Deck 13: Designing Organizational Structures

Question 1

Coordination of work activities is required:

A)whenever there is division of labour.
B)only in team-based organizations.
C)whenever the organization has more than approximately 100 employees.
D)only when organizations operate in complex environments.
E)never; coordination of work activities is not found in organizations.

Answer 1

A

Question 2

Which of the following is NOT a coordinating mechanism?

A)Job descriptions
B)Informal communication
C)Centralization
D)Sales targets
E)Extensive training

Answer 2

C

Question 3

As organizations grow,which of the following does NOT typically occur?

A)Informal communication becomes more prevalent as a coordinating mechanism.
B)There is increasing division of labour.
C)More coordination through standardization occurs.
D)The organization becomes more formalized.
E)There is increasing job specialization.

Answer 3

A

Question 4

When work activities are too complex to standardize through procedures or goals,companies often coordinate work effort:

A)through direct supervision.
B)by extensively training employees.
C)by giving one employee most of the tasks previously divided among many people.
D)through further division of labour.
E)through formal hierarchy.

Question 5

Dividing work into more specialized jobs tends to:

A)increase training costs.
B)reduce work efficiency.
C)reduce the opportunity to match people with appropriate jobs.
D)do all of these things.
E)do none of these things.

Question 6

An organizational chart mainly illustrates which type of coordinating mechanism?

A)Formal hierarchy
B)Informal communication
C)Standardization of skills
D)Standardization of output
E)None of these

Question 7

A wider span of control is possible where:

A)employees manage themselves rather than being coordinated through close supervision.
B)the company has a high degree of formalization and operates in a complex environment.
C)the organization has few employees and a tall hierarchy.
D)all of these conditions exist.
E)none of these conditions exist.

Question 8

______________ involves organizing employees from several departments into a temporary team for the purpose of developing a product or service.

A)Formalization
B)Standardization
C)Synergizing
D)Team building
E)Concurrent engineering

Question 9

Standardizing work through job descriptions and procedures:

A)is a form of coordination.
B)is more common when the work is complex and ambiguous.
C)tends to reduce quality and consistency.
D)is unnecessary in large organizations.
E)is more common in organic rather than mechanistic structures.

Question 10

All organizational structures have the following two fundamental requirements:

A)flatter span of control and decentralization
B)division of labour and coordination
C)decentralization and divisionalization
D)coordination and decentralization
E)centralization and outsourcing

Question 11

Many of the best-performing production plants are able to widen their span of control to more than 70 employees per supervisor by:

A)teaching supervisors how to more efficiently monitor employees.
B)giving up on the idea that all employees must perform their fair share of work.
C)hiring supervisors who intimidate employees more often.
D)relying on self-directed work teams and other coordinating mechanisms.
E)introducing video cameras and other technologies to help supervisors to monitor more employees.

Question 12

Which coordinating mechanism is typically most important among people working in hospital surgical operations?

A)Direct supervision
B)Integrator roles
C)Job descriptions
D)Standardized skill through extensive training
E)People working in surgical operations do not use any coordinating mechanism.

Question 13

In organizational structures,integrator roles serve mainly as:

A)a form of standardization
B)an informal communication coordinating mechanism
C)a form of direct supervision
D)one of four types of technology
E)the main element in divisionalized structures

Question 14

When people divide work among themselves,they need to:

A)centralize.
B)decentralize.
C)form a team-based organizational structure.
D)rely increasingly on a simple structure.
E)rely on one or more coordinating mechanisms.

Question 15

All organizations have:

A)a formal hierarchy that includes supervisors and non-supervisory employees.
B)a divisionalized structure.
C)some form of coordinating mechanism.
D)a mechanistic structure.
E)formal team-based structures

Question 16

Integrator roles do which of the following?

A)They increase formalization and centralization.
B)They support informal communication as a coordinating mechanism.
C)They reduce the need for virtual corporations.
D)They increase the amount of formal hierarchy.
E)They do none of these things.

Question 17

Which of the following is a coordinating mechanism?

A)Standardization
B)Formal hierarchy
C)Informal communication
D)All of these are coordinating mechanisms.
E)None of these is a coordinating mechanism.

