Jr Chapter 11 Organization Structures Verified Test Bank - Management Canada 5e | Complete Test Bank by John R. Schermerhorn Jr. DOCX document preview.
CHAPTER 11
ORGANIZATION STRUCTURES
Question type: True/False
1) The purpose of organizing is to create divisions of labour and coordinate processes in order to achieve a common goal.
Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures.
Section Reference 11.1: Organizing as a Management Function
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
2) An organization’s ability to implement its strategy is greatly helped by a structure that allocates tasks through a division of labour and provides for the coordination of performance results.
Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures.
Section Reference 11.1: Organizing as a Management Function
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
3) An organization structure is the system of tasks, workflows, reporting relationships, and communication channels that link together the work of diverse individuals and groups.
Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures.
Section Reference 11.1: Organizing as a Management Function
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
4) The purpose of an organization structure is to map out working and reporting relationships within an organization or business unit.
Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures.
Section Reference 11.1: Organizing as a Management Function
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
5) When an organization chart shows vice presidents of marketing, manufacturing, finance, and human resources reporting directly to the president of a company, the top management group is organized as a divisional structure.
Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures.
Section Reference 11.1: Organizing as a Management Function
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
6) An organization chart includes major subunits in which positions reporting to a common manager are shown.
Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures.
Section Reference 11.1: Organizing as a Management Function
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
7) Informal structures always work against the achievement of high productivity.
Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures.
Section Reference 11.1: Organizing as a Management Function
Bloom’s: Comprehension
Difficulty: Hard
AACSB: Analytic
8) An organization can be successful without an informal structure.
Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures.
Section Reference 11.1: Organizing as a Management Function
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
9) The informal structure of an organization is the shadow organization connection various members of the organization.
Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures.
Section Reference 11.1: Organizing as a Management Function
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
10) Social network analysis identifies the informal structures and their embedded social relationships that are active in an organization.
Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures.
Section Reference 11.1: Organizing as a Management Function
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
11) Informal networks are sources of emotional support and friendship that satisfy members’ social needs.
Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures.
Section Reference 11.1: Organizing as a Management Function
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
12) Advantages of functional structures include the support of in-depth training and reduced accountability for total product or service delivery.
Learning Objective 2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
13) A potential disadvantage of functional structures concerns the difficulties in pinpointing responsibilities for cost containment, product or service quality, timeliness, and innovation.
Learning Objective 2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
14) The functional chimneys problem can slow decision making, diminish cooperation and commitment to a common purpose, and interfere with coordination across functions.
Learning Objective 2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
15) In a functional structure, people working on the same product, in the same area, with similar customers, or on the same processes, are grouped together.
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
16) Functional structures tend to work best in relatively stable environments where problems are predictable and the demands for change and innovation are limited.
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
17) Divisional structures are common in organizations with assorted products, geographical areas and processes.
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
18) Divisional structures can create healthy rivalries as divisions compete for available resources.
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
19) A divisional structure is characterized by reduced coordination across functional departments.
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
20) A product structure prompts managers to be responsive to changing market demands and customer tastes.
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
21) Product structures group together jobs and activities that serve similar customers or clients.
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
22) A product structure is not effective in a global organization, as the work processes and people are too spread out to make the structure viable.
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
23) A disadvantage of the product structure is that divisions are more likely to compete than to cooperate with each other.
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
24) Geographical structures group together jobs and activities being performed in nearby locations or regions.
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
25) Geographical structures are typically used when there is a need to differentiate products or services in various locations, such as in different parts of a country.
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
26) Customer structures are effective only in service industries.
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
27) A customer structure groups jobs and activities that serve the same customers.
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
28) A work process is a group of tasks related to one another that collectively creates something of value to a customer.
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
29) Process structures group together jobs and activities that are part of processes within the same product line.
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
30) A disadvantage of functional structures is that employees lack a clear career path within functions.
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
31) The matrix structure makes use of permanent cross-functional teams to integrate functional expertise in support of a clear divisional focus on a product, project, or program.
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
32) Members of matrix organizations may experience task confusion and encounter power struggles because of reporting to both a “project team boss” and a “functional boss.”
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
33) A matrix structure is characterized by better customer, performance accountability and improved strategic management and reduced administrative costs.
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
34) A potential disadvantage of the matrix structure is the occurrence of “groupitis” resulting in meetings that take longer than needed and a lack of focus on organizational goals.
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
35) In a matrix structure, top managers are freed from lower-level problem solving to focus time on more strategic issues.
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
36) Organizations with team structures make extensive use of both permanent and temporary teams to solve problems, complete special projects, and accomplish day-to-day tasks.
Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures.
Section Reference 11.3: Team and Network Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
37) Team members’ effective utilization of the time they spend together is independent of the quality of their interpersonal relations, group dynamics, and team management.
Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures.
Section Reference 11.3: Team and Network Organization Structures
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
38) The team structure improves organizational performance by improving the speed and quality of decision making, and overall better time management.
Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures.
Section Reference 11.3: Team and Network Organization Structures
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
39) Project teams are permanent in nature and cannot be disbanded.
Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures.
Section Reference 11.3: Team and Network Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
40) The disadvantages of team structures include conflicting loyalties among members regarding both team and functional assignments and the excessive time spent in meetings.
Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures.
Section Reference 11.3: Team and Network Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
41) In addressing the potential disadvantages of team structures, managers should manage time effectively and not promote effective interpersonal relations, group dynamics, and team management.
Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures.
Section Reference 11.3: Team and Network Organization Structures
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
42) Network structures result in increasing overhead costs and reducing operating efficiency.
Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures.
Section Reference 11.3: Team and Network Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
43) Network structures consist of a central business core that that is linked through networks of relationships with outside contractors and suppliers of essential services.
Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures.
Section Reference 11.3: Team and Network Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
44) The network structure cannot function without strategic alliances with partner firms.
Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures.
Section Reference 11.3: Team and Network Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
45) Supplier strategic alliances link businesses in preferred supplier–customer relationships that guarantee a smooth and timely flow of quality supplies among the partners.
Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures.
Section Reference 11.3: Team and Network Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
46) Outsourcing strategic alliances permit an organization to outsource, or loan out core function employees, such as accounting and document processing to partner firms.
Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures.
Section Reference 11.3: Team and Network Organization Structures
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
47) Boundaryless sourcing refers to the contracting of business functions to outside suppliers.
Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures.
Section Reference 11.3: Team and Network Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
48) The advantages of network structures include (a) staying cost competitive through reduced overhead and increased operating efficiency, and (b) operating with fewer full-time employees and less complex internal systems.
Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures.
Section Reference 11.3: Team and Network Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
49) The potential disadvantages of the network structure are due primarily to the demands of flexibility in responding to changing conditions, having fewer full-time employees to help build the supervisor’s managerial empire, and the need to operate across great distances.
Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures.
Section Reference 11.3: Team and Network Organization Structures
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
50) Boundaryless organizations remove internal boundaries among parts and external boundaries linking with the external environment.
Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures.
Section Reference 11.3: Team and Network Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
51) Key requirements for a boundaryless organization are the absence of hierarchy, empowerment of team members, technology utilization, and acceptance of impermanence.
Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures.
