Management Chapter 15

18) ________ is addressed by asking the question, "On what basis are jobs grouped together?" A) Departmentalization B) Work specialization C) Centralization and decentralization D) Formalization E) Span of control

A) Departmentalization

28) ________ refers to the degree to which jobs within the organization are standardized. A) Formalization B) Decentralization C) Departmentalization D) Span of control E) Chain of command

A) Formalization

60) Which of the following statements is true regarding a matrix structure? A) It breaks the unity-of-command concept. B) It cannot achieve economies of scale. C) It reduces ambiguity about who reports to whom. D) It prevents power struggles. E) It enhances role clarity and avoids role conflict.

A) It breaks the unity-of-command concept.

88) Which of the following dimensions of an environment describes the degree to which the environment can support growth? A) capacity B) flexibility C) volatility D) sustainability E) complexity

A) capacity

84) A(n) ________ strategy emphasizes the introduction of major new products and services. A) innovation B) cost-minimization C) imitation D) organic E) mechanistic

A) innovation

63) You describe to your students a new committee within the university that brings together specialists from all different departments to develop a new interdisciplinary program. The structure of the committee best meets the definition of the ________. A) matrix structure B) simple structure C) boundaryless organization D) virtual organization E) bureaucracy

A) matrix structure

64) The virtual organization is also called the ________ or ________ organization. A) network; modular B) boundaryless; social C) divisional; multi-level D) boundaryless; global E) matrix; divisional

A) network; modular

71) One of the major dangers within a virtual organization is the possibility of ________. A) politics B) technological failures C) downsizing D) information flow E) flexibility

A) politics

97) Job candidates who prefer ________ are likely to seek out and take employment in mechanistic structures, and those who want ________ are more likely to end up in an organic structure. A) predictability; autonomy B) centralization; decentralization C) job satisfaction; job security D) simple structure; matrix structure E) virtual organizations; boundaryless organizations

A) predictability; autonomy

6) Which one of the following is not one of the primary ways to group jobs? A) skill B) customer C) function D) product E) service

A) skill

55) Which of the following abilities is the primary strength of a bureaucracy? A) to perform standardized activities in a highly efficient manner B) to break the unity-of-command concept between departments C) to facilitate coordination when the organization has complex activities D) to save a great deal of money by eliminating hierarchical roles E) to rotate people through different functional areas using lateral transfers

A) to perform standardized activities in a highly efficient manner

16) A ________ is consistent with recent efforts by companies to reduce costs, cut overhead, speed up decision making, increase flexibility, get closer to customers, and empower employees. A) wider span of control B) high degree of formalization C) longer chain of command D) lack of work specialization E) high degree of centralization

A) wider span of control

69) Who coined the term "boundaryless organization"? A) Steve Jobs B) Jack Welch C) Henry Mintzberg D) Bill Gates E) Frederick Herzberg

B) Jack Welch

57) ________ is the key concept that underlies all bureaucracies. A) A dual line of command B) Standardization C) Decentralization D) Employee empowerment E) Wider span of control

B) Standardization

11) Chain of command is a key element of an organization's structure. Which of the following key questions is addressed by this element? A) How many individuals can a manager efficiently and effectively direct? B) To whom do individuals and groups report? C) On what basis will jobs be grouped together? D) To what degree are activities subdivided into separate jobs? E) To what degree will there be rules and regulations to direct employees and managers?

B) To whom do individuals and groups report?

4) Which of the following statements is true regarding work specialization? A) Work specialization indicates to what degree there will be rules and formalization regulations to direct employees and managers. B) Work specialization decreases the time spent in changing tasks. C) Work specialization increases the cost of finding and training workers to do specific and repetitive tasks. D) Work specialization provides an unending source of increased productivity. E) Work specialization hinders efficient use of employee skills.

B) Work specialization decreases the time spent in changing tasks.

