Test Bank | Ch8 Organizational Structure – 11th Edition

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Fundamentals of Management, 11e (Robbins)

Chapter 8 Organizational Structure and Design

1) Organizational design requires a manager to ________.

A) decide who leads a group within an organization

B) change the culture of an organization

C) change or develop the structure of an organization

D) change the logo of an organization

Diff: 1

AACSB: Analytical thinking

LO: 8.1: Describe six key elements in organizational design.

Question Category: Analytical

2) All of the following are part of the process of organizational design EXCEPT ________.

A) deciding how specialized jobs should be

B) determining rules for employee behavior

C) determining the level at which decisions are made

D) determining goals for the organization

Diff: 2

AACSB: Analytical thinking

LO: 8.1: Describe six key elements in organizational design.

Question Category: Analytical

3) Which one of the following pairs include items that are NOT basic elements of organizational design?

A) work specialization, span of control

B) chain of command, line authority

C) centralization, decentralization

D) departmentalization, formalization

Diff: 2

AACSB: Analytical thinking

LO: 8.1: Describe six key elements in organizational design.

Question Category: Analytical

4) Which one of the following is synonymous with work specialization?

A) division of labor

B) job discrimination

C) chain of command

D) job preference

Diff: 2

AACSB: Analytical thinking

LO: 8.1: Describe six key elements in organizational design.

Question Category: Concept

5) Which statement accurately defines work specialization?

A) It is the degree to which tasks are grouped together.

B) Individual employees specialize in doing part of an activity rather than the entire activity.

C) Jobs are ranked relative only to their worth or value to the businesses.

D) Work specialization clarifies who reports to whom.

Diff: 3

AACSB: Analytical thinking

LO: 8.1: Describe six key elements in organizational design.

Question Category: Concept

6) Early supporters of work specialization saw it as ________.

A) a reliable way to increase productivity

B) a good way to increase employee morale

C) a source of innovation

D) an immoral way to coerce workers into greater productivity

Diff: 2

AACSB: Analytical thinking

LO: 8.1: Describe six key elements in organizational design.

Question Category: Analytical

7) Early users of work specialization in the early twentieth century found that the practice ultimately resulted in ________.

A) higher profits and better employee morale

B) bored workers with low morale

C) huge and permanent productivity gains

D) better communication among employees

Diff: 3

AACSB: Analytical thinking

LO: 8.1: Describe six key elements in organizational design.

Question Category: Concept

8) Today, managers favor this approach with regard to work specialization.

A) All tasks are performed by all employees to promote fairness.

B) Partners switch jobs every half hour to overcome boredom.

C) Employees specialize to maintain efficiency.

D) Monotonous tasks are shared by all employees to prevent perceived favoritism.

Diff: 2

AACSB: Analytical thinking

LO: 8.1: Describe six key elements in organizational design.

Question Category: Analytical

9) Functional departmentalization groups jobs by ________.

A) tasks they perform

B) territories they serve

C) products or services they manufacture or produce

D) type of customer they serve

Diff: 2

AACSB: Analytical thinking

LO: 8.1: Describe six key elements in organizational design.

Question Category: Concept

10) ________ departmentalization is based on territory or the physical location of employees or customers.

A) Functional

B) Product

C) Geographic

D) Matrix

Diff: 1

AACSB: Analytical thinking

LO: 8.1: Describe six key elements in organizational design.

Question Category: Concept

11) A soap company that features a bath soap department, a laundry detergent department, and a dish soap department is using which one of the following?

A) process departmentalization

B) functional departmentalization

C) product departmentalization

D) customer departmentalization

Diff: 2

AACSB: Application of knowledge

LO: 8.1: Describe six key elements in organizational design.

Question Category: Application

12) What kind of departmentalization would be in place in a government agency in which there are separate departments that provide services for employers, employed workers, unemployed workers, and the disabled?

A) product

B) geographic

C) outcome

D) customer

Diff: 2

AACSB: Application of knowledge

LO: 8.1: Describe six key elements in organizational design.

Question Category: Application

13) Health clinic offices usually use this kind of departmentalization.

A) product

B) functional

C) customer

D) process

Diff: 2

AACSB: Application of knowledge

LO: 8.1: Describe six key elements in organizational design.

Question Category: Application

14) The line of authority that extends from the upper levels of management to the lowest levels of the organization is termed the ________.

A) chain of responsibility

B) unity of command

C) staff authority

D) chain of command

Diff: 1

AACSB: Analytical thinking

LO: 8.1: Describe six key elements in organizational design.

Question Category: Concept

15) The chain of command answers this question.

A) Where do I go for help?

B) How do I know when the task is complete?

C) What are the rules?

D) Who reports to whom?

Diff: 2

AACSB: Analytical thinking

LO: 8.1: Describe six key elements in organizational design.

Question Category: Concept

16) Authority gives an individual the right to do this.

A) give orders

B) reprimand employees

C) command respect

D) obey orders

Diff: 1

AACSB: Analytical thinking

LO: 8.1: Describe six key elements in organizational design.

Question Category: Concept

17) In the chain of command, each person above you ________.

A) has special privileges

B) receives higher pay

C) has line authority

D) has no right to give you orders

Diff: 2

AACSB: Analytical thinking

LO: 8.1: Describe six key elements in organizational design.

Question Category: Concept

18) Staff managers have authority over ________.

A) support employees only

B) line managers

C) middle managers

D) the person above them in the chain of command

Diff: 2

AACSB: Analytical thinking

LO: 8.1: Describe six key elements in organizational design.

Question Category: Concept

19) Line authority gives a manager the ability to direct the work of ________.

