Deck 15: Organizational Structure and Design

Question 1

The organizational charts that indicate who reports to whom represent the organization's:

A) division of labor.
B) span of control.
C) line and staff positions.
D) hierarchy of authority.

Answer 1

D

Question 2

The formal configuration between individuals and groups with respect to the allocation of tasks, responsibilities, and authority within organizations is known as:

A) organizational structure.
B) organizational design.
C) an organizational chart.
D) division of labor.

Answer 2

A

Question 3

An example of a staff job in an organization would be the:

A) corporate legal counsel.
B) VP of Human Resources.
C) sales manager.
D) VP of Operations.

Answer 3

A

Question 4

Highly decentralized organizations:

A) allow critical decisions to be made by those who have "the big picture."
B) promote opportunities for decisions to be made by people closest to the situation.
C) are more efficient when they deal with simple tasks.
D) eliminate the additional responsibility of decision-making for those who don't want it.

Question 5

An organization with a tall hierarchy results in managers having a ________ span of control:

A) broad
B) narrow
C) general
D) specialized

Question 6

The process of breaking up organizations into coherent units is known as:

A) centralization of labor.
B) departmentalization.
C) retrofitting the organization chart.
D) restructuring the organizational chart.

Question 7

The degree to which employees perform specialized jobs is likely to depend on the ________ of the organization.

A) depth of management
B) size
C) amount of resources
D) number of clients/customers

Question 8

In the downsizing process, restructuring hits ________ of organizational hierarchies especially hard.

A) the middle layers
B) the strategic points
C) the technostructures
D) communication elements

Question 9

The process of delegating power from higher to lower levels within organizations is known as:

A) centralization of authority.
B) division of labor.
C) decentralization of authority.
D) setting the span of control.

Question 10

The number of people formally required to report to each individual manager is known as a manager's:

A) span of control.
B) organizational structure.
C) organizational chart.
D) division of labor.

Question 11

The benefit of a narrow division of labor in an organization is:

A) the reduction in the number of supervisors necessary.
B) it is easier to implement performance enhancing technology.
C) increased flexibility in the use of human resources.
D) higher performance levels of each individual.

Question 12

Studies show that staff managers tend to:

A) be younger and more committed to their field than to their organization.
B) have more decision-making power than line managers.
C) be older and better educated than line managers.
D) be more committed to the organization than line managers.

Question 13

Alice was a copy writer for a large advertising firm in New York, where she specialized in writing radio ads. She moved to Tulsa, Oklahoma, where she took a job at a much smaller advertising firm. Her new job required her not only to write radio ads for supermarkets, but to write copy for all radio ads, TV ads, and print ads. Sometimes she even had to produce commercials, work with artists, and even meet with clients. Compared to her former New York job, her new job:

A) involves less of a division of labor.
B) shows a decentralization of power.
C) gives her a greater span of control.
D) has become a staff position instead of a line position.

Question 14

The ________ involves dividing the many tasks performed within an organization into particular jobs.

A) delineation of staff
B) span of control
C) division of labor
D) hierarchy of authority

Question 15

The basic difference between line managers and staff managers is that:

A) line managers tend to be better educated.
B) staff managers have more decision power.
C) staff managers are older, more decisive, but less well educated.
D) line managers have decision-making power.

Question 16

When evaluating a manager's span of control, you should:

A) simply study the organizational chart.
B) measure it against the ideal of 6-10 employees.
C) consider the degree of supervisory control needed.
D) do all of these.

Question 17

In a classic study, it was found that decentralization:

A) improved job performance in a research lab, but interfered with performance for people working on assembly-line jobs.
B) improved job performance in a research lab, but had no effect on job performance for assembly-line workers.
C) did not improve job performance in a research lab, but improved performance for people working on assembly lines.
D) had no effect on job performance in a research lab, but increased performance for assembly-line workers.

Question 18

An organizational chart:

A) obscures the relationships among task-related functions.
B) illustrates the external partnerships of an organization.
C) represents an organization's internal structure.
D) does not pertain to not-for-profit organizations.

Question 19

The decentralization of control in organizations:

A) is the key way for any organization to increase productivity.
B) has brought about higher costs due to the implementation of technology to do the work of downsized employees.
C) works best in manufacturing and production-oriented businesses.
D) is done to increase managerial efficiency and employee satisfaction.

Question 20

XYZ corporation has ten levels of authority between the president and the lowest level employee on the organizational chart. By contrast, ABC Corporation has only three levels of authority between the president and the lowest level. It may be said that XYZ's hierarchy of authority is ________, whereas ABC's is ________.