12) The right inherent in a managerial position to give orders and expect orders to be obeyed is termed ________. A) chain of command B) authority C) span of control D) unity of command E) leadership

B) authority

75) In a boundaryless organization, how does management flatten the hierarchy and minimize status and rank? A) by eliminating cross-hierarchical teams B) by removing vertical boundaries C) by discouraging participative decision-making practices D) by dividing jobs into small standardized tasks E) by enforcing the chain of command

B) by removing vertical boundaries

87) Any organization's environment has three dimensions. Identify these dimensions. A) stability, adaptability, and employee-orientation B) complexity, volatility, and capacity C) replaceability, product-orientation, and stability D) flexibility, employee-orientation, and capacity E) volatility, product-orientation, and adaptability

B) complexity, volatility, and capacity

20) The Acme Products case study notes that the senior management at Acme is concerned because the company takes so long to bring new products to the market. Which of the following approaches would your trainees identify as the most likely solution to resolve this problem? A) reducing the use of cross-functional work teams B) decentralization of the decision-making process C) decreased work specialization D) decreased formalization of policies and procedures E) reduced diversity within the company's work force

B) decentralization of the decision-making process

21) You instruct the trainees to ask the client organization if they have clearly defined procedures covering most of the jobs in the organization and lots of rules and policies. You want to help them understand the ________. A) chain of command B) degree of formalization C) span of control D) degree of departmentalization E) degree of centralization

B) degree of formalization

5) The basis by which jobs are grouped is called ________. A) formalization B) departmentalization C) chain of command D) span of control E) centralization

B) departmentalization

29) Employee discretion is inversely related to ________. A) complexity B) formalization C) specialization D) departmentalization E) empowerment

B) formalization

89) Volatility refers to the degree of ________ within an environment. A) sustainability B) instability C) flexibility D) complexity E) adaptability

B) instability

82) Which of the following is typically a characteristic of the mechanistic model of organization? A) low formalization B) rigid departmentalization C) decentralized management D) wide spans of control E) low specialization

B) rigid departmentalization

24) Matthew is a new divisional manager. In reorganizing his division, he must make some decisions regarding the span of control for management within his division. The question of span of control determines ________. A) the employee grievance policy of the organization B) the number of levels and managers an organization has C) where decisions are made D) how jobs will be grouped E) how employees will be compensated

B) the number of levels and managers an organization has

65) A ________ organization is a small, core organization that outsources major business functions. A) centralized B) virtual C) bureaucratic D) matrix E) simple

B) virtual

67) You are the CEO of Apex Systems. You have decided to hire other organizations to perform many of the basic functions of your business. You have hired an accounting firm to keep your records, a recruiting firm to handle human resource functions, and a computer firm to handle all records. To keep costs down, you are looking for other areas in which to outsource operations. You have chosen to operate your business as a ________. A) matrix organization B) virtual organization C) highly centralized organization D) boundaryless organization E) bureaucracy

B) virtual organization

17) Consultants Exceptional (CE) has hired you to develop training materials for their consultants. Your first assignment is to develop a training program that helps their consultants to analyze and understand the organizational structure of the company that they are assisting. You believe that in order to adequately evaluate and understand a client company, consultants need to understand the basic organizational structure of the company. Consultants are then able to recommend actions and changes based on the company's structure. One of the questions you tell the trainees to ask is, "To what degree are tasks subdivided into separate jobs?" This question addresses the issue of ________. A) formalization B) work specialization C) span of control D) chain of command E) matrix restructuring

B) work specialization

22) ________ refers to the degree to which decision making is concentrated at a single point in the organization. A) Formalization B) Departmentalization C) Centralization D) Work specialization E) Line of command

C) Centralization

53) Which of the following statements is true about the simple structure? A) It is very expensive to operate. B) It is characterized by a high degree of departmentalization. C) It becomes increasingly inadequate as an organization grows. D) It is rigid. E) It is characterized by a narrow span of control.

