Name:
Class:
Date:
Chapter 14—Organizational Structure and Design
True / False
1. The purpose of organizational structure is to appeal to external competitors.
a.
True
b.
False
False
2. An organizational chart illustrates the chain of command and reporting relationships in a company.
a.
True
b.
False
True
3. Efficient use of labor is one of the advantages of division of labor.
a.
True
b.
False
True
4. One downside of a high division of labor is that it tends to isolate employees.
a.
True
b.
False
True
5. Departmentalization by customer is based heavily on geography.
a.
True
b.
False
False
6. When a manager has a large span of control, she can maintain close control over workers and stay in contact with daily
operations.
a.
True
b.
False
False
7. Division of labor is the separation of work into different jobs to be done by different people.
a.
True
b.
False
True
8. Centralization is the system of reporting relationships in the organization.
a.
True
b.
False
False
9. A centralized organization concentrates decision making at the top of its hierarchy.
a.
True
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Chapter 14—Organizational Structure and Design
b.
False
True
10. If there is much employee participation in decision making, the organization structure is decentralized, regardless of
the nature of the decisions being made.
a.
True
b.
False
True
11. Formalization tends to delineate rules and procedures for employees’ jobs.
a.
True
b.
False
True
12. Implicit rules are set down in job descriptions, policy and procedure manuals, and office memos.
a.
True
b.
False
False
13. Span of control is the degree to which rules and procedures shape employees’ jobs and activities.
a.
True
b.
False
False
14. Responsibility cannot be delegated down to others, but authority can.
a.
True
b.
False
True
15. Although it is difficult to determine, there exists an optimal organizational size.
a.
True
b.
False
False
16. It is impossible for a large firm to retain elements of an organic structure.
a.
True
b.
False
False
17. A company’s pre-structural characteristics, which are determined largely by the founder’s personality and values, often
stay with the company even after it grows.
a.
True
b.
False
True
Name:
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Chapter 14—Organizational Structure and Design
18. A virtual organization may not even have a permanent office.
a.
True
b.
False
19. It’s impossible for managers to create effective communities of practice, only the conditions necessary for them to
exist.
a.
True
b.
False
True
20. Most organizational problems can be fixed with restructuring.
a.
True
b.
False
False
21. Communities of practice are not an official part of organizational structure, but they can make money for the
organization.
a.
True
b.
False
True
Multiple Choice
22. The structure of an organization is defined as
a.
the basic purpose of the organization.
b.
the sum of the individual working arrangements in place in an organization.
c.
a system of task, reporting, and authority relationships.
d.
a system of relationships that provides a framework of people.
e.
the basis through which individual activities are monitored.
c
23. The organizational ____ is defined as the system of task, reporting, and authority relationships within which the work
of the organization is done.
a.
goal system
b.
management
c.
structure
d.
community
e.
matrix
c
24. Organizational structure can be analyzed by examining all of the following EXCEPT
a.
division of labor.
b.
span of control.
c.
hierarchy.
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Chapter 14—Organizational Structure and Design
d.
centralization.
e.
All of these can be examined.
e
25. The ____ shows all people, positions, reporting relationships, and lines of formal communication in the organization.
a.
objectives chart
b.
organizational chart
c.
position chart
d.
PERT chart
e.
activities chart
26. Division of labor is often referred to as ____.
a.
departmentalization.
b.
the organizational chart.
c.
specialization.
d.
configuration.
e.
the administrative hierarchy.
c
27. ____ is the extent to which workers in an organization specialize as opposed to performing a variety of tasks as
generalists.
a.
Segregation
b.
Departmentalization
c.
Differentiation
d.
Administrative component
e.
Division of labor
e
28. The main advantage of division of labor is that it promotes
a.
worker satisfaction.
b.
worker autonomy.
c.
the creation of stimulating jobs.
d.
efficient use of labor.
e.
increased employee motivation.
29. Which of the following is a potential disadvantage of division of labor?
a.
slower response to environmental changes
b.
organizational flexibility
c.
decreased potential for conflict, both constructive and destructive
d.
greater isolation of employees
e.