A) any employee in the firm

B) any subordinate

C) any subordinate, after consulting with the next higher level

D) only subordinates one level down

Diff: 2

AACSB: Analytical thinking

LO: 8.1: Describe six key elements in organizational design.

Question Category: Concept

20) ________ prevents a single employee from getting conflicting orders from two different superiors.

A) Line authority

B) Unity of command

C) Staff authority

D) Chain of command

Diff: 2

AACSB: Analytical thinking

LO: 8.1: Describe six key elements in organizational design.

Question Category: Concept

21) The importance of unity of command has diminished in today's workplace because of its tendency to be ________.

A) inflexible and inefficient

B) ethically questionable

C) chauvinistic and dictatorial

D) too decisive

Diff: 2

AACSB: Analytical thinking

LO: 8.1: Describe six key elements in organizational design.

Question Category: Analytical

22) Which one of the following statements is true?

A) Power is a right.

B) Authority is one's ability to influence decisions.

C) Authority is a right.

D) Both power and authority are rights.

Diff: 2

AACSB: Analytical thinking

LO: 8.1: Describe six key elements in organizational design.

Question Category: Analytical

23) ________ is the obligation or expectation to perform a duty.

A) Responsibility

B) Unity of command

C) Chain of command

D) Span of control

Diff: 1

AACSB: Analytical thinking

LO: 8.1: Describe six key elements in organizational design.

Question Category: Concept

24) The personal assistant of a top manager may have ________.

A) power but not authority

B) authority but not power

C) power and authority

D) line authority but not staff authority

Diff: 3

AACSB: Application of knowledge

LO: 8.1: Describe six key elements in organizational design.

Question Category: Application

25) Which one of the following statements is true?

A) Power is a type of authority.

B) Authority and power are identical.

C) Authority is a type of power.

D) Power is determined by horizontal position in an organization.

Diff: 3

AACSB: Analytical thinking

LO: 8.1: Describe six key elements in organizational design.

Question Category: Analytical

26) As represented in a power cone, power is based on ________.

A) vertical position only

B) horizontal position only

C) distance from the center only

D) vertical position and distance from the center

Diff: 3

AACSB: Analytical thinking

LO: 8.1: Describe six key elements in organizational design.

Question Category: Concept

27) As represented in a hierarchical organization diagram, authority is based on ________.

A) vertical position only

B) horizontal position only

C) distance from the center only

D) horizontal and vertical position

Diff: 3

AACSB: Analytical thinking

LO: 8.1: Describe six key elements in organizational design.

Question Category: Concept

28) A construction site supervisor who sees an impending thunderstorm and tells workers to go home is demonstrating ________.

A) line authority

B) staff delegation

C) provisional accountability

D) unity of command

Diff: 2

AACSB: Application of knowledge

LO: 8.1: Describe six key elements in organizational design.

Question Category: Application

29) ________ is the power that rests on the leader's ability to punish or control.

A) Reward power

B) Coercive power

C) Expert power

D) Referent power

Diff: 2

AACSB: Analytical thinking

LO: 8.1: Describe six key elements in organizational design.

Question Category: Concept

30) A bank manager who passes out bonuses at the end of the year is exercising this.

A) reward power

B) coercive power

C) expert power

D) referent power

Diff: 2

AACSB: Application of knowledge

LO: 8.1: Describe six key elements in organizational design.

Question Category: Application

31) Your firm's attorney has ________ power when giving legal advice.

A) legitimate

B) status

C) expert

D) coercive

Diff: 2

AACSB: Application of knowledge

LO: 8.1: Describe six key elements in organizational design.

Question Category: Application

32) ________ is the power that arises when a person is close to another person who has great power and authority.

A) Expert power

B) Referent power

C) Reward power

D) Legitimate power

Diff: 2

AACSB: Analytical thinking

LO: 8.1: Describe six key elements in organizational design.

Question Category: Concept

33) When a top manager decides to hire an individual over the objections of her staff, she is exercising which kind of power?

A) referent

B) expert

C) coercive

D) legitimate

Diff: 3

AACSB: Application of knowledge

LO: 8.1: Describe six key elements in organizational design.

Question Category: Application

34) The traditional view holds that managers should directly supervise ________ subordinates.

A) no more than three

B) no more than six

C) around twelve

D) around twenty

Diff: 1

AACSB: Analytical thinking

LO: 8.1: Describe six key elements in organizational design.

Question Category: Concept

35) Modern managers find that they can ________ if their employees are experienced, well-trained, and motivated.

A) increase their span of control

B) decrease their span of control

C) eliminate their span of control

D) fluctuate their span of control

Diff: 2

AACSB: Analytical thinking

LO: 8.1: Describe six key elements in organizational design.

Question Category: Analytical

36) A traditional "top down" organization is ________ organization.

A) a largely centralized

B) a largely decentralized

C) an absolutely decentralized

D) an absolutely centralized

Diff: 2

AACSB: Analytical thinking

LO: 8.1: Describe six key elements in organizational design.

Question Category: Concept

37) ________ reflects the degree to which decision making is distributed throughout the hierarchy rather than concentrated at the top.

A) Centralization

B) Span of control

C) Concentration

D) Decentralization

Diff: 2

AACSB: Analytical thinking

LO: 8.1: Describe six key elements in organizational design.

Question Category: Concept

38) In recent years, organizations have become more ________ to be responsive to a dynamic business environment.

A) centralized

B) decentralized

C) structured

D) mechanistic

Diff: 2

AACSB: Analytical thinking

LO: 8.1: Describe six key elements in organizational design.

Question Category: Analytical

39) In today's decentralized business world, ________ the most important strategic decisions.