Question 18

Encouraging coordination through informal communion by organizing employees from several departments into temporary teams is called:

A)Integrating
B)Informal team shaping
C)Skunkworking
D)Concurrent engineering
E)Asynchronous social engineering

Question 19

To increase work efficiency and make it easier to match employee competencies with job requirements,companies tend to:

A)divide work into more specialized jobs.
B)rely on formal hierarchy as a coordinating mechanism.
C)rely on a narrow span of control.
D)centralize decision making.
E)rely on formal hierarchy AND a narrow span of control.

Question 20

Coordination through formal hierarchy relies mainly on:

A)informal communication.
B)job descriptions.
C)bureaucratic procedures and policies.
D)assigning legitimate power to individuals,who then use this power to direct the work of others.
E)none of these.

Question 21

Which organizational design element determines how employees and their activities are grouped together?

A)Span of control
B)Formalization
C)Centralization
D)Departmentalization
E)Organizational grouping

Question 22

Departmentalization does all of the following EXCEPT:

A)Departmentalization establishes a system of common supervision.
B)Departmentalization discourages coordination through informal communication.
C)Departmentalization creates common measures of performance among employees in the unit.
D)Departmentalization typically determines which positions and units must share resources.
E)Departmentalization establishes interdependencies among employees and subunits.

Question 23

Employees are most likely to experience job dissatisfaction and work stress when the organization has:

A)high centralization.
B)high formalization.
C)an organic structure.
D)low formalization.
E)a divisionalized structure.

Question 24

Communication flows in all directions with little concern for the formal hierarchy in:

A)a mechanistic structure.
B)a centralized structure.
C)a formalized structure.
D)a functional structure.
E)an organic structure.

Question 25

Which organizational design element is most closely related to standardization as a coordinating mechanism?

A)Departmentalization
B)Span of control
C)Formalization
D)Centralization
E)Division of labour

Question 26

Which of these statements about decentralization is FALSE?

A)Organizations decentralize as they grow larger.
B)Different degrees of decentralization can occur simultaneously in different parts of the organization.
C)Organizations operating in diverse environments are more effective when they centralize decision making.
D)Large organizations should worry about having too much decentralization.
E)Large organizations that remain centralized tend to become less responsive to the external environment.

Question 27

Organizational and environmental complexity push organizations towards:

A)formalization.
B)a more mechanistic structure.
C)decentralization.
D)a simple structure.
E)all of these structural forms.

Question 28

Mechanistic structures operate best:

A)in stable environments.
B)where employees dislike hierarchy and status.
C)in rapidly changing environments.
D)where knowledge management is a competitive advantage to the organization.
E)where employees perform tasks with high variety and low analyzability.

Question 29

Which of the following is NOT a potentially negative long-term consequence of excessive delayering of middle management?

A)It undermines managerial functions.
B)It restricts managerial career development.
C)It increases management workloads
D)It sends a signal that managers are no longer valued.
E)All of the above apply.

Question 30

Decentralization is more likely to occur when:

A)an organization becomes so complex that senior executives cannot process all the decisions that significantly influence the business.
B)corporate leaders want more consistent decisions across all work units.
C)corporate leaders want to increase consistency and reduce costs across the organization.
D)all of these occur.
E)none of these occur.

Question 31

Organizations tend to form two clusters based on their span of control,centralization,and formalization.The two clusters represented by these organizational design features are called:

A)hierarchical versus delayered.
B)networked versus team-based.
C)biological versus synthetic.
D)organic versus mechanistic.
E)diverse versus integrated.

Question 32

Which form of departmentalization organizes employees around specific skills or other resources?

A)Divisional structure
B)Functional structure
C)Simple structure
D)Matrix structure
E)Network structure

Question 33

____________ establishes the chain of command,that is,the system of common supervision among positions and units within the organization.

A)Span of control
B)Formalization
C)Workflows
D)Job specialization
E)Departmentalization

Question 34

Simple structures usually rely on which of the following to coordinate work activities?