Section Reference 11.3: Team and Network Organization Structures
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
52) Due to the absence of structural barriers, boundaryless organizations have few communication and coordination problems.
Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures.
Section Reference 11.3: Team and Network Organization Structures
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
53) A virtual organization is an extreme form of a boundaryless organization and requires as a fluid network of alliances in order to function in a wireless manner.
Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures.
Section Reference 11.3: Team and Network Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
54) A virtual organization operates in a shifting network of external strategic alliances that are engaged as needed, and typically are supported by extensive information technology utilization.
Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures.
Section Reference 11.3: Team and Network Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
55) A latent organization operates in a shifting network of external strategic alliances that are engaged as needed, and typically are supported by extensive information technology utilization.
Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures.
Section Reference 11.3: Team and Network Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
56) An individual wanting to work in a latent organization must be prepared to work in a potentially unstable organization. Because the individual has the skill set the organization needs, this potential downside is mitigated with high compensation.
Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures.
Section Reference 11.3: Team and Network Organization Structures
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
57) Organizational design is the process of choosing and implementing organizational structures that best arrange resources to accomplish the organization’s mission and objectives.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
58) The key to organizational success is finding the one best organization design to fit all problems and opportunities.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
59) A clear-cut division of labour, a strict hierarchy of authority, formal rules and procedures, and promotion based on competency are features that characterize bureaucracy.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
60) Tom Burns and George Stalker determined that there are two different kinds of bureaucratic organizational designs. These are the mechanistic design and the adaptive design.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
61) Tom Burns and George Stalker found that the mechanistic organization thrived when the environment was unstable and changing because it provided a necessary counterbalancing sense of order.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
62) In a mechanistic organization, an employee works in an orderly and disciplined environment, adheres to all organizational rules and procedures, and is closely supervised.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
63) Government departments, such as the Canada Revenue Agency are examples of a mechanistic organizational design.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
64) The organic design is characterized by decentralization, wider spans of control, and few rules and procedures.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
65) An organic design organization would match a laissez-faire leadership style, while a mechanistic design match a autocratic leadership style.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Synthesis
Difficulty: Hard
AACSB: Analytic
66) Dynamic environments and changing conditions call for more organic designs.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
67) Adaptive organizations lead to or create organic design organizations.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
68) Adaptive organizations operate with a minimum of bureaucratic structure and with cultures that encourage worker empowerment and participation.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
69) According the research findings of Paul Lawrence and Jay Lorsch, successful firms operating in certain environments had more organic designs, whereas successful firms operating in uncertain environments had more mechanistic designs.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
70) The line of authority that vertically links each position with successively higher levels of management is chain of command.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
71) As organizations grow, they get taller as more levels are added to the chain of command.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
72) Narrow spans of control create an organization that is more efficient and flexible, whereas wider spans of control usually result in additional management overhead costs.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
73) An organization with narrow spans of control will have fewer managers and more employees per manager, whereas an organization with wide spans of control will have more managers and fewer employees per manager.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
74) Delegation is the process of entrusting work to others in the organization by giving them the right to make decisions and take action.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
75) The authority-and-responsibility principle states: “authority should equal responsibility when work is delegated from a supervisor to a subordinate.”
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
76) The delegation process has three steps. These are: Step 1: assign responsibility; Step 2: create accountability and Step 3: grant authority.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
77) Effective delegation leads to empowerment of workers and can increase employees’ job satisfaction and work performance.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
78) Empowerment refers to letting others make decisions and exercise discretion in their work.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.3: Team and Network Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
79) Centralized organizations delegate decision making throughout all levels of management, and decentralized organizations concentrate decision making at the top levels of management.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
80) When decision-making authority is dispersed by extensive delegation throughout all levels of management, the organization is decentralized.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
81) An organization that operates in a decentralized fashion is structured such that lower level employees are able to participate in decision making.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
82) With respect to centralization and decentralization, the current trend is for organizations to centralize decision making and decentralize control.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
83) A current trend in organizations is to reduce the size of staff in order to increase operating efficiency.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
Question type: Multiple Choice
84) ___ is the system of tasks, workflows, reporting relationships, and communication channels that link together the work of diverse individuals and groups.
a) Job design
b) Management
c) Organization structure
d) Strategy
e) A work plan
Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures.
Section Reference 11.1: Organizing as a Management Function
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
85) Any organization structure should ___ and ___.
a) Allocate task assignments through a division of labour; provide for the coordination of performance results
b) Allocate task assignments through a division of labour; provide for the creation of a horizontal organization
c) Allocate organizational resources to important departments; provide for the oversight of less important departments
d) Assign good leaders to the effective work teams; assign poorer leaders to marginally effective work teams
e) Assign organizational objectives to divisions, departments, and work teams; provide for the coordination of performance results
Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures.
Section Reference 11.1: Organizing as a Management Function
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
86) Which of the following is the most accurate description regarding the purpose of an organization structure?
a) to divide up and coordinate resources and tasks to be done for performance success
b) to identify relationships between suppliers and company buyers
c) to design titles for different types of workers
d) to allocate management authority to department heads
e) to assign daily work tasks to workers
Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures.
Section Reference 11.1: Organizing as a Management Function
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
87) Given a clear mission, core values, objectives and strategy, ___ begins the process of implementation by clarifying jobs and working relationships.
a) planning
b) controlling
c) organizing
d) coordinating
e) leading
Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures.
Section Reference 11.1: Organizing as a Management Function
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
88) Avery’s job includes dividing up the work and assigning tasks to each employee. Avery accomplishes these tasks by identifying people responsible for each task, deciding on the reporting structure, and employees work relationships. Avery is a part of the company’s___ team.
a) financing
b) sourcing
c) controlling
d) decentralizing
e) organizing
Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures.
Section Reference 11.1: Organizing as a Management Function
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
89) In an organizational structure, division of work refers to
a) lines that show who reports to whom.
b) positions and titles that show work responsibilities.
c) the vertical layers of management.
d) lines that show formal communication flows.
e) positions that report to a common manager.
Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures.
Section Reference 11.1: Organizing as a Management Function
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
90) An organization chart should provide a picture of how an organization works with respect to all of the following except?
a) communication channels
b) division of work
c) social relationships
d) supervisory relationships
e) management levels
Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures.
Section Reference 11.1: Organizing as a Management Function
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
91) An organization chart should provide a picture of how an organization works with respect to which of the following.
a) communication channels
b) friendship cliques
c) social relationships
d) grapevine structures
e) sources of emotional support
Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures.
Section Reference 11.1: Organizing as a Management Function
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
92) In an organizational structure, major subunits refer to
a) positions and titles that show work responsibilities.
b) lines that show who reports to whom.
c) positions that report to a common manager.
d) lines that show how formal communication flows.
e) the vertical layers of management.
Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures.
Section Reference 11.1: Organizing as a Management Function
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
93) An organization’s lines of authority, positions and job titles, and formal communication channels are often demonstrated in a(n) __________.
a) flow chart
b) PERT diagram
c) organization chart
d) input/output diagram
e) structural diagram
Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures.
