Question 1

Which of the following statements is True?
A) Wide spans of control tend to be associated with centralized decision making.
B) Narrow spans of control tend to be associated with decentralized decision making.
C) A high level of work specialization tends to bring about a high level of work formalization.
D) Mechanistic organizations are typified by a structure that relies on low levels of work formalization.
E) Organic organizations are typified by a structure that relies on high degrees of work specialization.

Accepted Answer

A high level of work specialization tends to bring about a high level of formalization.

Question 2

In a mechanistic organization, employees are
A) encouraged to engage in lateral communication.
B) required to make their own decisions when appropriate.
C) given a very narrow view of the tasks they are to perform.
D) urged to develop knowledge outside of their specialization.
E) asked to think more broadly in terms of where their responsibilities lie.

Accepted Answer

Mechanistic organizations are characterized by a high degree of work specialization; employees are given a very narrow view of the tasks they are to perform.

Question 3

Current research suggests that
A) the narrower the span of control, the more productive employees become.
B) a moderate span of control is best for an organization's productivity.
C) spans of control in organizations have decreased significantly in recent years.
D) a wide span of control requires organizations to hire many managers.
E) a wide span of control is especially important if the manager has more skill than the subordinates.

Accepted Answer

A moderate span of control is best for an organization's productivity.

Question 4

Organizational design is the process of
A) creating procedures used to standardize employee behavior.
B) creating, selecting, or changing the structure of an organization.
C) empowering employees to have a greater say in the decision-making process.
D) determining how corporate management offices will be laid out and decorated.
E) describing an organization's objectives and goals and how it tries to make money.

Accepted Answer

Organizational design is the process of creating, selecting, or changing the structure of an organization.

Question 5

Paul's Creations makes handcrafted furniture out of vine twisted sassafras wood. Paul's could make the furniture more efficiently, but the individual touch and specially selected wood draws in customers who are willing to pay a premium for Paul's Creations' furniture. Paul's Creations is an example of a
A) matrix.
B) differentiator.
C) low-cost producer.
D) mechanistic design.
E) geographic structure

Accepted Answer

Companies that focus on a low-cost producer strategy rely on selling products at the lowest possible cost. To do this well, they have to focus on being as efficient as they can be. Such companies are more likely to take a mechanistic approach to organizational design. Other companies might follow a differentiation strategy. Rather than focusing on supplying a product or service at the lowest cost, these companies believe that people will pay more for a product that is unique in some way. It could be that their product has a higher level of quality or offers features that a low-cost product does not.

Question 6

In an organic organization,
A) employees know exactly whom they report to.
B) employees are not encouraged to make decisions without their manager's consent.
C) there are very clear lines of authority from the employee to the president of the company.
D) employees are encouraged to develop knowledge and expertise outside of their specialization.
E) information is passed through vertical communication between an employee and his or her supervisor.

Accepted Answer

One of the characteristics of organic organizations is that the employees are encouraged to develop knowledge and expertise outside of their specialization.

Question 7

Centralization reflects
A) where decisions are formally made in organizations.
B) the degree to which tasks in an organization are divided into separate jobs.
C) how many employees each manager in the organization has responsibility for.
D) the answer to the question of "who reports to whom?" and signifies formal authority relationships.
E) the degree to which rules and procedures are used to standardize behaviors and decisions in an organization.

Accepted Answer

Centralization reflects where decisions are formally made in organizations.

Question 8

A ________ span of control creates a ________ organization structure.
A) wide; flat
B) tall; flat
C) moderate; narrow
D) narrow; flat
E) flat; moderate

Accepted Answer

A wide span of control creates a flat organization structure.

Question 9

Talia formed a technology start-up in her garage, and it has grown more rapidly than she ever imagined. She has always kept tabs on all of her people, and her company has just passed 150 employees. What should she do now?
A) send managers to large corporations to bring back a sense of largeness
B) add more structure for communication and decision-making
C) decrease structure for communication and decision-making
D) increase the number of decisions that only she can make
E) eliminate some positions to keep numbers manageable

Accepted Answer

Startup CEOs relate that after they pass 150 employees, weird stuff starts to happen. The weird stuff means the company needs more structure for communications and decision-making.

Question 10

If decision making is pushed down to lower-level employees, and these employees feel empowered to make decisions on their own, an organization has a ________ structure.
A) flat
B) decentralized
C) wide
D) narrow
E) centralized

Accepted Answer

If decision making is pushed down to lower-level employees, and these employees feel empowered to make decisions on their own, the organization has a decentralized structure.

Question 11

Which of the following is a necessary coordination mechanism that organizations rely on to get a standardized product or deliver a standardized service?
A) formalization
B) centralization
C) span of control
D) chain of command
E) work specialization

Accepted Answer

Formalization is a necessary coordination mechanism that organizations rely on to get a standardized product or deliver a standardized service.

Question 12

Organic organizations are typified by a structure that relies on
A) a rigid and hierarchical chain of command.
B) high degree of work specialization.
C) centralization of decision making.
D) high levels of formalization.
E) weak chains of command.

Accepted Answer

Organic organizations are typified by a structure that relies on low levels of formalization, weak or multiple chains of command, low levels of work specialization, and wide spans of control.