A) top managers still primarily make

B) middle managers make

C) lower-level managers make

D) nonmanagerial employees make

Diff: 2

AACSB: Analytical thinking

LO: 8.1: Describe six key elements in organizational design.

Question Category: Analytical

40) All of the following are characteristics of a highly formalized organization EXCEPT ________.

A) explicit job descriptions

B) little discretion for employees

C) minimum number of rules

D) a standardized way of doing things

Diff: 2

AACSB: Analytical thinking

LO: 8.1: Describe six key elements in organizational design.

Question Category: Concept

41) Today's managers are moving away from formalization and trying to be this.

A) more rigorous

B) more flexible

C) more strict

D) less permissive

Diff: 3

AACSB: Analytical thinking

LO: 8.1: Describe six key elements in organizational design.

Question Category: Analytical

42) Today's managers expect employees to ________.

A) ignore rules for the most part

B) use discretion when it comes to following rules

C) faithfully follow rules even when it may harm the organization

D) make their own rules

Diff: 2

AACSB: Analytical thinking

LO: 8.1: Describe six key elements in organizational design.

Question Category: Analytical

Eric the Redd (Scenario)

Eric Redd graduated from college and was hired by a corporation that manufactured parts for the automotive industry. The employees on the assembly line seemed bored, and their motivation was low. Eric's employer decided to try to reorganize to increase productivity. During his career, Eric will see his job change from an engineer to a more complex job assignment.

43) The jobs of assembly-line employees are to be changed to allow more tasks to be done by individual workers. This is a reduction in ________.

A) work specialization

B) departmentalization

C) chain of command

D) centralization

Diff: 3

AACSB: Application of knowledge

LO: 8.1: Describe six key elements in organizational design.

Question Category: Application

44) Eric is offered a chance to help direct the efforts of some employees assigned to his work group. This is a chance for Eric to experience ________.

A) functional structure

B) divisional structure

C) responsibility

D) authority

Diff: 2

AACSB: Application of knowledge

LO: 8.1: Describe six key elements in organizational design.

Question Category: Application

45) Eric sees this new assignment as an increase in ________, or an obligation or expectation for him to perform at a new level.

A) functional structure

B) divisional structure

C) responsibility

D) authority

Diff: 2

AACSB: Application of knowledge

LO: 8.1: Describe six key elements in organizational design.

Question Category: Application

46) Organizational design is the process in which managers change or develop an organization's structure.

Diff: 2

AACSB: Analytical thinking

LO: 8.1: Describe six key elements in organizational design.

Question Category: Concept

47) There are exactly four basic elements in organizational design.

Diff: 1

AACSB: Analytical thinking

LO: 8.1: Describe six key elements in organizational design.

Question Category: Concept

48) The original ideas about organizational design formulated by Fayol and Weber are now largely obsolete.

Diff: 2

AACSB: Analytical thinking

LO: 8.1: Describe six key elements in organizational design.

Question Category: Analytical

49) When work specialization was originally implemented early in the twentieth century, employee productivity initially rose.

Diff: 2

AACSB: Analytical thinking

LO: 8.1: Describe six key elements in organizational design.

Question Category: Analytical

50) Today, most managers see work specialization as a source of ever-increasing productivity.

Diff: 2

AACSB: Analytical thinking

LO: 8.1: Describe six key elements in organizational design.

Question Category: Analytical

51) The advantage of work specialization is that it always results in high employee motivation and high productivity.

Diff: 2

AACSB: Analytical thinking

LO: 8.1: Describe six key elements in organizational design.

Question Category: Analytical

52) Departmentalization is how jobs are grouped.

Diff: 1

AACSB: Analytical thinking

LO: 8.1: Describe six key elements in organizational design.

Question Category: Concept

53) Staff authority is the ability to direct the work of any employee who does not have a higher rank in the organization.

Diff: 2

AACSB: Analytical thinking

LO: 8.1: Describe six key elements in organizational design.

Question Category: Concept

54) Grouping jobs on the basis of major product areas is termed customer departmentalization.

Diff: 2

AACSB: Analytical thinking

LO: 8.1: Describe six key elements in organizational design.

Question Category: Concept

55) Line authority can be exerted only after a manager checks with his or her superior.

Diff: 2

AACSB: Analytical thinking

LO: 8.1: Describe six key elements in organizational design.

Question Category: Concept

56) Unity of command prevents an employee from trying to follow two conflicting commands at once.

Diff: 2

AACSB: Analytical thinking

LO: 8.1: Describe six key elements in organizational design.

Question Category: Concept

57) Power is a right that a manager has when he or she has a higher rank in an organization.

Diff: 2

AACSB: Analytical thinking

LO: 8.1: Describe six key elements in organizational design.

Question Category: Concept

58) When decisions tend to be made at lower levels in an organization, the organization is said to be centralized.

Diff: 2

AACSB: Analytical thinking

LO: 8.1: Describe six key elements in organizational design.

Question Category: Concept

59) Traditional organizations are structured in a pyramid, with the power and authority located in the pyramid's broad base.

Diff: 2

AACSB: Analytical thinking

LO: 8.1: Describe six key elements in organizational design.

Question Category: Concept

60) In a short essay, list and explain three key elements in designing an organization's structure.

Work specialization

This concept describes the degree to which tasks in an organization are divided into separate jobs. The essence of work specialization is that an entire job is not done by one individual, but instead is broken down into steps, with each step completed by a different person.

Departmentalization

The basis by which jobs are grouped together is called departmentalization. The five common forms of departmentalization include functional, product, geographical, process, and customer departmentalization.

