Chapter 10 – Organizational Structure and DesignTrue/False QuestionsA MANAGER’S DILEMMA1.According to the boxed feature, “A Manager’s Dilemma,” Nokia was once involved in industries rangingfrom paper to chemicals and rubber.True (moderate)2.A ccording to the boxed feature, “A Manager’s Dilemma,” Nokia has been competing in thetelecommunications industry since 1965.False (moderate)DEFINING ORGANIZATIONAL STRUCTUREanizational design is the organization's formal framework by which job tasks are divided, grouped, andcoordinated.False (difficult)4. The concept of work specialization can be traced back a couple of centuries to Adam Smith's discussion ofdivision of labor.True (moderate)5. The degree to which tasks in an organization are divided into separate jobs is division of labor.True (moderate)6. Historically, many organizations have grouped work actions by function departmentalization.True (moderate)7. Grouping jobs on the basis of product or customer flow is termed customer departmentalization.False (moderate)8.Geographic departmentalization has greatly increased in importance as a result of today’s competitivebusiness environmentFalse (moderate)9. A group of individuals who are experts in various specialties and who work together is a cross-functionalteam.True (moderate)10. Authority is the individual's capacity to influence decisions.False (difficult)11. Authority is synonymous with responsibility.False (easy)12. Responsibility is the rights inherent in a managerial position.False (easy)13. A manager's span of control refers to the number of subordinates who can be effectively and efficientlysupervised.True (moderate)14. The classical view of unity of command suggests that subordinates should have only one superior to whomthey report.True (easy)15. The trend in recent years has been toward smaller spans of control.False (easy)16. When decisions tend to be made at lower levels in an organization, the organization is said to bedecentralized.True (moderate)17. Decentralization describes the degree to which decision making is concentrated at a single point in theorganization.False (moderate)18. In the last 35 years, there has been a trend of organizations moving toward increased decentralization.True (easy)19. Appropriate organizational structure depends on four variables: the organization's strategy, size, technology,and degree of environmental uncertainty.True (difficult)20. Standardization refers to the degree to which jobs within the organization are standardized and the extent towhich employee behavior is guided by rules and procedures.False (moderate)ORGANIZATIONAL DESIGN DECISIONS21. An organic organization tends to be characterized by high specialization, extensive departmentalization,narrow spans of control, high formalization, a limited information network, and little participation in decision-making by low-level employees.False (moderate)22. An organic organization would likely be very flexible.True (moderate)23. Innovators need the efficiency, stability, and tight controls of the mechanistic structure.False (easy)24.The relationship between organizational size and structure tends to be linear.False (difficult)25. Joan Woodward attempted to view organizational structure from a technological perspective.True (moderate)26. Woodward demonstrated that organizational structures adapted to their technology.True (moderate)27. Woodward's findings support that there is "one best way" to organize a manufacturing firm.False (moderate)28.The strength of the functional structure is that it focuses on results.False (moderate) it is the strength of divisional structure.\\\\\\\29.According to the text, a functional structure creates strategic business units.False (moderate)COMMON ORGANIZATIONAL DESIGNS30. Project structures tend to be rigid and inflexible organizational designs.False (easy)Multiple ChoiceA MANAGER’S DILEMMA31.According to the company profile in “A Manager’s Dilemma,” the organizational structure of Nokia is bestdescribed as ______________.a.mechanisticanic (moderate)c.centralizedd.formalized32.The factor contributing the most to Nokia’s success in the mobile phone industry according to the companyprofile in “A Manager’s Dilemma” is ______________.a.new product development (moderate)ernment subsidiesc.national trade barriersd.weak competition33.______________ is the process of creating an organization's structure.a. Human resource managementb. Leadingc. Organizing (moderate)d. Planninge. DepartmentalizationDEFINING ORGANIZATIONAL STRUCTURE34. According to the text, a(n) ______________ is the formal framework by which job tasks are divided,grouped, and coordinated.a.mission statementb.environmental scanc.internal resource analysisanizational structure (moderate)35. Which of the following is not one of the six key elements in organizational design?a. work specializationb. departmentalizationc. chain of commandd. bureaucratic design (difficult)e. span of control36. Work specialization is also known as ______________.a. departmentalization.b. centralization.c. span of control.d. formalization.e. division of labor. (easy)37. The term ______________ is used to describe the degree to which tasks in an organization are divided intoseparate jobs.a.work ethicsb.managerial capitalismc.social responsibilityd.work specialization (moderate)38.When did the idea of enlarging, rather than narrowing, job scope begin?a. 1950sb. 1960s (moderate)c. 1970sd. 1980se. 1990s39.Which of the following is not an example of the classical view of division of labor?a. assembly-line productionb. Burger Kingc. Taco Belld. TQM (moderate)e. Kentucky Fried Chicken40. ______________ is the basis on which jobs are grouped in order to accomplish organizational goals.a. Departmentalization (moderate)b. Centralizationc. Formalizationd. Coordinatione. Efficiency41. A local manufacturing organization has groups of employees who are responsible for sales, marketing,accounting, human resources, etc. These are examples of what concept?a. authorityb. chain of commandc. empowermentd. departmentalization (moderate)e. social grouping42. Grouping sporting equipment in one area, men's clothing in another area, and cosmetics in a third area, is anexample of what kind departmentalization?a. customerb. product (easy)c. geographicd. processe. outcome43. Sales responsibilities divided into the southwest, midwest, southern, northern, and western regions would bean example of ______________ departmentalization.a. productb. geographic (easy)c. processd. outcomee. customer44.Grouping activities on the basis of customer flow is ______________.a. functional departmentalization.b. product departmentalization.c. geographical departmentalization.d. process departmentalization. (moderate)e. technological departmentalization.45. What type of departmentalization expects that each department will specialize in one specific phase of theprocess or product production?a. productb. geographicc. process (easy)d. outcomee. customer46. What kind of departmentalization would be in place in a government organization where different publicservice responsibilities are divided into activities for employers, children, and the disabled?a. productb. geographicc. processd. outcomee. customer (moderate)47. Which of the following is not a form of departmentalization suggested by your text?a. functional departmentalizationb. product departmentalizationc. geographical departmentalizationd. process departmentalizatione. technological departmentalization (difficult)48. Today's competitive business environment has greatly increased the importance of what type ofdepartmentalization?a. geographicb. customer (difficult)c. productd. processe. outcome49. According to the text, managers are using ______________, which are groups of individuals who areexperts in various specialties and who work together.a.specialized teamsb.cross-demanded teamsc.cross-functional teams (moderate)d.simple structured teams50. Which of the following is a contemporary addition to the historical view of departmentalization?a. increased rigidityb. cross-functional teams (moderate)c. enhanced centralizationd. elimination of product departmentalizatione. addition of sales departmentalization51. Bringing together the company's legal counsel, research engineer, and marketing specialist for a project isan example of a(n) ______________.a. empowered team.b. process departmentalization.c. product departmentalization.d. cross-functional team. (moderate)e. continuous improvement team.52. The ______________ is the continuous line of authority that extends from upper organizational levels to thelowest levels and clarifies who reports to whom.a.chain of demandb.chain of command (easy)c.demand hierarchyd.continuous design structure53. To whom a worker reports concerns which aspect of organizational structure?a. chain of command (moderate)b. departmentalizationc. pay structured. line of commande. authority framework54. ______________ entitles a manager to direct the work of a subordinate.a. Responsibilityb. Legitimate powerc. Rankd. Operating responsibilitye. Authority (moderate)55. ______________ is the obligation to perform assigned activities.a. Authorityb. Responsibility (easy)c. Chain of commandd. Unity of commande. Formalization56. The ______________ principle (one of Fayol’s 14 principles of management) helps preserve the concept ofa continuous line of authority.a.unity of demandb.unity of command (moderate)c.demand structured.continuous demand57. Span of control refers to which of the following concepts?a. how much power a manager has in the organizationb. the geographic dispersion of a manager's subunits of responsibilityc. how many subordinates a manager can effectively and efficiently supervise (moderate)d. the number of subordinates affected by a single managerial ordere. the amount of time it takes to pass information down through a manager's line of command58. Other things being equal, the wider or larger the span of control, the more ______________ theorganizational design.a. bureaucraticb. democraticc. effectived. efficient (difficult)e. classical59. Wider spans of control may be viewed as more efficient, but eventually, wider spans tend to have whateffect on organizations?a. reduced