Deck 5: Organizational Structure and Design

Question 1

When decisions tend to be made at lower levels in an organization,the organization is said to be decentralized.

Answer 1

True

Question 2

Designing is the fourth management function; it deals with what tasks are to be done,who is to do them,and where decisions are to be made.

Answer 2

False

Question 3

There are four basic elements in organizational structure.

Answer 3

False

Question 4

Accountability is the obligation or expectation to perform any assigned duties.

Question 5

Organizational design is the process in which managers change or develop an organization's structure.

Question 6

The trend in recent years has been toward a smaller span of control.This trend is consistent with managers' efforts to reduce costs and increase flexibility.

Question 7

Customer departmentalization groups jobs on the basis of product or customer flow.

Question 8

Responsibility refers to the rights inherent in a managerial position.

Question 9

The advantage of work specialization is that it tends to result in high employee motivation and high productivity.

Question 10

The degree to which activities in an organization are divided into separate jobs is called work specialization.

Question 11

When cosmetics maker Estée Lauder organized its structure around its major brands and operated each as a separate company,it was using product departmentalization.

Question 12

Organizational design and organizational structure mean the same thing.

Question 13

Standardization refers to the degree to which jobs within the organization are standardized and the extent to which employee behaviour is guided by rules and procedures.

Question 14

John has just been informed that he will be working on a new team to develop a line of athletic shoes.His team will include individuals from the design team,the production team,the finance team,as well as the sales and marketing teams.It appears as though John will be working on a cross-functional team.

Question 15

Staff authority is the ability to direct the work of any employee who does not have a higher rank in the organization.

Question 16

Large public corporations must employ departmentalization by function because it is mandated in the corporate charter.

Question 17

When work specialization originally began to be implemented early in the twentieth century,employee productivity initially rose.

Question 18

Unity of command prevents an employee from trying to follow two conflicting commands at once.

Question 19

Work specialization continues to be an important organizing mechanism and a source of ever-increasing productivity.

Question 20

Line authority can be exerted only after a manager checks with his or her superior.

Question 21

Vertical boundaries separate employees by their rank in an organization.

Question 22

A mechanistic organization is characterized by rigid departmentalization,a clear chain of command,and high formalization.

Question 23

An organic organization tends to be flexible and have few formal rules.

Question 24

A simple structure is an organizational design with low departmentalization,narrow spans of control,and decentralized authority.

Question 25

The stability of a mechanistic structure seems to work best in today's dynamic and uncertain business environment.

Question 26

An organic organization tends to be characterized by high specialization,narrow spans of control,and little participation in decision making by lower-level employees.

Question 27

The inspiration for the virtual organization structure came from the film industry.

Question 28

When an employee in a matrix structure finishes a project,she goes back to her functional department.

Question 29

A mechanistic organization is bureaucratic and hierarchical.

Question 30

A significant advantage of the matrix structure is the clear chain of command from top to bottom of the organization.

Question 31

Horizontal boundaries separate employees by the amount of power they have in an organization.

Question 32

XYZ is an auto parts manufacturer that has a rigid,inflexible structure and relies heavily on the practice of work specialization.The company can best be characterized as an organic organization.

Question 33

Employee empowerment is crucial in a team structure because there is no line of managerial authority from top to bottom.

Question 34

The matrix structure is an organizational structure that assigns specialists from different functional departments to work on one or more projects led by project managers.

Question 35

The strength of the functional structure is that it focuses on results.

Question 36

Employees in an organization with a matrix design can have two bosses for the same job.

Question 37

The relationship between organizational size and structure tends to be linear.

Question 38

Innovators need the efficiency,stability,and tight controls of the mechanistic structure.

Question 39

Project structures tend to be rigid and inflexible organizational designs.

Question 40

Traditional organizational designs include the simple structure,the functional structure,and the divisional structure.

Question 41

________ departmentalization groups jobs on the basis of product flow through the organization.

A)Product
B)Functional
C)Process
D)Customer
E)Matrix

Question 42

Two popular trends in departmentalization are the increasing use of ________ departmentalization and the use of ________ teams.

A)product; trans-departmental
B)functional; product innovation
C)process; diversified skill
D)customer; cross-functional
E)product; developmental project

Question 43

A virtual organization relies on freelancers who have no permanent status or position in the organization.

Question 44

Which of the following is the best classification for managers who are responsible for the essential activities of the organization,including production and sales?

A)line managers
B)staff managers
C)matrix managers
D)boundaryless managers
E)network managers

Question 45

Galaxy Corporation is organized into five departments: human resources,finance,marketing,production,and engineering.Galaxy uses ________ departmentalization.

A)geographical
B)customer
C)product
D)process
E)functional

Question 46

A public service agency that has different representatives to assist businesses,families,and disabled persons is organized by ________ departmentalization.

A)product
B)geographical
C)process
D)customer
E)functional

Question 47

In a learning organization,employees must gather information and work privately on goals.In addition,such organizations respect functional boundaries and emphasize a clear hierarchy.

Question 48

In a team structure there is a clear line of managerial authority from top to bottom.

Question 49

Procter & Gamble organizes its 300 brands into five main categories: family care,fabric care,beauty care,health care,and food and beverage.They use ________ departmentalization.

A)geographical
B)customer
C)product
D)process
E)functional

Question 50

Rules and bureaucratic mechanisms are more important in developed countries and less important in less economically developed countries.