All of these are potential disadvantages of division of labor.
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Chapter 14—Organizational Structure and Design
30. Jobs grouped according to traditional business tasks such as marketing and human resources are grouped by
a.
work process.
b.
employee knowledge and skills.
c.
business function.
d.
client.
e.
location.
c
31. Dividing an organization’s manufacturing jobs into drill press, milling, heat treat, and assembly areas is an example of
grouping employees by
a.
work process.
b.
employee knowledge and skills.
c.
business function.
d.
client.
e.
location.
a
32. Grouping employees by ___________ is similar to grouping them by output, except that the focus is on specific job
tasks rather than on what the final product is.
a.
work process
b.
employee knowledge and skills
c.
business function
d.
client
e.
location
33. Grouping employees by ___________ means that groups are organized according to a region of the country or world.
a.
business function
b.
location
c.
output
d.
work process
e.
client
34. ____ is the number of people reporting to a manager.
a.
Administrative intensity
b.
Span of control
c.
Work group size
d.
Organizational control
e.
Organizational management
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Chapter 14—Organizational Structure and Design
35. When there is a small span of control, there is likely to be
a.
an increase in the number of workers.
b.
less control over production workers.
c.
more administrative levels.
d.
less bureaucracy.
e.
looser managerial control.
c
36. The system of reporting relationships in the organization, from the first level up through the president or CEO is
known as
a.
informal communication channels.
b.
hierarchy.
c.
bureaucracy.
d.
administrative interdependence.
e.
formal communication channels.
37. In Jack’s organization, the span of control is very wide. In Pam’s organization, the span of control is rather narrow. The
number of levels of managers in Jack’s organization is likely to be ____ in Pam’s organization.
a.
greater than
b.
smaller than
c.
the same as that
d.
narrower than
e.
wider than
38. When individuals or groups throughout the hierarchy are not given an opportunity to participate in decision making,
authority is
a.
centralized.
b.
efficient.
c.
specialized.
d.
flexible.
e.
decentralized.
a
39. In Tom’s company, employees are given an opportunity to participate in decision-making related to policy
development, which is known as
a.
formalized concentration.
b.
formalized concentration.
c.
decentralization.
d.
formalization.
e.
centralization.
c
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Chapter 14—Organizational Structure and Design
40. Formalization reflects the extent to which organizational rules, procedures, and communications are
a.
ethical.
b.
fair.
c.
written down.
d.
comprehensive.
e.
top-down.
c
41. Delegation is the transfer of ____ to make decisions and use organizational resources.
a.
responsibility
b.
authority
c.
leadership
d.
operational control
e.
none of the above
42. As organization size increases, each of the following increases as well EXCEPT
a.
centralization.
b.
the number of rules.
c.
the number of levels in the hierarchy.
d.
flexibility.
e.
specialization of labor.
43. A mechanistic structure can be characterized by all of the following EXCEPT
a.
it is primarily hierarchical.
b.
communication is typically vertical.
c.
knowledge is concentrated at the top.
d.
instructions come from the boss.
e.
a high focus on adaptability.
e
44. The benefits of a matrix organization include all of the following EXCEPT
a.
it is flexible.
b.
it can provide coordinated responses to pressures.
c.
it is cheaper.
d.
it improves project coordination.
e.
it improves communication.
c
45. _________ organizations are flexible and decentralized, have open communication channels, and focus on adaptability
in helping employees accomplish their goals.
a.
Organic
b.
Mechanistic
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Chapter 14—Organizational Structure and Design
c.
Matrix
d.
Simple
e.
