Organizational Structure And Design PDF

Fundamentals of Management, 11e (Robbins) Chapter 8 Organizational Structure and Design 1) Organizational design requires a manager to ________. A) decide who leads a group within an organization B) change the culture of an organization C) change or develop the structure of an organization D) chang...

Fundamentals of Management, 11e (Robbins) Chapter 8 Organizational Structure and Design 1) Organizational design requires a manager to ________. A) decide who leads a group within an organization B) change the culture of an organization C) change or develop the structure of an organization D) change the logo of an organization 2) All of the following are part of the process of organizational design EXCEPT ________. A) deciding how specialized jobs should be B) determining rules for employee behavior C) determining the level at which decisions are made D) determining goals for the organization 3) Which one of the following pairs include items that are NOT basic elements of organizational design? A) work specialization, span of control B) chain of command, line authority C) centralization, decentralization D) departmentalization, formalization 4) Which one of the following is synonymous with work specialization? A) division of labor B) job discrimination C) chain of command D) job preference 5) Which statement accurately defines work specialization? A) It is the degree to which tasks are grouped together. B) Individual employees specialize in doing part of an activity rather than the entire activity. C) Jobs are ranked relative only to their worth or value to the businesses. D) Work specialization clarifies who reports to whom. 6) Early supporters of work specialization saw it as ________. A) a reliable way to increase productivity B) a good way to increase employee morale C) a source of innovation D) an immoral way to coerce workers into greater productivity 7) Early users of work specialization in the early twentieth century found that the practice ultimately resulted in ________. A) higher profits and better employee morale B) bored workers with low morale C) huge and permanent productivity gains D) better communication among employees 1 Copyright © 2020 Pearson Education, Inc. 8) Today, managers favor this approach with regard to work specialization. A) All tasks are performed by all employees to promote fairness. B) Partners switch jobs every half hour to overcome boredom. C) Employees specialize to maintain efficiency. D) Monotonous tasks are shared by all employees to prevent perceived favoritism. 9) Functional departmentalization groups jobs by ________. A) tasks they perform B) territories they serve C) products or services they manufacture or produce D) type of customer they serve 10) ________ departmentalization is based on territory or the physical location of employees or customers. A) Functional B) Product C) Geographic D) Matrix 11) A soap company that features a bath soap department, a laundry detergent department, and a dish soap department is using which one of the following? A) process departmentalization B) functional departmentalization C) product departmentalization D) customer departmentalization 12) What kind of departmentalization would be in place in a government agency in which there are separate departments that provide services for employers, employed workers, unemployed workers, and the disabled? A) product B) geographic C) outcome D) customer 13) Health clinic offices usually use this kind of departmentalization. A) product B) functional C) customer D) process 14) The line of authority that extends from the upper levels of management to the lowest levels of the organization is termed the ________. A) chain of responsibility B) unity of command C) staff authority D) chain of command 2 Copyright © 2020 Pearson Education, Inc. 15) The chain of command answers this question. A) Where do I go for help? B) How do I know when the task is complete? C) What are the rules? D) Who reports to whom? 16) Authority gives an individual the right to do this. A) give orders B) reprimand employees C) command respect D) obey orders 17) In the chain of command, each person above you ________. A) has special privileges B) receives higher pay C) has line authority D) has no right to give you orders 18) Staff managers have authority over ________. A) support employees only B) line managers C) middle managers D) the person above them in the chain of command 19) Line authority gives a manager the ability to direct the work of ________. A) any employee in the firm B) any subordinate C) any subordinate, after consulting with the next higher level D) only subordinates one level down 20) ________ prevents a single employee from getting conflicting orders from two different superiors. A) Line authority B) Unity of command C) Staff authority D) Chain of command 21) The importance of unity of command has diminished in today's workplace because of its tendency to be ________. A) inflexible and inefficient B) ethically questionable C) chauvinistic and dictatorial D) too decisive 3 Copyright © 2020 Pearson Education, Inc. 22) Which one of the following statements is true? A) Power is a right. B) Authority is one's ability to influence decisions. C) Authority is a right. D) Both power and authority are rights. 