7-1
Chapter 07 Designing Organizational Structure Answer Key
True / False Questions
1.
Organizational design reflects the organization’s mission statement irrespective of the
situation.
FALSE
Organizational design is the process by which managers make specific organizing choices
about tasks and job relationships that result in the construction of a particular
organizational structure.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-01 Identify the factors that influence managers’ choice of an organizational structure.
Topic: Organizational Development (OD)
2.
The nature of an organization’s human resources is an important determinant of the
organization’s structure.
TRUE
Four factors are important determinants of the type of organizational structure or
organizing method managers select: the nature of the organizational environment, the type
of strategy the organization pursues, the technology (and particularly information
technology) the organization uses, and the characteristics of the organization’s human
resources.
AACSB: Analytical Thinking
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Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-01 Identify the factors that influence managers’ choice of an organizational structure.
Topic: Organizational Development (OD)
3.
A differentiation strategy aimed at increasing the customer’s perception of an organization
services usually succeeds even with an inflexible structure.
FALSE
A differentiation strategy aimed at increasing the value customers perceive in an
organization’s goods and services usually succeeds best in a flexible structure with a
culture that values innovation. Flexibility facilitates a differentiation strategy because
managers can develop new or innovative products quickly.
AACSB: Analytical Thinking
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Blooms: Remember
Difficulty: 1 Easy
4.
Division of labor among employees is the result of the differentiation process.
FALSE
Division of labor among employees is the result of the job design process. Establishing an
appropriate division of labor among employees is a critical part of the organizing process,
one that is vital to increasing efficiency and effectiveness.
AACSB: Analytical Thinking
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Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Explain how managers group tasks into jobs that are motivating and satisfying for employees.
Topic: Job Description
Topic: Job Design
5.
The job characteristics model explains how managers can make jobs more interesting and
motivating.
TRUE
J. R. Hackman and G. R. Oldham’s job characteristics model is an influential model of job
design that explains in detail how managers can make jobs more interesting and
motivating.
AACSB: Analytical Thinking
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Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Explain how managers group tasks into jobs that are motivating and satisfying for employees.
Topic: Job Design
Topic: Job Specification
6.
The degree to which a job design gives a worker the freedom to schedule his/her tasks
and to decide how to carry them out is known as the task identity.
FALSE
Task identity is the extent to which a job requires that a worker perform all the tasks
necessary to complete the job, from the beginning to the end of the production process.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Explain how managers group tasks into jobs that are motivating and satisfying for employees.
Topic: Job Design
Topic: Job Specification
7.
It is easier for managers to monitor and evaluate subordinates’ performance in a
functional structure than a divisional structure.
TRUE
When people who perform similar jobs are grouped together, it is easier for managers to
monitor and evaluate their performance. A functional structure allows workers to evaluate
how well coworkers are performing their jobs, and if some workers are performing poorly,
more experienced workers can help them develop new skills.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-03 Describe the types of organizational structures managers can design, and explain why they
choose one structure over another.
Topic: Functional Structure
Topic: Organizational Development (OD)
8.
When managers organize divisions according to the types of customer to whom they
market their products, they are focusing on a product structure.
FALSE
Using a product structure, managers place each distinct product line or business in its
own self-contained division and give divisional managers the responsibility for devising an
appropriate business-level strategy to allow the division to compete effectively in its
industry or market.
AACSB: Analytical Thinking
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Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-03 Describe the types of organizational structures managers can design, and explain why they
choose one structure over another.
Topic: Divisional Structure
9.
Team members in a market structure are known as two-boss employees.
FALSE
In a matrix structure, each person in a product team reports to two managers: (1) a
functional boss, who assigns individuals to a team and evaluates their performance from a
functional perspective, and (2) the boss of the product team, who evaluates their
performance on the team. Thus, team members are known as two-boss employees.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-03 Describe the types of organizational structures managers can design, and explain why they
choose one structure over another.
Topic: Functional Structure
10.
The “chain of command” of an organization is the hierarchy of authority for that
organization.
TRUE
The hierarchy of authority is an organization’s chain of command, the relative authority
that each manager has, extending from the CEO at the top, down through the middle
managers and first-line managers, to the nonmanagerial employees who actually make
goods or provide services. Every manager, at every level of the hierarchy, supervises one
or more subordinates.
AACSB: Analytical Thinking
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Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-04 Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of
authority and integrating mechanisms.
Topic: Hierarchy of Authority
11.
The idea that top management should design an organization with as few levels of
authority as is needed to conduct the business of the organization in an efficient and
effective manner is known as the minimum chain of command.