A) flat; tall
B) tall; flat
C) wide; narrow
D) narrow; wide

Question 21

The process of coordinating the structural elements of organizations in the most appropriate manner is called:

A) organizational structure.
B) organizational design.
C) an organizational chart.
D) division of labor.

Question 22

Neoclassical theory argues that:

A) organizations should have flat, hierarchical structures.
B) organizations should have a high degree of decentralization.
C) it represents the universal, ideal form for all organizations.
D) All of the above are true.

Question 23

David is in charge of the marketing department, and he has been assigned to head up the new MOV VI Product-Development Team. David is a:

A) top leader.
B) functional boss.
C) matrix boss.
D) product champion.

Question 24

Matrix designs have a number of advantages, such as:

A) clarifying reporting responsibilities.
B) flexibility in the allocation of human resources.
C) reducing employee stress through high degrees of cooperation and coordination.
D) reducing spans of control for managers.

Question 25

Research on environmental stability and organizational structure found that:

A) companies in relatively stable environments tended toward job specialization.
B) there was no link between organizational structure and the company's operating environment.
C) companies in relatively unstable environments tended toward job specialization.
D) companies in rapidly changing environments did better when they had a mechanistic structure.

Question 26

In matrix design, organizations in which both the functional lines and the product lines are permanent and equally strong are known as:

A) temporary overlay organizations.
B) mature matrix organizations.
C) permanent overlay organizations.
D) adapted matrix organizations.

Question 27

There are limitations to departmentalization by product, including:

A) conflicting reporting relationships.
B) difficulty in attracting and retaining talented employees.
C) the difficulty in tracking various tax requirements.
D) overloading functional areas with conflicting demands.

Question 28

Douglas McGregor's Theory Y approach is an example of a:

A) classical organizational theory.
B) neoclassical organizational theory.
C) contingency theory.
D) systems theory.

Question 29

Classical approaches to organizational design advanced by Weber, Taylor, and Fayol:

A) assume that there is one best way to design organizations.
B) apply only to manufacturing organizations and not service organizations.
C) are among the most flexible of organizational designs.
D) advocate a humanistic, egalitarian approach to the workplace.

Question 30

Organizations structured along functional lines:

A) are less efficient than other organizational structures.
B) permit greater job specialization.
C) provide better customer service.
D) have less clean lines of authority than other organizational structures.

Question 31

In organizations departmentalized by products, each self-contained division ________.

A) gains economies of scale through shared resources
B) gives employees a global perspective of the company
C) meets changes in the market in flexible ways
D) has all the resources needed to develop, manufacture, and sell its products

Question 32

In a matrix design, there are three management roles. The ________ has the authority over both the functional and product lines of authority.

A) top leader
B) functional boss
C) matrix boss
D) dual authority boss

Question 33

Organizations are most likely to adopt matrix designs when:

A) each unit contains sufficient resources to complete its own projects.
B) the market environment is stable.
C) financial and human resources must be stretched to meet challenges and new opportunities.
D) their markets mature and they need economies of scale to compete on the basis of price.

Question 34

Departmentalization that creates self-contained divisions that are each responsible for a specific group of products creates what is called a:

A) product organization.
B) matrix organization.
C) mechanistic organization.
D) boundaryless organization.

Question 35

Matrix designs are not without disadvantages, such as:

A) increasing stress and frustration faced by two-boss managers.
B) inhibiting communication among managers.
C) limiting the organization's ability to use human resources.
D) reducing the ability to respond quickly to marketplace changes.

Question 36

The idea that the best design for an organization depends on the nature of the environment in which the organization is operating is central to which of the following approaches to organizational design?

A) The classical approach
B) The neoclassical approach
C) The contingency approach
D) Mintzberg's framework

Question 37

In a ________, employees report to both a product manager and a functional manager.

A) matrix organization
B) quasi-functional organization
C) mechanistic organization
D) organic organization

Question 38

Neo-classical design differs from classical design because it includes a concern for:

A) industrial efficiency.
B) specialization of labor.
C) employee satisfaction.
D) profits.

Question 39

Automakers like Ford, General Motors, etc., produce and market their cars through separate divisions. This is an example of:

A) functional organizations.
B) matrix organizations.
C) product organizations.
D) boundaryless organizations.

Question 40

Which of the following is a reason why classical organizational theory has fallen into disfavor?

A) It paid too much attention to human needs.
B) It is not well suited to a changing environment.
C) It did not focus adequately on profitability.
D) It permitted central core functions to be copied by competitors.