23) ________ is the obligation or expectation to perform a duty. A) Responsibility B) Unity of command C) Chain of command D) Span of control 24) The personal assistant of a top manager may have ________. A) power but not authority B) authority but not power C) power and authority D) line authority but not staff authority 25) Which one of the following statements is true? A) Power is a type of authority. B) Authority and power are identical. C) Authority is a type of power. D) Power is determined by horizontal position in an organization. 26) As represented in a power cone, power is based on ________. A) vertical position only B) horizontal position only C) distance from the center only D) vertical position and distance from the center 27) As represented in a hierarchical organization diagram, authority is based on ________. A) vertical position only B) horizontal position only C) distance from the center only D) horizontal and vertical position 28) A construction site supervisor who sees an impending thunderstorm and tells workers to go home is demonstrating ________. A) line authority B) staff delegation C) provisional accountability D) unity of command 4 Copyright © 2020 Pearson Education, Inc. 29) ________ is the power that rests on the leader's ability to punish or control. A) Reward power B) Coercive power C) Expert power D) Referent power 30) A bank manager who passes out bonuses at the end of the year is exercising this. A) reward power B) coercive power C) expert power D) referent power 31) Your firm's attorney has ________ power when giving legal advice. A) legitimate B) status C) expert D) coercive 32) ________ is the power that arises when a person is close to another person who has great power and authority. A) Expert power B) Referent power C) Reward power D) Legitimate power 33) When a top manager decides to hire an individual over the objections of her staff, she is exercising which kind of power? A) referent B) expert C) coercive D) legitimate 34) The traditional view holds that managers should directly supervise ________ subordinates. A) no more than three B) no more than six C) around twelve D) around twenty 35) Modern managers find that they can ________ if their employees are experienced, well- trained, and motivated. A) increase their span of control B) decrease their span of control C) eliminate their span of control D) fluctuate their span of control 5 Copyright © 2020 Pearson Education, Inc. 36) A traditional "top down" organization is ________ organization. A) a largely centralized B) a largely decentralized C) an absolutely decentralized D) an absolutely centralized 37) ________ reflects the degree to which decision making is distributed throughout the hierarchy rather than concentrated at the top. A) Centralization B) Span of control C) Concentration D) Decentralization 38) In recent years, organizations have become more ________ to be responsive to a dynamic business environment. A) centralized B) decentralized C) structured D) mechanistic 39) In today's decentralized business world, ________ the most important strategic decisions. A) top managers still primarily make B) middle managers make C) lower-level managers make D) nonmanagerial employees make 40) All of the following are characteristics of a highly formalized organization EXCEPT ________. A) explicit job descriptions B) little discretion for employees C) minimum number of rules D) a standardized way of doing things 41) Today's managers are moving away from formalization and trying to be this. A) more rigorous B) more flexible C) more strict D) less permissive 42) Today's managers expect employees to ________. A) ignore rules for the most part B) use discretion when it comes to following rules C) faithfully follow rules even when it may harm the organization D) make their own rules 6 Copyright © 2020 Pearson Education, Inc. Eric the Redd (Scenario) Eric Redd graduated from college and was hired by a corporation that manufactured parts for the automotive industry. The employees on the assembly line seemed bored, and their motivation was low. Eric's employer decided to try to reorganize to increase productivity. During his career, Eric will see his job change from an engineer to a more complex job assignment. 43) The jobs of assembly-line employees are to be changed to allow more tasks to be done by individual workers. This is a reduction in ________. A) work specialization B) departmentalization C) chain of command D) centralization 44) Eric is offered a chance to help direct the efforts of some employees assigned to his work group. This is a chance for Eric to experience ________. A) functional structure B) divisional structure C) responsibility D) authority 45) Eric sees this new assignment as an increase in ________, or an obligation or expectation for him to perform at a new level. A) functional structure B) divisional structure C) responsibility D) authority 46) Organizational design is the process in which managers change or develop an organization's structure. Answer: TRUE 47) There are exactly four basic elements in organizational design. Answer: FALSE 48) The original ideas about organizational design formulated by Fayol and Weber are now largely