TRUE
Top managers follow a basic organizing principle, the principle of the minimum chain of
command, which states that top managers should always construct a hierarchy with the
fewest levels of authority necessary to efficiently and effectively use organizational
resources.
AACSB: Analytical Thinking
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authority and integrating mechanisms.
Topic: Hierarchy of Authority
12.
Too much decentralization has disadvantages for an organization.
TRUE
Although more and more organizations are taking steps to decentralize authority, too much
decentralization has certain disadvantages. Too much decentralization can cause lack of
communication among functions or divisions; this prevents the synergies of cooperation
from ever materializing, and organizational performance suffers.
AACSB: Analytical Thinking
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Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-04 Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of
authority and integrating mechanisms.
Topic: Decentralized Authority
13.
The more complex an organization, the less important the use of cross-functional teams
becomes to the organization.
FALSE
An integrating role is a role whose only function is to increase coordination and integration
among functions or divisions to achieve performance gains from synergies. The more
complex an organization and the greater the number of its divisions, the more important
integrating roles are.
AACSB: Analytical Thinking
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Topic: Functional Structure
14.
A network structure is a series of global strategic alliances that one or several
organizations create with suppliers, manufacturers, and/or distributors to produce and
market a product.
TRUE
A network structure is a series of global strategic alliances that one or several
organizations create with suppliers, manufacturers, and/or distributors to produce and
market a product. Network structures allow an organization to manage its global value
chain in order to find new ways to reduce costs and increase the quality of products
without incurring the high costs of operating a complex organizational structure.
AACSB: Analytical Thinking
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Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-05 Describe how information technology (IT) is helping managers build strategic alliances and
network structures to increase efficiency and effectiveness.
Topic: B2B Network Structures
15.
Business-to-business (B2B) network is a company-specific virtual information system that
allows workers to share their knowledge and expertise and find others to help solve
ongoing problems.
FALSE
Business-to-business (B2B) network is a group of organizations that join together and use
IT to link themselves to potential global suppliers to increase efficiency and effectiveness.
AACSB: Analytical Thinking
Learning Objective: 07-05 Describe how information technology (IT) is helping managers build strategic alliances and
network structures to increase efficiency and effectiveness.
Topic: B2B Network Structures
Multiple Choice Questions
16.
The process by which managers establish the structure of working relationships among
workers of the organization is known as ________.
A.
planning
B.
leading
C.
D.
controlling
Organizing is the process by which managers establish the structure of working
relationships among employees to allow them to achieve organizational goals efficiently
and effectively.
AACSB: Analytical Thinking
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Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-01 Identify the factors that influence managers’ choice of an organizational structure.
Topic: Organizational Development (OD)
17.
Organizational ________ is the formal system of task and job reporting relationships that
determines how employees use resources to achieve organizational goals.
A.
structure
B.
culture
C.
design
D.
goals
Organizational structure is the formal system of task and job reporting relationships that
determines how employees use resources to achieve organizational goals.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-01 Identify the factors that influence managers’ choice of an organizational structure.
Topic: Organizational Development (OD)
18.
Organizational ________ is the process by which managers create an organizational
structure and culture that helps a company operate in the most efficient and effective
way.
A.
structure
B.
culture
C.
design
D.
goals
Organizational design is the process by which managers create a specific type of
organizational structure and culture so a company can operate in the most efficient and
effective way.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-01 Identify the factors that influence managers’ choice of an organizational structure.
Topic: Organizational Development (OD)
19.
According to ________ theory, managers should choose a structure that fits the
circumstances affecting their organization the most.
A.
contingency
B.
design
C.
agency
D.
equity
According to contingency theory, managers design organizational structures to fit the
factors or circumstances that are affecting the company the most and causing them the
most uncertainty.
AACSB: Analytical Thinking
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Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-01 Identify the factors that influence managers’ choice of an organizational structure.
Topic: Contingency Theory
Topic: Organizational Development (OD)
20.
Which of the following is a characteristic of a stable external environment?
A.
Inflexible structure
B.
Change is constant
C.
Decentralized authority
D.
Uncertainty is low
If the external environment is stable, resources are readily available, and uncertainty is
low, then less coordination and communication among people and functions are needed to
obtain resources. Managers can make organizing choices that bring more stability or
formality to the organizational structure and can establish values and norms that
emphasize obedience and being a team player.
AACSB: Analytical Thinking
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Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-01 Identify the factors that influence managers’ choice of an organizational structure.
Topic: Organizational Development (OD)
21.
According to Charles Perrow, the routineness of technology is determined by task
________.
A.
stability
analyzability
certainty
technology is: task variety and task analyzability.
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Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-01 Identify the factors that influence managers’ choice of an organizational structure.