Question 41

Those specialists responsible for standardizing various aspects of the organization's activities are part of Mintzberg's:

A) technostructure.
B) strategic apex.
C) operating core.
D) support staff.

Question 42

Which of the following would be the best candidate to go virtual?

A) A multinational conglomerate
B) A software company writing software for Windows applications
C) A pharmaceutical company that produces the only product for treating a certain disease
D) Any of these would be effective as virtual companies.

Question 43

Evan works at Burger King. His job is highly specialized and there is a specific procedure for each task that he must perform. Burger King is an example of a(n):

A) organic organization.
B) mechanistic organization.
C) matrix organization.
D) machine bureaucracy.

Question 44

An adhocracy is most likely to occur in an organization such as ________.

A) a university.
B) the military
C) an automobile manufacturer
D) a software development firm.

Question 45

In Mintzberg's framework, the ________ is the dominant group in a simple organizational structure.

A) technostructure
B) strategic apex
C) operating core
D) support staff

Question 46

In Japan, a Keiretsu is:

A) similar to a Guanxi in China.
B) a large, unified conglomerate.
C) a strategic alliance
D) a spin-off.

Question 47

________ eliminate chains of command, widen spans of control, and use empowered teams.

A) Product organizations
B) Matrix organizations
C) Mechanistic organizations
D) Boundaryless organizations

Question 48

A large company diversifies by adding an entirely unrelated business or product to its organizational design. The new business or product is owned by the acquiring company. This is an example of a:

A) joint venture.
B) strategic alliance.
C) conglomerate.
D) divisional organizational design.

Question 49

A large organization that consists of sets of autonomous units coordinated by a central headquarters is an example of a ________.

A) model of divergence
B) divisional structure
C) professional bureaucracy
D) QWL structure

Question 50

Organic organizations are characterized by:

A) authority that is diffused throughout the organization.
B) rigid rules regarding routine jobs.
C) involvement in a stable business environment.
D) high employee specialization.

Question 51

In a ________, each participating company only contributes its core competencies.

A) diverse organizational structure.
B) matrix organizational structure.
C) virtual organizational structure.
D) product organizational structure.

Question 52

When an organization outsources its noncore functions, retains control over its core business, and then arranges networks of specialists around that core that can be added to or subtracted from as needed, the business has adopted a:

A) modular organizational structure.
B) matrix organizational structure.
C) virtual organizational structure.
D) product organizational structure.

Question 53

Research found that organizational units were most effective when:

A) their structure was mechanistic, regardless of environment.
B) their structure was matched to their environment.
C) their structure was organic if the environment was stable.
D) they used a matrix structure.

Question 54

A strategic alliance in which two similar companies pool resources to receive a benefit (too difficult or expensive for either to obtain alone) is called:

A) a value-chain partnership.
B) a mutual service consortium.
C) a joint venture.
D) an internal market system.

Question 55

________ are composed of a continually evolving network of companies that are linked together to share skills, costs, and access to markets.

A) Virtual organizations
B) Bureaucracies
C) Strategic alliances
D) Mutual service consortia

Question 56

Which of the following is characteristic of a mechanistic organization?

A) The replacement of people with technology
B) Proliferation of generalist positions
C) Involvement in a dynamic business environment
D) High employee specialization

Question 57

Andrea works for a service organization that is very customer-orientated. Because of this, a great deal of power resides with the support staff, including her. This is an example of a(n):

A) adhocracy.
B) divisional structure.
C) professional bureaucracy.
D) machine bureaucracy.

Question 58

The element of an organization where the basic work is performed is known as the ________ in Mintzberg's framework.

A) technostructure
B) strategic apex
C) operating core
D) support staff

Question 59

In Mintzberg's ________, decision-making is concentrated at the top, work is highly standardized, and the operating environment is stable.

A) simple structure
B) divisional structure
C) professional bureaucracy
D) machine bureaucracy

Question 60

The alliance where the organizations have the loosest relationship is a:

A) value-chain partnership.
B) mutual service consortia.
C) joint venture.
D) modular boundaryless organization.

Question 61

Table 15.1
As the new general manager of a regional cable service, Joe is studying the formal configuration of groups and individuals in respect to the allocation of tasks, responsibilities, and authority within the cable company. He notices that there are numerous layers of people between the cable installers and technicians and himself as general manager. He thinks this is because of the high degree of specialization in the company. Everyone seems to have very narrowly defined jobs. Joe decides he wants fewer layers of employees and for each manager to have responsibility for more employees. He reduces the number of managers from 10 to 3. As a consequence, each manager will make of his/her own decisions and rely less on Joe.
Refer to Table 15.1. The numerous layers of employees between the service providers and top management represents the company's:

A) division of labor.
B) hierarchy of authority.
C) functional matrix.
D) span of influence.

