60) Explain centralization, decentralization. How do these relate to employee empowerment?
61) A(n) ________ organization is highly specialized and rigidly departmentalized.
A) organic
B) complex
C) learning
D) mechanistic
62) A(n) ________ organization is highly formalized and centralized.
A) organic
B) mechanistic
C) complex
D) learning
63) 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
64) A(n) ________ organization is highly adaptive, loose, and flexible.
A) organic
B) centralized
C) customer-oriented
D) mechanistic
65) 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
66) 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
67) 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
68) 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
69) 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
70) An organic organization strictly adheres to the chain-of-command principle and has a wide
span of control.
71) An organic organization is low in centralization.
72) Explain the concepts of mechanistic and organic structures.
73) 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
74) Large organizations tend to have more ________ than smaller organizations.
A) specialization
B) departmentalization
C) centralization
D) rules and regulations
75) Large organizations are more ________.
A) mechanistic
B) organic
C) disorganized
D) decentralized
76) 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
77) ________ is a type of technology that centers on small-batch production.
A) Unit production
B) Mass production
C) Process production
D) Flow production
78) The building of a bridge would be a type of ________.
A) unit production
B) mass production
C) process production
D) flow production
79) ________ 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
80) 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
81) 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
82) 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
83) 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
84) 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
85) 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
86) 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
87) 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
88) The greater the environmental uncertainty, the more an organization needs to become
________.
A) organic
B) mechanistic
C) specialized
D) departmentalized
89) 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
90) Which of these statements is an argument in favor of creating a hierarchical structure in an
organization?
A) Organizations function better when there’s a hierarchy in place.
B) Someone must monitor crowdsourcing efforts.
C) Managers need to control how employees use technology.
D) Employees are more likely to engage in unethical behavior in the absence of a hierarchy.
91) Innovators need the efficiency, stability, and tight controls of the mechanistic structure.
92) Once an organization grows past a certain size, the impact of size on organization structure
strengthens.
93) List and discuss the four contingency variables that should be considered while designing an
appropriate organizational structure.
94) 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
95) 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
96) 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
97) As the number of employees in an organization grows, structure tends to become more
________.
A) specialized
B) informal
C) centralized
D) relaxed
98) 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
99) 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.
100) 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.
101) 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
102) 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
103) 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
104) 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
105) 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
106) A simple structure is characterized by low spans of controls and high formalization.
107) The strength of the functional structure is that it focuses on results because managers are
responsible for what happens to their products and services.
108) In divisional structures, the parent corporation typically acts as an external overseer to
coordinate and control the various divisions of the organization.
109) Discuss the three traditional organizational designs and highlight the strengths and
weaknesses of each.