Quiz 5: Designing Organizational Structure: Authority and Control

The shape of an organization, depicted by its organizational chart, determines how effectively the organization's decision-making and communication systems work.

When each employee performs only a small part of a total task, identifying the employees individual contribution to the task becomes easy.

As the number of levels in its managerial hierarchy increases, it becomes difficult for the organization to control its members.

An organization in which the hierarchy has many levels relative to the size of the organization is known as an organic organization.

A tall organization has fewer managers to direct and control employees activities than a flat organization with the same number of employees.

Research suggests that the increase in the size of the managerial component in an organization is less than proportional to the increase in size of the organization as it grows.

Most organizations have a pyramid-like structure with fewer and fewer managers at each level up in the hierarchy.

As the number of levels in the hierarchy increases, the relative difference in the authority possessed by managers at each level decreases.

Managers of a flat organization possess relatively less authority and responsibility than those of a tall organization.

A flat organization has fewer managers and hierarchical levels than a tall organization.

The greater the number of managers the lower the bureaucratic costs.

The greater the number of hierarchical levels in an organization, the lower the bureaucratic costs.

An organization with a tall structure will also experience fewer communication, motivation, and cost problems than a flat organization.

Parkinson's law states that "Work expands so as to fill the time available."

According to the principle of minimum chain of command, an organization should choose the minimum number of hierarchical levels consistent with its goals and the environment in which it operates.

A manager's span of control includes subordinates he or she supervises directly and subordinates that he or she supervises indirectly (by supervising their direct boss).

If the span of control of each manager increases as the number of employee's increases, then the number of managers or hierarchical levels does not increase in proportion to increases in the number of employees.

When subordinates tasks are complex and dissimilar, a manager's span of control needs to be wide.

Horizontal differentiation leads to the emergence of specialized subunits-functions or divisions.

If tasks are routine and similar so that all subordinates perform the same task, then the span of control should be small.

A manager's ability to supervise and control subordinates' behavior directly is limited by two factors: the complexity and the interrelatedness of subordinates' tasks.

An increase in the horizontal differentiation leads to an increase in the vertical differentiation.

Standardization makes it easier to increase span of control.

Decentralization enables even a relatively tall structure to be more flexible in its responses to changes in the external environment.

Decentralization does not eliminate the need for many hierarchical levels in a large and complex organization.

According to Weber, rational-legal authority emerges due to qualities that a person possess, such as charisma or wealth.

In a bureaucracy, obedience is owed to a person because of the level of authority and responsibility associated with the organizational position the person occupies.

Weber's first principle indicates that choices affecting the design of an organization's hierarchy should be based on the needs of the task, not on the needs of the person performing the task.

According to Weber's third principle of bureaucratic structure, a role's task responsibility and decision-making authority and its relationship to other roles in the organization should be clearly specified.

Role ambiguity occurs when two or more people have different views of what another person should do and, as a result, make conflicting demands on the person.

Role conflict occurs when a person's tasks or authority are not clearly defined and the person becomes afraid to act on or take responsibility for anything.

The primary advantage of a bureaucracy is that it lays out the ground rules for designing an organizational hierarchy that efficiently controls interactions between organizational levels.

In a bureaucratic organization, individuals can be held accountable for what they do, and such accountability reduces the transaction costs.

Contingent workers are employees who belong to self-managed teams.

Contingent workers do not receive indirect benefits such as health insurance or pensions.

An organization in which the hierarchy has many levels relative to the size of the organization is a(n) ________ organization. A) tall B) flat C) decentralized D) organic

Which of the following is most likely to be done by an organization to improve its ability to control its members and influence their behavior? A) increase the use of self-managed team B) increase employee empowerment C) increase the number of levels in its managerial hierarchy D) increase the extent of decentralization

Which of the following statements is true regarding direct supervision? A) Direct supervision allows managers to ensure that subordinate are not hiding any crucial information. B) The method of direct supervision is more effective in flat rather than tall organizations. C) Direct supervision is not suitable for on-the-job task learning. D) The method of direct supervision is more effective in organic rather than in inorganic structure.

