisation in an organization's structure?

Question 57

Explain unity of command and span of control and how they relate to each other.

Question 58

Compare and contrast the major advantages and disadvantages of functional departmentalisation with the major advantages and disadvantages of divisional departmentalisation.

Question 59

Bureaucracies are often criticised; however, the concept is not a single or simple one. Describe the term, the different forms that bureaucracies might take, and the potential advantages and disadvantages.

Question 60

Contemporary organizations are often required to be flexible. Discuss new forms of organizational design that enable more flexible response to environmental and other influences.

Question 61

Visual Diagram Questions
(These diagrams can be used to test understanding of concepts rather than mere recollection. The provision of the diagrams removes the pressure to remember but does draw on the ability to explain a visual image. Instructors should take care if using a mix of other questions with visual diagram questions to ensure that the diagram does not provide answers to other questions in a test or exam.)
-The following diagram shows a matrix form of horizontal specialisation.
a) Explain in words (and using marks on the diagram if you wish) the functional and project areas of the structure.
b) Discuss the behavioural implications of such a structure for an individual.
c) Discuss the general advantages and disadvantages of such a structure.

Question 62

Visual Diagram Questions
(These diagrams can be used to test understanding of concepts rather than mere recollection. The provision of the diagrams removes the pressure to remember but does draw on the ability to explain a visual image. Instructors should take care if using a mix of other questions with visual diagram questions to ensure that the diagram does not provide answers to other questions in a test or exam.)
-Using the diagram below:
a) Compare the three designs.
b) Describe the staffing in each.