67) A(n) ________ organization is highly formalized and centralized.
A) organic
B) mechanistic
C) complex
D) learning
68) 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
69) A(n) ________ organization is highly adaptive, loose, and flexible.
A) organic
B) centralized
C) customer-oriented
D) mechanistic
70) GlaxoSmithKline would become more ________ if it starts allowing its lab scientists to set
the priorities and allocate the resources.
A) profitable
B) mechanistic
C) diversified
D) organic
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71) Which of the following is a characteristic of an organic organization?
A) high specialization
B) cross-functional teams
C) rigid departmentalization
D) narrow span of controls
Answer: B
Diff: 1
AACSB: Reflective thinking
Learning Obj: LO 11.2: Contrast mechanistic and organic structures
Classification: Concept
72) 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
Answer: D
Diff: 2
AACSB: Application of knowledge
Learning Obj: LO 11.2: Contrast mechanistic and organic structures
Classification: Application
73) If a firm wants to become more adaptive and flexible, which of the following organizational
structures is it likely to prefer?
A) formalized
B) mechanistic
C) organic
D) centralized
Answer: C
Diff: 2
AACSB: Reflective thinking
Learning Obj: LO 11.2: Contrast mechanistic and organic structures
Classification: Concept
74) Many of Custom Leather’s employees are experienced artisans. The jobs most of them
perform are not highly standardized. They take great pride in their craft and require few formal
rules and little direct supervision. These traits are most typical of a(n) ________ organization.
A) departmentalized
B) mechanistic
C) organic
D) formalized
75) An organic organization strictly adheres to the chain-of-command principle and has a wide
span of control.
76) An organic organization is low in centralization.
77) Explain the concepts of mechanistic and organic structures.
78) 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
79) Large organizations tend to have more ________ than smaller organizations.
A) specialization
B) span of control
C) decentralization
D) autonomy
80) Large organizations are more ________.
A) mechanistic
B) organic
C) disorganized
D) decentralized
81) 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) product production
D) process production
82) ________ is a type of technology that centers on small-batch production.
A) Unit production
B) Mass production
C) Process production
D) Flow production
83) The building of a bridge would be a type of ________.
A) unit production
B) mass production
C) process production
D) flow production
84) ________ 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
85) The type of assembly line typically found in automobile manufacturing is an example of
________.
A) unit production
B) mass production
C) process production
D) continuous production
86) 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) continuous production
87) 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
88) A refinery that transforms crude oil into gasoline, kerosene, and diesel fuel would be an
example of ________.
A) mass production
B) continuous production
C) process production
D) unit production
89) 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
90) 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
91) Ben operates a farmer’s market. Every year he offers the same vegetables to the same
customers and faces the same rivalry from other truck farmers. A(n) ________ would best fit
Ben’s situation.
A) formalized design
B) mechanistic design
C) centralized design
D) organic design
92) 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. 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
93) The greater the environmental uncertainty, the more an organization needs to become
________.
A) organic
B) mechanistic
C) specialized
D) departmentalized
94) 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
95) Innovators need the efficiency, stability, and tight controls of the mechanistic structure.
96) Once an organization grows past a certain size, the impact of size on organization structure
strengthens.
97) List and discuss the four contingency variables that should be considered while designing an
appropriate organizational structure.
98) 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
99) 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
100) In the beginning, all employees at Tom’s Welding performed whatever task was needed.
Now the employees have gravitated to specific sets of tasks. Some use only stick welders; some
weld only on aluminum. We can infer that as his business has grown, it has become more
________.
A) specialized
B) formal
C) centralized
D) organic
101) Tom’s Welding is in its third year of operation. Tom now has a sales person and several
production employees. It is most likely Tom has a ________ structure.
A) simple
B) functional
C) divisional
D) matrix
102) As the number of employees in an organization grows, structure tends to become more
________.
A) specialized
B) informal
C) centralized
D) relaxed
103) 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.
104) 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.
105) 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
106) 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
107) In which of the following traditional organizational designs does duplication of activities
and resources lead to an increase in costs and reduced efficiency?
A) divisional structure
B) team structure
C) matrix structure
D) project structure
108) 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
109) 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
110) A simple structure is characterized by narrow spans of controls and high formalization.
111) The strength of the functional structure is that it focuses on results because managers are
responsible for what happens to their products and services.
112) In divisional structures, the parent corporation typically acts as an external overseer to
coordinate and control the various divisions of the organization.
113) Discuss the three traditional organizational designs and highlight the strengths and
weaknesses of each.
114) A ________ structure is one in which the entire organization is made up of work teams that
do the organization’s work.
A) matrix
B) team
C) project
D) virtual
115) At the Saturn plant in Smyrna, Tennessee, groups of employees decided how their work
would be done, by whom, and with what resources. These groups were given authority to decide
who became members and to release any member who did not meet performance standards.
Saturn had instituted a(n) ________ structure.
A) boundaryless
B) virtual
C) team
D) project
116) One characteristic of the matrix structure is that it ________.
A) violates the principle of unity of command
B) eliminates the chain of command
C) does away with work specialization
D) is well suited for a mechanistic structure
117) In a university setting, it is common for a professor to report to an academic supervisor in
his/her area of educational expertise and to a supervisor overseeing a particular degree such as
baccalaureate or master’s. This illustrates the ________ structure.
A) project
B) matrix
C) team
D) boundaryless
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118) Developing a new automobile requires the services of many types of experts such as design
and electronics engineers, procurers, metallurgists–the list is extensive. Rather than employ these
individuals directly, the automaker will outsource the work. The specialists then work at
facilities owned by the automaker rather than at their own employers’ places. This demonstrates a
type of ________.
A) virtual organization
B) team structure
C) project structure
D) boundaryless organization
119) Robert owns a small engineering firm serving customers on three continents. He has only
three employees and contracts with freelancers as needed to fulfill his customers’ needs. At any
given time, he could have 50 or more engineers under contract. Robert operates a ________.
A) boundaryless organization
B) virtual organization
C) network organization
D) freelance agency
120) One significant difference between matrix and project structures is that in a project structure
the employees have no formal department to which they return when the project is over.
121) Compare and contrast the team and project structures.