Which of the following statements is most likely to be true regarding a tall organization? A) A tall organization has few levels in its hierarchy relative to its size. B) Generally organizations with less than 1000 employees have tall structures. C) A tall organization has more managers to direct and control employees' activities than does a flat organization with the same number of employees. D) The taller an organization, the more decentralized are its operations.

As an organization grows, ________. A) an increase in the number of managers is more than proportional to the increase in size B) an increase in the number of managers is less than proportional to the increase in size C) an increase in the number of managers is proportional to the increase in size D) the number of managers remains constant

Which of the following statements is true regarding organizational structure? A) As the number of levels in the hierarchy increases, the relative difference in the authority possessed by managers at each level increases. B) Most organizations have the same number of managers at all levels in the organization. C) As the number of hierarchical levels increases, the number of communication problems decreases. D) Most organizations have a pyramid-like structure and fewer and fewer managers at each level up in the hierarchy.

An organization that has few levels in its hierarchy relative to its size is known as a ________ organization. A) tall B) flat C) formalized D) standardized

Research evidence suggests that an organization with 3,000 employees is most likely to have ________ levels in its hierarchy. A) five B) six C) seven D) nine

As the number of hierarchical levels increases, ________. A) the degree of formalization decreases B) the possibility that the information will be distorted decreases C) the degree of decentralization increases D) communication problems get progressively worse

As ________, the relative difference in the authority possessed by managers at each level in the organizational hierarchy decreases. A) the number of shareholders of an organization decreases B) the number of levels in the hierarchy increases C) the total number of employees in the organization decreases D) the degree of centralization of the organizational structure increases

Which of the following statements is true regarding a flat organization? A) A flat organization has more managers than a tall organization. B) The flatter the organization, the less motivated are the employees. C) Managers of a flat organization possess relatively more authority than those of a tall organization. D) A flat organization has more hierarchical levels than a tall organization.

Adding more managers to a company is most likely to result in ________. A) increase in the degree of centralization B) flattening of the organizational structure C) higher bureaucratic costs D) decrease in the number of hierarchical levels

Which of the following is most likely to increase the bureaucratic costs? A) changing the organization structure from functional to divisional B) decreasing the number of managers C) increasing the number of hierarchical levels D) decreasing the level of standardization

Which of the following observations made by Parkinson led to the development of the Parkinson's law? A) A division of labor increases efficiency. B) As the number of levels in the hierarchy increases, the quality of the communication improves. C) The use of flat organization structure improves the motivation of the employees. D) Managers seek to increase the number of their subordinates.

The ________ states that work expands to fill the time available. A) Parkinson's law B) principle of the minimum chain of command C) Gissel doctrine D) Bradford's law

According to the principle of minimum chain of command, ________. A) managers seek to increase the number of their subordinates so as to improve their status in the organization B) an organization should be kept as flat as possible C) the use of functional organizational structure improves the speed of decision-making D) an increase in the number of hierarchical levels leads to an increase in the bureaucratic costs

According to the principle of ________, an organization should choose the minimum number of hierarchical levels consistent with its goals and the environment in which it operates. A) economies of scope B) minimum chain of command C) unity of direction D) horizontal differentiation

As compared to a tall organization, an organization with a flat structure is most likely to experience ________. A) more communication problems B) fewer motivation problems C) fewer benefits of economies of scope D) higher bureaucratic costs

Rose supervises Iris, who in turn supervises Violet and Daisy. Violet has four subordinates and Daisy has six. Which of the following options represents the accurate spans of control for each of these supervisors? A) Rose 13, Iris 2, Violet 4, Daisy 6 B) Rose 13, Iris 12, Violet 4, Daisy 6 C) Rose 1, Iris 2, Violet 4, Daisy 6 D) Rose 3, Iris 12, Violet 4, Daisy 6

Which of the following terms refers to the number of subordinates a manager directly supervises? A) span of control B) chain of authority C) degree of standardization D) level of centralization

Which of the following is one of the ways in which an organization can avoid becoming too tall yet maintain effective control of its workforce? A) encouraging upward communication but discouraging downward communication B) conducting 360 degrees appraisal of the employees C) increasing its managers' span of control D) increasing the number of levels in the hierarchy

Which of the following is most likely to happen if the span of control is too wide? A) The speed of decision-making will increase. B) The number of managers at the higher levels in the hierarchy will be more than the number of managers at the lower levels in the hierarchy. C) The division of labor will be too low. D) Subordinates will shirk responsibility.