Chain of command

This is the continuous line of authority that extends from upper organizational levels to the lowest levels and clarifies who reports to whom. It helps employees answer questions such as "Who do I go to if I have a problem?" and "To whom am I responsible?"

Span of control

The question of how many employees a manager can efficiently and effectively supervise is important because, to a large degree, it determines the number of levels and managers an organization has. Trends in today's organizations show wider spans of control that reflect better-trained employees who are more independent and accountable.

Centralization and decentralization

Centralization describes the degree to which decision making is concentrated at a single point in the organization. If top managers make the organization's key decisions with little or no input from below, then the organization is centralized. In contrast, the more that lower-level employees provide input or actually make decisions, the more decentralized the organization is.

Authority, responsibility, and power

Authority is the right to give directions and expect them to be obeyed within an organization; the amount of authority for a given position is inherent in that position, not related to the individual who fills that position. Responsibility is the obligation to perform assigned tasks. While authority is a right given by position, power is an ability to change things that is independent of position. For example, a low-level employee with a particular skill has considerable power in an organization if that skill is valuable to the organization.

Diff: 2

AACSB: Written and oral communication

LO: 8.1: Describe six key elements in organizational design.

Question Category: Critical thinking

61) In a short essay, list and discuss three common forms of departmentalization.

Functional departmentalization

Jobs are grouped by the functions (i.e., marketing, finance, human resources) performed. This approach can be used in all types of organizations, although the functions change to reflect the organization's objectives and work activities.

Product departmentalization

Jobs are grouped by product line. In this approach, each major product area is placed under the authority of a manager who is a specialist in, and is responsible for, everything having to do with that product line. Examples might include men's shoes, women's shoes, men's clothing, women's clothing, and so on.

Geographical departmentalization

Jobs are grouped on the basis of a territory or geography that is served. Territory might reflect the location of employees, customers, plants, and so on.

Process departmentalization

This method groups jobs on the basis of product or customer flow. In this approach, work activities follow a natural processing flow of product or even customers. An example of process departmentalization is a motor vehicles office that is organized around a process that customers use to obtain permits, licenses, and other services.

Customer departmentalization

Jobs are grouped on the basis of common customers who have common needs or problems that can best be met by having specialists for each. An example of customer departmentalization includes separate retail, wholesale, and government customers at a large firm.

Diff: 2

AACSB: Written and oral communication

LO: 8.1: Describe six key elements in organizational design.

Question Category: Critical thinking

62) A(n) ________ organization has a high degree of specialization, formalization, and centralization.

A) organic

B) horizontal

C) learning

D) mechanistic

Diff: 1

AACSB: Analytical thinking

LO: 8.2: Identify the contingency factors that favor either the mechanistic model or the organic model of organizational design.

Question Category: Concept

63) Which one of the following would likely be found in mechanistic organizations?

A) wide span of control

B) empowered employees

C) decentralized responsibility

D) standardized jobs

Diff: 2

AACSB: Analytical thinking

LO: 8.2: Identify the contingency factors that favor either the mechanistic model or the organic model of organizational design.

Question Category: Concept

64) A(n) ________ organization is able to change rapidly as needs require.

A) organic

B) hierarchical

C) vertical

D) mechanistic

Diff: 1

AACSB: Analytical thinking

LO: 8.2: Identify the contingency factors that favor either the mechanistic model or the organic model of organizational design.

Question Category: Concept

65) Which term best describes an organic organization?

A) hierarchical

B) pyramid-shaped

C) flexible

D) fixed

Diff: 2

AACSB: Analytical thinking

LO: 8.2: Identify the contingency factors that favor either the mechanistic model or the organic model of organizational design.

Question Category: Concept

66) Which word best characterizes a mechanistic organization?

A) bureaucracy

B) collaborative

C) adaptable

D) informal

Diff: 2

AACSB: Analytical thinking

LO: 8.2: Identify the contingency factors that favor either the mechanistic model or the organic model of organizational design.

Question Category: Concept

67) Strategy, size, technology, and the degree of uncertainty in the environment together make up what are called ________.

A) contingency variables

B) control factors

C) structure variables

D) probable factors

Diff: 1

AACSB: Analytical thinking

LO: 8.2: Identify the contingency factors that favor either the mechanistic model or the organic model of organizational design.

Question Category: Concept

68) Together, contingency variables determine the ________.

A) success of an organization

B) culture of an organization

C) structure of an organization

D) size of an organization

Diff: 2

AACSB: Analytical thinking

LO: 8.2: Identify the contingency factors that favor either the mechanistic model or the organic model of organizational design.

Question Category: Concept

69) A company that is trying to be a leader in innovation within its industry would be most likely to have this kind of structure.

A) mechanistic

B) organic

C) simple

D) functional

Diff: 2

AACSB: Application of knowledge

LO: 8.2: Identify the contingency factors that favor either the mechanistic model or the organic model of organizational design.

Question Category: Application

70) Larger organizations tend to have ________ than smaller organizations.

A) more specialization

B) less departmentalization

C) less centralization

D) fewer rules and regulations

Diff: 2

AACSB: Analytical thinking

LO: 8.2: Identify the contingency factors that favor either the mechanistic model or the organic model of organizational design.

Question Category: Concept

71) As an organization grows to a size of over 2,000 employees, it finds it hard to avoid becoming more ________.

A) mechanistic

B) organic

C) informal

D) adaptable

Diff: 2

AACSB: Analytical thinking

LO: 8.2: Identify the contingency factors that favor either the mechanistic model or the organic model of organizational design.

Question Category: Analytical

72) Joan Woodward conducted pioneering studies on how this affected the structure of companies.

A) ethics

B) technology

C) values

D) corporate culture

Diff: 1

AACSB: Analytical thinking

LO: 8.2: Identify the contingency factors that favor either the mechanistic model or the organic model of organizational design.