effectiveness (difficult)b. increased turnoverc. loss of managerial powerd. customer dissatisfactione. rigid chains of command60. An organization that spends money on maintaining a well-trained work force can expect which of thefollowing span-of-control outcomes?a. increased contempt for managementb. increased voluntary turnoverc. centralized authorityd. less direct supervision (moderate)e. increased need for managerial-level employees61. A high-tech manager who supervises the development of a new computer chip needs ______________compared to a manager who supervises the mailing of unemployment insurance checks at the local government office.a. about the same span of controlb. a narrower span of control (difficult)c. a wider span of controld. a more informal span of controle. elimination of the span of control62. In general, span of control is ______________ for managers.a. increasing (easy)b. decreasingc. staying the samed. significantly decreasinge. no longer important63. ______________ describes the degree to which decision making is concentrated at a single point in theorganization.a.Decentralizationb.Centralization (moderate)c.Transnationalismd.Cross sectional analysis64. If lower-level employees provide input or are actually given the discretion to make decisions, theorganization is ______________.a. formalized.b. centralized.c. decentralized. (easy)d. mechanistic.e. organic.65. Recently, there has been a distinct trend toward ______________.a. smaller spans of control.b. decentralized decision-making. (moderate)c. decreased flexibility.d. emphasis on chain of command.e. mechanistic organizations.66. Which of the following factors WOULD NOT influence an organization to have a higher degree ofcentralization?a. Environment is stable.b. Company is geographically dispersed. (difficult)c. Company is large.d. Decisions are significant.e. Organization is facing a crisis.67. ______________ refers to the degree to which jobs within the organization are standardized and the extentto which employee behavior is guided by rules and procedures.a. Standardizationb. Centralizationc. Chain of commandd. Strategye. Formalization (moderate)68. All of the following factors indicate that a decentralized organization would be most effective EXCEPTwhen ______________.a. the environment is complex.b. decisions are relatively minor.c. the organization is facing a crisis. (difficult)d. the company is geographically dispersed.e.effective implementation of strategies depends on managers having involvement and flexibilityto make decisions.69. Which of the following factors describes an environment in which a high degree of decentralization isdesired?a. Environment is complex, uncertain. (moderate)b. Lower-level managers do not want to have a say in decisions.c. Decisions are significant.d. Company is large.e. Organization is facing a crisis or the risk of company failure.70. The ______________ organizational structure is characterized by high specialization, extensivedepartmentalization, narrow spans of control and high formalization.a. mechanistic (easy)b. organicc. contingencyd. adhocracye. functional71. Which of the following is NOT a characteristic of a mechanistic organization?a. high specializationb. wide spans of control (moderate)c. high formalizationd. limited information networke. extensive departmentalization72. What type of organizational form follows classical principles such as unity of command?a. organicb. linearc. decentralizedd. mechanistic (moderate)e. adhocracyORGANIZATIONAL DESIGN DECISIONS73. Which of the following would likely be found in mechanistic organizations?a. wide span of controlb. empowered employeesc. decentralized responsibilityd. few rules and/or regulationse. standardized job specialties (difficult)74. All of the following are characteristics of an organic organization EXCEPT:a. narrow spans of control. (moderate)b. cross-hierarchical teams.c. free flow of information.d. low formalization.e. cross-functional teams.75. In the early years of Apple Computers, its desire for highly proficient and creative employees who operatedwith few work rules was an example of what type of organization?a. bureaucraticb. mechanisticc. volatiled. nouvellee. organic (difficult)76. Which of the following is true concerning an organic organization's problem-response time?a. It requires strict adherence to efficiently developed rules.b. Its speed demands clear lines of command.c.Response times are slower than mechanistic organizations, but answers tend to be moreaccurate.d. Professional standards guide behavior. (difficult)e. The response time is quick due to the centralized design.77. Which of the following is not one of the four contingency variables that help determine appropriateorganizational structure?a. organizational sizeb. organizational strategyc. organizational technologyd. organizational age (moderate)e. degree of environmental uncertainty78. Which of the following is an accurate statement?a.Strategy follows structure.b.Strategy and structure are equal in temporal importance.c.Strategy and structure are not linked.d.Structure follows