It is more difficult to increase the span of control when ________. A) tasks are routine or similar B) tasks are highly interrelated C) the structure of the organization is highly decentralized D) the organization operates in a stable environment

Under which of the following situations is it easier to increase the span of control? A) The tasks are routine. B) The tasks are complex. C) The tasks are highly interrelated. D) The tasks need to be performed by highly skilled professionals.

A manager associated with which of the following entities is most likely to have the widest span of control? A) a plant that produces hammers B) a science lab that does complex genetic research C) a plant that manufactures airplanes D) an R&D department in a drug manufacturing company

When there are limits on the usefulness of direct, personal supervision by managers, organizations have to find other ways to control their activities. In such a situations, which of the following, typically, is the first step taken by the organizations? A) decreasing the level of standardization B) increasing the level of horizontal differentiation C) increasing the division of labor D) increasing the span of control

Which of the following functions will most likely have the tallest hierarchy? A) Manufacturing B) Sales C) R&D D) Accounting

Usually, Sales has a relatively ________ hierarchy because supervisors use ________. A) flat; centralization B) flat; standardization C) tall; centralization D) tall; standardization

Which of the following factors is most likely to increase vertical differentiation within an organization because it leads to the creation of many subunit hierarchies within the organization? A) increasing level of formalization B) increasing employee empowerment C) increasing horizontal differentiation D) increasing upward communication but decreasing downward communication

As the hierarchy of an organization becomes taller, ________. A) the number of managers decreases drastically B) the process of coordination gets simplified C) the complexity of the organization's specific environment increases D) managers begin to spend more and more time monitoring and supervising their subordinates

When authority is ________, the authority to make significant decisions is delegated to people throughout the hierarchy, not concentrated at the top. A) standardized B) formalized C) decentralized D) differentiated

Which of the following is the most direct effect of decentralization? A) the time required to make decisions increases B) the flexibility of the organization decreases C) the specific environment of the organization gets stabilized D) the monitoring burden on top managers is reduced

Which of the following actions most likely enables even a relatively tall structure to be more flexible in its responses to changes in the external environment? A) promoting downward communication and discouraging upward communication B) increasing the specialization and division of labor C) increasing vertical differentiation D) decentralizing authority

Which of the following is most likely to be the effect of standardization? A) The actions of the employees become predictable. B) Managers span of control decreases. C) The number of levels in the hierarchy increases. D) The need for division of labor decreases.

Standardization ________. A) enables a manager to increase his or her span of control B) makes it necessary to increase the number of levels in the hierarchy C) increases the need for direct supervision D) can be used only in a highly centralized organization

Which of the following terms refers to a form of organizational structure in which people can be held accountable for their actions because they are required to act in accordance with well-specified and agreed-upon rules and standard operating procedures? A) an organic organization B) a bureaucracy C) a matrix organization D) an autocracy

________, a German sociologist, developed bureaucratic organizing principles that underlie effective organizational structure. A) Frederick Herzberg B) Abraham Maslow C) Max Weber D) Daniel Bell

Weber's bureaucratic model is based on ________ authority. A) traditional B) elected C) rational-legal D) charismatic

Which of the following is one of Weber's bureaucratic principles? A) A tall organization should use a decentralized organizational structure and narrow span of control. B) In order to decrease environmental complexity, an organization should centralize its operations. C) Organizational roles are held on the basis of technical competence. D) Employees should be allowed to participate in decision-making.