Question Category: Analytical

73) Recent studies on Woodward's initial research found that if the technology was nonroutine, this structure worked best.

A) mechanistic

B) traditional

C) inorganic

D) organic

Diff: 2

AACSB: Analytical thinking

LO: 8.2: Identify the contingency factors that favor either the mechanistic model or the organic model of organizational design.

Question Category: Analytical

74) Woodward concluded that the least complex of the technologies was ________.

A) unit production

B) mass production

C) process production

D) quality production

Diff: 2

AACSB: Analytical thinking

LO: 8.2: Identify the contingency factors that favor either the mechanistic model or the organic model of organizational design.

Question Category: Concept

75) In Woodward's study, this type of production was the most complex and the most sophisticated.

A) unit production

B) mass production

C) process production

D) technological production

Diff: 2

AACSB: Analytical thinking

LO: 8.2: Identify the contingency factors that favor either the mechanistic model or the organic model of organizational design.

Question Category: Concept

76) The greater the environmental uncertainty, the more an organization needs to become ________.

A) organic

B) mechanistic

C) stable

D) high-tech

Diff: 2

AACSB: Analytical thinking

LO: 8.2: Identify the contingency factors that favor either the mechanistic model or the organic model of organizational design.

Question Category: Analytical

77) The two prevalent organizational structure models in today's world are the organic organization and the inorganic organization.

Diff: 1

AACSB: Analytical thinking

LO: 8.2: Identify the contingency factors that favor either the mechanistic model or the organic model of organizational design.

Question Category: Concept

78) A mechanistic organization is bureaucratic and hierarchical.

Diff: 2

AACSB: Analytical thinking

LO: 8.2: Identify the contingency factors that favor either the mechanistic model or the organic model of organizational design.

Question Category: Concept

79) An organic organization tends to be flexible and have few formal rules.

Diff: 2

AACSB: Analytical thinking

LO: 8.2: Identify the contingency factors that favor either the mechanistic model or the organic model of organizational design.

Question Category: Concept

80) Innovators need the efficiency, stability, and tight controls of a mechanistic structure rather than an organic structure.

Diff: 2

AACSB: Analytical thinking

LO: 8.2: Identify the contingency factors that favor either the mechanistic model or the organic model of organizational design.

Question Category: Analytical

81) As organizations become larger, they tend to become more organic.

Diff: 3

AACSB: Analytical thinking

LO: 8.2: Identify the contingency factors that favor either the mechanistic model or the organic model of organizational design.

Question Category: Analytical

82) Joan Woodward attempted to view organizational structure from a technological perspective.

Diff: 2

AACSB: Analytical thinking

LO: 8.2: Identify the contingency factors that favor either the mechanistic model or the organic model of organizational design.

Question Category: Analytical

83) Woodward and more recent studies have concluded that mass production worked best with an organic organizational structure.

Diff: 2

AACSB: Analytical thinking

LO: 8.2: Identify the contingency factors that favor either the mechanistic model or the organic model of organizational design.

Question Category: Analytical

84) The stability of a mechanistic structure seems to work best in today's dynamic and uncertain business environment.

Diff: 2

AACSB: Analytical thinking

LO: 8.2: Identify the contingency factors that favor either the mechanistic model or the organic model of organizational design.

Question Category: Analytical

85) Traditional organizational designs tend to be more mechanistic and include ________.

A) simple, complex, and divisional structures

B) simple, functional, and dysfunctional structures

C) functional, divisional, and vertical structures

D) simple, functional, and divisional structures

Diff: 1

AACSB: Analytical thinking

LO: 8.3: Compare and contrast traditional and contemporary organizational designs.

Question Category: Concept

86) A simple structure is ________ like a mechanistic organization, but ________ like an organic organization.

A) centralized; informal

B) informal; decentralized

C) decentralized; formal

D) centralized; formal

Diff: 3

AACSB: Analytical thinking

LO: 8.3: Compare and contrast traditional and contemporary organizational designs.

Question Category: Concept

87) What is a strength of a simple structure?

A) Employees are grouped with others who have similar tasks.

B) Power and authority are widely distributed.

C) Accountability is clear.

D) There are cost-saving advantages from specialization.

Diff: 2

AACSB: Analytical thinking

LO: 8.3: Compare and contrast traditional and contemporary organizational designs.

Question Category: Concept

88) What is a weakness of a simple structure?

A) Duplication of activities and resources increases costs and reduces efficiency.

B) Functional specialists become insulated and have little understanding of what other units are doing.

C) Pursuit of functional goals can cause managers to lose sight of what is best for the overall organization.

D) Reliance on a single person is risky.

Diff: 2

AACSB: Analytical thinking

LO: 8.3: Compare and contrast traditional and contemporary organizational designs.

Question Category: Concept

89) This is a key characteristic in an organization with a functional structure.

A) adaptability

B) departmentalization

C) flexibility

D) little specialization

Diff: 2

AACSB: Analytical thinking

LO: 8.3: Compare and contrast traditional and contemporary organizational designs.

Question Category: Concept

90) This is a weakness of a functional structure.

A) favoring functional goals over organizational goals

B) favoring organizational goals over functional goals

C) failing to attain functional goals

D) overemphasizing organizational goals

Diff: 3

AACSB: Analytical thinking

LO: 8.3: Compare and contrast traditional and contemporary organizational designs.

Question Category: Concept

91) Avoiding redundancy is a strength of which structure?

A) simple

B) divisional

C) functional

D) corporate

Diff: 2

AACSB: Analytical thinking

LO: 8.3: Compare and contrast traditional and contemporary organizational designs.