A)Direct supervision
B)Standardization through formal instructions
C)Formal training (standardizing skills)
D)Standardization of product or service outputs
E)None; simple structures are so-called because they have no coordinating mechanism

Question 35

One of the defining characteristics of a functional organizational structure is that it:

A)has a narrow span of control and high degree of formalization and centralization.
B)is the only structure that organizes employees around specific knowledge or other resources.
C)overlays two organizational structures in order to leverage the benefits of both types of structure.
D)uses self-directed work teams rather than individuals as the basic building block of organizations.
E)is an alliance of several organizations for the purpose of creating a product or serving a client.

Question 36

Formalization in organizational structures tends to:

A)reduce organizational flexibility.
B)undermine organizational learning and creativity.
C)make rules and procedures the focus of attention rather than serving stakeholders.
D)have all of these outcomes
E)reduce organizational flexibility AND make some employees feel alienated and powerless,but doesn't usually make rules and procedures the focus of attention.

Question 37

An organic structure has:

A)a narrow span of control and low formalization.
B)centralized decision making and a wide span of control.
C)decentralized decision making and low formalization.
D)a high degree of formalization and a wide span of control.
E)functional departmentalization and a high degree of formalization.

Question 38

As organizations grow older,they tend to:

A)become more formalized.
B)become more centralized.
C)move towards a simple form of departmentalization.
D)shift from a mechanistic to an organic structure.
E)do none of these things.

Question 39

Candoo Ltd.will soon flatten its hierarchy by removing two of the five layers of management.If the number of employees in the organization remains constant,which of the following must also occur?

A)It must adopt a matrix form of departmentalization.
B)It must widen the span of control.
C)It must rely more on direct supervision than standardization to coordinate the resulting structure.
D)It must centralize decision making.
E)All of these must occur.

Question 40

The trend toward flatter organizational structures (delayering)has occurred because this action:

A)tends to reduce overhead costs.
B)narrows the span of control for supervisors.
C)puts decision makers closer to front-line staff and information about customer needs.
D)does all of these things.
E)reduces overhead costs AND puts decision makers closer to front-line staff and information about customer needs.

Question 41

Which of the following is NOT a feature of team-based organizations?

A)Teams have a high degree of autonomy.
B)Team members replace supervisors as conduits to senior management.
C)Most teams are formed around functional departments rather than work processes.
D)Team-based structures have very few layers of hierarchy.
E)Employees within each unit are encouraged to talk to each other.

Question 42

One of the defining characteristics of a matrix organizational structure is that it:

A)overlays two organizational structures in order to leverage the benefits of both types of structure.
B)has a narrow span of control and high degree of formalization and centralization.
C)is the only structure that organizes employees around specific knowledge or other resources.
D)uses self-directed work teams rather than individuals as the basic building block of organizations.
E)is an alliance of several organizations for the purpose of creating a product or serving a client.

Question 43

A divisionalized structure works best where the organization:

A)has few employees.
B)operates in one market with one product and one client group.
C)wants to assign the most power to executives responsible for technical expertise in the organization.
D)is expanding into several distinct product and/or client groups.
E)wants to maintain a strong centralized control over business activities.

Question 44

The current trend is for companies to shift their divisionalized structures away from:

A)functional specializations (marketing,accounting,production,etc.)
B)clients.
C)geography.
D)products.
E)emerging forms of technology.

Question 45

Which of the following is pressuring large global organizations to move from geographically based to more client-based divisionalized structures?

A)Advances in information technology
B)Increases in the number of truly global clients
C)Freer trade
D)All of these factors.
E)None of these factors influence an organization's structure.

Question 46

Which of the following is NOT typically a problem with a functional structure?

A)It tends to increase dysfunctional conflict across work units.
B)It requires higher levels of interdependence than simple or divisionalized forms,thereby increasing potentially dysfunctional conflict.
C)It is more difficult to directly supervise employees within each department.
D)Employees are less likely to develop a broader understanding of the business.
E)It puts more emphasis on subunit goals than on organizational goals.

Question 47

Which form of departmentalization increases the risk of duplication and underutilization of resources?

A)Divisional structure
B)Functional structure
C)Simple structure
D)Matrix structure
E)Network structure

Question 48

A team-based organizational structure has:

A)inter-organizational networks configured in a tall hierarchy with high formalization.
B)self-directed work teams in a flat hierarchy with little formalization.
C)functional departments in a tall hierarchy with little formalization.
D)divisional units in a flat hierarchy with high formalization.
E)none of these combinations of characteristics.

