First year CH 10

1. Organizational design is the organization's formal

framework by which job tasks are divided, grouped, and
coordinated.

2. Organizational structure is the degree to which tasks in an

organization are divided into separate jobs.

3. Organizational structure is the degree to which tasks in an

organization are divided into separate jobs.

4. The concept of work specialization can be traced back a

couple of centuries to Adam Smith's discussion of division of
labor.

5. Originally, when work specialization was implemented,

employee productivity rose because it wasn't widely used.

6. Today, most managers see work specialization as a source of

ever-increasing productivity.

7. Grouping jobs on the basis of product or customer flow is

termed customer departmentalization.

8. When decisions tend to be made at lower levels in an

organization, the organization is said to be decentralized.

9. The concept of centralization-decentralization is absolute.

10. When effective implementation of company strategies

depends on managers having involvement and flexibility to
make decisions, the company is probably more
decentralized.

11. A term for increased decentralization is employee

empowerment, which is giving employees more authority to
make decisions.

12. The degree of formalization varies widely between

organizations and even within organizations.

13. Many of today's organizations are extremely reliant on

strict rules and standardization to guide and regulate

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employee behavior.

14. An organic organization tends to be characterized by

high specialization, extensive departmentalization, narrow
spans of control, high formalization, a limited information
network, and little participation in decision making by low-
level employees.

15. An organic organization would likely be very flexible.

16. Innovators need the efficiency, stability, and tight

controls of the mechanistic structure.

17. The relationship between organizational size and

structure tends to be linear.

18. Joan Woodward attempted to view organizational

structure from a technological perspective.

19. Woodward's findings support that there is "one best

way" to organize a manufacturing firm.

20. Since Woodward's initial work, numerous studies have

demonstrated that organizations adapt their structures to
their technology.

21. The strength of the functional structure is that it

focuses on results.

22. A simple structure is an organizational design that

groups similar or related occupational specialties together.

23. In divisional structures, the parent corporation typically

acts as an external overseer to coordinate and control the
various divisions.

24. Employee empowerment is a crucial aspect of team

structure because there is no line of managerial authority
from top to bottom.

25. ________ is the formal arrangement of jobs within an

organization.

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A) Departmentalization
B) Organizational design
C) Organizational structure
D) Work specialization

26. Organizational design is based on decisions about

________.
A) work specialization and mechanisms
B) chain of command and span of control
C) centralization and matrices
D) strategy and structure
27. In describing the degree to which tasks in an
organization are divided into separate jobs, managers use
the term ________.
A) work specialization
B) departmentalization
C) chain of command
D) span of control

28. 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) It clarifies who reports to whom.

29. In some jobs, ________ work specialization more than

offset the economic advantages.
A) distrust of
B) human diseconomies from
C) disgust of
D) employees' excitement about

30. On what basis are jobs grouped in order to accomplish

organizational goals?
A) departmentalization
B) centralization
C) formalization
D) coordination

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31. 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

32. Departmentalization based on ________ groups' jobs is

based on the territory or physical location.
A) functional
B) product
C) geographic
D) matrix

33. ________ departmentalization is based on the product or

customer flow through the organization.
A) Product
B) Functional
C) Process
D) Organizational structure

34. What kind of departmentalization would be in place in a

government organization where different public service
responsibilities are divided into activities for employers,
children, and the disabled?
A) product
B) geographic
C) outcome
D) customer

35. ________ departmentalization is used more in recent

years to better monitor the needs of customers and to
respond to changes in those needs.
A) Needs-based
B) Functional
C) Process
D) Customer

36. Work teams composed of individuals from various

functional specialties are known as ________ teams.
A) differentiated
B) product

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C) cross-functional
D) weak

37. The line of authority that extends from the upper levels
of management to the lowest levels of the organization is
________.
A) authorized line of responsibility
B) unity of command
C) responsibility factor
D) chain of command

38. ________ refers to the rights inherent to a position that

allows a manager to tell subordinates what to do and expect
them to do it.
A) Responsibility
B) Unity of command
C) Chain of command
D) Authority

39. ________ is the obligation or expectation to perform a

duty.
A) Responsibility
B) Unity of command
C) Chain of command
D) Span of control

40. Which one of Fayol's 14 principles of management helps

preserve the concept of a continuous line of authority?
A) unity of demand
B) unity of command
C) demand structure
D) continuous demand

41. The theory that a person should report to only one

manager is called ________.
A) authorized line of responsibility
B) unity of command
C) responsibility factor
D) chain of command

42. Concepts such as chain of command and authority are

considerably less relevant today because of things like

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________.
A) information technology
B) span of control
C) conflicting demands of multiple bosses
D) empowerment