strategy. (moderate)e.Mechanistic and organic organizations have distinct differences in the application of the relationshipbetween strategy and structure.79. Most current strategy-structure contingency frameworks tend to focus on three strategy dimensions. Thesedimensions are ______________.a. revenue maximization, customer satisfaction, and visibility.b. customer satisfaction, employee satisfaction, and ethics.c. innovation, cost minimization, and imitation. (difficult)d. legal considerations, profit maximization, and innovation.e. long-term survival, profit maximization, and customer satisfaction.80. What kind of relationship is there between organizational size and degree of mechanistic structure?a. -1.0b. unclearc. positive (moderate)d. bimodale. exponential81. Joan Woodward's research was the first major attempt to view organizational structure from a______________ perspective.a. strategicb. contingencyc. sized. departmentale. technological (easy)82. The three production categories that Joan Woodward divided organizations into in order to uncoverrelationships between organizational structure and technology are ______________.a. unit, mass, process (difficult)b. unit, product, costc. product, cost, customerd. mass, process, coste. process, unit, product83. According to Woodward's studies, what type of production works best with a mechanistic structure?a. unitb. processc. productd. mass (moderate)e. just-in-time84. Which of the following is not a characteristic that would suggest unit production would be a best "fit"?a. low horizontal differentiationb. low vertical differentiationc. small-batch, custom productsd. low formalizatione. mechanistic structure (difficult)85. A characteristic that both unit production and process production have is that the most effectiveorganizational structure for both technologies is ______________.a. organic. (difficult)b. mechanistic.c. adhocracy.d. matrix.e. team.86. Woodward's studies generally demonstrate that organization ______________ should adapt to their______________.a. processes; environmentb. employees; leadersc. technologies; legal constraintsd. structures; technology (moderate)e. outputs; resources87. Which type of environment is best suited for mechanistic organizations?a. dynamicb. manufacturingc. serviced. combinatione. stable (moderate)88. According to the text, all of the following are examples of the more traditional organizational designsEXCEPT:a.the simple structure.b.the functional structurec.the matrix structure (moderate)d.the divisional structure89. Which of the following is not characteristic of a simple organizational structure?a. narrow spans of control (moderate)b. low degree of departmentalizationc. centralized decision-makingd. little formalizatione. information arrangement of employeesCOMMON ORGANIZATIONAL DESIGNS90. Which of the following terms is associated with a simple organizational structure?a. elaborateb. high-complexityc. formald. decentralizede. flat (moderate)91. A wine store that employs six people most likely has what kind of organizational structure?a. bureaucracyb. simple (difficult)c. functionald. divisionale. team-based92. All of the following are strengths of a simple organizational structure EXCEPT:a. It's fast.b. It's inexpensive to maintain.c. It's less risky. (moderate)d. Accountability is clear.e. It's flexible.93. A bureaucratic or mechanistic design may use a ______________ structure which groups similar or relatedoccupational specialties together.a. matrixb. functional (moderate)c. divisionald. geographice. team-based94. A ______________ structure creates strategic business units.a. matrixb. functionalc. divisional (difficult)d. geographice. team-based95. What type of organizational structure is made up of autonomous, self-contained units?a. bureaucracyb. simplec. functionald. divisional (moderate)e. team-based96. In what type of organizational structure is empowerment most crucial?a. bureaucracyb. simplec. functionald. divisionale. team-based (easy)97. The ______________ is an organizational structure that assigns specialists from different functionaldepartments to work on one or more projects being led by project managers.a.functional structureb.simple structurec.matrix structure (moderate)d.divisional structure98. The matrix approach violates what classical principle?a. unity of command (moderate)b. decentralizationc. customer focusd. linear lines of responsibilitye. large spans of control99. What type of organization assigns specialists from different functional departments to work on one or moreprojects led by a project manager?a. classicalb. contemporaryc. matrix (easy)d. evolutionarye. product-based100. A ______________ organization is not defined by, or limited to, the horizontal, vertical, or external boundaries imposed by a predefined structure.a. team-basedb. boundarylessc. mechanisticd.project (moderate)e. simple101. A ______________ organization has developed the continuous capacity to adapt and change.a. simpleb. mechanisticc. bureaucraticd. team-basede. learning (moderate)MANAGING IN AN E-BUSINESS WORLD102. According to the boxed feature, “Manag