Question 49

One problem with a functional structure is that:

A)it is more difficult to directly supervise employees within each department.
B)it emphasizes subunit goals more than organizational goals.
C)it makes it difficult to permit greater specialization of skills.
D)it prevents companies from creating economies of scale in their pool of talent.
E)employees have difficulty creating career paths within their area of knowledge.

Question 50

Team-based organizations rely extensively on:

A)hourly wages and generous employee benefits.
B)supervisors as the main source of direction and control.
C)a tall hierarchy.
D)communities of practice.
E)self-directed work teams.

Question 51

Freer trade,advances in information technology,and more global customers are pressuring many large global companies to:

A)shift away from geographically based to more client-based divisionalized structures.
B)increase direct supervision as the main coordinating mechanism.
C)shift away from divisionalized structures into functional structures.
D)disband their team-based structures in favour of simple structures.
E)shift from functional structures to geographically based divisionalized structures.

Question 52

A wholesale grocery business operates in one city and provides one service-stocking retailers with fresh produce.The company wants to ensure that employees develop expertise in their skill specialization and that these specializations are used efficiently.What form of departmentalization would be most appropriate here?

A)Simple structure
B)Matrix structure
C)Geographic divisional structure
D)Functional structure
E)Product divisional structure

Question 53

Which of these statements about team-based organizational structures is FALSE?

A)Team-based structures have very little formalization.
B)Team-based structures make extensive use of formal hierarchy as a coordinating mechanism.
C)Team-based structures improve communication and cooperation across skills and areas of expertise.
D)Team-based structures are usually more responsive and flexible than functional structures.
E)Team-based structures are usually found within larger divisionalized structures.

Question 54

A divisionalized structure has all of the following problems EXCEPT:

A)it increases the amount of duplication.
B)it reduces cooperation across groups.
C)it limits the ability to expand operations.
D)it underutilizes resources.
E)it creates 'silos of knowledge' whereby information is not shared with other units.

Question 55

A consumer products firm with a functional structure is expanding from a single product line into several diverse product groups,with most sales within the one country.What form of departmentalization should it eventually adopt to manage the new conditions most effectively?

A)Divisional geographic structure
B)Network structure
C)Matrix structure
D)Divisional product structure
E)Keep the functional structure

Question 56

Which form of departmentalization tends to have a very flat hierarchy,little formalization and organizes employees around work processes?

A)Divisional structure
B)Functional structure
C)Team-based structure
D)Matrix structure
E)Network structure

Question 57

Team-based organizational structures are usually found:

A)in the manufacturing operations of larger divisionalized structures.
B)in Asia rather than North America.
C)in the professional support (e.g.accounting)units of larger functional structures.
D)in government departments and agencies.
E)as stand-alone organizations that apply no other organizational structures.

Question 58

A team-based organizational structure usually has:

A)a wide span of control.
B)self-directed work teams.
C)groups of employees with cross-functional skills.
D)an organic structure.
E)all of these features.

Question 59

A corporation that connects work processes around the world,rather than replicating them within each country or region is classified as a:

A)trans-global.
B)trans-national.
C)multi-national.
D)globally integrated enterprise.
E)globally virtual enterprise.

Question 60

Compared with divisionalized structures,functional structures are known to:

A)create better economies of scale.
B)be more responsive to local markets or clients.
C)encourage employees to focus on the organization's superordinate goals.
D)reduce conflict and coordination problems across work units.
E)do all of the these things.

Question 61

Some types of matrix structure overlay a functional structure with:

A)a network structure.
B)project teams.
C)a simple structure.
D)a mechanistic structure.
E)another functional structure.

Question 62

Creative Advertising Ltd.wants its 100 employees to work together around specific clients,yet maintain an equal emphasis on alignment with their skill specializations (advertising,graphics,copywriting and public relations).Which of the following organizational structures would work best for Creative Advertising?

A)Matrix structure that overlays a geographic and client structure
B)Simple structure
C)Network structure
D)Client-based divisionalized form
E)Matrix structure that overlays project teams with a functional structure

Question 63

Most employees at Quokka Systems are organized into project teams.Employees report to the project leader,but they also report to a leader responsible for their functional specialization (such as engineering or marketing).Quokka Systems likely has a:

A)simple structure.
B)client-based divisionalized structure.
C)matrix structure.
D)product-based divisionalized structure.
E)functional structure.

