Chapter 14 Organizational Structure and Design

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

B

The difference between direct contact and a liaison role is that direct contact is _________ whereas a liaison role is _________. (A) formal, informal (B) informal, formal (C) temporary, permanent (D) permanent, temporary (E) effective, ineffective

B

The purpose of organizational structure is to appeal to external competitors. (A) True (B) False

B

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

B

When a firm uses _________, it makes large volumes of identical products, typically using assembly lines and machines. (A) unit production (B) mass production (C) continuous production (D) a primary production system (E) a matrix structure

B

Which of the following is true about communities of practice? (A) they provide only qualitative, rather than quantitative, value (B) they can span multiple companies (C) they meet regularly (D) they meet in person (E) none of these

B

________ is an organizational structure that groups people with the same skills, or who use similar tools or work processes, together into departments. (A) Matrix structure (B) Functional structure (C) Bureaucratic structure (D) Prebureaucratic structure (E) Lattice structure

B

A ____________ has a balanced, matrixed relationship between local managers and headquarters with a two-way flow of ideas, resources, and employees between the two locations. (A) global area division structure (B) regional lattice structure (C) regional headquarters structure (D) global product division structure (E) global transnational division structure

E

A mechanistic structure can be characterized by all of the following EXCEPT (A) it is primarily hierarchical. (B) communication is typically vertical. (C) knowledge is concentrated at the top. (D) instructions come from the boss. (E) a high focus on adaptability.

E

In organizations with a _________, cross-functional and cross-level subteams are formed and dissolved as necessary to complete specific projects and tasks. (A) matrix structure (B) functional structure (C) bureaucratic structure (D) prebureaucratic structure (E) lattice structure

E

____ is the extent to which workers in an organization specialize as opposed to performing a variety of tasks as generalists. (A) Segregation (B) Departmentalization (C) Differentiation (D) Administrative component (E) Division of labor

E

Responsibility cannot be delegated down to others, but authority can. (A) True (B) False

A

The structure of an organization is defined as (A) the basic purpose of the organization. (B) the sum of the individual working arrangements in place in an organization. (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.

C

When a firm uses _________, machines constantly make the product while employees monitor the machines and plan changes. (A) unit production (B) mass production (C) continuous production (D) a primary production system (E) a matrix structure

C

To succeed in a rapidly changing environment, an organization needs to have a more _________ structure. (A) centralized (B) formalized (C) bureaucratic (D) mechanistic (E) flexible

E

Efficient use of labor is one of the advantages of division of labor. (A) True (B) False

A

Formalization tends to delineate rules and procedures for employees' jobs. (A) True (B) False

A

If a firm uses unit production and makes custom products, it should have a _________ structure with a _________ managerial span of control is most appropriate. (A) flatter, smaller (B) flatter, larger (C) taller, smaller (D) taller, larger (E) none of these

A

In organizations with a _________, employees report to both a project or product team and to a functional manager. (A) matrix structure (B) functional structure (C) bureaucratic structure (D) prebureaucratic structure (E) lattice structure

A

Which of the following is NOT true about communities of practice? (A) they must be recognized by executive leadership (B) they usually do not show up on organizational charts (C) they can use the company intranet to develop a sense of community (D) they share knowledge and experience openly and creatively (E) All of these are true of communities of practice.

A

Which term refers to a group of people whose shared expertise and interest in a joint enterprise informally binds them together? (A) community of practice (B) task force (C) liaison role (D) direct contact (E) cross-functional team

A

Implicit rules are set down in job descriptions, policy and procedure manuals, and office memos. (A) True (B) False

B

A ________ is a collection of functions organized around a particular geographic area, product or service, or market. (A) division (B) lattice (C) network organization (D) matrix (E) bureaucracy

A

A centralized organization concentrates decision making at the top of its hierarchy. (A) True (B) False

A

A company's pre-structural characteristics, which are determined largely by the founder's personality and values, often stay with the company even after it grows. (A) True (B) False

A

A virtual organization may not even have a permanent office. (A) True (B) False

A

An organizational chart illustrates the chain of command and reporting relationships in a company. (A) True (B) False

A

Communities of practice are not an official part of organizational structure, but they can make money for the organization. (A) True (B) False

A

A flatter, team-based structure is appropriate for firms that rely on (A) unskilled workers. (B) highly skilled workers. (C) mass production. (D) continuous production. (E) none of these

B

A(n) _________ contracts out almost all of its functions except for the company name and managing the coordination among the contractors. (A) lattice organization (B) virtual organization (C) network organization (D) matrix organization (E) community of practice

B

Although it is difficult to determine, there exists an optimal organizational size. (A) True (B) False

B

Centralization is the system of reporting relationships in the organization. (A) True (B) False

B

Delegation is the transfer of ____ to make decisions and use organizational resources. (A) responsibility (B) authority (C) leadership (D) operational control (E) none of the above

B

Departmentalization by customer is based heavily on geography. (A) True (B) False

B

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

B

Halo runs a tattoo parlor. Customers who place orders have unique words or images inked permanently into their skin. This is an example of (A) mass production. (B) unit production. (C) continuous production. (D) matrix structure. (E) lattice structure.

