Management, 13e (Robbins)
Chapter 10 Designing Organizational Structure – Basic Designs
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) 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
10) 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
11) 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
12) In the case of functional departmentalization, jobs are grouped according to ________.
A) tasks
B) territories
C) product lines
D) customer flow
13) Departmentalization based on ________ groups jobs on the basis of territory or physical
location.
A) customer
B) product
C) geography
D) process
14) ________ departmentalization is based on the product or customer flow through the
organization.
A) Product
B) Functional
C) Process
D) Customer
15) 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
16) A disadvantage of ________ departmentalization is poor communication across the different
groups.
A) geographic
B) functional
C) process
D) customer
17) ________ 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
18) 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
19) 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
20) 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
21) According to the acceptance theory of authority, ________.
A) employees will accept orders only if certain conditions are met
B) employees have the authority to negotiate conditions with their employers
C) managers must accept responsibility for the actions of their subordinates
D) managers must accept the authority delegated to them before they can expect their
subordinates to comply with their orders
22) 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
23) ________ is the obligation or expectation to perform a duty.
A) Responsibility
B) Authority
C) Commitment
D) Duty
24) 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
25) 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
26) 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
27) 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
28) 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
29) ________ is the degree to which decision making takes place at upper levels of the
organization.
A) Centralization
B) Decentralization
C) Formalization
D) Departmentalization
30) 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
31) 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
32) 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
33) 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.
34) 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
35) 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
36) ________ 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
37) 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
38) 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
39) Organizational structure is the formal chain of command of jobs within an organization.
40) Organizational design is the degree to which standardized procedures are in place in an
organization.
41) Work specialization is also known as division of labor.
42) Managers today continue to see work specialization as important because it helps employees
be more efficient.
43) Customer departmentalization works well because it emphasizes interdepartmental
communication regarding customer’s needs.
44) The chain of command is a principle that states that a person should report to only one boss.
45) All other things unchanged, the narrower the span of control, the more efficient the
organization is.
46) 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.
47) The more the decision-making power of lower-level employees, the more decentralized the
organization is.
48) At one end of the spectrum, organizations can be absolutely centralized, while at the other
end, they can be completely decentralized.
49) Employee empowerment gives employees more authority to delegate responsibility.
50) In highly formalized organizations, employees have more discretion in how they do their
work.
51) Today’s organizations mostly rely on strict rules and standardization to guide and regulate
employee behavior.
52) Define the process of organizing and explain how it helps an organization.
53) Write a short essay on work specialization. How does specialization affect productivity?
How does it affect a firm’s cost structure?
54) What is meant by departmentalization? In a short essay, list and discuss the five common
forms of departmentalization, their advantages and disadvantages.
55) In a short essay, explain authority and responsibility
56) Discuss the differences between line and staff authority.
57) Explain the traditional view of span of control.
58) Explain the contemporary view of span of control.
59) List a few factors that influence the amount of centralization or decentralization in an
organization.