CHAPTER 7- ORGANIZATIONAL STRUCTURE AND DESIGN

A company with low departmentalization, wide spans of control, centralized authority, and little formalization possesses a ________ structure. A) simple B) functional C) divisional D) matrix

A

A(n) ________ organization is highly adaptive, loose, and flexible. A) organic B) centralized C) vertical D) mechanistic

A

As the number of employees in an organization grows, structure tends to become more ________. A) specialized B) informal C) centralized D) relaxed

A

Custom Leather CEO, Standish, is considering doubling the size of his workforce in conjunction with expanding the number of retail outlets that carry Custom Leather products. Lacey tells him that he should expect the organization to become ________ as a result of this change. A) more mechanistic B) more decentralized C) more organic D) less formalized

A

Eric Redd graduated from college and was hired by a company that manufactured parts for the automotive industry. Eventually, the top management noticed that the employees on the assembly line seemed bored, and their motivation was low. Eric's employer decided to try to reorganize in order to increase productivity. Eric's responsibilities are about to change from that of an engineer to a more complex one. 78) In an attempt to reorganize, the assembly-line activity was divided into separate job tasks. Individual employees were trained to become specialists in specific tasks rather than the entire activity. The company seems to have adopted ________. A) work specialization B) departmentalization C) cross-functional teams D) centralization

A

In a ________ structure the parent corporation typically acts as an external overseer to coordinate and control the various divisions and provide financial, legal, or other such support services. A) divisional B) simple C) functional D) matrix

A

In case of functional departmentalization, jobs are grouped according to ________. A) tasks B) territories C) product lines D) customer flow

A

In highly ________ organizations, there are explicit job descriptions, numerous organizational rules, and clearly defined procedures covering work processes. A) formalized B) decentralized C) leveraged D) capitalized

A

In which of the following traditional organizational designs, duplication of activities and resources leads to increase in costs and reduced efficiency? A) divisional structure B) team structure C) matrix structure D) project structure

A

Large organizations are more ________. A) mechanistic B) organic C) disorganized D) decentralized

A

Large organizations tend to have more ________ than smaller organizations. A) specialization B) departmentalization C) centralization D) rules and regulations

A

Low vertical differentiation, low horizontal differentiation, and low formalization are characteristics of an organization that carries out ________. A) unit production B) mass production C) process production D) flow production

A

The fact that Michelle's signature is required on all documents and her word is the last word on all decisions relating to her unit, suggests that ________. A) the hospital has a centralized structure B) the hospital has a decentralized structure C) the hospital has a simple structure D) the hospital has an organic structure

A

The greater the environmental uncertainty, the more an organization needs to become ________. A) organic B) mechanistic C) specialized D) departmentalized

A

The process of dividing work activities into separate job tasks is known as ________. A) work specialization B) differentiation C) chain of command D) span of control

A

The process of grouping jobs together is known as ________. A) departmentalization B) centralization C) formalization D) decentralization

A

Which of the following factors calls for a more centralized organizational structure? A) when the decisions to be taken are significant B) when the company is geographically dispersed C) when the organization is facing a crisis D) when the environment is complex

A

Worldwide economic downturn, global competition, accelerated product innovation by competitors, and increased demands from customers for high quality and faster deliveries encourage organizations to become more ________. A) organic B) mechanistic C) centralized D) formalized

A

________ is a type of technology that centers on small-batch production. A) Unit production B) Mass production C) Process production D) Flow production

A

________ is the degree to which decision making takes place at upper levels of the organization. A) Centralization B) Decentralization C) Formalization D) Functionalization

A

________ is the obligation or expectation to perform a duty. A) Responsibility B) Authority C) Ascendancy D) Preponderance

A

) Lacey believes that Joan Woodward's work will be particularly pertinent in considering Custom Leather's organizational structure, since Woodward believed that the effectiveness of the organization was related to the fit between the firm's structure and ________. A) culture B) technology C) accounting D) operations

B

A ________ is an organizational design that groups similar or related occupational specialties together. A) matrix structure B) functional structure C) divisional structure D) simple structure

B

A disadvantage of ________ departmentalization is poor communication across the different groups. A) geographic B) functional C) process D) customer