43. The traditional view was that managers could not and
should not directly supervise more than ________
subordinates.
A) three or four
B) five or six
C) seven or eight
D) nine or ten

44. The concept that defines the number of subordinates

that report to a manager and that indirectly specifies the
number of levels of management in an organization is called
________.
A) authorized line of responsibility
B) unity of command
C) responsibility factor
D) span of control

45. All other things being equal, as the span of control

grows wider or larger, organizational design becomes more
________.
A) bureaucratic
B) democratic
C) effective
D) efficient

46. When the span of control ________, employee

performance suffers due to a lack of time, leadership, and
support.
A) remains too small
B) becomes moderate
C) becomes too large
D) becomes less cost efficient

47. Trends in the past few years have centered on a ________

span of control to reduce costs and speed decision making.
A) narrower

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B) wider
C) deeper
D) stable

48. The degree to which decision making is confined at a

single point in an organization is described as ________.
A) unity of command
B) chain of command
C) span of management
D) centralization

49. What factor influences the amount of centralization an

organization uses?
A) Decisions are significant.
B) The company is geographically dispersed
C) The organization is facing the risk of company failure.
D) The environment is complex.

50. What factor influences the amount of decentralization

an organization uses?
A) Lower-level managers want a voice in decisions.
B) Lower level managers are not as capable at making decisions as
upper-level managers.
C) Effective implementation of company strategies depends on
managers retaining say over what happens.
D) The company is large.

51. In recent years, there has been a movement to make

organizations more flexible and responsive through ________.
A) centralization
B) decentralization
C) alternative organizational structure
D) customer-based structure

52. The degree to which jobs are standardized and guided

by rules and procedures is called ________.
A) work specialization
B) centralization
C) decentralization
D) formalization

53. When managers standardize employee behavior

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through rules and procedures, the jobs are becoming more

________.
A) diversified
B) formalized
C) vertical
D) horizontal

54. A(n) ________ organization is rigidly controlled and

efficient.
A) organic
B) horizontal
C) learning
D) mechanistic

55. Organizations that work like efficient, well-oiled

machines are described as ________.
A) organic
B) mechanistic
C) rational
D) intuitive

56. Which of the following would likely be found in

mechanistic organizations?
A) wide span of control
B) empowered employees
C) decentralized responsibility
D) standardized job specialties

57. A(n) ________ organization is able to change rapidly as

needs require.
A) organic
B) horizontal
C) vertical
D) mechanistic

58. GlaxoSmithKline became more ________ when it

restructured to allow lab scientists to set the priorities and
allocate the resources.
A) bureaucratic
B) mechanistic
C) volatile
D) organic

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59. The appropriate structure for an organization is based

on four contingency variables: strategy, size, degree of
environmental uncertainty, and ________.
A) technology
B) history
C) leadership
D) intensity of competition

60. In describing the relationship between structure and

strategy, it can be said that ________.
A) structure follows strategy
B) strategy follows structure
C) strategy and structure are always handled equally
D) strategy follows structure in smaller organizations

61. Structure is related to the size of the organization, such

that larger organizations tend to have ________ than smaller
organizations.
A) more specialization
B) less departmentalization
C) less centralization
D) fewer rules and regulations

62. Structure is related to the size of the organization, such

that larger organizations are more ________.
A) mechanistic
B) organic
C) structurally weak
D) decentralized

63. As a type of technology, ________ centers on large-batch

production and requires moderate levels of complexity and
sophistication.
A) unit production
B) mass production
C) process production
D) service production

64. In Joan Woodward's study of the relationship between

technology and structure, the structure that was the most
technically complex was ________.

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A) unit production
B) mass production
C) process production
D) technological production

65. According to Woodward's studies, what type of

production works best with a mechanistic structure?
A) unit
B) process
C) product
D) mass

66. The greater the environmental uncertainty, the more an

organization needs to become ________.
A) organic
B) mechanistic
C) technologically pure
D) supportive of technological change

67. Global competition, accelerated product development

by competitors, and increased demands by customers for
better service have encouraged organizations to become
more ________.
A) organic
B) mechanistic
C) technologically pure
D) task oriented

68. Traditional organizational designs tend to be more

mechanistic, and include ________.
A) simple, functional, and corporate structures
B) simple, functional, and business unit structures
C) functional, strategic, and business unit structures
D) simple, functional, and divisional structures

69. What is a strength of a simple structure?

A) Employees are grouped with others who have similar tasks.
B) It focuses on results.
C) It is inexpensive to maintain.
D) There are cost-saving advantages from specialization.

70. What is a weakness of a simple structure?

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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's best for the overall organization.
D) Reliance on one person is risky.

