Deck 8: Designing Organizational Structures

Question 1

Which of the following is a supervisor engaged in when he or she groups people,tasks,and resources into organizational units to facilitate the planning,leading,and control processes?

A) job enrichment
B) functionalization
C) task integration
D) departmentalization

Answer 1

D

Question 2

An advertising agency that has separate departments for artwork,creative design,print advertising,radio advertising,television advertising,and specialty advertising is using which of the following types of departmentalization?

A) customer
B) functional
C) size
D) geographic

Answer 2

B

Question 3

As part of her marketing project,Lily Unruh is studying how Marriott operates.Since she thought it was simply a hotel chain,she was amazed to learn that its food divisions provide food for school cafeterias,airlines,hotels,and fast-food restaurants.Marriott's food division is departmentalized by which of the following?

A) geography
B) function
C) product
D) customer

Answer 3

D

Question 4

The Cooke family has worked for various General Motors's divisions for over four decades.Bennett Cooke works at the Cadillac division.Rondella Cooke works at the Buick division.Their son Tyrone works at the Corvette plant,and their daughter Niome works at the Saturn plant.The Cooke family could tell you that GM is departmentalized by which of the following?

A) geography
B) customer
C) size
D) product

Question 5

Coca-Cola Enterprises (CCE)is the largest bottler and distributor of Coke products in the world.It is organized around its North America division and its European division.Which of the following types of departmentalization allows CCE to respond to the demands of different markets?

A) process
B) geography
C) customer
D) function

Question 6

One of the primary goals of Burberry,a British retailer,is to expand its market.When the company allocated resources so that it could open two stores in Japan,it was engaged in which management function?

A) resource planning
B) benchmarking
C) organizing
D) implementing

Question 7

Which of the following is the process of dividing the work and assigning tasks to workers?

A) task division
B) functional division
C) division of labour
D) grouping of workers

Question 8

At your neighbourhood Wendy's,some employees take and fill orders,others prepare food,a few clean and maintain equipment,and some supervise.What is this process of dividing work into separate jobs and assigning tasks to workers?

A) task division
B) functional design
C) group division
D) division of labour

Question 9

On an automotive assembly line,John White checks to make sure that recently painted car bodies are free of paint bubbles.Other people are assigned the task of seeing that other parts of the car are built to specifications.Which of the following concepts have been employed in this situation?

A) product design and structured manufacturing
B) decentralization and unity of command
C) centralization and product departmentalization
D) specialization and division of labour

Question 10

What is another name for the managerial hierarchy?

A) a management matrix
B) a control continuum
C) a management pyramid
D) a managerial continuum

Question 11

Which of the following is a major building block for an efficient and effective organizational structure?

A) division of control
B) span of labour
C) managerial hierarchy
D) departmentalization

Question 12

Which of the following activities involves coordinating and allocating a firm's resources so that the firm can carry out its plans and achieve its goals?

A) organizing
B) resource planning
C) controlling
D) implementing

Question 13

American Express is organized into four divisions that cater to businesses,consumers,travellers,and investors.American Express uses which of the following types of departmentalization?

A) customer
B) geographic
C) process
D) product

Question 14

Which of the following is one of the five major building blocks that determines the design of an efficient and effective organizational structure?

A) departmentalization
B) functional structure
C) division of control
D) span of labour

Question 15

Which of the following is a commonly used method for departmentalizing a firm?

A) by profitability
B) by product
C) by seniority
D) by managerial level

Question 16

Kohber is a Swiss-company that makes medical equipment.It recently purchased a company that manufactures packaging for high-value drugs.Since it will run the packaging company as a separate division for its own use,it would seem that Kohber is departmentalized by which of the following?

A) function
B) product
C) geography
D) customer

Question 17

Which of the following is the process of grouping jobs so that similar or associated tasks and activities can be coordinated?

A) departmentalization
B) standardization
C) centralization
D) specialization

Question 18

Which of the following is a picture of the relationships among tasks and those employees given authority to do those tasks?

A) an informal chart
B) a relationship chart
C) an organization chart
D) a formal picture

Question 19

The management activity of organizing includes which of the following?

A) a more productive workforce due to increased levels of compensation
B) determining goals,strategies,and tactics
C) determining groups,and assigns work activities
D) planning and monitoring strategy implementation

Question 20

Which of the following is the degree to which tasks are subdivided into smaller jobs?