Question 51

Johnson & Johnson makes many well-known brands including Band-Aids,Tylenol,and ACUVUE contact lenses.Their structure is organized under three sectors: consumer health,medical devices,and pharmaceuticals.They use ________ departmentalization.

A)geographical
B)customer
C)process
D)product
E)functional

Question 52

In a team structure,team members are not held responsible for their decisions.

Question 53

Organizational structure is defined as ________.

A)a set of managerial decisions and actions
B)a formal arrangement of jobs within an organization
C)a process that involves decisions about departmentalization
D)a process that involves decisions about span of control and formalization
E)the basis on which jobs are grouped together within an organization

Question 54

Grouping activities on the basis of customer flow is called ________ departmentalization.

A)functional
B)product
C)geographical
D)process
E)customer

Question 55

A virtual organization may disintegrate after it finishes its task.

Question 56

Universal Office Supply has organized its sales department under its three main account types: wholesale,retail,and government.Universal is using ________ departmentalization.

A)product
B)customer
C)process
D)geographical
E)functional

Question 57

The degree to which tasks in an organization are divided into separate jobs is called ________.

A)work specialization
B)departmentalization
C)chain of command
D)span of control
E)job differentiation

Question 58

________ departmentalization groups jobs on the basis of territory or physical location.

A)Functional
B)Product
C)Geographical
D)Process
E)Matrix

Question 59

An organization that divides its sales responsibilities into Ontario,Quebec,the Maritimes,and Western Canada is using ________ departmentalization.

A)product
B)geographical
C)process
D)customer
E)functional

Question 60

Functional departmentalization groups jobs by ________.

A)tasks performed
B)territories served
C)products manufactured
D)type of customer served
E)services provided

Question 61

Assigning designers,production workers,and salespeople to a common work group to develop a new product is called a ________ team.

A)diversified skill
B)product innovation
C)cross-functional
D)trans-departmental
E)developmental project

Question 62

The trend in recent years has been toward ________ spans of control to help reduce costs and speed up decision making.

A)narrower
B)wider
C)deeper
D)more stable
E)contracting

Question 63

Organizational design requires a manager to ________.

A)organize groups within an organization
B)change the culture of an organization
C)change or develop the structure of an organization
D)change the logo of an organization

Question 64

Under which of the following circumstances should an organization use more decentralization?

A)Environment is stable.
B)Company is large.
C)Decisions are significant.
D)Company is geographically dispersed.
E)Organization is facing a crisis.

Question 65

________ refers to the number of subordinates that a manager can efficiently and effectively manage.

A)Responsibility
B)Unity of command
C)Chain of command
D)Span of control
E)Level of authority

Question 66

The principle that each employee should report to only one manager is called ________.

A)authorized line of responsibility
B)unity of command
C)responsibility factor
D)chain of command
E)span of control

Question 67

The degree to which decision making is concentrated at a single point in an organization is called ________.

A)unity of command
B)chain of command
C)span of management
D)centralization
E)concentration of authority

Question 68

Another term for increased decentralization is ________.

A)structural delayering
B)participative delegation
C)job enlargement
D)authority distribution
E)employee empowerment

Question 69

As organizations become more flexible and responsive,there is a distinct trend toward ________.

A)centralized authority
B)decentralized decision making
C)increased formalization
D)narrower spans of control
E)reduced delegation

Question 70

________ prevents a single employee from getting conflicting orders from two different superiors.

A)Line authority
B)Unity of command
C)Staff authority
D)Chain of command

Question 71

A(n)________ organization is rigidly controlled and efficient.

A)organic
B)command
C)project
D)mechanistic
E)boundaryless

Question 72

Pierre has just been promoted to line manager in the manufacturing plant.Which of the following should automatically accompany his new title of manager?

A)respect
B)delegation
C)higher compensation
D)acceptance by employees
E)authority

Question 73

The degree to which jobs are standardized and guided by rules and procedures is called ________.

A)work specialization
B)centralization
C)regulation
D)formalization
E)specification

Question 74

All other things being equal,as the span of control grows wider,the organization becomes ________.

A)more bureaucratic
B)less effective
C)taller
D)more efficient
E)larger

Question 75

________ is the obligation or expectation to perform an assigned duty.

A)Responsibility
B)Delegation
C)Authority
D)Span of control
E)Accountability

Question 76

The continuous line of authority that extends from the upper levels of management to the lowest levels of the organization is called the ________.

A)hierarchy of responsibility
B)unity of command
C)flow of delegation
D)chain of command
E)span of control

Question 77

A soap company that features a bath soap department,a laundry detergent department,and a dish soap department is using which of the following?

A)process departmentalization
B)functional departmentalization
C)product departmentalization
D)customer departmentalization

Question 78

________ refers to the rights inherent in a position that allow a manager to tell subordinates what to do and then expect them to do it.

A)Responsibility
B)Unity of command
C)Chain of command
D)Authority
E)Accountability

Question 79

A construction site supervisor who sees an impending thunderstorm and tells workers to go home is demonstrating ________.

A)line authority
B)staff delegation
C)provisional accountability
D)responsibility

Question 80

Under which of the following circumstances should an organization use more centralization?

A)Environment is complex and uncertain.
B)Lower-level managers want a voice in decisions.
C)Decisions are relatively minor.
D)Company is geographically dispersed.
E)Organization is facing a crisis.