Question 13

Formalization refers to
A) where decisions are formally made in organizations.
B) the degree to which tasks in an organization are divided into separate jobs.
C) how many employees each manager in the organization has responsibility for.
D) the answer to the question of "who reports to whom?" and signifies formal authority relationships.
E) the degree to which rules and procedures are used to standardize behaviors and decisions in an organization.

Accepted Answer

The degree to which rules and procedures are used to standardize behaviors and decisions in an organization refers to formalization.

Question 14

At Pleasant Pools Inc., there is a total focus on providing care and satisfaction to each customer. In the Prominent Clients division, each manager is assigned 3 employees to supervise, whereas in the Component Assembly division, each manager supervises about 15 employees. The Prominent Clients division managers can be described as having ________ as opposed to ________ for the Component Assembly division managers.
A) a narrow span of control; a wide span of control
B) a wide span of control; a narrow span of control
C) narrow centralization; tall centralization
D) tall formalization; flat formalization
E) flat formalization; tall formalization

Accepted Answer

Span of control is the number of employees a manager is responsible for. If a manager is responsible for leading 2 subordinates, in most instances, this level would be considered a narrow span of control. If a manager is responsible for 10 employees, typically, this number would be considered a wide span of control.

Question 15

In Big Bluff Heirlooms, a furniture manufacturing company, the arrival and departure times to and from work are specified to the minute, with time clocks used to control deviant behavior. It can be said that the company is high in
A) formalization.
B) centralization.
C) decentralization.
D) division of labor.
E) work differentiation.

Accepted Answer

A company is high in formalization when there are many specific rules and procedures used to standardize behaviors and decisions.

Question 16

The relationship between performance and span of control is graphed as a(n)
A) "arch" shape.
B) "U" shape.
C) straight horizontal line.
D) straight vertical line.
E) diagonal line sloping up to the right.

Accepted Answer

The relationship between performance and span of control is curvilinear and results in an "arch"-shaped diagram.

Question 17

Jeff and Matthew, father and son, opened a large boutique named Modus in Chicago. Being the owners of the business, they decide all of the important matters. All the rest of the decisions like product, finance, marketing, and personnel are carried out by the department heads, who have to act according to Jeff's and Matthew's instructions and orders. Which of the following is True about Modus?
A) The degree of formalization is very low in the organization.
B) It has a centralized system of decision making.
C) It has a very tall organizational structure.
D) It has a matrix organizational structure.
E) It has a narrow span of control.

Accepted Answer

Centralization reflects where decisions are formally made in organizations. If only the top managers within a company have the authority to make final decisions, it is a highly "centralized" structure.

Question 18

Which of the following is associated with decentralization in decision making?
A) moderate spans of control
B) tall spans of control
C) wide spans of control
D) narrow spans of control
E) flat spans of control

Accepted Answer

Some elements of an organization's structure seem to go hand-in-hand with other elements. For example, wide spans of control tend to be associated with decentralization in decision making.

Question 19

Michelle's Universal Boat Fins makes one product, a type of boat fin designed to fit on any pontoon boat, over and over again. The fins never change, because the unique design fits all boats. Given the nature of its business, Michelle's should
A) look for ways to vary its manufacturing procedures.
B) give each employee a specific task to perform.
C) allow employees to make their own decisions.
D) have a low mechanistic structure.
E) adopt an organic structure.

Accepted Answer

If a company makes the exact same thing over and over, it should focus on creating that one thing as efficiently as possible by having high levels of specialization, formalization, and centralization. However, if technologies need to be changed or altered to suit the needs of various consumers, it follows that decisions would be more decentralized and the rules and procedures the organization relies on would need to be more flexible.

Question 20

Organic organizations are
A) efficient, rigid, predictable, and standardized organizations that thrive in stable environments.
B) more complex designs that try to take advantage of two types of structures at the same time.
C) flexible, adaptive, outward-focused organizations that thrive in dynamic environments.
D) business units grouped around different products that the company produces.
E) flat organizations with one person as the central decision-making figure.

Accepted Answer

Organic organizations are flexible, adaptive, outward-focused organizations that thrive in dynamic environments.

Quiz 15: Organizational Structure

Which of the following statements is True?

In a mechanistic organization, employees are

Current research suggests that

Organizational design is the process of

In an organic organization,

Centralization reflects

A span of control creates a organization structure.

Talia formed a technology start-up in her garage, and it has grown more rapidly than she ever imagined. She has always kept tabs on all of her people, and her company has just passed 150 employees. What should she do now?

If decision making is pushed down to lower-level employees, and these employees feel empowered to make decisions on their own, an organization has a ________ structure.

Which of the following is a necessary coordination mechanism that organizations rely on to get a standardized product or deliver a standardized service?

Organic organizations are typified by a structure that relies on

Formalization refers to

In Big Bluff Heirlooms, a furniture manufacturing company, the arrival and departure times to and from work are specified to the minute, with time clocks used to control deviant behavior. It can be said that the company is high in

The relationship between performance and span of control is graphed as a(n)

Which of the following is associated with decentralization in decision making?

Michelle's Universal Boat Fins makes one product, a type of boat fin designed to fit on any pontoon boat, over and over again. The fins never change, because the unique design fits all boats. Given the nature of its business, Michelle's should

Organic organizations are