Section Reference 11.1: Organizing as a Management Function
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
94) Leisure Life is a large tour operator with 20 locations in west-central Canada. Four senior managers look after the company’s operations in all of the company’s locations, all of whom report to the company’s general manager who is stationed at the company headquarters in Winnipeg, Manitoba. This description represents the ___ of the company.
a) code of conduct
b) social network
c) organization chart
d) focal structure
e) mission
Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures.
Section Reference 11.1: Organizing as a Management Function
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
95) Which of the following is true of a formal structure?
a) Formal structures work only in organizations with diverse operations that extend across many products, customers, and work processes.
b) The lines of the formal structure cut across levels and move from side to side.
c) Formal structures are characterized by the existence of “in” and “out” groups.
d) Lines in a formal structure are drawn from person to person according to frequency and type of relationship maintained.
e) A formal structure consists of vertical layers of management.
Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures.
Section Reference 11.1: Organizing as a Management Function
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
96) The ___ of the organization represents the way the organization is intended to function in terms of division of work, supervisory relationships, communication channels, major subunits, and levels of management.
a) informal structure
b) hierarchy or authority
c) management chart
d) channel outline
e) formal structure
Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures.
Section Reference 11.1: Organizing as a Management Function
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
97) Which of the following is true of informal structures?
a) They represent supervisory relationships.
b) They help in preventing the occurrence of rumors.
c) They are sources of emotional support and friendship.
d) They show the vertical layers of management.
e) They are characterized by the presence of major subunits.
Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures.
Section Reference 11.1: Organizing as a Management Function
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
98) Which of the following is a disadvantage of informal structures?
a) They are characterized by too many vertical layers of management.
b) They are typified by the presence of complex formal communication flows.
c) They have very centralized systems that restrict employee freedom.
d) They are characterized by the existence of “in” and “out” groups.
e) They discourage informal learning as people work and interact together throughout the workday.
Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures.
Section Reference 11.1: Organizing as a Management Function
Bloom’s: Comprehension
Difficulty: Medium
AACSB: Analytic
99) Which of the following asks people to identify others to whom they turn for help most often, with whom they communicate regularly, and who gives them energy and motivation?
a) social network analysis
b) formal structures
c) forces analysis
d) SWOT analysis
e) four corners model
Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures.
Section Reference 11.1: Organizing as a Management Function
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
100) A(n)___identifies the informal structures and their embedded social relationships that are active in the organization.
a) informal structure
b) social network analysis
c) organization chart
d) functional chimney
e) functional structure
Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures.
Section Reference 11.1: Organizing as a Management Function
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
101) Bailey, a recent MBA graduate, is the finance manager of PLUS Company. Bailey has a problem with a shadow organization in the division. A first step in Bailey’s management strategy might be ___.
a) meeting with her employees to let them know she is the boss
b) promising bonuses only to those employees who agree with her and work with him
c) seeking to understand and work with the shadow organization
d) firing the people who are members of the shadow organization
e) assuming her staff is trying to undermine her and act accordingly
Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures.
Section Reference 11.1: Organizing as a Management Function
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
102) The following five examples describe different types of relationships between employees at Stratus Ltd. Which set of relationships indicates the existence of a shadow organization?
a) Department managers report directly to the vice presidents in charge of their division.
b) An employee asks questions of an immediate supervisor, gets answers, and works closely with this person.
c) In one department, superior-subordinate relationships are strained. Subordinates take direction from the manager of another department.
d) Members of a word processing pool provide secretarial services for all divisions on a first come, first served basis.
e) The company president delegates authority to division managers, division managers delegate authority to department managers, and department managers delegate authority to support staff.
Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures.
Section Reference 11.1: Organizing as a Management Function
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
103) Three common types of traditional organizational structures are ___.
a) centralized, decentralized, and integrated
b) functional, horizontal, and vertical
c) divisional, centralized, and line
d) functional, divisional, and matrix
e) matrix, staff, and functional
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
104) When an organization chart shows vice presidents of marketing, manufacturing, finance, and human resources reporting directly to the president of a company, the top management group is organized as a ___ structure.
a) horizontal
b) vertical
c) functional
d) divisional
e) matrix
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
105) Alpha Sportswear Corporation, an apparel manufacturer, creates groups of employees with similar skills performing similar tasks. Members of each such group share technical knowledge, skills, and responsibilities. Which of the following structures is being used by Alpha Sportswear Corporation?
a) product structure
b) divisional structure
c) functional structure
d) geographical structure
e) customer structure
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
106) Which of the following is true of a functional structure?
a) It is characterized by low-quality technical problem solving.
b) It consists of task assignments consistent with expertise and training.
c) It does not have the advantage of economies of scale.
d) It is common in complex organizations with diverse operations.
e) It is the ideal structure when there is a need to differentiate products or services in various locations.
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Comprehension
Difficulty: Medium
AACSB: Analytic
107) The ___ problem refers to the lack of communication, coordination, and collaborative problem solving across functions.
a) horizontal silos
b) double bind
c) functional chimneys
d) divisional smokestack
e) matrix identity
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
108) The functional chimneys problem can ___.
a) slow decision making
b) diminish cooperation and commitment to a common purpose
c) interfere with coordination across functions
d) create difficulties in pinpointing responsibilities
e) all of the above
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
109) Which of the following is an advantage of a functional structure?
a) economies of scale with efficient use of resources
b) improved coordination across functional departments
c) establishment of a sense of common purpose
d) clear points of responsibility for product or service delivery
e) expertise focused on specific customers, products, and regions
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Comprehension
Difficulty: Medium
AACSB: Analytic
110) Potential disadvantages of functional structures include all of the following except
a) difficulties in pinpointing responsibilities for cost containment, product or service quality, timeliness, and innovation.
b) provides for clear career paths.
c) sense of cooperation and common purpose tends to break down.
d) narrow view of performance objectives.
e) too many decisions referred upward in the organizational hierarchy.
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
111) A ___ groups together people working on the same product, in the same area, with similar customers, or on the same processes.
a) functional structure
b) silos structure
c) divisional structure
d) vertical structure
e) matrix structure
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
112) Which of the following is true of a divisional structure?
a) It is common in organizations dealing with only one or a few products or services.
b) It tends to work best in relatively stable environments where problems are predictable.
c) Its main focus is to put together people within the same expertise and help them work together.
d) It is an attempt to gain the advantages and minimize the disadvantages of the matrix structure.
e) It overcomes the disadvantages of a functional structure, such as the functional chimneys problem.
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
113) All of the following are potential advantages of using a divisional structure except
a) more flexibility in responding to environmental changes.
b) establishes clear points of responsibility for product or service delivery.
c) expertise is focused on specific customers, products, or regions.
d) duplication of resources and efforts across divisions.
e) greater ease in changing size by adding or deleting divisions.
