Question 1

In Jabu's organisation, the span of control is very wide.In Pam's organisation, the span of control is rather narrow.The number of levels of managers in Jabu's organisation is likely to be ____ in Pam's organisation.
A) greater than
B) smaller than
C) the same as that
D) narrower than
E) wider than

Accepted Answer

A wide span of control typically means fewer levels of management, while a narrow span of control usually results in more levels of management. Therefore, Jabu's organisation is likely to have fewer levels of managers compared to Pam's organisation.

Question 2

Dividing an organisation's manufacturing jobs into drill press, milling, heat treat and assembly areas is an example of grouping employees by
A) work process.
B) employee knowledge and skills.
C) business function.
D) client.
E) location.

Accepted Answer

Dividing the jobs into drill press, milling, heat treat and assembly areas is an example of grouping employees by their work process. Each area requires a specific set of skills and knowledge, and grouping employees by their work process ensures that they are familiar with the equipment and techniques required for their specific task. Therefore, option A is the best choice.

Question 3

Division of labour is often referred to as
A) departmentalisation.
B) the organisational chart.
C) specialisation.
D) configuration.
E) the administrative hierarchy.

Accepted Answer

Division of labour refers to the process of breaking down a large task into smaller, specialized tasks that can be performed by different individuals or groups within an organization. This process leads to specialization, which is reflected in the different job roles or functions that exist within the organization. Therefore, option C - specialisation - is the best choice. The other options are incorrect or too general to accurately reflect the concept of division of labour.

Question 4

In Tom's company, employees are given an opportunity to participate in decision making related to policy development, which is known as
A) formalised centralisation.
B) formalised concentration.
C) decentralisation.
D) formalisation.
E) centralisation.

Accepted Answer

Decentralisation is the process of delegating decision-making authority to lower levels of an organization's hierarchy. In Tom's company, employees are given the opportunity to participate in decision making related to policy development, which means that decision-making authority is distributed among various employees rather than being concentrated at the top.

Question 5

Organisational structure can be analysed by examining all of the following EXCEPT
A) division of labour.
B) span of control.
C) hierarchy.
D) centralisation.
E) All of these can be examined.

Accepted Answer

All of the options listed can be examined in analyzing an organizational structure. Division of labor refers to the way tasks are divided among employees, span of control is the number of employees that report to a manager, hierarchy is the way in which power and authority are distributed, and centralization refers to decision-making authority being concentrated at one level of the organization. All of these factors contribute to an organization's structure and should be examined when analyzing it.

Question 6

Grouping employees by ___________ is similar to grouping them by output, except that the focus is on specific job tasks rather than on what the final product is.
A) work process
B) employee knowledge and skills
C) business function
D) client
E) location

Accepted Answer

Grouping employees by work process means dividing them based on their specific job duties and tasks, which is similar to grouping by output. However, it focuses on the process rather than the final product.

Question 7

____ is the extent to which workers in an organisation specialise as opposed to performing a variety of tasks as generalists.
A) Segregation
B) Departmentalisation
C) Differentiation
D) Administrative component
E) Division of labour

Accepted Answer

The term "division of labour" specifically refers to the extent to which workers specialize in a particular task or set of tasks, rather than performing a variety of tasks as generalists. Segregation and departmentalization do not refer specifically to the extent of specialization of workers, while differentiation and administrative component are not directly relevant to this concept.

Question 8

The main advantage of division of labour is that it promotes
A) worker satisfaction.
B) worker autonomy.
C) the creation of stimulating jobs.
D) efficient use of labour.
E) increased employee motivation.

Accepted Answer

Division of labour involves breaking down tasks into smaller components and assigning specific tasks to different workers. This allows workers to become specialized in their tasks, leading to more efficient use of labour and increased productivity.

Question 9

Grouping employees by ___________ means that groups are organised according to a region of the country or world.
A) business function
B) location
C) output
D) work process
E) client

Accepted Answer

Grouping employees by location means that they are organised according to a region of the country or world, which can be beneficial for companies that operate in multiple locations or countries. This allows for better communication and coordination among employees in the same region, as well as potentially reducing travel costs and increasing efficiency.

Question 10

The organisational ____ is defined as the system of task, reporting and authority relationships within which the work of the organisation is done.
A) goal system
B) management
C) structure
D) community
E) matrix

Accepted Answer

The definition given perfectly matches the concept of organizational structure. Option A, goal system, relates to the goals set by the organization, but does not capture the idea of relationships within the organization. Option B, management, is a broader term that encompasses the concept of organizational structure. Option D, community, refers to a group of people with shared interests, not necessarily in a work setting. Option E, matrix, is a specific type of organizational structure, not the general concept. Therefore, the best choice is C - structure.

Question 11

The system of reporting relationships in the organisation, from the first level up through to the president or CEO, is known as
A) informal communication channels.
B) hierarchy.
C) bureaucracy.
D) administrative interdependence.
E) formal communication channels.

Accepted Answer

The system of reporting relationships is known as hierarchy.

Question 12

When individuals or groups throughout the hierarchy are not given an opportunity to participate in decision making, authority is
A) centralised.
B) efficient.
C) specialised.
D) flexible.
E) decentralised.

Accepted Answer

Centralised authority means decision-making is concentrated at the top levels of management, with little input from lower levels.

Question 13

Formalisation reflects the extent to which organisational rules, procedures and communications are
A) ethical.
B) fair.
C) written down.
D) comprehensive.
E) top-down.

