Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
File: Chapter 7: Organization Structure and Design
Multiple Choice
1. Which of the following management functions entails the process of arranging people and
resources to work toward a common goal?
a) Controlling
b) Leading
c) Planning
d) Organizing
2. An organizational structure consists of all the following EXCEPT:
a) a system of tasks.
b) reporting relationships.
c) a management mission.
d) communication linkages.
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
3. A(n) __________ graphically describes the arrangement of work positions within an
organization.
a) informal structure
b) PERT chart
c) organization chart
d) business strategy
4. The __________ allocates jobs to different people and groups.
a) organization chart
b) division of labor
c) shadow organization
d) informal structure
5. Organization charts provide all of the following EXCEPT:
a) a clear division of work.
b) diagrams of reporting relationships among employees.
c) job titles of employees.
d) unofficial relationships among employees.
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
6. A chart that describes a company’s formal structure is called a(n):
a) PERT chart.
b) employee chart.
c) organization chart.
d) Pareto chart.
7. Your roommate wants to learn about organization charts. You can tell her that an organization
chart can tell you all of the following about an organization EXCEPT its:
a) division of work.
b) formal structure.
c) reporting relationships.
d) control mechanisms.
8. The network of unofficial relationships among an organization’s members is called the
__________.
a) informal structure
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
b) planned structure
c) formal structure
d) industrial structure
9. __________ are made up of relationships between organizational members that are unofficial
and not specified by the formal structure.
a) Strategic organizations
b) Vertical organizations
c) Shadow organizations
d) Formal organizations
10. All of the following are problems with informal structures EXCEPT that they:
a) assist in getting the work done.
b) may work against organizational goals.
c) breed resistance to change.
d) distract members from their work.
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
11. The process of grouping together people and jobs into work units is called __________.
a) breakeven analysis
b) relationship management
c) socialization
d) departmentalization
12. A __________ groups together people with similar skills who perform similar tasks.
a) cross-functional structure
b) functional structure
c) horizontal structure
d) matrix structure
13. At Ink Pens Manufacturing (IPM), there are departments for marketing, engineering, and
manufacturing. Which of the following structures does IPM exemplify?
a) A matrix structure
b) A cross-functional structure
c) An informal structure
d) A functional structure
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
14. Big Money Bank has several branches that are headed by branch managers. The loan
manager, investments manager, operations manager, and trust manager in each branch report
directly to the branch manager. This scenario is an example of a __________.
a) dysfunctional structure
b) matrix structure
c) network structure
d) product structure
15. Community Bank Inc. currently operates with a functional structure. A lack of
communication across functional departments has affected the performance of the employees.
This scenario illustrates the concept of:
a) matrix structure.
b) top-down structure.
c) functional chimneys.
d) cross-functional team.
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
16. In a functional structure, a lack of communication between functional departments leads to a
lack of:
a) coordination between the functional units.
b) expertise in solving technical problems.
c) a clear career path for employees.
d) training within the departments.
17. Which of the following structures groups together people working on the same product, in
the same geographical area, or with similar customers?
a) A matrix structure
b) A network structure
c) A divisional structure
d) An informal structure
18. Which of the following divisional structures brings together people and jobs performed in the
same location?
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
a) Product structures
b) Customer structures
c) Geographical structures
d) Process structures
19. Maria, the vice-president of operations at Choco Candy, Inc. (CCI), plans to create new
divisions of CCI in China, India, and Malaysia. In this scenario, Maria develops a _______ for
CCI.
a) product structure
b) geographical structure
c) team structure
d) service structure
20. Which of the following is NOT a form of divisional structure?
a) Product structure
b) Functional structure
c) Customer structure
d) Geographical structure
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
21. A customer structure groups together people who:
a) work on a single product.
b) work in the same location.
c) serve the same customer or client.
d) possess the same qualifications.
22. An organizational structure that combines functional and divisional approaches to emphasize
project or program teams is called a(n) __________.
a) informal structure
b) operational structure
c) vertical structure
d) matrix structure
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
23. Matrix structures offer all of the following advantages EXCEPT:
a) a less expensive organizational structure.
b) a clear accountability for projects.
c) improved communication across functions.
d) problem-solving at the team level.
24. Which of the following is a disadvantage of a matrix structure?
a) The power struggle between two managers produce conflicting demands on employees.
b) Expertise to solve problems is unavailable at the team level.
c) Subunits focus on functional goals rather than on organizational objectives.
d) A lack of communication develops between functional units.
25. A cross-functional team member in a matrix structure reports to __________ manager(s).
a) 0
b) 1
c) 2
d) 3
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
26. Your manager is considering the implementation of either a matrix structure or a team
structure. Based on what you have learned in this class, you can tell her that the major difference
between a matrix structure and a team structure is that a team structure:
a) has no functional management.
b) has project management.
c) is always permanent.
d) has temporary teams to solve problems.
27. A __________ brings together members from different functional departments.
a) matrix team
b) cross-functional team
c) sales team
d) vertical team
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
28. Who among the following is responsible for a cross-functional team member’s performance
appraisal in a matrix structure?
a) The functional supervisor
b) The project manager
c) Both the functional supervisor and the team leader
d) The general manager
29. ABC Inc. uses information technology to connect with outside suppliers and service
contractors. In this scenario, which of the following structures does ABC Inc. use?
a) A cross-functional structure
b) A matrix structure
c) A network structure
d) A horizontal structure
30. ABC and XYZ, two organizations in the same industry, have come together to pursue areas
of mutual interest. This scenario exemplifies a(n):
a) unethical venture.
b) acquisition.
c) corporate takeover.
d) strategic alliance.
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
31. Which of the following is an advantage of a network structure?
a) An easy transition from other types of structures
b) Simplicity of operating the structures
c) Control over each part of the system
d) Lower costs and flexibility
32. A _____ uses information technologies to operate as a shifting form of alliances.
a) functional organization
b) matrix organization
c) virtual organization
d) divisional organization
33. Which of the following is a requirement for a virtual structure?
a) Functional management
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
b) Cross-functional teams
c) Information technology
d) Large projects
34. __________ is the process of configuring organizations to meet environmental challenges.
a) Centralization
b) Decentralization
c) Organizational design
d) Strategic planning
35. Span of control refers to:
a) the power a manager has over all employees.
b) the number of employees directly reporting to a manager.
c) the area in which a manager supervises.
d) the number of top level managers a middle manager must report to.
36. Remote Servicing Inc. (RSI) has a flat organizational structure. In this scenario, managers at
RSI would have a __________ span of control.
a) tall
b) flat
c) wide
d) narrow
37. In a ______ organization, the top management has the power to make most of the important
decisions.
a) centralized
b) flat
c) decentralized
d) wide
38. Delegation refers to:
a) telling employees how to do their work.
b) managers promoting their employees.
c) the process of entrusting work to others.
d) managers favoring certain employees.
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
39. A classical management principle says authority should equal responsibility when:
a) delegating work to a subordinate.
b) centralizing organizational decisions.
c) empowering subordinate employees.
d) employing strategic alliances.
40. A manager from LMT Corporation allows her employees to do their jobs as they see fit. This
scenario illustrates the concept of:
a) span of control.
b) centralization.
c) empowerment.
d) organizational design.