ing in an E-Business World,” all of the following are needed for E-business to achieve the characteristic necessary for success in the digital world EXCEPT:a.high vertical, horizontal, and lateral communication.b.cross-hierarchical and cross-functional teams.c.extensive employee empowerment.d.high formalization. (moderate)103. According to the boxed feature, “Managing in an E-Business World,” ’s organizational structure is best described as ______________.a.mechanisticanic (moderate)c.formald.diagonal104. According to the boxed feature, “Managing in an E-Business World,” the ______________ organization is the concept that describes an E-business organization.a.mechanisticb.boundaryless (moderate)c.functionald.diagonal105. The important characteristics of a learning organization revolve around all of the following EXCEPT:anizational design.b.market capitalization (moderate)rmation sharing.d.leadership.e.culture.ScenariosDEFINING ORGANIZATIONAL STRUCTUREOrganizational Structure (Scenario)Michelle is a registered nurse in charge of a new unit in her hospital. She would like to have a more laid-back approach to dealing with her new staff, but the hospital demands that there are strict hierarchical levels and that all decisions must be signed off by Michelle. Sometimes this drives Michelle nuts; the constant filling out of forms, etc. She also feels that the numerous levels of hierarchy are unnecessary and place barriers between her and her staff. She isn't sure why things have to be so "organized" and is thinking about speaking with her boss to attempt changing her unit to have more flexibility and fewer rules.106. Michelle is concerned about her unit's ______________, the unit's formal framework by which job tasks are divided, grouped and coordinated.a. formal organizational chartb. organizational structure (moderate)c. staffd. span of controle. communication lines107. Michelle is required to sign off on all decisions, suggesting that they have a ______________ form of decision-making authority.a. centralized (moderate)b. formalc. autocraticd. policye. strict108. Michelle has noticed that everyone is very concerned about the ______________, the line of authority within the organization.a. responsibilityb. chain of command (easy)c. span of controld. organizational strategye. environmentConsultants R Us (Scenario)Beth Ann has been hired as a consultant for XYZ Consulting, and her first assignment is to apply the work of Joan Woodward to her client, Custom Leather, Inc. Custom Leather makes expensive leather furniture.109. Woodward felt that the effectiveness of the organization would be related to the ______________ fit.a. employee/productb. technology/structure (moderate)c. environment/processd. process/employeee. employee/environment110. If Custom Leather produces couches for individual orders, this is termed ______________ production.a. massb. processc. unit (moderate)d. environmentale. procedural111. If Custom Leather produces in large batches, this is termed ______________ production.a. mass (moderate)b. processc. unitd. environmentale. procedural112. Custom Leather is unable to use a continuous process, or ______________ production, because leather is a unique item.a. massb. process (moderate)c. unitd. environmentale. proceduralORGANIZATIONAL DESIGN DECISIONSYou Can Bank on It (Scenario)Susan's employer, Western Bank, like many others, had recently undergone decruitment in order to "right size" the organization. The Board of Directors felt that their sagging stock price could be improved with some labor cost cutting. Along with other new challenges, a problem now existed with span of control and decision-making authority. In the past, her bank's policy was that no manager should supervise more than six subordinates and only managers should make decisions for their individual units. But now, with the cuts in middle management, upper management had increased the span of control but still insisted on managerial-only decision-making. The result was that managers spent all of their time putting out fires and subordinates felt they were getting answers too slowly and wanted to start having the authority to make decisions on their own. Clearly, something had to change. 113. Of the following, which is not a reason that would be consistent with Western Bank's wanting to maintain a centralized form of decision-making?a. Environment is uncertain. (moderate)b. Environment is stable.c. Company is large.d. Decisions are more significant.e. Organization is facing a crisis.114. Of the following which is not a reason Western Bank would not change to a more decentralized form of decision-making?a. lower-level managers are capable of decision-makingb. company is geographically dispersedc. decisions are relatively minord. organization is in risk of failure (easy)e. lower-level managers want a voice in decisionsORGANIZATIONAL DESIGN DECISIONS115. Susan believes that Western Bank should be highly adaptive and flexible. She would like for Western Bank to be a(n) ______________ structure.a. organic (easy)b. mechanisticc. formalizedd. technologicale. strategic。