A) specialization
B) task subdivision
C) functional divisionalization
D) task-objective division

Question 21

Which of the following is the legitimate power granted by the organization and acknowledged by the employees?

A) functionalization
B) authority
C) coordination
D) centralization

Question 22

Which of the following refers to the levels of management within the organization?

A) functional group
B) managerial hierarchy
C) subordinated unit
D) authoritative span

Question 23

Anthony Johnson works in the human resources department of a small wholesale company.His boss has delegated to Johnson the job of finding a replacement for the company's shipping dock supervisor who has recently retired.Johnson will have total responsibility for filling this position.Johnson will have which of the following?

A) accountability
B) task leniency
C) hierarchical authority
D) job security

Question 24

Mark Sorenson is the managing director of the British division of Exide Technologies.He has the legitimate power and right to make decisions about how the division is run and to influence others to carry out these decisions.Which of the following does he have?

A) empowerment
B) a span of power
C) functional power
D) authority

Question 25

Which of the following is the practice of giving only limited authority and decision making to lower-level managers?

A) decentralization
B) accountability
C) functionalization
D) centralization

Question 26

A research employee at the European Metabolic Diseases Group has a boss at the company's European Research department and a boss at the company's European Metabolic Diseases product group.This violates which of the following principles?

A) unity of command
B) functionalization
C) unity of supervision
D) unity of structure

Question 27

Which of the following is a major building block for an efficient and effective organizational structure?

A) authority
B) span of control
C) responsibility
D) leadership

Question 28

What is the number of people or subordinates that a manager effectively controls and directs called?

A) accountability
B) span of control
C) delegation
D) responsibility

Question 29

Which of the following statements BEST describes the management pyramid?

A) The span of management is clearly defined in the management pyramid.
B) The management pyramid typically eliminates the need for a clear chain of command.
C) The person with the most formal authority is at the top of the pyramid.
D) All companies use the management pyramid structure.

Question 30

Which of the following factors has little effect on the size of a manager's span of control?

A) nature of the task
B) age of the subordinates
C) level of skill and motivation of the workers
D) location of the workers

Question 31

Which of the following defines the relationships of authority from one level of organization to the next,from top to bottom?

A) chain of accountability
B) chain of order
C) chain of command
D) functional chain

Question 32

Which of the following statements BEST describes the managerial hierarchy?

A) The lower a manager,the more power he or she has.
B) The amount of power decreases as you move up the managerial hierarchy.
C) The number of employees decreases as you move down the managerial hierarchy.
D) The managerial hierarchy is also called the management pyramid.

Question 33

Which of the following is the sharing of job duties and authority with subordinates?

A) job enrichment
B) responsibility sharing
C) delegation of authority
D) functionalization

Question 34

When a person at a lower level skips a level in the organization chart and consults his or her boss's boss,that person is said to be violating which of the following principles?

A) chain of order
B) chain of command
C) chain of accountability
D) functional chain

Question 35

What is one of the advantages of a wide span of control?

A) close supervision of employees
B) a lack of synchronization
C) an absence of managerial support
D) greater organizational flexibility

Question 36

What are the three basic levels of the managerial hierarchy?

A) planning,coordinating,and controlling
B) strategic,tactical,and functional
C) top,middle,and supervisory
D) functional,process,and product

Question 37

When the Chili restaurant chain was in financial trouble,its CEO directed the managers of each of the chain's restaurant to trim costs without sacrificing customer satisfaction.Which of the following did the CEO use to make restaurant managers accountable for cost-cutting measures?

A) substitution
B) transposition
C) delegation of authority
D) job sharing

Question 38

Which of the following principles guarantees that each employee will have only one direct supervisor?

A) accountability
B) divisional unity
C) functional unity
D) unity of command

Question 39

Hannah Keefer is a sales manager for a company that sells office equipment to retail stores in Ontario.She is responsible for five salespeople who report directly to her.Which of the following principles explains her relationship to these five people?

A) controllability
B) accountability
C) depth of authority
D) span of control

Question 40

Kaitlyn Somerset's supervisor is in charge of the arrangements for the annual company party.He has given Somerset the responsibility for finding a caterer for the event,arranging the entertainment,and selecting the door prizes.Somerset's supervisor used which of the following to make her accountable for most of the success or failure of the picnic?