C) It becomes increasingly inadequate as an organization grows.

2) A task that is subdivided into many separate jobs is considered to have ________. A) a high degree of departmentalization B) a low degree of decentralization C) a high degree of work specialization D) a wider span of control E) a high degree of formalization

C) a high degree of work specialization

14) The unity-of-command principle states that ________. A) managers should limit their oversight to a maximum of 12 employees B) managers should oversee 1-4 employees on average C) an individual should be directly responsible to only one supervisor D) managers should provide direction to their employees in a unified fashion E) employees should report directly to two supervisors to maintain task balance

C) an individual should be directly responsible to only one supervisor

70) Lotus Inc. is attempting to flatten its organizational hierarchy. It is encouraging the use of cross-hierarchical teams, participative decision-making practices, and the use of 360-degree performance appraisals. Based on this information we can say that Lotus Inc. is attempting to create a ________ organization. A) highly centralized B) virtual C) boundaryless D) highly formalized E) highly departmentalized

C) boundaryless

51) You are interested in explaining the different types of organizational designs to students of basic management. These students need to know the advantages and disadvantages of each structure as well as the structure's characteristics. You extol the virtues and benefits of standardization. You are probably promoting the ________. A) matrix structure B) virtual organization C) bureaucracy D) team structure E) simple structure

C) bureaucracy

90) The ________ of an environment refers to the degree of heterogeneity and concentration among environmental elements. A) volatility B) flexibility C) complexity D) adaptability E) permeability

C) complexity

86) Which of the following is not part of an organization's environment? A) public pressure groups B) customers C) employees D) competitors E) suppliers

C) employees

68) The major advantage of the virtual organization is its ________. A) decentralized structure B) ability to enhance role clarity C) flexibility D) highly departmentalized structure E) ability to minimize organizational politics

C) flexibility

83) Which of the following is typically a characteristic of the organic model of organization? A) narrow spans of control B) centralization C) free flow of information D) high formalization E) clear chain of command

C) free flow of information

100) Rahael's Bakery is a small organization which specializes is cakes, cookies, and other treats for special events such as birthdays, weddings, and religious affairs. In an effort to increase profit margins, the bakery management is implementing a cost-minimization strategy. Which of the following activities would not be a possible action under this strategy? A) start selling plainly frosted cakes that the customer could then decorate. B) only sell chocolate chip cookies C) hold weekly employee meetings D) stop delivery services E) None of these ideas would work in the strategy.

C) hold weekly employee meetings

85) Organizations following a(n) ________ strategy try to both minimize risk and maximize opportunity for profit, moving into new products or new markets only after innovators have proven their viability. A) innovation B) cost-cutting C) imitation D) organic E) mechanistic

C) imitation

76) All of the following are negative impacts of downsizing on organizational performance, except ________. A) increased sickness absences B) lower concentration on job C) lower wage costs D) less commitment to the organization E) lower creativity

C) lower wage costs

59) Which of the following types of organizational designs combines two forms of departmentalization: functional and product? A) simple structure B) bureaucracy C) matrix structure D) virtual structure E) boundaryless structure

C) matrix structure

61) Which of the following types of organization structures is best suitable for coordination when the organization has a number of complex and interdependent activities? A) simple structure B) bureaucracy C) matrix structure D) divisional structure E) centralized structure

C) matrix structure

98) Work specialization contributes to higher employee productivity-but at the price of ________. A) reduced economies of scale B) increased cost C) reduced job satisfaction D) restricted flow of information E) increased complexity

C) reduced job satisfaction

30) The clerical and editorial employees in a publishing house need to be at their desks by 8:00 AM and follow a set of precise procedures dictated by management. The jobs of these clerical and editorial employees ________. A) have a wide span of control B) score high on the degree of departmentalization C) score high on the degree of formalization D) lack a unity of command E) score low on the degree of work specialization