With reference to Weber's principles of bureaucratic structure, which of the following terms refers to the authority a person possesses because of his or her position in an organization? A) rational-legal authority B) transactional authority C) charismatic authority D) transformational authority

According to Weber's principles of bureaucratic structure, the authority a person possesses results from ________. A) the person's social status B) the position of the person in the organization C) the educational qualification of the person D) the person's charisma

Which of the following statements is true according to Weber's principles of bureaucratic structure? A) Classroom training should be given to all the employees to improve their theoretical knowledge. B) In a stable environment, an organization should use a centralized organizational structure with narrow spans of control. C) A role's task responsibility and decision-making authority should be clearly specified. D) A 360 degrees appraisal should be conducted for all the employees at least twice a year.

Role ________ occurs when two or more people have different views of what another person should do, and as a result, make opposing demands on the person. A) conflict B) divergence C) contravention D) ambiguity

Joe, an accountant, works for Jack and Judy. Jack told Joe to use the straight-line method for calculating depreciation, and Judy told Joe to use the double-declining-balance method to compute depreciation. Joe is experiencing a role ________. A) divergence B) ambiguity C) conflict D) contravention

Role ________ occurs when a person's tasks or authority are not clearly defined and the person becomes afraid to act on or take authority for anything. A) conflict B) ambiguity C) struggle D) divergence

Bob and Amy are simply instructed to attract new clients, but are not given specific guidelines regarding how to accomplish this goal. Because they work for a conservative company, they are afraid to take risks. Bob and Amy are experiencing a role ________. A) ambiguity B) conflict C) divergence D) contravention

Which of the following characteristics of an organization is recommended by Weber's principles of bureaucratic structure? A) loosely defined roles B) a small span of control C) use of standard operating procedures D) decentralization

Which of the following types of organizations is most likely to be characterized by clearly defined roles, decision-making authority, rules, and standard operating procedures? A) an organic organization B) a bureaucratic organization C) a flat organization D) a vertically differentiated organization

Weber's principles can help a CEO with his or her responsibility for ________. A) selecting the top-management team B) designing the organizational hierarchy C) allocating resources to divisions D) determining the goals of an organization

Bureaucracy ________. A) hinders integration within the organization B) increases transaction costs C) separates the position from the person D) hinders a company's ability to compete in the marketplace against other organizations for scarce resources

Which of the following is a potential disadvantage of a bureaucratic structure? A) stagnation B) role conflict C) lack of standard operating procedures D) role ambiguity

In the case of a bureaucracy, if managers fail to control the development of the organizational hierarchy properly then the organization is most likely to become ________. A) flexible B) decentralized C) unresponsive to the needs of customers D) very flat

Which of the following is one of the important trends that is accelerating as the result of advances in IT? A) conducting classroom training for newly hired employees B) using self-managed teams C) using a highly centralized organizational structure D) using a tall organizational hierarchy with several levels

________ teams are formal work groups consisting of people who are jointly responsible for ensuring that the team accomplishes its goals and who are empowered to lead themselves. A) Transitory B) Contingent C) Self-managed D) Transactional

________ is the process of giving employees throughout the organization the authority to make important decisions and to be responsible for their outcomes. A) Empowerment B) Value engineering C) Operant conditioning D) Reciprocal logrolling

Which of the following statements is true regarding contingent workers? A) Contingent workers are highly useful in developing core competences. B) Contingent workers receive indirect benefits such as health insurance or pensions. C) Coordinating and motivating contingent workers is difficult. D) Contingent workers increase operating costs.

________ teams are work groups consisting of people from different work areas who are empowered to direct and coordinate different projects. A) Contingent B) Transactional C) Cross-functional D) Transitory

What are the two things that an organization can do to improve its ability to control?

Discuss the significance of direct supervision.

What is the major difference between a tall organization and a flat organization?

What are the various problems with tall hierarchies?

Discuss the Parkinson's law problem.

What is the principle of minimum chain of command?

Define span of control. What are the various factors that affect the span of control?

Discuss the significance of decentralization.

List the six bureaucratic principles developed by Max Weber.

What is management by objectives?