Accepted Answer

Formalisation refers to the degree to which rules, procedures, and communications are written down and codified. This enables clarity and consistency in operations and fosters a more structured and organised system. While ethical and fairness considerations are important, they are not specific to formalisation as a concept. Similarly, comprehensiveness and top-down management may be useful, but they do not necessarily pertain to formalisation.

Question 14

____ is the number of people reporting to a manager.
A) Administrative intensity
B) Span of control
C) Work group size
D) Organisational control
E) Organisational management

Accepted Answer

Span of control refers to the number of subordinates or employees that report to a manager or supervisor. It is a crucial factor in determining the level of supervision and delegation of authority within an organization. A larger span of control generally means that a manager has more subordinates, while a smaller span of control means that a manager has fewer subordinates. Therefore, B is the correct choice.

Question 15

Communities of practice are not an official part of organisational structure, but they can make money for the organisation.

Accepted Answer

Communities of practice are informal networks within organizations that form around shared interests or expertise. While they are not usually officially recognized or part of the organizational structure, they can generate value for the organization by promoting knowledge sharing and innovation, improving problem-solving capabilities, and enhancing employee skills and job satisfaction. These benefits can ultimately lead to improved organizational performance and profitability.

Question 16

Which of the following is a potential disadvantage of division of labour?
A) Slower response to environmental changes
B) Organisational flexibility
C) Decreased potential for conflict, both constructive and destructive
D) Greater isolation of employees
E) All of these are potential disadvantages of division of labour.

Accepted Answer

Division of labour can lead to greater isolation of employees because they are only responsible for a specific task, which can hinder communication and collaboration with other employees. A is incorrect because division of labour can actually lead to faster response to environmental changes due to the specialization of tasks. B is incorrect because division of labour can decrease organisational flexibility as employees become more specialized and may not have the skills or knowledge to perform other tasks. C is incorrect because division of labour can increase potential for conflict as employees become more interdependent on each other and may compete for resources or recognition. Therefore, the correct answer is D.

Question 17

The structure of an organisation is defined as
A) the basic purpose of the organisation.
B) the sum of the individual working arrangements in place in an organisation.
C) a system of task, reporting and authority relationships.
D) a system of relationships that provides a framework of people.
E) the basis through which individual activities are monitored.

Accepted Answer

The structure of an organization is the system of relationships and hierarchy that outlines how tasks are assigned, reporting is conducted, and authority is distributed. It provides the framework for people within the organization, defining their roles and responsibilities. Options A, B, D, and E all touch on various aspects of organizational function, but they do not specifically describe the structure of an organization.

Question 18

When there is a small span of control, there is likely to be
A) an increase in the number of workers.
B) less control over production workers.
C) more administrative levels.
D) less bureaucracy.
E) looser managerial control.

Accepted Answer

A small span of control means that there are fewer subordinates reporting to each manager, which typically results in more administrative levels in the hierarchy. This is because there are more managers needed to supervise a larger number of workers, which can lead to a more bureaucratic organization. Additionally, with fewer workers under each manager, there is typically tighter managerial control rather than looser control.

Question 19

Jobs grouped according to traditional business tasks such as marketing and human resources are grouped by
A) work process.
B) employee knowledge and skills.
C) business function.
D) client.
E) location.

Accepted Answer

Jobs that are grouped by traditional business tasks such as marketing and human resources are classified according to their function within the organization. This means that each job is assigned to a particular department based on its primary function within the company. For example, all marketing jobs would be grouped together in the marketing department, while all human resources jobs would be grouped together in the HR department. This allows organizations to more efficiently manage their staff and resources by ensuring that each department is focused on its core responsibilities.

Question 20

The ____ shows all people, positions, reporting relationships and lines of formal communication in the organisation.
A) objectives chart
B) organisational chart
C) position chart
D) PERT chart
E) activities chart

Accepted Answer

An organisational chart is a visual representation that shows the hierarchical structure of an organisation. It displays all employees, positions, reporting relationships, and lines of formal communication among them. The chart provides a clear overview of the organisation's structure, making it easier for employees to understand their roles and responsibilities and how they relate to others within the company.

Quiz 14: Organisation Structure and Design

In Jabu's organisation, the span of control is very wide.In Pam's organisation, the span of control is rather narrow.The number of levels of managers in Jabu's organisation is likely to be ____ in Pam's organisation.

Dividing an organisation's manufacturing jobs into drill press, milling, heat treat and assembly areas is an example of grouping employees by

Division of labour is often referred to as

In Tom's company, employees are given an opportunity to participate in decision making related to policy development, which is known as

Organisational structure can be analysed by examining all of the following EXCEPT

Grouping employees by ___________ is similar to grouping them by output, except that the focus is on specific job tasks rather than on what the final product is.

____ is the extent to which workers in an organisation specialise as opposed to performing a variety of tasks as generalists.

The main advantage of division of labour is that it promotes

Grouping employees by ___________ means that groups are organised according to a region of the country or world.

The organisational ____ is defined as the system of task, reporting and authority relationships within which the work of the organisation is done.

The system of reporting relationships in the organisation, from the first level up through to the president or CEO, is known as

When individuals or groups throughout the hierarchy are not given an opportunity to participate in decision making, authority is

Formalisation reflects the extent to which organisational rules, procedures and communications are

____ is the number of people reporting to a manager.

Communities of practice are not an official part of organisational structure, but they can make money for the organisation.

Which of the following is a potential disadvantage of division of labour?

The structure of an organisation is defined as

When there is a small span of control, there is likely to be

Jobs grouped according to traditional business tasks such as marketing and human resources are grouped by

The ____ shows all people, positions, reporting relationships and lines of formal communication in the organisation.