C) score high on the degree of formalization

50) The ________ is characterized by a low degree of departmentalization, wide spans of control, authority centralized in a single person, and little formalization. A) bureaucracy B) matrix organization C) simple structure D) team structure E) centralized structure

C) simple structure

72) HyperShield is an international securities firm which specializes in securing loans for cross-national transactions, such as real estate purchases and joint ventures. With offices in several countries, the organization operates in a virtual format. Lately, the productivity of the organization has been greatly diminishing and the number of completed transactions per month has gone down to 25% of the transactions of this time last year. Which of the following could explain why this organization is struggling? A) Because of the crossed borders, cultural differences in work day length are causing communication issues. B) The presence of leadership at each of the locations is too strong causing political behaviors and excess communication. C) The shared goals of the teams have become lost due to cultural alignment. D) Both A and C E) All A, B, and C

D) Both A and C

58) Which of the following statements is true regarding a bureaucracy? A) Bureaucracies need innovative and experienced decision makers at all levels in the organization. B) Bureaucracy is an ideal organizational design for those organizations that operate under highly uncertain conditions. C) Typically bureaucracies have wider spans of control. D) Bureaucracies can get by with less talented middle- and lower-level managers. E) Bureaucracies encourage employee empowerment.

D) Bureaucracies can get by with less talented middle- and lower-level managers.

73) ________ is a systematic effort to make an organization leaner by selling off business units, closing locations, or reducing staff. A) Removing boundaries B) Departmentalizing C) Decentralizing D) Downsizing E) Formalizing

D) Downsizing

15) Span of control is a key element of an organization's structure. Which of the following key questions is addressed by this element? A) On what basis will jobs be grouped together? B) To whom do individuals and groups report? C) To what degree will there be rules and regulations to direct employees and managers? D) How many individuals can a manager efficiently and effectively direct? E) To what degree are activities subdivided into separate jobs?

D) How many individuals can a manager efficiently and effectively direct?

91) An organization pursuing a(n) ________ tightly controls costs, refrains from incurring unnecessary expenses, and cuts prices in selling a basic product. A) simple structure B) imitation strategy C) innovation strategy D) cost-minimization strategy E) matrix structure

D) cost-minimization strategy

10) Aeronautics Inc., a parts supplier, has departments for government aircraft and contracts, large commercial aircraft clients, and small personal aircraft clients. This is an example of ________ departmentalization. A) product B) function C) geography D) customer E) service

D) customer

56) A bureaucracy is characterized by all of the following except ________. A) highly routine operating tasks B) formalized rules and regulations C) tasks that are grouped into functional departments D) decentralized decision making E) high work specialization

D) decentralized decision making

8) AgriProducers provides services related to the testing of soil and crops. It also provides advice to its customers for improving the productivity of the soil and the quality of the crops. It has customers all over the United States. The crops and soil are different in the various large areas of the nation, such as the west coast and the midwest. Which type of departmentalization would be best for AgriProducers? A) functional B) process C) product D) geographic E) temporal

D) geographic

99) Some individuals want work that makes minimal intellectual demands and provides the security of routine; for them, ________ is a source of job satisfaction. A) free flow of information B) wide span of control C) low formalization D) high work specialization E) high decentralization

D) high work specialization

19) Your trainees are given a case study concerning a local manufacturing firm called Acme Products. In assessing Acme's organizational structure, your trainees notice that all of the company's decisions are made by top management, with little or no input from lower-level personnel. The trainees most likely identify Acme as a(n) ________ organization. A) highly decentralized B) highly formalized C) highly departmentalized D) highly centralized E) informally structured

D) highly centralized

9) Some of the departments in Procter & Gamble are Tide, Pampers, Charmin, and Pringles. This is an example of departmentalization by ________. A) function B) process C) geography D) product E) interest

D) product

74) Which of the following is not a strategy to reduce the negative impact of downsizing? A) investment in high-involvement work practices B) early discussion of downsizing with employees C) employee participation in the downsizing process D) removal of vertical boundaries E) provision of post-downsizing assistance

D) removal of vertical boundaries

23) Which of the following statements is true regarding a centralized organization? A) A centralized organization is more flexible than a decentralized organization. B) In a centralized organization, decision making is pushed down to the managers closest to the action. C) A centralized organization is more responsive than a decentralized organization. D) In a centralized organization, top managers are rarely involved in decision making. E) In a centralized organization, decision making is concentrated at a single point in the organization.