Question 62

When Garret Memorial Hospital decided to share expenses with Cumberland Memorial Hospital to build and operate an MRI unit, they formed a:

A) joint venture.
B) mutual service consortia.
C) value chain partnership.
D) spin-off.

Question 63

Table 15.3
You are studying a medium-sized service company. You find that Joe, a customer service representative, has been doing his job for five years. He takes about 200 customer calls a day and helps customers with their product questions. Bridgette, the CEO, has been with the company about three years and is in the process of making its structure more organic and flexible. Between Bridgette and Joe is Fred, who conveys management's decisions and policies to Joe and helps Bridgette stay in touch with the several hundred 'Joes' who work in customer service. Sally is the corporate attorney and works with Bridgette on corporate legal matters.
Refer to Table 15.3. Joe is part of the ________ of his organization.

A) technostructure
B) strategic apex
C) operating core
D) support staff

Question 64

Table 15.1
As the new general manager of a regional cable service, Joe is studying the formal configuration of groups and individuals in respect to the allocation of tasks, responsibilities, and authority within the cable company. He notices that there are numerous layers of people between the cable installers and technicians and himself as general manager. He thinks this is because of the high degree of specialization in the company. Everyone seems to have very narrowly defined jobs. Joe decides he wants fewer layers of employees and for each manager to have responsibility for more employees. He reduces the number of managers from 10 to 3. As a consequence, each manager will make of his/her own decisions and rely less on Joe.
Refer to Table 15.1. The high degree of specialization Joe is seeing is a function of the company's:

A) decentralization.
B) hierarchy of authority.
C) division of labor.
D) span of control.

Question 65

Table 15.3
You are studying a medium-sized service company. You find that Joe, a customer service representative, has been doing his job for five years. He takes about 200 customer calls a day and helps customers with their product questions. Bridgette, the CEO, has been with the company about three years and is in the process of making its structure more organic and flexible. Between Bridgette and Joe is Fred, who conveys management's decisions and policies to Joe and helps Bridgette stay in touch with the several hundred 'Joes' who work in customer service. Sally is the corporate attorney and works with Bridgette on corporate legal matters.
Refer to Table 15.3. Sally represents the ________ in Mintzberg's model.

A) technostructure
B) strategic apex
C) operating core
D) support staff

Question 66

Table 15.1
As the new general manager of a regional cable service, Joe is studying the formal configuration of groups and individuals in respect to the allocation of tasks, responsibilities, and authority within the cable company. He notices that there are numerous layers of people between the cable installers and technicians and himself as general manager. He thinks this is because of the high degree of specialization in the company. Everyone seems to have very narrowly defined jobs. Joe decides he wants fewer layers of employees and for each manager to have responsibility for more employees. He reduces the number of managers from 10 to 3. As a consequence, each manager will make of his/her own decisions and rely less on Joe.
Refer to Table 15.1. Joe's initial study is of the cable company's:

A) division of labor.
B) organizational design.
C) span of control.
D) organizational structure.

Question 67

Forming joint ventures with Chinese companies is difficult because ________.

A) the Chinese market is becoming extremely competitive
B) most Chinese companies operate locally or regionally, not nationally
C) many Chinese companies are owned, in part, by government agencies
D) All of the above

Question 68

Table 15.2
For a management class, a group of students is considering how to structure a proposed company. Their original idea was a design that would give complete responsibility for the development and marketing of a product to one unit. Tax considerations are a concern as well, and they want a structure that would help the accountants track them better through specific cost centers. They decide not to use this design because of the duplication of effort and the probability that it would be difficult to attract and retain talented employees. In their second design they want to stress the opportunity for employees to specialize, gain economies of scale, and conserve resources by eliminating duplication of effort. They reject that design because it is too cumbersome and slow to respond to the changes in the marketplace. Then one member of the group, Jack, suggests that they eliminate chains of command and spans of control and go to empowered teams. He argues that this will increase creativity and responsibility among employees. A fellow student argues that it won't work in the real world because managers won't give up that much authority. "Ok," a third student, Jane, offers, "let's try this idea but build around a hub. The hub will be the core business and the spokes will be groups of specialists that can be added to or subtracted from as the market changes." They settle on a structure with two lines of authority, one by task specialization and the other by product line. This gives them economies of scale and flexibility but some stress over reporting authority. Nevertheless, it gives them the best of what they want.
Refer to Table 15.2. The group's second design is for a:

A) functional organization.
B) matrix organization.
C) product organization.
D) boundaryless organization.

