OBE chapter 14
a
1) ________ defines how job tasks are formally divided, grouped, and coordinated. A) Organizational structure B) Work specialization C) Departmentalization D) Organizational behavior E) Matrix departmentation
a
10) You have divided the jobs performed by your department through work specialization and are now trying to decide how to best group these jobs to improve efficiency and customer service. You are considering whether to group activities by function, product, process, geography, or customer. You have decided that since you are a novice at departmentalization, you will go with the most popular method. You will probably choose ________. A) function B) product C) process D) customer E) matrix
e
11) The basis by which jobs are grouped together is termed ________. A) social clustering B) bureaucracy C) specialization D) centralization E) departmentalization
b
12) One of the most popular ways to group activities is by ________. A) product B) function C) geography D) process E) temporality
d
13) Proctor & Gamble departmentalizes by Tide, Pampers, Charmin, and Pringles. This is an example of departmentalization by ________. A) function B) process C) geography D) product E) interest
c
14) A plant manager who organizes the plant by separating engineering, accounting, manufacturing, personnel, and purchasing into departments is practicing ________ departmentalization. A) target-customer B) product C) functional D) geographic E) graphic
a
15) ________ departmentalization achieves economies of scale by placing people with common skills and orientations into common units. A) Functional B) Process C) Product D) Geographic E) Temporal
a
16) Which one of the following is not one of the primary ways to group jobs? A) skill B) customer C) function D) product E) process
c
17) Your company decides to establish southern, Midwestern, western, and eastern zones of operation. Based on this expansion, you decide to implement ________ departmentalization. A) area B) customer C) geography D) regional E) matrix
d
18) Your products fall into several categories with very different production methods for each category. Because of this, you might consider departmentalizing by ________. A) implementation B) method C) production D) process E) matrix
d
19) You discover that your market is clearly divided between very different types of clients, with different support needs. To respond to this market diversity, you will probably choose to departmentalize by ________. A) functional B) geography C) support D) customer E) matrix
e
2) Organizational structure has six key elements. Which of the following is not one of these elements? A) centralization B) departmentalization C) work specialization D) formalization E) location of authority
a
20) The unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom is termed ________. A) chain of command B) authority C) span of control D) unity of command E) web of authority
b
21) 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) power D) unity of command E) leadership
e
22) The ________ principle 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
c
23) The unity-of-command principle states which of the following? 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.
a
24) The ________ refers to the number of subordinates that a manager directs. A) span of control B) unity of command C) chain of command D) decentralization principle E) leadership web
c
25) As employees are being empowered to make decisions previously reserved for management, which concept of organizational structure has become less relevant? A) decentralization B) maintaining the chain of command C) centalization D) span of control E) departmentalization
c
26) If you have a narrow span of control, you have a(n) ________ organization. A) efficient B) short C) tall D) matrix E) fat
b
27) In reorganizing his division, Matthew must make some decisions regarding the span of control for management within his decision. The question of span of control determines ________. A) who reports to whom 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
a
28) ________ are 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 spans of control B) Narrower spans of control C) Matrix structures D) Simple structures E) Centralization
c
29) Which of the following is true regarding organizations that establish wide spans of control? A) At some point, employee performance increases substantially. B) At some point, supervisors become more efficient at providing support. C) At some point, wider spans of control reduce effectiveness. D) At some point, the organization becomes more formalized. E) At some point, the number of managers in the organization decreases.
b
3) 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. CE believes 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
e
30) In 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 true regarding the high-performing managers? A) These managers are paid higher salaries than the low-performing managers. B) These managers discourage employee autonomy, which produces more uniform departmental results. C) The employees within their departments tend to compete to reach productivity goals, which boosts performance. D) The employees within their departments have poor communication with each other. E) The employees within their departments are highly skilled and very knowledgeable about their jobs.
e
31) The best definition for centralization is a situation in which decision making ________. A) is pushed down to lower level employees B) is concentrated at top management levels in the organization C) depends on the situation D) is completed in each department and then sent to the president for review E) is diffused among a large segment of employees
c
32) Which one of the following dichotomies of organizational structure specifically defines where decisions are made? A) complexity/simplicity B) formalization/informalization C) centralization/decentralization D) specialization/enlargement E) affectivity/reflexivity
c
33) Which of the following is a drawback of a narrow span of control? It ________. A) reduces effectiveness B) is more efficient C) encourages overly tight supervision and discourages employee autonomy D) empowers employees E) increases participatory decision-making
c
34) Which of the following is not a drawback of a narrow span of control? A) It is expensive. B) It makes vertical communication in the organization more complex. C) Supervisors may lose control of their employees. D) It encourages overly tight supervision. E) It discourages employee autonomy.
