MAN Chapter 13

As organizations grow older, they tend to: A. become more formalized. B. have a more centralized structure. C. move toward a simple form of departmentalization. D. shift from a mechanistic to an organic structure. E. operate with a wide span of control and less standardization.

A. become more formalized.

When functional structures are compared with divisionalized structures, functional structures are known to: A. create better economies of scale. B. be more responsive to local markets. C. encourage employees to focus on the organization's superordinate goals. D. be more decentralized. E. be more responsive to client needs and reduce conflict across work units.

A. create better economies of scale.

To increase work efficiency and make it easier to match employee competencies with job requirements, companies: A. divide work into more specialized jobs. B. rely on formal hierarchy as a coordinating mechanism. C. rely on a narrow span of control. D. centralize decision making. E. rely on formal hierarchy and a narrow span of control.

A. divide work into more specialized jobs.

The _____ structure tends to duplicate resources, such as production equipment and engineering or information technology expertise. A. divisional B. functional C. simple D. matrix E. network

A. divisional

A wider span of control is possible if: A. employees manage themselves rather than being coordinated through close supervision. B. the company has a high degree of formalization and operates in a complex environment. C. the organization has few employees and a tall hierarchy. D. the company does not rely on self-directed teams. E. very few people report directly to a manager.

A. employees manage themselves rather than being coordinated through close supervision.

Organic structures are better than mechanistic structures for: A. hostile environments. B. stable environments. C. munificent environments. D. munificent and complex environments. E. simple and stable environments.

A. hostile environments.

Mechanistic structures operate best: A. in stable environments. B. where employees dislike hierarchy and status. C. when there are horizontal rather than vertical communication flows. D. where knowledge management is a competitive advantage to the organization. E. where employees perform tasks with high variability and low analyzability.

A. in stable environments.

In a typical matrix structure, several satellite organizations are bee-hived around a core firm. True False

False

Informal communication is a coordination mechanism only in small and a few medium-sized organizations. True False

False

Larger firms tend to be more centralized and make greater use of direct supervision than do smaller firms. True False

False

Mechanistic structures are better suited to dynamic environments than to stable environments. True False

False

Network structures come close to the perfect example of a mechanistic organizational structure. True False

False

One advantage of a matrix structure is clarity of accountability. True False

False

One of the main advantages of network structures is that they ensure the core organization has a high degree of control over production, marketing and other functions. True False

False

One of the main forces pushing organizations toward a matrix structure is the recognition that an organization has only a few core competencies. True False

False

Organizations tend to become less formalized as they age and grow larger in terms of the number of employees. True False

False

Tall hierarchies encourage employee empowerment and engagement because they focus power around employees rather than managers. True False

False

The more integrated its environment, the more an organization would benefit from a divisionalized form of departmentalization. True False

False

The two fundamental requirements of all organizational structures are divisionalization and decentralization. True False

False

When a manager has many direct reports, a narrow span of control exists. True False

False

When employees work in non-routine and ambiguous situations, formal hierarchy is the least time-consuming coordinating mechanism. True False

False

When tasks have high variability and low analyzability, a mechanistic structure works better than an organic structure. True False

False

When work activities are too complex to standardize through extensive training for employees, companies need to coordinate work effort through precise job descriptions. True False

False

When work is divided among people, a coordinating mechanism is needed to ensure that everyone works in concert. True False

True

Team-based organizational structures are usually found: A. in the manufacturing operations of larger divisionalized structures. B. in organizations that organize employees around distinct regions of the country or world. C. in matrix organizations. D. in government departments and agencies. E. in stand-alone organizations that have no other organizational structures.

A. in the manufacturing operations of larger divisionalized structures.

Standardizing work through job descriptions and procedures: A. is a form of coordination. B. is more common when the work is complex and ambiguous. C. tends to reduce quality and consistency. D. is unnecessary in large organizations. E. is more common in organic rather than mechanistic structures.

A. is a form of coordination.

One of the defining characteristics of a matrix organizational structure is that it: A. overlays two organizational structures in order to leverage the benefits of both. B. has a narrow span of control and high degree of formalization and centralization. C. is the only structure that organizes employees around specific knowledge or other resources. D. uses self-directed work teams rather than individuals as the basic building block of organizations. E. is an alliance of several organizations for the purpose of creating a product or serving a client.