E) In a centralized organization, decision making is concentrated at a single point in the organization.

25) While observing the departments in his division, Matthew notices that some managers with wide spans of control seem to perform more effectively than other managers with similarly sized spans of control. Which of the following statements is most likely to be true regarding the high-performing managers? A) These managers are paid higher salaries than the low-performing managers. B) These managers have eternal locus of control. C) The employees within their departments tend to compete to reach productivity goals, which boosts performance. D) The employees within their departments score high on agreeableness. E) The employees within their departments are highly skilled and very knowledgeable about their jobs.

E) The employees within their departments are highly skilled and very knowledgeable about their jobs.

66) Which of the following types of organizations is most likely to operate in a state of perpetual flux and reorganization? A) a highly decentralized organization B) a boundaryless organization C) a matrix organization D) a bureaucracy E) a virtual organization

E) a virtual organization

7) A manufacturing manager organizes a plant into engineering, accounting, manufacturing, personnel, and supply specialists departments. This division of an organization into groups according to work functions is an example of ________. A) social clustering B) bureaucracy C) specialization D) centralization E) departmentalization

E) departmentalization

3) A ________ allows management to make the most efficient use of its employees' skills and even successfully improve them through repetition. A) low degree of centralization B) high degree of formalization C) wider span of control D) low degree of departmentalization E) high degree of work specialization

E) high degree of work specialization

26) The more the lower-level personnel provide input or are actually given the discretion to make decisions, the ________ within that organization. A) higher is the degree of formalization B) lower is the level of empowerment C) lower is the degree of work specialization D) higher is the degree of departmentalization E) higher is the degree of decentralization

E) higher is the degree of decentralization

62) Which one of the following problems is most likely to occur in a matrix structure? A) decreased response to environmental change B) decreased employee motivation C) decreased economies of scale D) increased groupthink E) increased power struggles

E) increased power struggles

1) Which of the following is not one of the six key elements of organizational structure? A) chain of command B) departmentalization C) work specialization D) span of control E) location of authority

E) location of authority

27) Publishing representatives who call on college professors to inform them of their company's new publications have a great deal of freedom in their jobs. They have only a general sales pitch, which they tailor as needed. Based on this information, we can say that the job of these publishing representatives scores ________. A) low on the degree of work specialization B) low on the degree of decentralization C) high on the degree of departmentalization D) high on the degree of centralization E) low on the degree of formalization

E) low on the degree of formalization

52) You assign your students a project that involves developing a business plan for a retail chain. The retail chain will have 1000 employees and will serve customers both locally and internationally via a storefront and an Internet catalog. Which of the following organizational designs is least likely to be suitable for this retail store? A) matrix B) virtual C) bureaucracy D) team E) simple

E) simple

54) Samantha is the owner of a flower shop. She has five employees that all report directly to her and she makes all the decisions regarding the type and quantity of flowers and looks after the shop's finances. Which type of organizational structure does Samantha have? A) bureaucracy B) virtual structure C) matrix structure D) boundaryless structure E) simple structure

E) simple structure

92) Which of the following determinants of an organization's structure describes the way an organization transfers inputs into outputs? A) strategy B) environment C) investment D) size E) technology

E) technology

13) The principle of ________ helps preserve the concept of an unbroken line of authority. A) span of control B) chain of command C) cross-functionality D) centralization E) unity of command

E) unity of command