Question Category: Concept

92) In a ________ structure each business unit has complete autonomy to reach its goals.

A) simple

B) functional

C) divisional

D) matrix

Diff: 2

AACSB: Analytical thinking

LO: 8.3: Compare and contrast traditional and contemporary organizational designs.

Question Category: Concept

93) A media company that has separate, autonomous companies for movies, TV, Internet, and print journalism is most likely a ________ structure.

A) divisional

B) functional

C) simple

D) matrix

Diff: 3

AACSB: Application of knowledge

LO: 8.3: Compare and contrast traditional and contemporary organizational designs.

Question Category: Application

94) Having separate payroll departments in each division of a divisional structure is an example of which one of the following?

A) efficiency, because payroll departments compete

B) duplication, because a single payroll department could do the job

C) effectiveness, because separate payroll departments create jobs

D) efficiency, because separate payroll departments can share methods of operation

Diff: 3

AACSB: Application of knowledge

LO: 8.3: Compare and contrast traditional and contemporary organizational designs.

Question Category: Application

95) As the number of employees in an organization grows, structure tends to become more ________.

A) bureaucratic

B) informal

C) decentralized

D) relaxed

Diff: 1

AACSB: Analytical thinking

LO: 8.3: Compare and contrast traditional and contemporary organizational designs.

Question Category: Analytical

96) Looking for ways to make their organization more flexible and innovative, today's managers may choose this kind of structure.

A) simple

B) divisional

C) functional

D) team

Diff: 2

AACSB: Analytical thinking

LO: 8.3: Compare and contrast traditional and contemporary organizational designs.

Question Category: Concept

97) In a team structure, ________.

A) there is a clear line of managerial authority

B) there is no clear line of managerial authority

C) authority comes from top managers only

D) no one has the authority to make decisions

Diff: 2

AACSB: Interpersonal relations and teamwork

LO: 8.3: Compare and contrast traditional and contemporary organizational designs.

Question Category: Analytical

98) In a team structure, team members ________.

A) are subject to decisions made by their supervisors

B) can influence decisions made by top managers

C) make decisions and are accountable for their decisions

D) make decisions only after first checking with management

Diff: 3

AACSB: Interpersonal relations and teamwork

LO: 8.3: Compare and contrast traditional and contemporary organizational designs.

Question Category: Concept

99) All of the following are necessary for successful team structure EXCEPT ________.

A) well-trained team members

B) team members with cross-functional skills

C) team members with years of management experience

D) a fair and well-run team-based pay plan

Diff: 2

AACSB: Interpersonal relations and teamwork

LO: 8.3: Compare and contrast traditional and contemporary organizational designs.

Question Category: Analytical

100) In a ________, employees are recruited from functional departments to work on a specific project for a limited time period.

A) team structure

B) divisional structure

C) product structure

D) matrix structure

Diff: 3

AACSB: Analytical thinking

LO: 8.3: Compare and contrast traditional and contemporary organizational designs.

Question Category: Concept

101) In a matrix structure, a group member will typically report to ________.

A) a project manager only

B) both a project manager and functional department head

C) a functional department head only

D) Group members are fully autonomous in a matrix structure, so they don't report to anyone.

Diff: 2

AACSB: Analytical thinking

LO: 8.3: Compare and contrast traditional and contemporary organizational designs.

Question Category: Concept

102) When a group member in a matrix structure finishes a project, he or she ________.

A) returns to his or her functional department

B) stays with the group to take on a new project

C) enters a pool of available employees from the entire organization

D) starts looking for a new job

Diff: 2

AACSB: Analytical thinking

LO: 8.3: Compare and contrast traditional and contemporary organizational designs.

Question Category: Concept

103) By giving employees two direct superiors, a matrix structure violates this key element of organizational design.

A) unity of command

B) chain of command

C) span of management

D) decentralization

Diff: 2

AACSB: Analytical thinking

LO: 8.3: Compare and contrast traditional and contemporary organizational designs.

Question Category: Concept

104) A key difference between a team structure and a matrix structure is that a team structure ________ while a matrix structure does not.

A) empowers group members

B) works on projects

C) has fairly permanent groups or teams

D) holds group members accountable

Diff: 2

AACSB: Interpersonal relations and teamwork

LO: 8.3: Compare and contrast traditional and contemporary organizational designs.

Question Category: Concept

105) In a project structure, when employees finish a project they ________.

A) return to their department

B) return to a different division

C) move on to another project

D) return to their regular work

Diff: 2

AACSB: Analytical thinking

LO: 8.3: Compare and contrast traditional and contemporary organizational designs.

Question Category: Concept

106) Which one of the following areas has opened up new possibilities for how and where employees work?

A) information technology

B) human resources

C) organizational design

D) global competition

Diff: 3

AACSB: Information technology

LO: 8.3: Compare and contrast traditional and contemporary organizational designs.

Question Category: Concept

107) Boundaryless organizations try to eliminate ________ within their organization.

A) horizontal specialization and vertical hierarchy

B) horizontal specialization only

C) vertical hierarchy only

D) vertical specialization only

Diff: 2

AACSB: Analytical thinking

LO: 8.3: Compare and contrast traditional and contemporary organizational designs.

Question Category: Concept

108) A virtual organization is essentially ________ who come together for a particular project.

A) a group of employees from a single company

B) a group of free agents

C) a team of employees from different departments of a company

D) a group of top managers and CEOs

Diff: 2

AACSB: Analytical thinking

LO: 8.3: Compare and contrast traditional and contemporary organizational designs.

Question Category: Concept

109) How does a virtual organization save on costs?