Question 69

Table 15.2
For a management class, a group of students is considering how to structure a proposed company. Their original idea was a design that would give complete responsibility for the development and marketing of a product to one unit. Tax considerations are a concern as well, and they want a structure that would help the accountants track them better through specific cost centers. They decide not to use this design because of the duplication of effort and the probability that it would be difficult to attract and retain talented employees. In their second design they want to stress the opportunity for employees to specialize, gain economies of scale, and conserve resources by eliminating duplication of effort. They reject that design because it is too cumbersome and slow to respond to the changes in the marketplace. Then one member of the group, Jack, suggests that they eliminate chains of command and spans of control and go to empowered teams. He argues that this will increase creativity and responsibility among employees. A fellow student argues that it won't work in the real world because managers won't give up that much authority. "Ok," a third student, Jane, offers, "let's try this idea but build around a hub. The hub will be the core business and the spokes will be groups of specialists that can be added to or subtracted from as the market changes." They settle on a structure with two lines of authority, one by task specialization and the other by product line. This gives them economies of scale and flexibility but some stress over reporting authority. Nevertheless, it gives them the best of what they want.
Refer to Table 15.2. Their first design is an example of a:

A) functional organization.
B) matrix organization.
C) product organization.
D) modular organization.

Question 70

Table 15.4
Five organizations in your community are being studied using Mintzberg's perspective on organizational design. One is a high-tech organization with a simple structure, decentralized authority, and support staff is the dominant element in the organization. A second company operates in a stable industry, each employee's work is highly specialized, and decision-making is concentrated at the top of the organization. There is also a family medical practice with three doctors who are partners. The operating core is the dominant element, and decision-making is vested in the doctors. Finally, there is a retail dealer mall for antiques and collectibles, which is dominated by its strategic apex element.
Refer to Table 15.4 The high-tech company is an example of Mintzberg's:

A) simple structure.
B) machine bureaucracy.
C) professional bureaucracy.
D) adhocracy.

Question 71

Table 15.4
Five organizations in your community are being studied using Mintzberg's perspective on organizational design. One is a high-tech organization with a simple structure, decentralized authority, and support staff is the dominant element in the organization. A second company operates in a stable industry, each employee's work is highly specialized, and decision-making is concentrated at the top of the organization. There is also a family medical practice with three doctors who are partners. The operating core is the dominant element, and decision-making is vested in the doctors. Finally, there is a retail dealer mall for antiques and collectibles, which is dominated by its strategic apex element.
Refer to Table 15.4. The doctor's medical practice is an example of Mintzberg's:

A) simple structure.
B) machine bureaucracy.
C) professional bureaucracy.
D) adhocracy.

Question 72

Table 15.2
For a management class, a group of students is considering how to structure a proposed company. Their original idea was a design that would give complete responsibility for the development and marketing of a product to one unit. Tax considerations are a concern as well, and they want a structure that would help the accountants track them better through specific cost centers. They decide not to use this design because of the duplication of effort and the probability that it would be difficult to attract and retain talented employees. In their second design they want to stress the opportunity for employees to specialize, gain economies of scale, and conserve resources by eliminating duplication of effort. They reject that design because it is too cumbersome and slow to respond to the changes in the marketplace. Then one member of the group, Jack, suggests that they eliminate chains of command and spans of control and go to empowered teams. He argues that this will increase creativity and responsibility among employees. A fellow student argues that it won't work in the real world because managers won't give up that much authority. "Ok," a third student, Jane, offers, "let's try this idea but build around a hub. The hub will be the core business and the spokes will be groups of specialists that can be added to or subtracted from as the market changes." They settle on a structure with two lines of authority, one by task specialization and the other by product line. This gives them economies of scale and flexibility but some stress over reporting authority. Nevertheless, it gives them the best of what they want.
Refer to Table 15.2. Jack's idea is an example of a:

A) virtual organization.
B) matrix organization.
C) modular organization.
D) boundaryless organization.