A) job sharing
B) transposition
C) substitution
D) delegation of authority

Question 41

Which of the following is designed with direct,clear lines of authority and communication flowing from the top managers downward?

A) a line organization
B) a functional organization
C) a staff organization
D) a matrix organization

Question 42

Which of the following personnel give expert advice in specialized areas?

A) staff
B) line
C) functional
D) lower

Question 43

Charlie Li has been hired by Exide Technologies to be its legal counsel.Li will handle all of Exide's legal affairs.Li is in which of the following type of position?

A) staff
B) line
C) centralized
D) matrix

Question 44

Ed Czerni works in the public relations office of a company that manufactures floor covering.Czerni does not produce,sell,or distribute the products his company makes.He is in which of the following positions?

A) line
B) centralized
C) functional
D) staff

Question 45

Decentralization is usually desirable in a company under which of the following conditions?

A) Employees are willing to take responsibility.
B) The firm is geographically centralized.
C) The firm is very small.
D) The firm is operating in a stable environment.

Question 46

Mario Laytana is a warehouse manager for a company that produces and sells peaches and peach-related products.In this small entrepreneurial firm,there are direct lines of communication and authority flowing from the company's CEO down to Laytana and through her to the workers in the warehouse.Laytana works in which of the following?

A) a functional organization
B) a matrix organization
C) a staff organization
D) a line organization

Question 47

Which of the following types of organizations are characterized by a relatively high degree of job specialization,rigid departmentalization,many layers of management,narrow spans of control,centralized decision making,and a long chain of command?

A) organic
B) line
C) hierarchical
D) mechanistic

Question 48

Sunny Maroney is the head of the marketing research department for a cosmetics manufacturer.Maroney delegates as much authority as possible to her 14 subordinates,although she still retains ultimate responsibility.Maroney manages which of the following type of department?

A) hierarchical
B) decentralized
C) centralized
D) functionally organized

Question 49

A company with few managerial levels and a short chain of command usually has a wide span of control.Which of the following type of organizational structure best describes this company?

A) flat
B) tall
C) matrix
D) narrow

Question 50

Chloe Anyan works in the human resources department of a company that manufactures packaging machines.She handles payroll and insurance.Anyan is in which of the following positions?

A) staff
B) line
C) functional
D) matrix

Question 51

Kirk McCoy is district sales manager for the Jimmy Dean division of Sara Lee Corp.He has six sales managers who report to him.McCoy makes most of the decisions for his people and demands that they check with him on any changes in pricing,sales scheduling and routing,and sales presentation material.McCoy operates which of the following types of department?

A) centralized=
B) decentralized
C) hierarchical
D) subordinated

Question 52

Which of the following type of organization is characterized by a relatively low degree of job specialization,loose departmentalization,few levels of management,wide spans of control,decentralized decision making,and a short chain of command?

A) hierarchical
B) organic
C) mechanistic
D) line

Question 53

An organic organization has which of the following characteristics?

A) loose departmentalization
B) a relatively high degree of job specialization
C) narrow spans of control
D) centralized decision making

Question 54

Decentralization is usually desirable in a company under which of the following conditions?

A) The organization has fewer than 30 employees.
B) The company is geographically concentrated.
C) The company is operating in a pure competition.
D) The firm is operating in a dynamic environment.

Question 55

Typical staff positions are found in which of the following departments?

A) human resources and marketing
B) legal and human resources
C) production and marketing
D) production and legal

Question 56

Which of the following is the practice of giving a great deal of authority and decision-making freedom to lower-level managers?

A) Centralization
B) Decentralization
C) Autonomy
D) Functionalization

Question 57

A company with a narrow span of control,which tends to have many managerial levels and a long chain of command,is said to have which of the following type of organizational structure?

A) tall
B) flat
C) networked
D) wide

Question 58

A mechanistic organization has which of the following characteristics?

A) low job specialization
B) a short chain of command
C) few levels of management
D) centralized decision making

Question 59

What type of organization is a company with a wide span of control and short chain of command?

A) a matrix organization
B) a networked organization
C) a flat organization
D) a networked organization

Question 60

Typical line positions are found in which of the following departments?

A) public relations and marketing
B) human resources and legal
C) legal and marketing
D) production and marketing

Question 61

What is one of the advantages of work group cohesiveness?