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
114) ___ clearly identify costs, profits, problems, and successes in a market area with a central point of accountability.
a) Product structures
b) Geographical structures
c) Area structures
d) Customer structures
e) Process structures
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
115) Rezter Group, a consumer goods company, owns several brands that produce different goods. Each brand is focused on a single consumer good and has a separate chief executive who is responsible for the manufacturing, sales, costs, profits, and losses of his or her brand. This implies that each brand at Rezter Group is applying a ___ structure in the organization.
a) geographical
b) product
c) customer
d) functional
e) process
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
116) Maroon Auto, an automobile manufacturer, operates in several countries. The company has three major brands which are headed by three separate managers. Each of these three managers look after all the jobs and activities associated with their respective brands. According to this information, which of the following organization structures is adopted by Maroon Auto?
a) functional structure
b) product structure
c) geographical structure
d) customer structure
e) process structure
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
117) Which of the following is true of a product structure?
a) It groups together jobs and activities being performed in the same location.
b) It is used when there is a need to differentiate products or services in various locations.
c) It groups together jobs and activities that are serving the same customers or clients.
d) It clearly links costs, profits, problems, and successes in a market area with a central point of accountability.
e) It helps focus attention on the unique cultures and requirements of different nations.
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
118) ___ structures are typically used when there is a need to differentiate products or services in various locations, such as in different regions of a nation or in international operations where there is a need to focus on the requirements of particular cultures and regions of the world.
a) Product
b) Market
c) Geographical
d) Customer
e) Process
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
119) Which of the following is true about the geographical structure?
a) It helps focus attention on the unique cultures and requirements of particular regions.
b) Under this structure, jobs and activities are grouped together based on preferences of similar clients.
c) It groups together jobs and activities that are part of the same processes.
d) It groups together people with similar skills who perform similar tasks.
e) Under this structure, each product division is given a chief executive who is responsible for its own profits and losses.
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
120) Slice-It Inc., a fast food organization operating in many countries, varies its menus in different countries according to local tastes and preferences. It groups together employees and tasks working in the same location. Which of the following structures is Slice-It Inc. using?
a) geographical structure
b) product structure
c) customer structure
d) functional structure
e) process structure
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
121) ___ are particularly appealing because they can best serve the special needs of different customer groups.
a) Product structures
b) Process structures
c) Matrix structures
d) Customer structures
e) Geographical structures
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
122) Emerald World Inc.’s organizational structure combines jobs that serve clients based on factors such as their ages, tastes, and preferences. Which of the following organizational structures exists at Emerald World Inc.?
a) geographical structure
b) product structure
c) customer structure
d) functional structure
e) process structure
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
123) An order fulfillment by a catalog retailer, a procedure that takes an order from point of initiation by the customer to point of fulfilment by a delivered product is an example of a ___.
a) operational chimney
b) functional silo
c) directional array
d) work process
e) strategic alliance
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Comprehension
Difficulty: Medium
AACSB: Analytic
124) Employees who are involved in designing, engineering, and preparing models are grouped together at Zener Inc. Further, employees who engage in public relations, sales promotion, advertising, and direct marketing are put together in another team. Which of the following structures exists at Zener Inc.?
a) geographical structure
b) product structure
c) customer structure
d) client structure
e) process structure
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
125) Which of the following is an advantage of a divisional structure?
a) expertise focused on specific customers, products, and regions
b) economies of scale with efficient use of resources
c) reduced costs because of common resources and efforts across divisions
d) emphasis on the goals of the organization as a whole
e) no scope for unhealthy rivalries within the organization
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
126) Which of the following is a disadvantage of divisional structures?
a) There is reduced flexibility in adding, removing, or changing operations to meet changing demands.
b) They increase costs through the duplication of resources and efforts across divisions.
c) They reduce the level of coordination across functional departments.
d) They make it impossible to focus on specific customers, products, and regions.
e) They require the deletion of divisions in an organization.
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
127) A matrix structure combines elements of both ___and ___ structures.
a) horizontal; vertical
b) horizontal; divisional
c) functional; vertical
d) functional; divisional
e) vertical; divisional
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
128) Which of the following is true of a matrix structure?
a) Employees in a matrix structure are allowed to be part of only one team at a time.
b) A matrix structure does not have the ability to be flexible while dealing with regional differences.
c) It is accomplished by creating permanent teams that cut across functions to support specific products, projects, or programs.
d) A matrix structure is made up of temporary teams that are disbanded after each project.
e) A matrix structure involves top management in lower-level problem solving.
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Comprehension
Difficulty: Medium
AACSB: Analytic
129) Which structural approach makes use of permanent cross-functional teams to integrate functional expertise in support of a clear divisional focus on a product, project, or program?
a) Hybrid
b) Matrix
c) Divisional
d) Functional
e) Individual
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
130) Which of the following is an advantage of a matrix structure?
a) improved strategic management
b) no scope for issues such as “groupitis” across teams
c) clearly defined tasks and no conflict in work priorities
d) no power struggles across teams
e) fast and effective team meetings
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
131) Which of the following is a disadvantage of a matrix structure?
a) The requirement of adding the team leaders to a matrix structure can result in higher costs.
b) A matrix structure results in reduced performance accountability through the program, product, or project managers.
c) Matrix structures are associated with very poor customer service.
d) A matrix structure stresses that top managers must engage in both lower-level problem as well as more strategic issues.
e) Matrix structures lead to reduced flexibility in adding, removing, or changing operations to meet changing demands.
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
132) If an organization is concerned about frequently adding and deleting new products or services and also wants to make sure that customers or clients always have a program manager available to respond to questions and concerns, the___ structural form is a good choice.
a) Horizontal
b) Vertical
c) Functional
d) Divisional
e) Matrix
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
133) Alex, a software engineer at Re-Soft Inc., reports to two managers at the same time, a functional manager and a team manager. In the context of divisional structures, Alex is working in a ___ structure.
a) geographical
b) customer
c) process
d) product
e) matrix
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
134) Which of the following is true about a team structure?
a) A temporary team does not have prominence in a team structure.
b) A team structure is most often observed in a vertical organization.
c) The intention of a team structure is to create more effective lateral relations around and across the organization.
d) In a team structure, cross-functional structures are convened for a particular task or project and disbanded once the task is completed.
e) The main focus of a team structure is to improve and maintain the hierarchical system of management.
Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures.
Section Reference 11.3: Team and Network Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
135) A ___ uses both permanent and temporary cross-functional teams to solve problems, complete special projects, and accomplish daily tasks.
a) geographical structure
b) cross-functional structure
c) team structure
d) divisional structure
e) matrix structure
Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures.
Section Reference 11.3: Team and Network Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
136) Which of the following is a horizontal structure that brings together members from different departments such as marketing, production, and accounting?
a) divisional structure
b) functional structure
c) cross-functional team
d) process structure
e) product-oriented team
Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures.
Section Reference 11.3: Team and Network Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
137) Which of the following is true of a project team?
a) Project teams are examples of traditional vertical structures.
b) Project teams are characterized by a lack of communication and coordination across functions.
c) Project teams are informal structures that group together jobs and activities focused on a single product or service.
d) Project teams are temporary and disband once the task is completed.
e) Project teams are created at the beginning of a project and cannot be disbanded as they are retained for future projects.
Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures.
Section Reference 11.3: Team and Network Organization Structures
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
138) One of the disadvantages of using a team structure is ___.
a) conflicting loyalties of members
b) speed and quality of decisions
c) improved morale
d) shared knowledge
e) improving lateral relations
Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures.
Section Reference 11.3: Team and Network Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
139) Which of the following is a limitation of a team structure?
a) Team members spend a considerable amount of their time in meetings, with not all of that time spent productively.
b) A team structure is associated with poor performance.
c) Project teams are informal structures that group together jobs and activities focused on a single product or service.
d) Employees working in a team structure often experience a reduced sense of identification.
e) A team structure is not very effective at mobilizing member’s skills, knowledge and talents.
Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures.
Section Reference 11.3: Team and Network Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
140) Four engineers from the technology cell of a company are required to work together for a certain time on a job till the job is completed. This is an example of a(n) ___.
a) cross-functional team
b) outsourcing strategic alliance
c) boundaryless organization
d) project team
e) functional silo
Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures.
Section Reference 11.3: Team and Network Organization Structures
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
141) A ___ structure has a central core of full-time employees surrounded by outside contractors and partners that supply essential services.
a) functional
b) divisional
c) team
d) network
e) matrix
Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures.
Section Reference 11.3: Team and Network Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
142) A network structure helps lower costs and improves flexibility in dealing with changing environments because
a) it brings members from different functional departments together.
b) the central core is relatively small, and the surrounding networks can be expanded or shrunk as needed.
c) the central core consists of temporary employees and focuses on cross-functional teams to improve lateral relations.
d) it has vertical levels of management and hierarchical levels of authority.
e) the central core is relatively big, and that provides the advantage of economies of scale.
Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures.
Section Reference 11.3: Team and Network Organization Structures
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
143) Which of the following is true about a network structure?
a) A network structure does everything for itself with full-time employees.
b) It consists of networks that are composed of full-time employees.
c) Groups jobs and activities that are part of the same processes.
d) It consists of a relatively small central core that results in an increase in costs.
e) They employ a minimum staff and contracts out as much work as possible.
Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures.
Section Reference 11.3: Team and Network Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
144) Which of the following is an advantage of network structures?
a) Companies can operate with fewer full-time employees and less complex internal systems.
b) Companies can reduce overhead costs and increase operating efficiency.
c) Companies can operate across great distances.
d) All of the above are potential advantages of a network structure.
e) None of the above is a potential advantage of a network structure.
Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures.
Section Reference 11.3: Team and Network Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
145) The potential disadvantages of the network structure are due primarily to the demands of ___.
a) being flexible in responding to changing conditions
b) having fewer full-time employees to help supervisor’s managerial empire
c) having new management responsibilities
d) operating across great distance
e) trying to reduce overhead through expanded relationships
Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures.
Section Reference 11.3: Team and Network Organization Structures
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
146) Which one of the following is not a potential disadvantage of network structures?
a) Control and coordination problems may arise from network complexity.
b) Permits operations across great distances.
c) Potential loss of control over outsourced activities.
d) The more complex the business or mission, the more complicated the network.
e) The potential for lack of loyalty to develop among infrequently used contractors.
Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures.
Section Reference 11.3: Team and Network Organization Structures
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
147) Traves Inc., a transcription services company, manages all its core processes with a small team of highly skilled employees. However, it outsources five of its processes to contractors. This helps the company to lower its costs and have a high degree of flexibility. In this context, Traves Inc. is using a(n) ___ structure to carry out its functions.
a) matrix
b) bureaucratic
c) network
d) geographical
e) product
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
148) A strategic alliance is a(n)
a) contract that brings together members from different functional departments in an organization.
b) cooperation agreement with another organization to jointly pursue activities of mutual interest.
c) organizational structure that combines the functional and divisional structures.
d) setup that eliminates internal boundaries among subsystems and external boundaries with the external environment.
e) arrangement that emphasizes formal authority, order, fairness, and efficiency.
Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures.
Section Reference 11.3: Team and Network Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
149) Yummy Inc., a fast food corporation, entered into an agreement with Garnish Inc., a company that manufactures cheese, mayonnaise, and other toppings. Yummy Inc. exclusively uses the toppings produced by Garnish Inc. This business agreement has resulted in benefits for both the companies. This is an example of a ___.
a) boundaryless organization
b) joint venture
c) cross-functional team
d) cooperative structure
e) strategic alliance
Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures.
Section Reference 11.3: Team and Network Organization Structures
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
150) Zack Books Ltd., an international library headquartered in Alberta, has many branches across different countries. It uses information technology to be in regular contact with its various outside suppliers of books and magazines. Which of the following organizational structures is being used by the library?
a) Functional structure
b) Network structure
c) Divisional structure
d) Team structure
e) Matrix structure
Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures.
Section Reference 11.3: Team and Network Organization Structures
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
151) ___ organizations are those in which teamwork and intense communication take the place of formal lines of authority.
a) Divisional
b) Functional
c) Geographical
d) Matrix
e) Boundaryless
Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures.
Section Reference 11.3: Team and Network Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
152) A key assumption underlying ___ organizations is empowered people working together without bureaucratic restrictions can accomplish great things.
a) divisional
b) functional
c) geographical
d) boundaryless
e) matrix
Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures.
Section Reference 11.3: Team and Network Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
153) Which of the following is true of a boundaryless organization?
a) Internal to the boundaryless organization, formal lines of authority replace spontaneous teamwork and communication.
b) A boundaryless organization does not encourage continuous meetings and information sharing.
c) A boundaryless organization is characterized by significant hierarchy.
d) Impermanence is not accepted in boundaryless organizations.
e) In a boundaryless organization, people work together in teams that form and disband as needed.
Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures.
Section Reference 11.3: Team and Network Organization Structures
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
154) A(n) ___ is a special form of a boundaryless organization.
a) functional organization
b) divisional organization
c) virtual organization
d) collaborative structure
e) matrix structure
Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures.
Section Reference 11.3: Team and Network Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
155) Hipster Juices Co., well-known for its fruit juices with catchy names, has recently signed an agreement with Cozy Books Ltd. According to this agreement, Hipster Juices Co. has an outlet at each Cozy store. This agreement has led to an increase in profits for both the companies as sales of both have increased. This is an example of a ___.
a) boundaryless organization
b) joint venture
c) cross-functional team
d) strategic alliance
e) cooperative structure
Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures.
Section Reference 11.3: Team and Network Organization Structures
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
156) Speak-Up, a cooperative group, meets every week to discuss its plans and actions for helping the community to learn more about organic farming. They form temporary teams based on tasks and actions. The size of the teams depends on the size of the tasks. In the context of team structures, Speak-Up group has the ___ structure.
a) bureaucratic
b) matrix
c) closed
d) boundaryless
e) network
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
157) A(n) ___ operates in a shifting network of external strategic alliances that are engaged as needed, and typically are supported by extensive information technology (IT) utilization.
a) matrix organization
b) collaborative organization
c) functional organization
d) divisional organization
e) virtual organization
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
158) A ___ uses IT and the Internet to engage a shifting network of strategic alliances.
a) formal structure
b) project team
c) virtual organization
d) bureaucratic structure
e) matrix organization
Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures.
Section Reference 11.3: Team and Network Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
159) Brandon Inc., a well-established electronics company, uses IT and the Internet to enter into business alliances with software firms spread across different nations to meet specific operating needs and objectives. Once the work is completed, the alliance rests until next called into action. Brandon Inc. is a ___.
a) matrix organization
b) project team
c) virtual organization
d) cross-functional team
e) formal organization
Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures.
Section Reference 11.3: Team and Network Organization Structures
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
160) A(n) _________ organization is a form of boundaryless organizational structure.
a) organic
b) latent
c) network
d) cross-functional
e) team
Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures.