A) by hiring people who specialize in what they do

B) by hiring fewer people than they need and making them work much longer hours

C) by eliminating all administrative duties

D) by keeping only a small permanent staff for administrative purposes only

Diff: 2

AACSB: Analytical thinking

LO: 8.3: Compare and contrast traditional and contemporary organizational designs.

Question Category: Analytical

110) A ________ subcontracts part of a project to outside suppliers.

A) virtual organization

B) boundary organization

C) matrix structure

D) network organization

Diff: 2

AACSB: Analytical thinking

LO: 8.3: Compare and contrast traditional and contemporary organizational designs.

Question Category: Concept

111) A building contractor follows the network organization model when he does which one of the following?

A) does the framing and tiling by himself

B) hires three workers to help with framing

C) gives orders to workers

D) farms out the plumbing to a plumbing firm

Diff: 3

AACSB: Application of knowledge

LO: 8.3: Compare and contrast traditional and contemporary organizational designs.

Question Category: Application

Eric the Redd (Scenario)

Eric Redd graduated from college and was hired by a corporation that manufactured parts for the automotive industry. The employees on the assembly line seemed bored, and their motivation was low. Eric's employer decided to try to reorganize to increase productivity. During his career, Eric will see his job change from an engineer to a more complex job assignment.

112) Eric, who is trained as an engineer, is now in a group with production workers and marketing specialists from different departments designing a new product that the company plans to offer. This situation could be described as a(n) ________.

A) alternative assignment

B) collective assignment

C) advanced assignment

D) project assignment

Diff: 2

AACSB: Application of knowledge

LO: 8.3: Compare and contrast traditional and contemporary organizational designs.

Question Category: Application

113) One of the strengths of a simple structure is that it is flexible.

Diff: 2

AACSB: Analytical thinking

LO: 8.3: Compare and contrast traditional and contemporary organizational designs.

Question Category: Analytical

114) A strength of a functional structure is that it avoids duplication of activities.

Diff: 2

AACSB: Analytical thinking

LO: 8.3: Compare and contrast traditional and contemporary organizational designs.

Question Category: Concept

115) A weakness of the divisional structure is that duplication of activities tends to occur.

Diff: 2

AACSB: Analytical thinking

LO: 8.3: Compare and contrast traditional and contemporary organizational designs.

Question Category: Concept

116) In a team structure, team members are not held responsible for their decisions.

Diff: 2

AACSB: Analytical thinking

LO: 8.3: Compare and contrast traditional and contemporary organizational designs.

Question Category: Analytical

117) In a team structure, there is a clear line of managerial authority from top to bottom.

Diff: 2

AACSB: Analytical thinking

LO: 8.3: Compare and contrast traditional and contemporary organizational designs.

Question Category: Analytical

118) Employees in an organization with a matrix design can have two bosses for the same job.

Diff: 2

AACSB: Analytical thinking

LO: 8.3: Compare and contrast traditional and contemporary organizational designs.

Question Category: Concept

119) A significant advantage of the matrix structure is the clear chain of command from top to bottom of the organization.

Diff: 2

AACSB: Analytical thinking

LO: 8.3: Compare and contrast traditional and contemporary organizational designs.

Question Category: Concept

120) When employees in a matrix structure finish a project, they go back to their functional department.

Diff: 2

AACSB: Analytical thinking

LO: 8.3: Compare and contrast traditional and contemporary organizational designs.

Question Category: Concept

121) When employees in a project structure finish a project, they go back to their original department.

Diff: 2

AACSB: Analytical thinking

LO: 8.3: Compare and contrast traditional and contemporary organizational designs.

Question Category: Concept

122) Vertical boundaries separate employees by their rank in an organization.

Diff: 2

AACSB: Analytical thinking

LO: 8.3: Compare and contrast traditional and contemporary organizational designs.

Question Category: Concept

123) Internal boundaries separate the organization from its customers, suppliers and stakeholders.

Diff: 2

AACSB: Analytical thinking

LO: 8.3: Compare and contrast traditional and contemporary organizational designs.

Question Category: Analytical

124) A virtual organization relies on free agents who have no permanent status or position in the organization.

Diff: 2

AACSB: Analytical thinking

LO: 8.3: Compare and contrast traditional and contemporary organizational designs.

Question Category: Concept

125) Managers want to eliminate boundaries in organizations primarily to increase stability and reduce flexibility.

Diff: 2

AACSB: Analytical thinking

LO: 8.3: Compare and contrast traditional and contemporary organizational designs.

Question Category: Analytical

126) Horizontal boundaries separate employees by the specialization of their job.

Diff: 2

AACSB: Analytical thinking

LO: 8.3: Compare and contrast traditional and contemporary organizational designs.

Question Category: Analytical

127) A network organization uses its own employees and outside suppliers to provide manpower for projects.

Diff: 2

AACSB: Analytical thinking

LO: 8.3: Compare and contrast traditional and contemporary organizational designs.

Question Category: Concept

128) In a short essay, list and discuss two contingency variables that should be considered in determining an appropriate structure in organizational design.

Strategy and structure

An organization's structure should facilitate the achievement of goals. Since goals are influenced by the organization's strategies, it's only logical that strategy and structure should be closely linked. More specifically, structure should follow strategy. If managers significantly change the organization's strategy, they will need to modify structure to accommodate and support the change.

Size and structure

There is considerable evidence that an organization's size significantly affects its structure. For instance, large organizations—those with 2,000 or more employees—tend to have more specialization, departmentalization, centralization, and rules and regulations than do small organizations. However, the relationship isn't linear. Rather, size affects structure at a decreasing rate; that is, size becomes less important as an organization grows.

