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Management, 14e (Robbins/Coulter)
Chapter 11 Designing Organizational Structure
1) ________ is the formal arrangement of jobs within an organization.
A) Departmentalization
B) Organizational design
C) Organizational structure
D) Work specialization
2) 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
3) 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) the chain of command
B) the organizational structure
C) the organizational design
D) decentralization
4) The process of dividing work activities into separate job tasks is known as ________.
A) work specialization
B) organizational design
C) differentiation
D) span of control
5) 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.
6) In the early 20th century, automobiles were made one at a time by craftsmen who could
perform every operation necessary to build the car. Henry Ford decided to limit the number of
tasks each worker performed so each person could become expert in his position. With this
practice, Ford introduced ________.
A) departmentalization
B) work specialization
C) centralization
D) formalization
7) The process of grouping jobs together is known as ________.
A) departmentalization
B) centralization
C) formalization
D) organizational design
8) Work teams composed of individuals from various functional specialties are known as
________ teams.
A) cross-control
B) cross-training
C) cross-functional
D) cross-department
9) Pauline sat on a bar-type stool screwing nuts onto bolts about 3,000 times a day while reading
a novel. Her production job paid well but that's about all it had going for it. Even though the
work was not physically taxing, Pauline was exhausted by the end of her day. Facing another day
just like yesterday nearly brought her to tears. Pauline was experiencing ________.
A) repetitive motion stress
B) burnout
C) economies of scale
D) diseconomies from division of labor
10) At Chemetron, all the accounting people share one large work area; all the quality control
people are housed in a large office next to the production floor; and maintenance has its own
space at the back of the building. Chemetron is using ________.
A) departmental specialization
B) functional departmentalization
C) process departmentalization
D) product specialization
11) In the case of functional departmentalization, jobs are grouped according to ________.
A) tasks
B) territories
C) product lines
D) customer flow
12) Departmentalization based on ________ groups jobs on the basis of territory or physical
location.
A) customer
B) product
C) geography
D) process
13) ________ departmentalization is based on the product or customer flow through the
organization.
A) Product
B) Functional
C) Process
D) Customer
14) 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
15) A disadvantage of ________ departmentalization is poor communication across the different
groups.
A) geographic
B) functional
C) process
D) customer
16) Marcus 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 his 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) an interdepartmental team
17) Eric works with a team that includes 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
18) Melanie 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) unity of command
B) chain of command
C) span of control
D) departmentalization
19) 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
20) Bill manages the quality department. His people check parts made by the production
departments to assure all specifications are met. Bill is ________.
A) a non-manager
B) a middle manager
C) a staff manager
D) a line manager
21) ________ 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
22) Wilson is offered a chance to help direct the efforts of some employees assigned to his work
group. This is a chance for Wilson to experience ________.
A) responsibility
B) leadership
C) command
D) authority
23) ________ is the obligation or expectation to perform a duty.
A) Responsibility
B) Authority
C) Commitment
D) Duty
24) When Bryan 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
25) 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
26) Paul, the HR manager, works in the Townsville plant and reports to the plant manager there,
but he also reports to the corporate HR director in Cityburg. This reporting structure violates the
principle of ________.
A) division of authority
B) unity of purpose
C) chain of command
D) unity of command
27) Willard has been assigned to a project development team in addition to his regular duties as a
quality engineer. During this assignment he will report to both the project manager and his
quality department manager. This situation ________.
A) violates span of control
B) violates unity of command
C) violates chain of command
D) violates the acceptance theory of authority
28) According to the traditional view, managers could not-and should not-directly supervise
more than ________ subordinates.
A) four or five
B) five or six
C) ten or eleven
D) fifteen or sixteen
29) 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
30) All other things being equal, the wider or larger the span of control, the more ________ an
organization is.
A) ambitious
B) rigid
C) mechanistic
D) cost efficient
31) ________ is the degree to which decision making takes place at upper levels of the
organization.
A) Centralization
B) Decentralization
C) Formalization
D) Departmentalization
32) If top managers make key decisions with little input from below, then the organization is
________.
A) less mechanistic
B) more decentralized
C) less formalized
D) more centralized
33) The fact that Monica's signature is required on all documents and her word is the last word
on all decisions relating to her department suggests that ________.
A) her employer has a centralized structure
B) her employer has a decentralized structure
C) her employer has a simple structure
D) her employer has an organic structure
34) 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
35) After extensive job cuts to reduce costs, upper level managers are spending significant
amounts of time solving problems in the production units. Lower level managers are resentful
that they cannot make decisions for their own units. What recommendation would you make for
this firm?
A) Reorganize; departmentalize around customers instead of products.
B) Formalize; write explicit job descriptions, rules, and procedures so the upper managers won't
have to decide each case individually.
C) Centralize; create a department that does nothing but make decisions.
D) Decentralize; give authority to the lower level managers regarding events in their own units.
36) Bob works in a mid-sized organization with other skilled workers who all pitch in to do what
needs to be done to satisfy the customer. It is likely Bob works in a ________ organization.
A) formalized
B) decentralized
C) departmentalized
D) cross-functional
37) Which of the following factors would require a more decentralized organizational structure?
A) when the lower-level managers want a voice in decisions
B) when the lower-level managers are not capable of making decisions
C) when the decisions to be made are not significant
D) when the company is large
38) 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) departmentalized
39) ________ 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
40) In highly ________ organizations, there are explicit job descriptions, numerous
organizational rules, and clearly defined procedures covering work processes.
A) formalized
B) decentralized
C) departmentalized
D) specialized
41) Work specialization is also known as division of labor.
42) Organizational structure is the formal chain of command of jobs within an organization.
43) Organizational design is the degree to which standardized procedures are in place in an
organization.
44) Division of labor refers to the practice of identifying some workers as potential members of a
bargaining unit and other workers as members of management.
45) Managers today continue to see work specialization as important because it helps employees
be more efficient.
46) To counteract the diseconomies of division of labor, a company can increase the range of
tasks the employee performs.
47) Customer departmentalization works well because it emphasizes interdepartmental
communication regarding customer's needs.
48) The chain of command is a principle that states that a person should report to only one boss.
49) All other things unchanged, the narrower the span of control, the more efficient the
organization is.
50) Given other things unchanged, managers with well-trained and experienced employees can
function well with a wider span of control than those with a less talented workforce.
51) The more the decision-making power of lower-level employees, the more decentralized the
organization is.
52) At one end of the spectrum, organizations can be absolutely centralized, while at the other
end, they can be completely decentralized.
53) Employee empowerment gives employees more authority to make decisions.
54) In highly formalized organizations, employees have more discretion in how they do their
work.
55) Today's organizations mostly rely on strict rules and standardization to guide and regulate
employee behavior.
56) Define the process of organizing and explain how it helps an organization.
57) Write a short essay on work specialization. How does specialization affect productivity?
How does it affect a firm's cost structure?
58) What is meant by departmentalization? In a short essay, list and discuss the five common
forms of departmentalization, their advantages and disadvantages.
59) In a short essay, explain authority and responsibility
60) Discuss the differences between line and staff authority.
61) Explain why unity of command is less important today than during the time when the
principle was developed.
62) Explain the traditional view of span of control.
63) Explain the contemporary view of span of control.
64) List a few factors that influence the amount of centralization or decentralization in an
organization.
65) Explain centralization and decentralization. How do these relate to employee empowerment?
66) A(n) ________ organization is highly specialized and rigidly departmentalized.
A) organic
B) complex
C) learning
D) mechanistic