Question 64

Which form of departmentalization tends to require the most coordination and has a high potential for conflict?

A)Divisional structure
B)Functional structure
C)Simple structure
D)Matrix structure
E)Network structure

Question 65

Organizational size,technology and environment are:

A)three dimensions of span of control.
B)three of the four ways to avoid using coordinating mechanisms.
C)three conditions that do not influence a simple structure.
D)three factors that distinguish a virtual corporation from a network structure.
E)three contingencies of organizational design.

Question 66

Matrix structures tend to:

A)focus technical specialists on their specialist knowledge rather than the goals of serving clients and creating marketable products.
B)prevent employees in a particular specialization from sharing knowledge with each other.
C)require less coordination than functional or pure divisional structures.
D)do all of these things.
E)do none of these things.

Question 67

Network structures:

A)are based on the divisionalized form of organizational structure.
B)are permanent businesses that rely mainly on the Internet to establish their marketing.
C)do not need to follow government laws when hiring and laying off employees.
D)are all of these.
E)are none of these.

Question 68

Which organizational structure actually consists of several organizations?

A)Divisionalized structure
B)Functional structure
C)Simple structure
D)Matrix structure
E)Network structure

Question 69

Companies are more likely to form network structures when:

A)they want to minimize the effects of market forces for their resources.
B)they want to maximize control over manufacturing and other business processes.
C)they operate in an environment where technology is changing quickly.
D)they want to keep as many skills and core competencies in-house as possible.
E)they want to do all of these.

Question 70

Peterborough Plastics Ltd.markets a line of widgets designed and manufactured by other companies around the world.This is an example of which form of departmentalization?

A)Functional
B)Globalized
C)Network
D)Matrix
E)Globally integrated enterprise

Question 71

The increasing recognition that an organization has only a few core competencies is one of the forces pushing towards more:

A)functional structures.
B)simple structures.
C)client-based divisionalized structures.
D)network structures.
E)team-based structures.

Question 72

Organizations operating in diverse environments should:

A)adopt a functional structure.
B)centralize so that more decisions are made by top management alone.
C)develop a set of formal rules and regulations specifically addressing what employees should do about that diversity.
D)adopt a divisional structure aligned with that diversity.
E)do none of these things.

Question 73

For which type of environment should organizations adopt an organic structure?

A)Munificent environments
B)Dynamic environments
C)Stable environments
D)Simple environments
E)Never; mechanistic structures are better than organic structures in all environments.

Question 74

Organic structures are better than mechanistic structures for:

A)hostile environments.
B)stable environments.
C)munificent environments.
D)Organic structures are better than mechanistic structures for all of these environments.
E)Organic structures are better than mechanistic structures for none of these environments.

Question 75

Which of the following are contingencies of organizational design?

A)Technology
B)Organizational size
C)Organizational environment
D)All of these are contingencies of organizational design
E)Only organizational size and environment are contingencies of organizational design.

Question 76

Which organizational structure has the ability to reshape itself quickly to fit immediate client needs?

A)network structure
B)Simple
C)Divisional
D)Matrix
E)None of these

Question 77

A matrix structure found mainly in large global firms combines which two forms of departmentalization?

A)Divisional structure and simple structure
B)Network structure and cluster structure
C)Simple structure and hybrid structure
D)Geographic divisional structure and product divisional structure
E)Functional structure and network structure

Question 78

A divisionalized structure is recommended mainly for:

A)stable environments.
B)diverse environments.
C)munificent environments.
D)integrated environments.
E)none of these environments.

Question 79

Which form of departmentalization forms unique partnership teams that provide customized products or services,usually to specific clients,for a limited time?

A)Functional
B)Network structure
C)Divisionalized
D)Matrix
E)Team-based

Question 80

A network structure:

A)operates within a larger organization with a divisionalized structure.
B)offers the flexibility to realign its structure with changing environmental requirements.
C)is a variation of a divisionalized structure.
D)exists within most small and large organizations.
E)is none of these.