obsolete. Answer: FALSE 49) When work specialization was originally implemented early in the twentieth century, employee productivity initially rose. Answer: TRUE 50) Today, most managers see work specialization as a source of ever-increasing productivity. Answer: FALSE 7 Copyright © 2020 Pearson Education, Inc. 51) The advantage of work specialization is that it always results in high employee motivation and high productivity. Answer: FALSE 52) Departmentalization is how jobs are grouped. Answer: TRUE 53) Staff authority is the ability to direct the work of any employee who does not have a higher rank in the organization. Answer: FALSE 54) Grouping jobs on the basis of major product areas is termed customer departmentalization. Answer: FALSE 55) Line authority can be exerted only after a manager checks with his or her superior. Answer: FALSE 56) Unity of command prevents an employee from trying to follow two conflicting commands at once. Answer: TRUE 57) Power is a right that a manager has when he or she has a higher rank in an organization. Answer: FALSE 58) When decisions tend to be made at lower levels in an organization, the organization is said to be centralized. Answer: FALSE 59) Traditional organizations are structured in a pyramid, with the power and authority located in the pyramid's broad base. Answer: FALSE 62) A(n) ________ organization has a high degree of specialization, formalization, and centralization. A) organic B) horizontal C) learning D) mechanistic Answer: D 63) Which one of the following would likely be found in mechanistic organizations? A) wide span of control B) empowered employees C) decentralized responsibility D) standardized jobs 8 Copyright © 2020 Pearson Education, Inc. 64) A(n) ________ organization is able to change rapidly as needs require. A) organic B) hierarchical C) vertical D) mechanistic 65) Which term best describes an organic organization? A) hierarchical B) pyramid-shaped C) flexible D) fixed 66) Which word best characterizes a mechanistic organization? A) bureaucracy B) collaborative C) adaptable D) informal 67) Strategy, size, technology, and the degree of uncertainty in the environment together make up what are called ________. A) contingency variables B) control factors C) structure variables D) probable factors 68) Together, contingency variables determine the ________. A) success of an organization B) culture of an organization C) structure of an organization D) size of an organization 69) A company that is trying to be a leader in innovation within its industry would be most likely to have this kind of structure. A) mechanistic B) organic C) simple D) functional 70) Larger organizations tend to have ________ than smaller organizations. A) more specialization B) less departmentalization C) less centralization D) fewer rules and regulations 9 Copyright © 2020 Pearson Education, Inc. 71) As an organization grows to a size of over 2,000 employees, it finds it hard to avoid becoming more ________. A) mechanistic B) organic C) informal D) adaptable 72) Joan Woodward conducted pioneering studies on how this affected the structure of companies. A) ethics B) technology C) values D) corporate culture 73) Recent studies on Woodward's initial research found that if the technology was nonroutine, this structure worked best. A) mechanistic B) traditional C) inorganic D) organic 74) Woodward concluded that the least complex of the technologies was ________. A) unit production B) mass production C) process production D) quality production 75) In Woodward's study, this type of production was the most complex and the most sophisticated. A) unit production B) mass production C) process production D) technological production 76) The greater the environmental uncertainty, the more an organization needs to become ________. A) organic B) mechanistic C) stable D) high-tech 77) The two prevalent organizational structure models in today's world are the organic organization and the inorganic organization. Answer: FALSE 78) A mechanistic organization is bureaucratic and hierarchical. Answer: TRUE 10 Copyright © 2020 Pearson Education, Inc. 79) An organic organization tends to be flexible and have few formal rules. Answer: TRUE 80) Innovators need the efficiency, stability, and tight controls of a mechanistic structure rather than an organic structure. Answer: FALSE 81) As organizations become larger, they tend to become more organic. Answer: FALSE 82) Joan Woodward attempted to view organizational structure from a technological perspective. Answer: TRUE 83) Woodward and more recent studies have concluded that mass production worked best with an organic organizational structure. Answer: FALSE 84) The stability of a mechanistic structure seems to work best in today's dynamic and uncertain business environment. Answer: FALSE 85) Traditional organizational designs tend to be more mechanistic and include ________. A) simple, complex, and divisional structures B) simple, functional, and dysfunctional structures C) functional, divisional, and vertical structures D) simple, functional, and divisional structures 86) A simple structure is ________ like a mechanistic organization, but ________ like an organic organization. A) centralized; informal B) informal; decentralized C) decentralized; formal D) centralized; formal 87) What is a strength of a simple structure? A) Employees are grouped with others who have similar tasks. B) Power and authority are widely distributed. C) Accountability is clear. D) There are cost-saving advantages from specialization. 