A. overlays two organizational structures in order to leverage the benefits of both.

Formalization in organizational structures tends to: A. reduce organizational flexibility. B. encourage organizational learning and creativity. C. disperse decision authority and power throughout the organization. D. increase organizational learning. E. decrease efficiency and compliance.

A. reduce organizational flexibility.

Coordination of work activities is: A. required whenever there is division of labor. B. required only in team-based organizations. C. required whenever the organization has more than approximately 100 employees. D. required only when organizations operate in complex environments. E. discouraged in organizations as it leads to a high degree of interdependence among employees.

A. required whenever there is division of labor.

Freer trade, advances in information technology, and more global customers are pressuring many large global companies to: A. shift away from geographically-based to more client-based divisionalized structures. B. increase direct supervision as the main coordinating mechanism. C. shift away from divisionalized structures into functional structures. D. disband their team-based structures in favor of simple structures. E. shift from functional structures to geographically-based divisionalized structures.

A. shift away from geographically-based to more client-based divisionalized structures.

Flatter organizational structures: A. tend to reduce overhead costs. B. receive lower quality information from the external environment. C. undermine employee empowerment and engagement. D. receive less timely information from the external environment. E. narrow the span of control for supervisors.

A. tend to reduce overhead costs.

The simple structure usually depends on _____ to coordinate work activities, so it is very difficult to operate as the company grows and becomes more complex. A. the owner's direct supervision B. standardization through formal instructions C. formal training (standardizing skills) D. standardization of product or service outputs E. decentralization

A. the owner's direct supervision

Which of the following fundamental requirements do all organizational structures have? A. Flatter span of control and decentralization B. Division of labor and coordination C. Decentralization and divisionalization D. Coordination and decentralization E. Centralization and outsourcing

B. Division of labor and coordination

For which type of environment should organizations adopt an organic structure? A. Munificent environment B. Dynamic environment C. Stable environment D. Simple environment E. Routine environment

B. Dynamic environment

Which of the following forms of departmentalization organizes employees around specific skills or other resources? A. Divisional structure B. Functional structure C. Simple structure D. Matrix structure E. Network structure

B. Functional structure

Candoo Ltd. will soon flatten its hierarchy by removing two of the five layers of management. If the number of employees in the organization remains constant, which of the following must also occur? A. It must adopt a matrix form of departmentalization. B. It must widen the span of control. C. It must rely more on direct supervision than on standardization to coordinate the resulting structure. D. It must centralize decision making. E. It must discourage employee empowerment.

B. It must widen the span of control.

In organizational structures, integrator roles serve mainly as: A. a form of standardization. B. an informal communication coordinating mechanism. C. a form of direct supervision. D. technological contingency. E. main element in divisionalized structures.

B. an informal communication coordinating mechanism.

When work activities are too complex to standardize through procedures or goals, companies often coordinate work effort: A. through direct supervision. B. by extensively training employees. C. by giving one employee most of the tasks previously divided among many people. D. through further division of labor. E. through formal hierarchy.

B. by extensively training employees.

One of the defining characteristics of a functional organizational structure is that it: A. has a narrow span of control and high degree of formalization and centralization. B. is the structure that organizes employees around specific knowledge or other resources. C. overlays two organizational structures in order to leverage the benefits of both types of structure. D. uses self-directed work teams rather than individuals as the basic building block of organizations. E. is an alliance of several organizations for the purpose of creating a product or serving a client.

B. is the structure that organizes employees around specific knowledge or other resources.

One problem with a functional structure is that: A. it is more difficult to directly supervise employees within each department. B. it produces higher dysfunctional conflict and poorer coordination. C. it makes it difficult to permit greater specialization of skills. D. it prevents companies from creating economies of scale. E. employees have difficulty creating career paths within their area of knowledge.

B. it produces higher dysfunctional conflict and poorer coordination.

_____ is the degree to which organizations standardize behavior through rules, procedures, formal training, and related mechanisms. A. Departmentalization B. Span of control C. Formalization D. Centralization E. Division of labor

C. Formalization

Which form of departmentalization tends to have a very flat hierarchy, little formalization and organizes employees around work processes? A. Geographical structure B. Functional structure C. Team-based structure D. Matrix structure E. Network structure

C. Team-based structure

Organizational and environmental complexities push organizations toward: A. formalization. B. a more mechanistic structure. C. decentralization. D. a simple structure. E. a narrow span of control.