Section Reference 11.3: Team and Network Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
161) An organizational design
a) is the process of creating structures that accomplish mission and objectives.
b) is a system of tasks, reporting relationships, and communication linkages.
c) is a group of related tasks that collectively creates a valuable work product.
d) identifies the informal structures and their embedded social relationships that are active in an organization.
e) is a cooperation agreement with another organization to jointly pursue activities of mutual interest.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
162) The best organizational design is the one that
a) emphasizes formal authority, order, fairness, and efficiency.
b) is centralized, with many rules and procedures, a clear-cut division of labour, narrow spans of control, and formal coordination.
c) emphasizes a vertical structure, hierarchy of authority, and promotion based on competency.
d) achieves a good match between structure and situational contingencies.
e) has narrow spans of control and structures of the pyramid form.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
163) Which of the following implies that an organizational design of the same kind does not apply in all circumstances?
a) Every organization emphasizes formal authority, order, fairness, and efficiency.
b) Every organization faces its own set of unique problems and opportunities.
c) All organizations are not affected by situational contingencies such as task, technology, environment, and people.
d) Every organization has narrow spans of control and structures of the traditional pyramid form.
e) All organizations have sufficient resources to jointly pursue mutual interests with another organization.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
164) In a classic study conducted in the 1960s, Burns and Stalker ___.
a) identified three basic organizational forms: bureaucratic, mechanistic, and organic
b) developed conclusions that have been substantially refuted by later research
c) revealed that bureaucratic structures thrived when the environment was uncertain and changing
d) favoured organic over mechanistic forms
e) concluded that different organizational structures could be successful, depending on the nature of the firm’s external environment
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
165) Which of the following emphasizes formal authority, order, fairness, and efficiency?
a) bureaucracy
b) boundaryless organization
c) decentralization
d) strategic business unit
e) strategic alliance
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
166) Which of the following is true of a bureaucracy?
a) It is characterized by open divisions of labour.
b) It encourages worker empowerment and teamwork.
c) It is built on a foundation of trust that people will do the right things on their own initiative.
d) It is a vertical structure with promotion based on competency.
e) It performs well in environments that demand flexibility in dealing with changing conditions.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
167) Which of the following is true of a mechanistic design?
a) It is a horizontal structure with decentralized authority.
b) It is characterized by wide spans of control.
c) It is characterized by a precise division of labour.
d) It is typified by informal means of coordination.
e) It is a design with very few rules and procedures.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
168) Mechanistic designs are ___organizational structures with a ___ form.
a) loose; horizontal
b) loose; vertical
c) tight; horizontal
d) tight; vertical
e) open; network
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
169) The staff at Grace Grocery Store is assigned specific tasks such as receiving supply, arranging stock, making sales, preparing cash registers, and so on. They perform the same task every day. The firm is characterized by formal means of coordination. Grace Grocery Store is functioning with a(n) ___ design.
a) organic
b) decentralized
c) mechanistic
d) adaptive
e) boundaryless
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
170) As an “ideal organizational form,” bureaucracy is characterized by all of the following except
a) a clear-cut division of labour.
b) positions arranged in a strict hierarchy of authority.
c) orderliness, fairness, and efficiency.
d) a system of formal rules and procedures.
e) promotions based on seniority.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
171) LST Inc. functions with systematic order and a hierarchical system of management. It is characterized by formal channels of communication. The employees of the firm are required to strictly abide by the formal rules of the company. LST Inc. is a(n) ___.
a) adaptive organization
b) bureaucracy
c) decentralized organization
d) boundaryless organization
e) autocracy
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
172) Adzen Inc., an advertising firm, has a horizontal structure with simple rules and procedures. It achieves targets by having personal means of coordination. The firm values the existence of informal groups and does not believe in division of labour. Which of the following designs is being used by Adzen Inc.?
a) organic
b) centralized
c) bureaucratic
d) nonadaptive
e) authoritative
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
173) An organic design has all the following characteristics except
a) decentralized authority.
b) few rules and procedures.
c) narrow spans of control.
d) shared tasks.
e) many teams and task forces.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
174) Which of the following is true of an organic design?
a) It is a horizontal structure with decentralized authority.
b) It has narrow spans of control.
c) It has a vertical structure of authority.
d) It is typified by many rules and procedures.
e) It is characterized by very precise division of labour.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
175) Organic designs are ___ systems in which a considerable amount of work gets done through ___ structures and networks of interpersonal contacts.
a) loose; formal
b) loose; informal
c) tight; formal
d) tight; informal
e) open; highly formal
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
176) Organizations that operate with a minimum of bureaucratic features and encourage worker empowerment and teamwork are called ___.
a) organic organizations
b) networks
c) new bureaucracies
d) adaptive organizations
e) mechanistic organizations
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
177) A(n) ___ performs well in environments that demand flexibility in dealing with changing conditions.
a) authoritative structure
b) centralized system
c) mechanistic design
d) adaptive organization
e) bureaucratic structure
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
178) Which of the following is true of adaptive organizations?
a) They work with narrow spans of control and formal coordination.
b) They operate with a distinguished feature of promotion based on competency.
c) They are built on a foundation of trust that people will do the right things on their own initiative.
d) They are characterized by vertical structures with a clear-cut division of labour and a hierarchy of authority.
e) They work best for organizations doing routine tasks in stable environments.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
179) The employees of Astro Inc., a graphics design firm, are given the liberty to use their ideas and their personal skills to perform their tasks. The firm’s managers trust that all employees work efficiently without any supervision. The firm uses an organic design and works with informal structures. This implies that Astro Inc. is a(n) ___ organization.
a) centralized
b) adaptive
c) bureaucratic
d) strategic
e) authoritative
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
180) ___ have features of ___, including decentralized authority, fewer rules and procedures, less division of labour, wider spans of control, and more personal means of coordination.
a) Adaptive organizations; organic designs
b) Bureaucratic organizations; organic designs
c) Bureaucratic organizations; mechanistic designs
d) Adaptive organizations; mechanistic designs
e) Adaptive organizations; functional designs
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
181) Which of the following is true of trends in organizational designs?
a) The growth of new technologies for information systems and social media is reducing new possibilities for creativity.
b) Managers are trying to minimize the rate of delegation of work as it incurs heavy expenditures.
c) Delegation and horizontal structures are contributing to more centralization in organizations.
d) The complexity and uncertainty are prompting more organizations to shift toward organic designs.
e) Organizations are lowering costs and increasing efficiency by employing more staff personnel and using larger staff units.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
182) The chain of command
a) is the number of subordinates directly reporting to a manager.
b) links all persons with successively higher levels of authority.
c) horizontally links all positions of an organization’s management.
d) operates with a minimum of bureaucratic features.
e) is the process of distributing and entrusting work to other persons.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
183) ___ refers to the number of subordinates directly reporting to a manager.
a) Span of control
b) Chain of command
c) Delegation
d) Empowerment
e) Decentralization
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
184) Which of the following statements about span of control is not accurate?
a) When the span of control is narrow, relatively few people report directly to a given manager.
b) Early management theorists sought to determine the optimum span of control for any manager.
c) There is a limit to the number of people one manager can effectively supervise.