11 Copyright © 2020 Pearson Education, Inc. 88) What is a weakness of a simple structure? A) Duplication of activities and resources increases costs and reduces efficiency. B) Functional specialists become insulated and have little understanding of what other units are doing. C) Pursuit of functional goals can cause managers to lose sight of what is best for the overall organization. D) Reliance on a single person is risky. 89) This is a key characteristic in an organization with a functional structure. A) adaptability B) departmentalization C) flexibility D) little specialization 90) This is a weakness of a functional structure. A) favoring functional goals over organizational goals B) favoring organizational goals over functional goals C) failing to attain functional goals D) overemphasizing organizational goals 91) Avoiding redundancy is a strength of which structure? A) simple B) divisional C) functional D) corporate 92) In a ________ structure each business unit has complete autonomy to reach its goals. A) simple B) functional C) divisional D) matrix 93) A media company that has separate, autonomous companies for movies, TV, Internet, and print journalism is most likely a ________ structure. A) divisional B) functional C) simple D) matrix 94) Having separate payroll departments in each division of a divisional structure is an example of which one of the following? A) efficiency, because payroll departments compete B) duplication, because a single payroll department could do the job C) effectiveness, because separate payroll departments create jobs D) efficiency, because separate payroll departments can share methods of operation 12 Copyright © 2020 Pearson Education, Inc. 95) As the number of employees in an organization grows, structure tends to become more ________. A) bureaucratic B) informal C) decentralized D) relaxed 96) Looking for ways to make their organization more flexible and innovative, today's managers may choose this kind of structure. A) simple B) divisional C) functional D) team 97) In a team structure, ________. A) there is a clear line of managerial authority B) there is no clear line of managerial authority C) authority comes from top managers only D) no one has the authority to make decisions 98) In a team structure, team members ________. A) are subject to decisions made by their supervisors B) can influence decisions made by top managers C) make decisions and are accountable for their decisions D) make decisions only after first checking with management 99) All of the following are necessary for successful team structure EXCEPT ________. A) well-trained team members B) team members with cross-functional skills C) team members with years of management experience D) a fair and well-run team-based pay plan 100) In a ________, employees are recruited from functional departments to work on a specific project for a limited time period. A) team structure B) divisional structure C) product structure D) matrix structure 101) In a matrix structure, a group member will typically report to ________. A) a project manager only B) both a project manager and functional department head C) a functional department head only D) Group members are fully autonomous in a matrix structure, so they don't report to anyone. 13 Copyright © 2020 Pearson Education, Inc. 102) When a group member in a matrix structure finishes a project, he or she ________. A) returns to his or her functional department B) stays with the group to take on a new project C) enters a pool of available employees from the entire organization D) starts looking for a new job 103) By giving employees two direct superiors, a matrix structure violates this key element of organizational design. A) unity of command B) chain of command C) span of management D) decentralization 104) A key difference between a team structure and a matrix structure is that a team structure ________ while a matrix structure does not. A) empowers group members B) works on projects C) has fairly permanent groups or teams D) holds group members accountable 105) In a project structure, when employees finish a project they ________. A) return to their department B) return to a different division C) move on to another project D) return to their regular work 106) Which one of the following areas has opened up new possibilities for how and where employees work? A) information technology B) human resources C) organizational design D) global competition 107) Boundaryless organizations try to eliminate ________ within their organization. A) horizontal specialization and vertical hierarchy B) horizontal specialization only C) vertical hierarchy only D) vertical specialization only 108) A virtual organization is essentially ________ who come together for a particular project. A) a group of employees from a single company B) a group of free agents C) a team of employees from different departments of a company D) a group of top managers and CEOs 14 Copyright © 2020 Pearson Education, Inc. 