B

A _________ is a collection of autonomous units or firms that act as a single larger entity, using social mechanisms for coordination and control. (A) division (B) lattice (C) network organization (D) matrix (E) bureaucracy

C

Dividing an organization'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.

A

Division of labor is the separation of work into different jobs to be done by different people. (A) True (B) False

A

If there is much employee participation in decision making, the organization structure is decentralized, regardless of the nature of the decisions being made. (A) True (B) False

A

In a ____________, regional and/or country managers are given substantial autonomy to adapt strategies to fit local situations. (A) global area division structure (B) regional lattice structure (C) regional headquarters structure (D) global product division structure (E) global transnational division structure

A

It's impossible for managers to create effective communities of practice, only the conditions necessary for them to exist. (A) True (B) False

A

One downside of a high division of labor is that it tends to isolate employees. (A) True (B) False

A

When a firm uses _________, it produces in small batches or makes one-of-a-kind custom products. (A) unit production (B) mass production (C) continuous production (D) a primary production system (E) a matrix structure

A

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

A

Which type of multinational organizational structure is appropriate when local differences are large and the benefits of global integration are small? (A) global area division structure (B) regional lattice structure (C) regional headquarters structure (D) global product division structure (E) global transnational division structure

A

Which type of production relies the most heavily on employee talent? (A) unit production (B) mass production (C) continuous production (D) a primary production system (E) a matrix structure

A

Which type of structure is characterized by employees having two bosses at the same time? (A) matrix structure (B) functional structure (C) bureaucratic structure (D) prebureaucratic structure (E) lattice structure

A

_______ organizations are flexible and decentralized, have open communication channels, and focus on adaptability in helping employees accomplish their goals. (A) Organic (B) Mechanistic (C) Matrix (D) Simple (E) Bureaucratic

A

Which element of organizational structure would a firm pursuing an innovation strategy be most likely to have? (A) centralization (B) decentralization (C) low specialization (D) high formalization (E) none of these

B

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

B

It is impossible for a large firm to retain elements of an organic structure. (A) True (B) False

B

Larger organizations tend to have ________ specialization and departmentalization and ______ rules than do smaller firms. (A) less, less (B) more, more (C) less, more (D) more, less (E) neither more nor less, neither more nor less

B

Most organizational problems can be fixed with restructuring. (A) True (B) False

B

Organizations with a _________ create horizontal or vertical teams that can define part or all of the organization. (A) division structure (B) team-based structure (C) network structure (D) virtual structure (E) centralized structure

B

Span of control is the degree to which rules and procedures shape employees' jobs and activities. (A) True (B) False

B

When a manager has a large span of control, she can maintain close control over workers and stay in contact with daily operations. (A) True (B) False

B

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

D

Which term refers to a temporary committee formed to address a specific project or problem? (A) community of practice (B) task force (C) liaison role (D) direct contact (E) cross-functional team

B

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

B

A group of civil engineers who share their knowledge and insights with other civil engineers is an example of a(n) (A) intranet. (B) virtual organization. (C) community of practice. (D) task force. (E) cross-functional team.

C

Division of labor is often referred to as ____. (A) departmentalization. (B) the organizational chart. (C) specialization. (D) configuration. (E) the administrative hierarchy.

C

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

C

In Tom's company, employees are given an opportunity to participate in decision-making related to policy development, which is known as (A) formalized concentration. (B) formalized concentration. (C) decentralization. (D) formalization. (E) centralization.

C

In a ____________, a headquarters is established in major geographical areas that works collaboratively with the product divisions to give the local units clearer operational goals and directions. (A) global area division structure (B) regional lattice structure (C) regional headquarters structure (D) global product division structure (E) global transnational division structure

C

In which integrating mechanism is a manager or team member held formally accountable for communicating and coordinating with other groups? (A) community of practice (B) task force (C) liaison role (D) direct contact (E) cross-functional team

C

In which type of organization do managers spend a lot of time coordinating and controlling the network of contractors and strategic alliances? (A) multinational organization (B) lattice organization (C) network organization (D) matrix organization (E) bureaucratic organization

C

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.

C

Large organizations tend to have a _________ hierarchy and _________ specialization than small organizations. (A) smaller, more (B) smaller, less (C) greater, more (D) greater, less (E) none of these

C

Organizations with a _________ are characterized by formal division of labor, hierarchy, and standardization of work procedures. (A) matrix structure (B) functional structure (C) bureaucratic structure (D) prebureaucratic structure (E) lattice structure

C

The benefits of a matrix organization include all of the following EXCEPT (A) it is flexible. (B) it can provide coordinated responses to pressures. (C) it is cheaper. (D) it improves project coordination. (E) it improves communication.