C. decentralization.

A team-based organizational structure has a: A. tall organizational hierarchy. B. high degree of formalization. C. decentralized organization structure. D. mechanistic organizational structure. E. narrow span of control.

C. decentralized organization structure.

Many companies are moving away from divisionalized structures that organize people around: A. functional specializations. B. clients. C. geographic clusters. D. products. E. emerging forms of technology.

C. geographic clusters.

An organic structure has: A. a narrow span of control. B. centralized decision making. C. little formalization. D. vertical communication flows. E. rigidly defined tasks.

C. little formalization.

Most employees at Quokka Systems are organized into project teams. Employees report to the project leader, but they also report to a leader responsible for their functional specialization (such as engineering or marketing). Quokka Systems has a: A. simple structure. B. client-based divisionalized structure. C. matrix structure. D. product-based divisionalized structure. E. functional structure.

C. matrix structure.

Communication flows in all directions with little concern for the formal hierarchy in a(n) _____ structure, but this structure is costly to maintain due to the need for ongoing interpersonal skill training. A. mechanistic B. centralized C. team-based D. functional E. divisional

C. team-based

Which of the following organizational design elements determines the sharing of resources and encourages coordination through informal communication? A. Span of control B. Formalization C. Centralization D. Departmentalization E. Standardization

D. Departmentalization

Which of the following is typically most important among people working in hospital surgical operations? A. Organizational goals B. Integrator roles C. Job descriptions D. Extensive training E. Company rules

D. Extensive training

_____ establishes the chain of command - the system of common supervision among positions and units within the organization. A. Span of control B. Formalization C. Centralization D. Job rotation E. Departmentalization

E. Departmentalization

A wholesale grocery business operates in one city and provides one service—stocking retailers with fresh produce. The company wants to ensure that employees develop expertise in their skill specialization and that these specializations are used efficiently. The aim is to create specialized pools of talent that serve everyone in the company. Which of the following forms of departmentalization would be most appropriate here? A. Simple structure B. Matrix structure C. Geographic divisional structure D. Functional structure E. Product divisional structure

D. Functional structure

A consumer products firm with a functional structure is expanding from a single product line into several diverse product groups, with most sales within one country. Which of the following should it eventually adopt to manage the new conditions most effectively? A. Geographic divisional structure B. Client divisional structure C. Matrix structure D. Product divisional structure E. Simple structure

D. Product divisional structure

Coordination through formal hierarchy relies on: A. informal communication. B. job descriptions. C. goals and objectives. D. direct supervision. E. specialized skills of the employees.

D. direct supervision.

The increasing recognition that an organization has only a few core competencies is one of the forces pushing towards more: A. functional structures. B. simple structures. C. client-based divisionalized structures. D. network structures. E. team-based structures.

D. network structures.

Span of control, centralization, and formalization together form a cluster around two broader organizational forms called: A. hierarchical and delayered structures. B. networked and team-based structures. C. geographic and product/client divisions. D. organic and mechanistic structures. E. diverse and integrated structures.

D. organic and mechanistic structures.

Many of the best-performing production plants are able to widen their span of control to more than 70 employees per supervisor by: A. teaching supervisors how to more efficiently monitor employees. B. giving up on the idea that all employees must perform their fair share of work. C. hiring supervisors who intimidate employees more often. D. relying on self-directed work teams and other coordinating mechanisms. E. introducing video cameras and other technologies to help supervisors to monitor more employees.

D. relying on self-directed work teams and other coordinating mechanisms.

Creative Advertising Corp. wants its 100 employees to work together around specific clients yet maintain an equal emphasis on alignment with their skill specializations (advertising, graphics, copywriting and public relations). Which of the following organizational structures would work best for Creative Advertising Corp.? A. Geographical divisional structure B. Simple structure with client-based divisional structure C. Network structure D. Client-based divisionalized form E. Matrix structure that overlays project teams with a functional structure

E. Matrix structure that overlays project teams with a functional structure

Which organizational structure actually consists of several organizations? A. Divisionalized structure B. Functional structure C. Simple structure D. Matrix structure E. Network structure

E. Network structure

Team-based organizations have: A. hourly wages and generous employee benefits. B. supervisors as the main source of direction and control. C. a tall hierarchy. D. communities of practice. E. a wide span of control.