Technology and structure

Every organization has at least one form of technology to convert its inputs into outputs. The processes or methods that transform an organization's inputs into outputs differ by their degree of routineness. In general, the more routine the technology, the more standardized and mechanistic the structure can be. Organizations with more nonroutine technology are more likely to have organic structures.

Environment and structure

The greater the uncertainty in the environment, the greater the need for the flexibility offered by an organic design. On the other hand, in stable, simple environments, mechanistic designs tend to be most effective.

Diff: 2

AACSB: Written and oral communication

LO: 8.3: Compare and contrast traditional and contemporary organizational designs.

Question Category: Critical thinking

129) In a short essay, describe the characteristics of a simple structure.

Diff: 2

AACSB: Written and oral communication

LO: 8.3: Compare and contrast traditional and contemporary organizational designs.

Question Category: Critical thinking

130) In a short essay, describe the characteristics of a functional structure.

Diff: 2

AACSB: Application of knowledge

LO: 8.3: Compare and contrast traditional and contemporary organizational designs.

Question Category: Critical thinking

131) In a short essay, describe the characteristics of a divisional structure.

Diff: 2

AACSB: Written and oral communication

LO: 8.3: Compare and contrast traditional and contemporary organizational designs.

Question Category: Critical thinking

132) In a short essay, describe the matrix structure. What are its advantages and disadvantages?

Diff: 3

AACSB: Written and oral communication

LO: 8.3: Compare and contrast traditional and contemporary organizational designs.

Question Category: Critical thinking

133) Which one of the following is the biggest concern when doing work at anytime and anywhere?

A) employee payroll

B) security

C) employee accountability

D) customer satisfaction

Diff: 3

AACSB: Analytical thinking

LO: 8.4: Discuss the design challenges faced by today's organizations.

Question Category: Analytical

134) Global competition forces firms to ________.

A) become lean, fast, and flexible

B) build up enormous cash reserves

C) think locally

D) become more hierarchical

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 8.4: Discuss the design challenges faced by today's organizations.

Question Category: Concept

135) A learning organization develops the capability to ________.

A) add new training programs to keep employees up to date

B) accept the conventional wisdom of the industry

C) continuously learn, adapt, and change

D) attract new employees who have special knowledge

Diff: 2

LO: 8.4: Discuss the design challenges faced by today's organizations.

Question Category: Concept

136) A learning organization requires employees to ________.

A) encode information to prevent competitors from stealing ideas

B) collaborate with competitors

C) make all ideas public

D) share information and collaborate with one another

Diff: 2

AACSB: Analytical thinking

LO: 8.4: Discuss the design challenges faced by today's organizations.

Question Category: Concept

137) All of the following are characteristic of learning organizations EXCEPT ________.

A) a strong sense of community

B) a collaborative environment

C) managers who serve as facilitators

D) fear of making mistakes

Diff: 2

AACSB: Analytical thinking

LO: 8.4: Discuss the design challenges faced by today's organizations.

Question Category: Analytical

138) Organizational learning can't take place without ________.

A) complete privacy for employees

B) a clear chain of command

C) information

D) a stable structure or hierarchy

Diff: 2

AACSB: Analytical thinking

LO: 8.4: Discuss the design challenges faced by today's organizations.

Question Category: Analytical

139) In a learning organization, it is important that all employees ________.

A) collaborate

B) study each night

C) have a strong sense of leadership

D) share the same vision for the organization

Diff: 2

AACSB: Analytical thinking

LO: 8.4: Discuss the design challenges faced by today's organizations.

Question Category: Analytical

140) All learning organizations share a distinct structure.

Diff: 2

AACSB: Analytical thinking

LO: 8.4: Discuss the design challenges faced by today's organizations.

Question Category: Analytical

141) The biggest issue in workers working at home or off-site involves fairness.

Diff: 2

AACSB: Analytical thinking

LO: 8.4: Discuss the design challenges faced by today's organizations.

Question Category: Analytical

142) A learning organization puts an enormous amount of effort on making sure that all of its employees are enrolled in some kind of university level class.

Diff: 2

AACSB: Analytical thinking

LO: 8.4: Discuss the design challenges faced by today's organizations.

Question Category: Analytical

143) Organizations that implement flextime programs allow employees to work at home for some of the work day.

Diff: 2

AACSB: Analytical thinking

LO: 8.4: Discuss the design challenges faced by today's organizations.

Question Category: Concept

144) Contingent workers may make up to 40 percent of the workforce by the end of the decade.

Diff: 3

AACSB: Analytical thinking

LO: 8.4: Discuss the design challenges faced by today's organizations.

Question Category: Analytical

145) In a short essay, describe the boundaryless organization.

Diff: 2

AACSB: Written and oral communication

LO: 8.4: Discuss the design challenges faced by today's organizations.

Question Category: Critical thinking

146) In a short essay, describe a learning organization. What structural aspects does a learning organization need?

What structural aspects does a learning organization need? First, it is critical for members in a learning organization to share information and collaborate on work activities throughout the entire organization—across different functional specialties and even at different organizational levels. To do this requires minimal structural and physical barriers. In such a boundaryless environment, employees can work together and collaborate in doing the organization's work the best way they can and learn from each other.

Finally, because of this need to collaborate, teams also tend to be an important feature of a learning organization's structural design. Employees work in teams that are empowered to make decisions about doing whatever work needs to be done or to resolve issues. With empowered employees and teams, there is little need for "bosses" to direct and control. Instead, managers serve as facilitators, supporters, and advocates.

Diff: 3

AACSB: Written and oral communication

LO: 8.4: Discuss the design challenges faced by today's organizations.

Question Category: Critical thinking