B

A(n) ________ organization is highly formalized and centralized. A) organic B) mechanistic C) rational D) intuitive

B

According to the traditional view, managers could notand should notdirectly supervise more than ________ subordinates. A) nineteen or twenty B) five or six C) ten or eleven D) fifteen or sixteen

B

As organizations become more flexible and responsive to environmental trends, there is a distinct shift toward ________ decision making. A) centralized B) decentralized C) concentrated D) amalgamated

B

In stable and simple environments, ________ . A) organic designs are most effective B) mechanistic designs are most effective C) low formalization is necessary D) decentralization is necessary

B

Michelle has noticed that everyone is very concerned about the line of authority within the hospital. This implies that the employees at the hospital are worried about the ________. A) decentralization of control B) chain of command C) span of control D) departmentalization

B

Michelle is a registered nurse in charge of a new unit at her hospital. She would like to have a more laidback approach in dealing with her new staff, but the hospital demands that there be strict hierarchical levels and that all decisions must be signed off by Michelle. Sometimes the constant filling out of forms, and so forth really annoys Michelle. She also feels that the numerous levels of hierarchy are unnecessary and place barriers between herself and her staff. She isn't sure why things have to be so "organized" and is thinking about speaking with her boss about having more flexibility and fewer rules. 82) Michelle is very concerned about the formal framework by which job tasks are divided, grouped, and coordinated within her unit. This implies that she is concerned about ________. A) group norms B) the organizational structure C) job rotation D) the span of control

B

Michelle was asked to represent the cardiac unit as part of a Total Quality Management (TQM) initiative that is aimed at improving the overall quality of care at the hospital. Other departments, such as orthopedics, neurology, oncology, and pediatrics also have representatives on this team. This TQM team is an example of ________. A) a multi-cultural team B) a cross-functional team C) process integration D) customer departmentalization

B

Moderate vertical differentiation, high horizontal differentiation, and high formalization are characteristics of an organization that indulges in ________. A) small-batch production B) mass production C) unit production D) process production

B

Organizational design is a process that involves decisions about ________. A) work specialization and cost-leadership B) chain of command and span of control C) centralization and differentiation D) departmentalization and diversification

B

Which of the following is a characteristic of an organic organization? A) high specialization B) cross-functional teams C) rigid departmentalization

B

Which of the following statements accurately defines work specialization? A) It is the basis of grouping jobs together. B) Individual employees specialize in doing part of an activity rather than the entire activity. C) It is the line of authority extending from upper organizational levels to the lower levels. D) It clarifies who reports to whom.

B

Which one of Fayol's 14 principles of management states that a person should report to only one manager? A) unity of direction B) unity of command C) division of work D) division of authority

B

________ is a type of technology that centers on large-batch production and requires moderate levels of complexity and sophistication. A) Unit production B) Mass production C) Process production D) Service production

B

A company is planning to revise its organizational structure and one of the managers, Anderson Cooper, suggests increasing employee empowerment by giving them more decision-making authority. Which of the following, if true, would support Cooper's stand? A) The firm's employees are reluctant to disrupt the status quo and are apprehensive about any change in responsibility. B) The firm's employees are used to an authoritative structure and clearly defined job-roles. C) The company's frontline workers have first-hand knowledge of what can and cannot be done. D) The company is trying to recover from an economic downturn that caused significant losses which necessitated downsizing.

C

Departmentalization based on ________ groups jobs on the basis of territory or physical location. A) customer B) product C) geography D) process

C

High vertical differentiation, low horizontal differentiation, and low formalization are characteristics of an organization that indulges in ________. A) mass production B) serial production C) process production D) unit production

C

In Joan Woodward's study of the relationship between technology and structure, the structure that was the most technically complex was ________. A) unit production B) mass production C) process production D) technological production

C

When Eric is offered a chance to help direct the efforts of some employees assigned to his work group, he sees this new assignment as a(n) ________. A) decrease in authority B) increase in departmentalization C) increase in his responsibility D) decrease in work specialization

C

Which of the following is a strength of simple structures? A) Employees are grouped with others who have similar tasks. B) It focuses on results. C) It is inexpensive to maintain. D) It remains appropriate even as the organization changes as it grows