A) the absence of resistance to change
B) the absence of conflict with other work groups
C) formalized group norms
D) reduced employee turnover

Question 62

A structure in which authority and responsibility are held by a group of workers rather than a single manager is called which of the following structures?

A) subordinated
B) committee
C) matrix
D) functional

Question 63

What is a team made up of employees from about the same hierarchical level,but different functional areas of an organization?

A) a horizontally organized team
B) a problem-solving team
C) a vertically organized team
D) a cross functional team

Question 64

What is one weakness of group decision making?

A) Group members may pressure others to conform to decrease the possibility of disagreement.
B) Groups tend to generate significantly fewer alternatives than an individual.
C) The participation of group members decreases the likelihood that a decision will be accepted by the employees.
D) Groups bring less information and knowledge to the decision process.

Question 65

What is another name for the matrix structure?

A) the quality management approach
B) the line-and-staff structure
C) the project management approach
D) the networking approach

Question 66

The typical problem-solving team does which of the following?

A) allocates resources
B) makes final decisions
C) meets on a regular basis to share information and discuss ways to improve processes
D) comprises employees from several different functional areas

Question 67

A network of Benetton retail sales agents select the Benetton designs that they feel will appeal to Benetton retail customers.The responsibility for picking the next "hot style" is in the hands of this group.This is an example of which of the following?

A) the matrix structure
B) the committee structure
C) the functional structure
D) the subordinated structure

Question 68

Every Thursday,three people from the marketing department of an aluminum manufacturer and two employees from accounts receivable meet over lunch to discuss their stock portfolios.They have even named their gathering the Millionaire Club.What is this an example of?

A) the latent organization
B) the casual organization
C) the informal organization
D) the hierarchical organization

Question 69

What are the day-to-day relationships that develop in an organization but are not listed on an organization chart?

A) the informal organization
B) the casual organization
C) the hierarchical organization
D) the grapevine organization

Question 70

What is one strength of group decision making?

A) Groups typically take much less time to reach a solution than an individual.
B) In a group,no one person or group will ever dominate the decision-making process.
C) Conformity is not important when it comes to making a group decision.
D) Group decision making results in a higher-quality decision then individual decision making.

Question 71

Which of the following are groups of employees who not only coordinate their efforts but also collaborate their efforts by pooling their knowledge,skills,abilities,and resources in a collective effort to gain synergy?

A) work teams
B) functional groups
C) work groups
D) project committees

Question 72

Which of the following is the organization structure that brings people from different functional departments to work on special projects?

A) networked organization
B) committee structure
C) matrix structure
D) functional organization

Question 73

Pharmacie & Upjohn,a pharmaceutical company,uses a functional structure (research,development,manufacturing,and marketing)within each of its three largest major product divisions.This company is an example of which of the following structures?

A) committee structure
B) matrix structure
C) functional organization
D) product organization

Question 74

Hugh Larrimore,Wilson Knight,and Frieda Perez have worked together for 12 years.They always clock in and clock out together.If one of the threesome happens to be late,the others will wait for him or her.This commonly accepted behaviour for this informal group is called which of the following?

A) organizational policy
B) self-mandated regulation
C) work procedure
D) group norm

Question 75

Which of the following is the degree to which group members want to stay in the group and tend to resist outside influences?

A) group norming
B) team synergy
C) organizational culture
D) group cohesiveness

Question 76

Which of the following is a permanent organization structure that draws from horizontal and vertical authority relationships?

A) subordinated management
B) matrix structure
C) functional organization
D) committee structure

Question 77

What does the informal organization provide?

A) It makes it more difficult to orient new employees.
B) It offers friendship opportunities and social contact.
C) It diminishes status and recognition.
D) It gives employees less control over their work environment.

Question 78

Which of the following are groups of employees who share resources and coordinate efforts so as to help members better perform their individual duties and responsibilities? The performance of this group can be evaluated by adding up the contributions of the individual group members.

A) autonomous teams
B) project committees
C) functional groups
D) work groups

Question 79

Which of the following is a drawback associated with committee organizations?

A) When a committee makes decisions,it's easier to hold individuals accountable.
B) Committees coordinate tasks easier than individual managers do.
C) Committees usually bring diverse viewpoints to a problem.
D) People with higher formal authority sometimes dominate committees.

Question 80

What is a disadvantage of group cohesiveness?

A) conflict with other work groups in the organization
B) decreased productivity
C) congruent individual and group goals
D) increased absenteeism