Question 73

Table 15.4
Five organizations in your community are being studied using Mintzberg's perspective on organizational design. One is a high-tech organization with a simple structure, decentralized authority, and support staff is the dominant element in the organization. A second company operates in a stable industry, each employee's work is highly specialized, and decision-making is concentrated at the top of the organization. There is also a family medical practice with three doctors who are partners. The operating core is the dominant element, and decision-making is vested in the doctors. Finally, there is a retail dealer mall for antiques and collectibles, which is dominated by its strategic apex element.
Refer to Table 15.4. The retail dealer mall for antiques and collectibles is an example of Mintzberg's:

A) simple structure.
B) machine bureaucracy.
C) professional bureaucracy.
D) adhocracy.

Question 74

The relationship between Ford Motor Company and an auto parts supplier with which it does business on a regular basis is called a ________.

A) value-chain partnership.
B) mutual service consortium.
C) joint venture.
D) mutual agreement.

Question 75

As shown in the continuum of strategic alliances, the relationship between value-chain partners is ________.

A) robust yet transient
B) mutually beneficial
C) strong and close
D) weak and distant

Question 76

Table 15.3
You are studying a medium-sized service company. You find that Joe, a customer service representative, has been doing his job for five years. He takes about 200 customer calls a day and helps customers with their product questions. Bridgette, the CEO, has been with the company about three years and is in the process of making its structure more organic and flexible. Between Bridgette and Joe is Fred, who conveys management's decisions and policies to Joe and helps Bridgette stay in touch with the several hundred 'Joes' who work in customer service. Sally is the corporate attorney and works with Bridgette on corporate legal matters.
Refer to Table 15.3. Bridgette represents the ________ in Mintzberg's model.

A) technostructure
B) strategic apex
C) operating core
D) support staff

Question 77

Table 15.2
For a management class, a group of students is considering how to structure a proposed company. Their original idea was a design that would give complete responsibility for the development and marketing of a product to one unit. Tax considerations are a concern as well, and they want a structure that would help the accountants track them better through specific cost centers. They decide not to use this design because of the duplication of effort and the probability that it would be difficult to attract and retain talented employees. In their second design they want to stress the opportunity for employees to specialize, gain economies of scale, and conserve resources by eliminating duplication of effort. They reject that design because it is too cumbersome and slow to respond to the changes in the marketplace. Then one member of the group, Jack, suggests that they eliminate chains of command and spans of control and go to empowered teams. He argues that this will increase creativity and responsibility among employees. A fellow student argues that it won't work in the real world because managers won't give up that much authority. "Ok," a third student, Jane, offers, "let's try this idea but build around a hub. The hub will be the core business and the spokes will be groups of specialists that can be added to or subtracted from as the market changes." They settle on a structure with two lines of authority, one by task specialization and the other by product line. This gives them economies of scale and flexibility but some stress over reporting authority. Nevertheless, it gives them the best of what they want.
Refer to Table 15.2. Their final design is an example of a:

A) functional organization.
B) matrix organization.
C) product organization.
D) boundaryless organization.

Question 78

Table 15.1
As the new general manager of a regional cable service, Joe is studying the formal configuration of groups and individuals in respect to the allocation of tasks, responsibilities, and authority within the cable company. He notices that there are numerous layers of people between the cable installers and technicians and himself as general manager. He thinks this is because of the high degree of specialization in the company. Everyone seems to have very narrowly defined jobs. Joe decides he wants fewer layers of employees and for each manager to have responsibility for more employees. He reduces the number of managers from 10 to 3. As a consequence, each manager will make of his/her own decisions and rely less on Joe.
Refer to Table 15.1. Joe's eliminating of management layers resulted in:

A) a greater division of labor.
B) decentralization of decision-making.
C) more line positions.
D) small spans of control.

Question 79

Table 15.4
Five organizations in your community are being studied using Mintzberg's perspective on organizational design. One is a high-tech organization with a simple structure, decentralized authority, and support staff is the dominant element in the organization. A second company operates in a stable industry, each employee's work is highly specialized, and decision-making is concentrated at the top of the organization. There is also a family medical practice with three doctors who are partners. The operating core is the dominant element, and decision-making is vested in the doctors. Finally, there is a retail dealer mall for antiques and collectibles, which is dominated by its strategic apex element.
Refer to Table 15.4. The second company has Mintzberg's ________ design.

A) divisional structure
B) machine bureaucracy
C) professional bureaucracy
D) adhocracy

Question 80

Companies form global strategic alliances to gain several benefits including:

A) direct managerial benefits associated with the extending of organizational charts.
B) financial incentives such as bypassing tariff restrictions.
C) marketing benefits by gaining access to internal markets.
D) All of these benefits.