b
35) The trend in recent years has been toward ________. A) narrower spans of control B) wider spans of control C) a span of control of four D) an ideal span of control of six to eight E) eliminating spans of control in favor of team structures
e
36) In an organization that has high centralization, ________. A) the corporate headquarters is located centrally to branch offices B) all top-level officials are located within the same geographic area C) action can be taken more quickly to solve problems D) new employees have a great deal of legitimate authority E) top managers make all the decisions and lower-level managers merely carry out directions
d
37) 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) decentralized B) highly formalized C) aggressively managed D) highly centralized E) informally structured
b
38) Senior management at Acme is concerned because the company takes so long to bring new products to market. Which of the following approaches would your trainees identify as most likely to help resolve this problem? A) reduction 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
e
39) The more that lower-level personnel provide input or are actually given the discretion to make decisions, the more ________ there is within an organization. A) centralization B) disempowerment C) work specialization D) departmentalization E) decentralization
a
4) ________ 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) Matrix restructuring
c
40) If a job is highly formalized, it would not include which of the following? A) clearly defined procedures on work processes B) explicit job description C) high employee job discretion D) a large number of organizational rules E) a consistent and uniform output
b
41) Employee discretion is inversely related to ________. A) complexity B) standardization C) specialization D) departmentalization E) empowerment
c
42) Which of the following is not a common organizational design? A) simple structure B) bureaucracy C) centralized structure D) matrix structure E) all of the above
c
43) ________ 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
a
44) Which one of the following is consistent with a simple structure? A) high centralization B) high horizontal differentiation C) high employee discretion D) standardization E) bureaucracy
d
45) A ________ is a flat organization. A) bureaucracy B) centralized structure C) matrix structure D) simple structure E) virtual organization
a
46) The simple structure is most widely practiced in small businesses in which ________. A) the owner also manages the company B) management is limited to one individual C) managers have a high degree of influence with the company's owner D) managers are hired directly by the company's owner E) training budgets are limited
b
47) The strength of the simple structure lies in its ________. A) efficiency B) simplicity C) centralization D) span of control E) specialization
c
48) Which of the following is not a weakness of the simple structure? A) It is risky. B) It is prone to information overload. C) There is little unity of command. D) It can lead to slower decision making. E) It is often insufficient in larger organizations.
b
49) You describe a structure that is flat, has little formalization, and is fast, flexible, and inexpensive to maintain. You are describing the ________. A) matrix structure B) simple structure C) bureaucracy D) team structure E) organizational pyramid
b
5) 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. CE believes 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. You instruct the trainees to ask about the degree of rules and regulations that direct employees and managers. You want to help them understand the ________. A) chain of command B) degree of formalization C) span of control D) degree of departmentalization E) idea of matrix restructuring
e
50) You assign your students a project that involves developing a business plan for a retail store. The store will have 200 employees and will serve customers both locally and internationally via a storefront and an Internet catalogue. Which of the following organizational designs is least likely to benefit the goals of this retail store? A) matrix B) virtual C) bureaucracy D) team E) simple
b
51) The key component underlying bureaucracies is ________. A) flexibility B) standardization C) dual lines of authority D) wide span of control E) the organizational pyramid
c
52) You extol the virtues and benefits of standardization. You are probably promoting the ________. A) matrix structure B) simple structure C) bureaucracy D) team structure E) organizational pyramid
d
53) 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) specialization
a
54) The structure that combines functional and product departmentalization is the ________. A) matrix structure B) simple structure C) bureaucracy D) team structure E) organizational pyramid
b
55) The matrix structure combines which two forms of departmentalization? A) process and functional B) functional and product C) product and process D) process and geographic E) geographic and product
a
56) 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 probably best meets the definition of the ________. A) matrix structure B) expert structure C) boundaryless structure D) virtual structure E) organizational pyramid
c
57) The structure that creates dual lines of authority is the ________. A) organizational structure B) bureaucracy C) matrix structure D) virtual organization E) simple structure
c
58) The ________ structure violates the unity of command concept. A) simple B) virtual C) matrix D) team E) web
e
59) 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) loss of economies of scale D) increases in groupthink E) employees receiving conflicting directives
b
6) Work specialization is the same as ________. A) departmentalization B) division of labor C) decentralization D) job grouping E) chain command
a
60) The strength of the matrix structure is its ________. A) ability to facilitate coordination B) economies of scale C) adherence to chain of command D) standardization E) social empowerment
a
61) A major disadvantage of the matrix structure is ________. A) the confusion it creates B) its simplicity C) its rigid adherence to the unity of command D) its centralization E) its rigid role expectations
a
62) The virtual is also called the ________ or ________ organization. A) network; modular B) team; social C) pyramid; multi-level D) boundaryless; global E) simple; unitary
b
63) 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) team structure D) boundaryless structure E) organizational pyramid
b
64) Your new organization is looking for maximum flexibility. The most appropriate structure is probably the ________. A) matrix organization B) virtual organization C) team structure D) network structure E) organizational pyramid
b
65) A small, core organization that outsources major business functions is a ________ organization. A) team B) virtual C) boundaryless D) matrix E) simple
a
66) The virtual organization stands in sharp contrast to the typical bureaucracy that has many vertical levels of management and where control is sought through ________. A) ownership B) teams C) imposing limits D) directives E) manipulation
a
67) The primary drawback of the virtual organization is A) the reduction in management's control over key parts of its business. B) the reliance on the founder/manager of the business. C) the wide spans of control. D) the long chain of command. E) the lack of flexibility.