109) How does a virtual organization save on costs? A) by hiring people who specialize in what they do B) by hiring fewer people than they need and making them work much longer hours C) by eliminating all administrative duties D) by keeping only a small permanent staff for administrative purposes only 110) A ________ subcontracts part of a project to outside suppliers. A) virtual organization B) boundary organization C) matrix structure D) network organization 111) A building contractor follows the network organization model when he does which one of the following? A) does the framing and tiling by himself B) hires three workers to help with framing C) gives orders to workers D) farms out the plumbing to a plumbing firm Eric the Redd (Scenario) Eric Redd graduated from college and was hired by a corporation that manufactured parts for the automotive industry. The employees on the assembly line seemed bored, and their motivation was low. Eric's employer decided to try to reorganize to increase productivity. During his career, Eric will see his job change from an engineer to a more complex job assignment. 112) Eric, who is trained as an engineer, is now in a group with production workers and marketing specialists from different departments designing a new product that the company plans to offer. This situation could be described as a(n) ________. A) alternative assignment B) collective assignment C) advanced assignment D) project assignment 113) One of the strengths of a simple structure is that it is flexible. Answer: TRUE 114) A strength of a functional structure is that it avoids duplication of activities. Answer: TRUE 115) A weakness of the divisional structure is that duplication of activities tends to occur. Answer: TRUE 116) In a team structure, team members are not held responsible for their decisions. Answer: FALSE 117) In a team structure, there is a clear line of managerial authority from top to bottom. Answer: FALSE 15 Copyright © 2020 Pearson Education, Inc. 118) Employees in an organization with a matrix design can have two bosses for the same job. Answer: TRUE 119) A significant advantage of the matrix structure is the clear chain of command from top to bottom of the organization. Answer: FALSE 120) When employees in a matrix structure finish a project, they go back to their functional department. Answer: TRUE 121) When employees in a project structure finish a project, they go back to their original department. Answer: FALSE 122) Vertical boundaries separate employees by their rank in an organization. Answer: TRUE 123) Internal boundaries separate the organization from its customers, suppliers and stakeholders. Answer: FALSE 124) A virtual organization relies on free agents who have no permanent status or position in the organization. Answer: TRUE 125) Managers want to eliminate boundaries in organizations primarily to increase stability and reduce flexibility. Answer: FALSE 126) Horizontal boundaries separate employees by the specialization of their job. Answer: TRUE 127) A network organization uses its own employees and outside suppliers to provide manpower for projects. Answer: TRUE 133) Which one of the following is the biggest concern when doing work at anytime and anywhere? A) employee payroll B) security C) employee accountability D) customer satisfaction 16 Copyright © 2020 Pearson Education, Inc. 134) Global competition forces firms to ________. A) become lean, fast, and flexible B) build up enormous cash reserves C) think locally D) become more hierarchical 135) A learning organization develops the capability to ________. A) add new training programs to keep employees up to date B) accept the conventional wisdom of the industry C) continuously learn, adapt, and change D) attract new employees who have special knowledge 136) A learning organization requires employees to ________. A) encode information to prevent competitors from stealing ideas B) collaborate with competitors C) make all ideas public D) share information and collaborate with one another 137) All of the following are characteristic of learning organizations EXCEPT ________. A) a strong sense of community B) a collaborative environment C) managers who serve as facilitators D) fear of making mistakes 138) Organizational learning can't take place without ________. A) complete privacy for employees B) a clear chain of command C) information D) a stable structure or hierarchy 139) In a learning organization, it is important that all employees ________. A) collaborate B) study each night C) have a strong sense of leadership D) share the same vision for the organization 140) All learning organizations share a distinct structure. Answer: FALSE 141) The biggest issue in workers working at home or off-site involves fairness. Answer: FALSE 142) A learning organization puts an enormous amount of effort on making sure that all of its employees are enrolled in some kind of university level class. Answer: FALSE 17 Copyright © 2020 Pearson Education, Inc. 143) Organizations that implement flextime programs allow employees to work at home for some of the work day. Answer: FALSE 144) Contingent workers may make up to 40 percent of the workforce by the end of the decade. Answer: TRUE 18 Copyright © 2020 Pearson Education, Inc.