Topic: Organizational Development (OD)
22.
The number of new or unexpected problems or situations that a person or function
encounters in performing tasks or jobs is task ________.
A.
uncertainty
B.
stability
C.
analyzability
D.
variety
Task variety is the number of new or unexpected problems or situations that a person or
function encounters in performing tasks or jobs.
AACSB: Analytical Thinking
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Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-01 Identify the factors that influence managers’ choice of an organizational structure.
Topic: Organizational Development (OD)
Topic: Task Specialist Roles
23.
The degree to which programmed solutions are available to people or functions to solve
the problems they encounter is task ________.
A.
uncertainty
B.
stability
C.
analyzability
D.
creativity
Task analyzability is the degree to which programmed solutions are available to people or
functions to solve the problems they encounter.
AACSB: Analytical Thinking
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Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-01 Identify the factors that influence managers’ choice of an organizational structure.
Topic: Organizational Development (OD)
Topic: Task Specialist Roles
24.
Managers should design flexible structures, characterized by decentralized authority and
empowered employees, for their organization when its ________.
A.
environment is stable
B.
technology is simple
C.
workforce is highly skilled
D.
strategy is well understood
The more highly skilled its workforce, and the greater the number of employees who work
together in groups or teams, the more likely an organization is to use a flexible,
decentralized structure and a professional culture based on values and norms that foster
employee autonomy and self-control.
AACSB: Analytical Thinking
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Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-01 Identify the factors that influence managers’ choice of an organizational structure.
Topic: Organizational Development (OD)
25.
The greater the level of uncertainty in the organization’s environment, the ________.
A.
less likely managers are to design a structure and a culture that is innovative
B.
less likely managers are to design a structure and a culture that changes quickly
C.
more likely managers are to design an organizational structure that is formal and
controlling
D.
more likely managers are to design a structure and a culture that are flexible
The greater the level of uncertainty in the organization’s environment, the more complex
its strategy and technologies, and the more highly qualified and skilled its workforce, the
more likely managers are to design a structure and a culture that are flexible, can change
quickly, and allow employees to be innovative in their responses to problems, customer
needs, and so on.
AACSB: Analytical Thinking
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Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-01 Identify the factors that influence managers’ choice of an organizational structure.
Topic: Organizational Development (OD)
26.
The process by which managers decide how to divide into specific jobs the tasks that have
to be performed to provide customers with goods and services is known as job ________.
A.
design
B.
enlargement
C.
simplification
D.
rotation
Job design is the process by which managers decide how to divide into specific jobs the
tasks that have to be performed to provide customers with goods and services.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Explain how managers group tasks into jobs that are motivating and satisfying for employees.
Topic: Job Design
27.
A Place for Pizza established a basic division of labor among “chefs” and “food servers” in
which chefs perform all tasks involved in actual cooking and food servers carry out all
tasks involved in giving food to the customers. A Place for Pizza implemented ________.
A.
a functional structure
B.
job design
C.
a divisional structure
D.
a product structure
Job design is the process by which managers decide how to divide into specific jobs the
tasks that have to be performed to provide customers with goods and services. The
division of labor in A Place for Pizza is its job design.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-02 Explain how managers group tasks into jobs that are motivating and satisfying for employees.
Topic: Job Design
28.
The Pizza Man combined the jobs of “chef” and “food server” into a single job description.
The Pizza Man implemented ________.
A.
a functional structure
B.
a divisional structure
C.
a product structure
D.
job design
Job design is the process by which managers decide how to divide into specific jobs the
tasks that have to be performed to provide customers with goods and services. At The
Pizza Man, managers chose a job design where there is no division of labor among the
chefs and food servers.
AACSB: Analytical Thinking
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Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-02 Explain how managers group tasks into jobs that are motivating and satisfying for employees.
Topic: Job Design
29.
A manager increases the number of tasks that a subordinate has to do in order to make
the job more interesting for the subordinate. This is known as ________.
A.
job simplification
B.
job enlargement
C.
job enrichment
D.
task identity
Job enlargement is increasing the number of different tasks in a given job by changing the
division of labor. The idea behind job enlargement is that increasing the range of tasks
performed by a worker will reduce boredom and fatigue and may increase motivation to
perform at a high level—increasing both the quantity and the quality of goods and services
provided.
AACSB: Analytical Thinking
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Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Explain how managers group tasks into jobs that are motivating and satisfying for employees.
Topic: Job Enlargement
30.
A manager redesigns the job of a subordinate so that the subordinate has more
responsibility over her job. This is the process of ________.
A.
job enlargement
job enrichment
D.
job reduction