a
68) The boundaryless organization relies heavily on ________. A) information technology B) efficient chains of command C) the simple structure D) the matrix structure E) departmentalization
d
69) You have eliminated horizontal, vertical, and external barriers within your organization. You are operating as a(n) ________. A) matrix organization B) virtual organization C) team structure D) boundaryless organization E) organizational pyramid
c
7) A task that is subdivided into many separate jobs is considered to have a ________. A) high degree of departmentalization B) low degree of decentralization C) high degree of work specialization D) low degree of structure E) high degree of matrix structuring
c
70) The major advantage of the virtual organization is its ________. A) control B) predictability C) flexibility D) empowerment E) complexity
d
71) Which organizational design has been called the T-form? A) matrix organization B) virtual organization C) team structure D) boundaryless organization E) bureaucracy
a
72) The ________ is a structure characterized by extensive departmentalization, high formalization, a limited information network, and centralization. A) mechanistic model B) organic model C) traditional model D) bureaucracy organization E) simple structure
c
73) If there is low formalization, a comprehensive information network, and high participation in decision making, one would expect a(n) ________ structure. A) simple B) mechanistic C) organic D) stable E) matrix
c
74) Which of the following is not a determinant of an organization's structure? A) strategy B) organization size C) size of revenues D) technology E) environment
b
75) All of the following are characteristics of the organic model EXCEPT A) cross-functional teams B) narrow spans of control C) cross-hierarchical teams D) high participation in decision making E) flatness
b
76) Which of the following is NOT a characteristic of the mechanistic model? A) high specialization B) free flow of information C) centralization D) high formalization E) narrower spans of control
a
77) A strategy that emphasizes the introduction of major new products and services is a(n) ________ strategy. A) innovation B) enhancement C) progressive D) organic E) matrix
c
78) A company oriented around cost minimization is best served by which type of structure? A) virtual B) combination C) mechanistic D) organic E) targeted
c
8) In the late 1940s, most manufacturing jobs in industrialized countries were being done with high ________. A) departmentalization B) decentralization C) work specialization D) structuralization E) generalized structure
b
80) ________ refers to how an organization transfers its inputs into outputs. A) Production B) Technology C) Operations D) Process E) Effectiveness
c
81) Which of the following is not part of an organization's environment? A) public pressure groups B) customers C) employees D) competitors E) government regulatory agencies
d
82) Which of the following does not reflect a dynamic environment? A) new competitors B) difficulties in acquiring raw materials C) rapidly changing government regulations affecting business D) no new technological breakthroughs by current competitors E) continually changing produce preferences by customers
b
83) Which of the following generalizations about organizational structures and employee performance and satisfaction is most accurate? A) There is fairly strong evidence linking decentralization and job satisfaction. B) No evidence supports a relationship between span of control and employee performance. C) The evidence generally indicates that work specialization contributes to lower employee productivity. D) Employees dislike routine work that makes minimal intellectual demands. E) Large spans of control provide more distant supervision, thereby increasing employee productivity.
b
84) Which organizational structure still dominates in many parts of Europe and Asia? A) simple structure B) bureaucracy C) virtual organization D) boundaryless organization E) matrix
c
9) For much of the first half of the century, managers viewed work specialization as ________ A) a means to encourage employee satisfaction B) a frustrating cause of reduced product output C) an unending source of increased productivity D) difficult to implement without automation technology E) an effective solution to over-centralization
b
9) Wal-Mart is an example of a company following a A) innovation strategy. B) cost-minimization strategy. C) imitation strategy. D) branding strategy. E) differentiation strategy.