Bureaucratic
a
46. Which of the following is NOT a factor that influences organizational structure?
a.
external environment
b.
organization’s production technology
c.
organizational age
d.
organizational size
e.
business strategy
c
47. Which element of organizational structure would a firm pursuing an innovation strategy be most likely to have?
a.
centralization
b.
decentralization
c.
low specialization
d.
high formalization
e.
none of these
48. To succeed in a rapidly changing environment, an organization needs to have a more _________ structure.
a.
centralized
b.
formalized
c.
bureaucratic
d.
mechanistic
e.
flexible
e
49. Large organizations tend to have a _________ hierarchy and _________ specialization than small organizations.
a.
smaller, more
b.
smaller, less
c.
greater, more
d.
greater, less
e.
none of these
c
50. Large organizations tend to be _________ than small organizations.
a.
more flexible
b.
less centralized
c.
less bureaucratic
d.
more bureaucratic
e.
none of these
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Chapter 14—Organizational Structure and Design
51. If employees are to be encouraged to make decisions and work collaboratively, a more _________ and _________
structure is appropriate.
a.
centralized, narrower
b.
centralized, flatter
c.
decentralized, narrower
d.
decentralized, flatter
e.
none of these
52. One factor influencing organizational structure is the organization’s technology, which is also called its
a.
hours of operation.
b.
business strategy.
c.
organizational chart.
d.
primary production system.
e.
secondary production system.
53. When a firm uses _________, it produces in small batches or makes one–of-a-kind custom products.
a.
unit production
b.
mass production
c.
continuous production
d.
a primary production system
e.
a matrix structure
54. When a firm uses _________, it makes large volumes of identical products, typically using assembly lines and
machines.
a.
unit production
b.
mass production
c.
continuous production
d.
a primary production system
e.
a matrix structure
55. When a firm uses _________, machines constantly make the product while employees monitor the machines and plan
changes.
a.
unit production
b.
mass production
c.
continuous production
d.
a primary production system
e.
a matrix structure
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Chapter 14—Organizational Structure and Design
56. Which type of production requires low levels of supervision because machines do most of the work?
a.
unit production
b.
mass production
c.
continuous production
d.
a primary production system
e.
a matrix structure
57. Which type of production relies the most heavily on employee talent?
a.
unit production
b.
mass production
c.
continuous production
d.
a primary production system
e.
a matrix structure
58. If a firm uses unit production and makes custom products, it should have a _________ structure with a _________
managerial span of control is most appropriate.
a.
flatter, smaller
b.
flatter, larger
c.
taller, smaller
d.
taller, larger
e.
none of these
59. A flatter, team-based structure is appropriate for firms that rely on
a.
unskilled workers.
b.
highly skilled workers.
c.
mass production.
d.
continuous production.
e.
none of these
60. Smaller organizations with low standardization, total centralization, and mostly one–on-one communication have a
a.
matrix structure.
b.
functional structure.
c.
bureaucratic structure.
d.
prebureaucratic structure.
e.
lattice structure.
61. In organizations with a _________, cross-functional and cross-level subteams are formed and dissolved as necessary
to complete specific projects and tasks.
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Chapter 14—Organizational Structure and Design
a.
matrix structure
b.
functional structure
c.
bureaucratic structure
d.
prebureaucratic structure
e.
lattice structure
e
62. In organizations with a _________, employees report to both a project or product team and to a functional manager.
a.
matrix structure
b.
functional structure
c.
bureaucratic structure
d.
prebureaucratic structure
e.
lattice structure
a
63. Organizations with a _________ are characterized by formal division of labor, hierarchy, and standardization of work
procedures.
a.
matrix structure
b.
functional structure
c.
bureaucratic structure
d.
prebureaucratic structure
e.
lattice structure
c
64. _________ is an organizational structure that groups people with the same skills, or who use similar tools or work
processes, together into departments.
a.
Matrix structure
b.
Functional structure
c.
Bureaucratic structure
d.
Prebureaucratic structure
e.
Lattice structure
65. Organizations with a _________ create horizontal or vertical teams that can define part or all of the organization.
a.
division structure
b.
team-based structure
c.
network structure
d.
virtual structure
e.
centralized structure
66. A ________ is a collection of functions organized around a particular geographic area, product or service, or market.
a.
division
b.
lattice