C

The difference between a task force and a cross-functional team is that a task force is _________ whereas a cross-functional team is _________. (A) formal, informal (B) informal, formal (C) temporary, permanent (D) permanent, temporary (E) effective, ineffective

C

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

C

When an organizational restructuring results in fewer employees, which of the following is NOT a common effect on the employees who remain? (A) increased turnover intention (B) increased stress (C) increased motivation (D) decreased commitment (E) All of these are common effects.

C

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.

C

Which of the following is NOT a factor that influences organizational structure? (A) external environment (B) organization's production technology (C) organizational age (D) organizational size (E) business strategy

C

Which of the following is NOT a good suggestion for creating the conditions that enable communities of practice to flourish? (A) start with a clear area of business need (B) recruit management involvement (C) don't start timidly (D) build on informal employee initiatives already underway (E) celebrate contributions

C

Which type of multinational organizational structure is best when a balance of global integration and local responsiveness is needed? (A) global area division structure (B) regional lattice structure (C) regional headquarters structure (D) global product division structure (E) global transnational division structure

C

Which type of organizational structure places a greater importance on employees higher in the structure, as reflected by centralized decision making and a strict chain of command? (A) matrix structure (B) functional structure (C) bureaucratic structure (D) prebureaucratic structure (E) lattice structure

C

Which type of production requires low levels of supervision because machines do most of the work? (A) unit production (B) mass production (C) continuous production (D) a primary production system (E) a matrix structure

C

Organizations that have an organic structure typically (A) have many levels in their organizational hierarchy. (B) concentrate decision making powers among few managers. (C) require obedience without questioning the organization's goals. (D) require their members to be committed to the organization's tasks. (E) none of these

D

Smaller organizations with low standardization, total centralization, and mostly one-on-one communication have a (A) matrix structure. (B) functional structure. (C) bureaucratic structure. (D) prebureaucratic structure. (E) lattice structure.

D

A large organization's legal department is staffed solely with lawyers. This illustrates (A) matrix structure. (B) functional structure. (C) bureaucratic structure. (D) prebureaucratic structure. (E) lattice structure.

D

As organization size increases, each of the following increases as well EXCEPT (A) centralization. (B) the number of rules. (C) the number of levels in the hierarchy. (D) flexibility. (E) specialization of labor.

D

Compared to wider spans of control, narrow spans of control are _________ costly and provide _________ supervision and coaching. (A) less, more (B) more, less (C) less, less (D) more, more (E) equally, just as much

D

Creating smaller units within a larger organization can increase which of the following? (A) flexibility (B) adaptability (C) decision-making speed (D) all of these (E) none of these

D

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

D

If employees are to be encouraged to make decisions and work collaboratively, a more _________ and _________ structure is appropriate. (A) centralized, narrower (B) centralized, flatter (C) decentralized, narrower (D) decentralized, flatter (E) none of these

D

In a ____________, all functional activities are controlled by a product group at headquarters; local managers do not usually provide input into product decisions and are involved only in local administrative, legal, and financial affairs. (A) global area division structure (B) regional lattice structure (C) regional headquarters structure (D) global product division structure (E) global transnational division structure

D

In which integrating mechanism do managers from different units informally work together to coordinate or to identify and solve shared problems? (A) community of practice (B) task force (C) liaison role (D) direct contact (E) cross-functional team

D

In which type of structure do costs tend to be higher due to the presence of program managers in addition to the functional managers? (A) bureaucratic structure (B) prebureaucratic structure (C) network structure (D) matrix structure (E) team-based structure

D

Large organizations tend to be _________ than small organizations. (A) more flexible (B) less centralized (C) less bureaucratic (D) more bureaucratic (E) none of these

D

One factor influencing organizational structure is the organization's technology, which is also called its (A) hours of operation. (B) business strategy. (C) organizational chart. (D) primary production system. (E) secondary production system.

D

Which of the following is a potential disadvantage of division of labor? (A) slower response to environmental changes (B) organizational 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 labor.

D

Which type of multinational organizational structure is appropriate when the benefits of global integration are large and local differences are small? (A) global area division structure (B) regional lattice structure (C) regional headquarters structure (D) global product division structure (E) global transnational division structure

D

Which type of organizational structure provides the founder the most control over the organization's decisions and growth? (A) matrix structure (B) functional structure (C) bureaucratic structure (D) prebureaucratic structure (E) lattice structure

D

Which type of structure do new or young organizations typically have? (A) matrix structure (B) functional structure (C) bureaucratic structure (D) prebureaucratic structure (E) lattice structure

D

Organizational structure can be analyzed by examining all of the following EXCEPT (A) division of labor. (B) span of control. (C) hierarchy. (D) centralization. (E) All of these can be examined

E

Which term refers to a permanent committee formed to address specific problems or recurring needs? (A) community of practice (B) task force (C) liaison role (D) direct contact (E) cross-functional team

E

Which type of multinational organizational structure works best when both global integration and local responsiveness are needed? (A) global area division structure (B) regional lattice structure (C) regional headquarters structure (D) global product division structure (E) global transnational division structure

E