d) Narrow spans of control create an organization that is less efficient and less flexible.
e) Wider spans of control usually result in additional management overhead costs.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
185) Which of the following is true of tall structures?
a) They have inadequate levels of management.
b) They are characterized by scarcity of employees.
c) They reduce overhead costs.
d) They are highly efficient and flexible.
e) They have narrow spans of control.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
186) Oasis Inc. is an organization with a tall structure. Which of the following would be a characteristic of Oasis Inc.?
a) Oasis Inc. would reduce the number of employees in its organization.
b) The organization would have an inadequate number of managers.
c) They would allow for wider spans of control.
d) Oasis Inc. would incur high costs due to the existence of many managers.
e) Oasis Inc. would be a highly efficient and customer-sensitive organization.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
187) Which of the following is true of flat structures?
a) They are inflexible.
b) They help in reducing overhead costs.
c) They have narrow spans of control.
d) They tend to be very efficient due to the existence of many managers.
e) They are not customer sensitive.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
188) Well-Adjusted Corporation functions with a flat structure. Which of the following would be a characteristic of Well-Adjusted Corporation?
a) Well-Adjusted Corporation would be functioning with many managers.
b) The organization would permit workers to make their own decisions.
c) Well-Adjusted Corporation would tend to be more costly due to the existence of many levels of management.
d) They would have a narrow span of control.
e) Well-Adjusted Corporation would have a scarcity of employees.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
189) The process of entrusting work to others by giving them the right to make decisions and take action is referred to as ___.
a) adaption
b) mechanization
c) delegation
d) bureaucratization
e) centralization
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
190) Which of the following holds true regarding delegation?
a) Authority should equal responsibility when work is delegated from a supervisor to a subordinate.
b) When a supervisor delegates a task, the subordinate should not be given authority regarding performance.
c) When done well, empowerment leads to delegation.
d) When work is delegated, authority of the subordinate should be higher than the responsibility given by the supervisor.
e) Delegation is conducted in order to ensure that employees do not make their own decisions regarding performance of tasks.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
191) Which of the following is true regarding the process of delegation?
a) The manager seldom gives the right to the employee to take necessary actions along with the assigned task.
b) The responsibility given by the manager is an expectation for the employee to perform assigned tasks.
c) When an employee takes an assignment, they do not have an obligation to the manager to complete the job as agreed.
d) In the process of delegation, a manager does not have the power to create accountability.
e) A manager is allowed to provide the employee with responsibility without the authority to perform.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
192) Which of the following statements is not true regarding delegation?
a) Failure to delegate may result from a manager’s lack of trust in others or his/her inflexibility regarding how things should be done.
b) Effective delegation denies others the opportunity to fully utilize their talents on the job.
c) Failure to delegate overloads the manager with work that could be done by others.
d) Effective delegation leads to empowerment of workers.
e) Effective delegation can increase employees’ job satisfaction and work performance.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
193) The ___ principle states: “authority should equal responsibility when work is delegated from a supervisor to a subordinate.”
a) scalar
b) span of control
c) balance-of-command
d) responsible management
e) authority-and-responsibility
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
194) Which of the following is true of empowerment?
a) Empowerment includes the concentration of authority for most decisions at the top level of an organization.
b) It results when delegation enables people who are most capable of doing the work to make decisions.
c) It is the line of authority that vertically links each position with successively higher levels of management.
d) Empowerment assigns tasks and rules to employees with the intention of prohibiting employees from making their own decisions.
e) It is a result of successful concentration of authority.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
195) Which of the following describes the purpose of empowering employees?
a) It encourages employees to work as per the decisions made by the top-level managers.
b) It vertically links each employee’s position with successively higher levels of management.
c) Empowerment allows people at all levels to make more decisions that affect themselves and their work.
d) Employees are able to work with strong hierarchical levels of authority.
e) It encourages employees to use more formal means of coordination with many rules and procedures.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
196) Crexons Inc. finds that there is too much bureaucracy in their organization resulting in lost efficiency opportunities, slower communication and higher than hoped for administrative costs. The company’s CEO realizes that in order to regain a competitive advantage and organizational sustainability the company must reorganize and first step towards that end would be to ___.
a) create temporary matrix structures
b) empower the employees to make their own decisions
c) establish strict organizational policies
d) create functional silos to make sure the functions have well-defined boundaries
e) divide the organization based on processes
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
197) Centralization refers to the
a) concentration of authority for most decisions at the top level of an organization.
b) dispersion of authority to make decisions throughout all organization levels.
c) system that allows others to make decisions and exercise discretion in their work.
d) process of creating wide spans of control and few hierarchical levels in organizations.
e) process of entrusting work to others by giving them the right to make decisions and take action.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
198) When decision-making authority is concentrated at the top levels of an organization, the organization is said to be ___.
a) vertically integrated
b) decentralized
c) centralized
d) horizontally integrated
e) control oriented
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
199) In a highly centralized organization, one would expect to find ___.
a) relatively flat structures
b) functional forms of departmentalization
c) a concentration of decision making with top management
d) increased job autonomy
e) less concern for the size of spans of control
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
200) The dispersion of authority to make decisions throughout all organization levels is known as ___.
a) span of control
b) chain of command
c) decentralization
d) bureaucracy
e) centralization
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
201) With respect to centralization and decentralization, the current trend is for organizations to ___.
a) centralize both decision-making and control
b) decentralize both decision-making and control
c) decentralize decision making and centralize control
d) centralize decision making and decentralize control
e) de-emphasize the roles of centralization and decentralization in decision making and control
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
202) Which of the following is true with regard to centralization and decentralization?
a) Organizations cannot operate with decentralization without giving up centralized control.
b) Advances in information technology help top managers maintain centralized control.
c) Empowerment and horizontal structures are contributing to more centralization in organizations.
d) Organizations with organic designs are highly centralized.
e) Organizations with mechanistic designs are highly decentralized.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
203) At Sync-Up Information Solutions, a software solutions company, most processes are determined by the few active partners of the business. Which of the following does this example illustrate?
a) centralization
b) empowerment
c) divestiture
d) vertical integration
e) delegation
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
204) At Goode Bank, all operational decisions regarding promotional measures, customer accounts packages and incentives, interest rates, loan application approvals are made only by the upper management. Should a staff member, regardless of their position or how long they have worked at Goode Bank have any questions about any of these matters they must be taken to upper management. And should a staff member, again regardless of their position or length of service make a unilateral decision, regardless of the scope, without upper management approval they are subject to some form of reprimand. This implies that Goode Bank has a(n) ___.
a) decentralized system
b) centralized system
c) boundaryless structure
d) informal structure
e) organic design
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
205) Remy, the CEO of Roll-On Pens, finds that vertical hierarchy exists in the organization. Remy would like to reduce the stress on this hierarchical structure and give more decision-making ability to the employees. In the context of tall and flat organizations, Remy is trying to create a(n) ___ organization.
a) bureaucratic
b) decentralized
c) informal
d) matrix
e) adaptive
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
206) Franklin Inc. encourages its employees at all levels to provide ideas, opinions, and critiques during decision-making process. This indicates that the firm has a(n) ___.