C

Which of the following traditional organizational designs focuses on results by holding division managers responsible for what happens to their products and services? A) simple structure B) functional structure C) divisional structure D) matrix structure

C

Work teams composed of individuals from various functional specialties are known as ________ teams. A) cross-control B) cross-training C) cross-functional D) cross-command

C

________ departmentalization is based on the product or customer flow through the organization. A) Product B) Functional C) Process D) Customer

C

________ is the formal arrangement of jobs within an organization. A) Departmentalization B) Organizational design C) Organizational structure D) Work specialization

C

) Eric majored in engineering and really enjoyed his work. After the reorganization, Eric was required to work with a team that included production workers as well as marketing specialists to design the latest products the company was planning to offer. This implies ________. A) the company is becoming more centralized B) that Eric's job responsibilities have been reduced C) the company is becoming more mechanistic D) that Eric is a part of a cross-functional team

D

A(n) ________ organization is highly specialized and rigidly departmentalized. A) organic B) fundamental C) learning D) mechanistic

D

According to Woodward's studies, what type of production technology is best suited for a mechanistic structure? A) unit B) process C) product D) mass

D

All other things being equal, the wider or larger the span, the more ________ an organization is. A) ambitious B) rigid C) mechanistic D) efficient

D

GlaxoSmithKline would become more ________ if it starts allowing its lab scientists to set the priorities and allocate the resources. A) bureaucratic B) mechanistic C) diversified D) organic

D

If top managers make key decisions with little input from below, then the organization is ________. A) not mechanistic B) more decentralized C) not formalized D) more centralized

D

Joan Woodward divided firms into three distinct technologies that had increasing levels of complexity and sophistication: unit production, mass production, and ________. A) continuous production B) repetitive flow production C) series production D) process production

D

Paul Abdul Oil Corporation (PAOC) began as a relatively small oil company. As PAOC has grown, the company has gained a highly trained group of managers and analysts at the corporate headquarters. This group is highly adaptive in its structure. Members of this group do not have standardized jobs, but are empowered to handle diverse job activities and problems. PAOC seems to have a(n) ________ structure. A) mechanistic B) divisional C) functional D) organic

D

The ________ determines the number of levels and managers in an organization. A) delegation of authority B) unity of command C) chain of command D) span of control

D

The ________ is an organizational structure made up of separate business units with each unit having limited autonomy. A) bureaucratic structure B) simple structure C) functional structure D) divisional structure

D

The line of authority that extends from upper organizational levels to lower levels, clarifying who reports to whom, is known as the ________. A) employee power distance B) unity of command C) span of control D) chain of command

D

What are the different structures that traditional organizations can have? A) simple, functional, and corporate structures B) simple, functional, and business unit structures C) functional, strategic, and business unit structures D) simple, functional, and divisional structures

D

What are the four contingency variables that an organization's structure depends on? A) strategy, size, technology, and equity B) management, technology, equity, and degree of environmental uncertainty C) management, funding, technology, and degree of environmental uncertainty D) strategy, size, technology, and environmental uncertainty

D

What kind of departmentalization would be in place in a government organization where different public service responsibilities are divided into activities for employees, children, and the disabled? A) product departmentalization B) geographic departmentalization C) process departmentalization D) customer departmentalization

D

Which of the following is a characteristic of a mechanistic organization? A) cross functional teams B) free flow of information C) wide spans of control D) clear chain of command

D

Which of the following is a weakness of the simple structure? A) Duplication of activities and resources increases costs and reduces efficiency. B) Specialists become insulated and have little understanding of what other units are doing. C) Pursuit of functional goals causes managers to lose sight of what is best for the overall organization. D) It relies too much on one person which is very risky.

D

________ refers to how standardized an organization's jobs are and the extent to which employee behavior is guided by rules and procedures. A) Specialization B) Centralization C) Decentralization D) Formalization

D

________ refers to the rights inherent in a managerial position to tell people what to do and to expect them to do it. A) Responsibility B) Liability C) Bureaucracy D) Authority

D

Eric is offered a chance to help direct the efforts of some employees assigned to his work group. This is a chance for Eric to experience ________. A) self actualization B) groupthink C) referent power D) authority

d