E. a wide span of control.

Dividing work into more specialized jobs: A. increases training costs. B. reduces work efficiency. C. reduces the opportunity to match people with appropriate jobs. D. increases the time taken in changing from one task to another. E. gives an opportunity to the job incumbents to master their tasks quickly.

E. gives an opportunity to the job incumbents to master their tasks quickly.

Organizational size, technology, and environment are: A. the three dimensions of span of control. B. three of the four ways to avoid using coordinating mechanisms. C. three conditions that do not influence a simple structure. D. the three factors that distinguish a virtual corporation from a network structure. E. three of the four contingencies of organizational design.

E. three of the four contingencies of organizational design.

A mechanistic structure is decentralized, has a wide span of control and little formalization. True False

False

A problem with departmentalization is that it discourages coordination through informal communication. True False

False

A simple structure is one of the best structures in which to accommodate organizational growth and diversification. True False

False

All employees working in a matrix organization have two bosses. True False

False

An organization's structure is the same as its organizational chart. True False

False

As external environments become more complex and dynamic, organizational structures should become more mechanistic and less organic. True False

False

Companies with divisionalized structures are increasingly adopting the geographically-based structure. True False

False

Decentralization is the preferred strategy for organizations in simple, integrated (one market), and hostile environments. True False

False

If a company chooses a low-cost strategy, an organic structure is preferred because it maximizes production and service efficiency. True False

False

When employees perform highly interdependent work, generally a narrow span of control is necessary. True False

True

"Structure follows strategy" means that organizational designers should base their choice of structure on the implications of their strategic decisions. True False

True

A potential disadvantage of network structures is that they expose the core firm to market forces. True False

True

A problem with the divisional structure is that it increases the risk of duplication and underutilization of resources. True False

True

A problem with the team-based organizational structure is that employees may experience more stress due to ambiguity of their roles. True False

True

Companies can be centralized in some parts of the organization and decentralized in other parts. True False

True

Contingencies such as size, technology, and environment do not necessarily determine an organization's structure. True False

True

Departmentalization establishes interdependencies among employees and subunits and frames the membership of formal work teams. True False

True

Division of labor leads to increased job specialization. True False

True

Divisional structures may be formed around products, geography, or clients. True False

True

Formalization represents the establishment of standardization as a coordinating mechanism. True False

True

Functional structures foster professional identity and permit greater specialization than most other forms of departmentalization. True False

True

Functional structures tend to have higher dysfunctional conflict and poorer coordination across units than other forms of departmentalization. True False

True

If a company's strategy is to compete through innovation, a more organic structure is preferred. True False

True

Integrator roles increase informal communication as a coordinating mechanism. True False

True

Job descriptions help improve quality and consistency of a product or service by standardizing work activities. True False

True

Large organizations can encourage informal communication as a coordinating mechanism by keeping each production site small. True False

True

Mechanistic structures operate better in stable environments than in rapidly changing environments. True False

True

Most organizations begin with centralized structures and become more decentralized as they grow larger and divide work into more specialized functions. True False

True

Organizational strategy influences both the contingencies of structure and the structure itself. True False

True

Organizations move toward a team-based structure by flattening the hierarchy, reducing formalization, and making extensive use of self-directed work teams. True False

True

Standardizing processes is less effective for nonroutine and complex work than for routine or simple work. True False

True

Team-based organizational structures are usually found within larger divisionalized structures. True False

True

Temporary cross-functional teams can be used to encourage informal communication as a coordinating mechanism. True False

True

The conflict and ambiguity associated with the matrix structure causes some employees to experience more stress. True False

True

The geographic-product matrix structure is likely the most common matrix design among global companies. True False

True

The number of layers in an organization's hierarchy depends on the number of people employed and the average span of control. True False

True

The primary source of environmental diversity or uncertainty mainly determines the best form of divisional structure an organization should adopt. True False

True

The span of control is interconnected with organizational size and the number of layers in the hierarchy. True False

True