a) decentralized system
b) centralized system
c) bureaucratic structure
d) formal structure
e) mechanistic design
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
207) Which of the following is true with regard to use of staff positions?
a) Organizations can lower costs and increase efficiency by employing fewer staff personnel.
b) When organizations have smaller staff units, they tend to incur high expenditures.
c) Line personnel provide expert advice and guidance to people in staff positions.
d) Organizations can create a central core of full-time staff personnel to improve efficiency.
e) Organizations should focus on employing more staff personnel to increase efficiency.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
208) Employees who perform a technical service or provide special problem-solving expertise for other parts of the organization are called ___.
a) personal staff
b) functional staff
c) vice presidential staff
d) specialized staff
e) chief executive staff
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
209) Which of the following statements does not accurately describe a challenge associated with the use of staff?
a) Because of cost considerations, cutting back on staff is a common first choice in downsizing and other turnaround efforts.
b) Staff with advisory authority can suggest rather than dictate.
c) Staff with functional authority can require that others do as requested within the boundaries of staff expertise.
d) There is one best way to divide work between line and staff responsibilities.
e) Staff can grow to the point where it costs more in administrative overhead than the staff is worth.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
210) The current trend in the use of staff is to ___.
a) reduce the size of staff in order to increase operating efficiency
b) maximize the size of staff in order to increase operating effectiveness
c) maximize the size of staff in order to help create a full-employment economy
d) completely eliminate staff positions
e) change the staff size in proportion to changes in sales
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
Question type: Essay
211) What is the organizing function? How does it relate to the other management functions?
Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures.
Section Reference 11.1: Organizing as a Management Function
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
212) An organization chart depicts the reporting relationships and work positions within an organization. Ideally an organization chart will also provide a picture of how an organization is supposed to work with respect to five (5) major areas. List and describe these five areas and include in your answer an example organization chart with at least five levels from President/CEO at the top working down to an employee level. Your chart should include labels related to the five areas noted earlier?
• Division of work—Positions and titles show work responsibilities.
• Supervisory relationships—Lines show who reports to whom.
• Communication channels—Lines show formal communication flows.
• Major subunits—Positions reporting to a common manager are shown.
• Levels of management—Vertical layers of management are shown.
Student organization charts will vary, however there should be a clear link to at least some line of supervision and communication.
Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures.
Section Reference 11.1: Organizing as a Management Function
Bloom’s: Synthesis
Difficulty: Hard
AACSB: Analytic
213) What is a social network analysis and why is it, in many ways, essential to organizational success in today’s global and technological environment?
Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures.
Section Reference 11.1: Organizing as a Management Function
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
214) Explain the concepts of organization chart, formal structure, and informal structure. Why must a manager understand both the formal structure and the informal structure of an organization?
By understanding the formal structure, a manager knows about the organization’s division of work, supervisory relationships, communication channels, major subunits, and levels of management. This knowledge indicates how the organization is supposed to work. However, an organization does not always operate according to the dictates of the formal structure. Knowledge of the informal structure is needed as well since the informal structure supplements rather than replaces the formal structure.
Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures.
Section Reference 11.1: Organizing as a Management Function
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
Solution:
215) What are the advantages of matrix structures?
Better communication and cooperation across functions.
Improved decision making; problem solving takes place at the team level where the best information is available.
Increased flexibility in adding, removing, or changing operations to meet changing demands.
Better customer service; there is always a program, product, or project manager informed and available to answer questions.
Better performance accountability through the program, product, or project managers.
Improved strategic management; top managers are freed from lower-level problem solving to focus time on more strategic issues.
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
216) Briefly describe the functional, divisional, and matrix types of organizational structure. For each structure type, provide an example of an organization that follows that structure model. What are the advantages and disadvantages of each type of organizational structure?
Divisional structures group together people who work on the same product or process, serve similar customers, or are located in the same area or geographic region. An example Toyota (as provided in the text). Potential advantages of divisional structures include: more flexibility in responding to environmental changes; improved coordination across functional departments; clear points of responsibility for product or service delivery; expertise focused on specific customers, products, and regions; and greater ease in changing size by adding or deleting divisions. Potential disadvantages of divisional structures include: duplication of resources and efforts across divisions, competition and poor coordination across divisions, and emphasis on divisional goals at the expense of organizational goals.
A matrix structure combines elements of both the functional and divisional structures in an attempt to gain the advantages and minimize the disadvantages of each. Examples include the aerospace industry when a new exploration project is undertaken. Potential advantages of matrix structures include: more interfunctional cooperation in operations; increased flexibility in meeting changing demands; better customer service championed by project managers; better performance accountability through project managers; improved problem solving taking place at the team level, where the best information is available; and improved strategic management as top managers are freed to focus on strategic issues. Potential disadvantages of matrix structures include the following: the two-boss system can result in power struggles as functional supervisors and team leaders compete with each other to exercise authority; the two-boss system can create task confusion and conflict in work priorities; teams may develop “groupitis” –– strong team loyalties that cause a loss of focus on larger organizational goals; and costs may increase due to adding team leaders to the structure.
Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures.
Section Reference 11.2: Traditional Organization Structures
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
217) List and briefly describe the advantages and disadvantages of network structures?
The potential disadvantages of network structures lie largely with the demands of new management responsibilities. The more complex the business or mission of the organization, the more complicated it is to control and coordinate the network of contracts and alliances. If one part of the network breaks down or fails to deliver, the entire system suffers. In addition, there is the potential to lose control over activities contracted out and to experience a lack of loyalty among contractors who are used infrequently rather than on a long-term basis.
Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures.
Section Reference 11.3: Team and Network Organization Structures
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
218) Briefly discuss the nature of team structures, network structures, and boundaryless organizations. Why are these new structural forms becoming popular?
These structural forms are becoming popular responses to the increasing pressures created by the global economy and hypercompetition. To respond to these pressures, organizations are relying on horizontal structures - such as team structures, network structures, and boundaryless organizations - that promote integration and utilize cross-functional teamwork.
Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures.
Section Reference 11.3: Team and Network Organization Structures
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
219) Identify the different organizing trends in the modern workplace and explain how these trends will affect the operations of contemporary organizations.
Fewer levels of Management
Chains of command - organizations are being “streamlined” by cutting unnecessary levels of management; flatter and more horizontal structures are viewed as a competitive advantage. When organizations grow in size, they tend to get taller as more and more levels of management are added to the chain of command.
Span of control - many organizations are shifting to wider spans of control as levels of management are eliminated and subordinates operate with less direct supervision.
More delegation and empowerment - managers are delegating more so that people at all levels are empowered to make decisions about their work.
Decentralization with centralization - whereas empowerment and related forces are contributing to more decentralized decision making in organizations, advances in information technology simultaneously allow for the retention of centralized control.
Reduced use of staff - organizations are trying to reduce the use of staff in order to improve operating efficiency.
All six organizing trends have similar effects on the operations of contemporary organizations. Specifically, the organizing trends share a common theme of making the adjustments needed to streamline operations for cost efficiency, higher performance, and increased worker participation.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
220) List and describe the steps involved in the process of delegation.
Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace.
Section Reference 11.4: Organizational Designs
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
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Connected Book
Management Canada 5e | Complete Test Bank
By John R. Schermerhorn Jr