71. The strength of a ________ structure is based on results

of managers, but it has a weakness because duplication can
occur easily within the organization.
A) simple
B) functional
C) divisional
D) matrix

72. A small business with low departmentalization, wide

spans of control, centralized authority, and limited
formalization can be said to possess a ________ structure.
A) simple
B) functional
C) divisional
D) matrix

73. An online wine retailer that sells and ships hundreds of

wines to customers all over the world with a payroll of six
employees, most likely has what kind of organizational
structure?
A) bureaucratic
B) simple
C) functional
D) divisional
Answer: B

74. As the number of employees in an organization grows,

structure tends to become more ________.
A) specialized
B) informal
C) centralized
D) relaxed

75. What type of organizational structure is made up of

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autonomous, self-contained units?

A) bureaucratic
B) simple
C) functional
D) divisional

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.

76. 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

77. Eric majored in engineering and really enjoyed the work

assignment. The reorganization changed some of his work
assignments to include working on a team with production
workers and marketing specialists designing the newest
products the company will offer. This could be described as
a(n) ________.
A) alternative work assignment
B) career degrading assignment
C) centralized work assignment
D) cross-functional team assignment

78. Eric is offered a chance to help direct the efforts of

some employees assigned to his work group. This is a
chance of Eric to experience ________.
A) functional structure
B) divisional structure

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C) responsibility
D) authority

79. 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

General Hospital (Scenario)

Michelle is a registered nurse in charge of a new unit at her hospital.

She would like to have a more laidback approach in dealing with her
new staff, but the hospital demands that there be strict hierarchical
levels and that all decisions must be signed off by Michelle. Sometimes
this drives Michelle nuts the constant filling out of forms, and so forth.
She also feels that the numerous levels of hierarchy are unnecessary
and place barriers between herself and her staff. She isn't sure why
things have to be so "organized" and is thinking about speaking with
her boss to attempt changing her unit to have more flexibility and
fewer rules.

80. Michelle is very concerned about the formal framework

by which job tasks within her nursing unit are divided,
grouped, and coordinated within her unit. This framework is
known as the unit's ________.
A) formal organizational chart
B) organizational structure
C) staff
D) span of control

81. Michelle's unit specializes in cardiology cases. Dividing

work units up in such a manner is most representative of
________ departmentalization.
A) functional
B) product
C) process
D) customer

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82. Michelle was asked to represent her cardiac unit as

part of a Total Quality Management (TQM) initiative that is
aimed at improving the overall quality of care at the
hospital. Other departments, such as Cardiology and ER,
also have representatives on this team. The TQM team
exemplifies ________.
A) project management
B) a cross-functional team
C) process integration
D) customer departmentalization

83. Michelle has noticed that everyone is very concerned

about the line of authority within the organization. The line
of authority within the organization is also called a(n)
________.
A) responsibility
B) chain of command
C) span of control
D) organizational strategy

84. Michelle is required to sign off on all decisions,

suggesting the hospital has what kind of decision-making
authority?
A) centralized
B) formal
C) autocratic
D) strict

Black Gold, Texas Tea (Scenario)

Paul Abdul Oil Corporation (PAOC) began as a relatively small oil

company. However, through the years it has grown to become an
international corporation.

85. As PAOC continues to grow, a highly trained group of

managers and analysts has developed at corporate
headquarters. This group is highly adaptive in its structure.
Members of this group do not have standardized jobs, but
are empowered to handle diverse job activities and
problems. This group of employees is said to have a(n)
________ structure.

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A) simple
B) divisional
C) functional
D) organic

Black Gold, Texas Tea (Scenario)

Paul Abdul Oil Corporation (PAOC) began as a relatively small oil

company. However, through the years it has grown to become an
international corporation.

86. The original entrepreneurial venture consisted only of

Mr. Abdul and a few employees. It was an informal
organization, and everyone reported to Mr. Abdul. This is
best described as a ________ structure.
A) simple
B) functional
C) divisional
D) matrix

87. A sharp rise in oil prices helped PAOC's business

expand. Abdul concluded that it was impractical and
inefficient for all decisions to continue flowing through his
office. He granted his key subordinates the authority and
responsibility to manage others within their areas of
specialty. This organizational structure is best described as
a ________ structure.
A) simple functional
B) functional
C) divisional
D) matrix

88. Paul Abdul decided to purchase an oil drilling supply

company, located in a new country. The purchase of this
company was classified as a related diversification, but
distance and the new product line suggested that this newly
purchased organization continue to be operated as a
separate company. In beginning a new phase in the history
of Paul Abdul Oil Corporation, a ________ structure should be
implemented to allow the company to continue to grow.
A) simple

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B) functional
C) divisional
D) matrix
89. Twenty years after founding PAOC, Abdul decides he is
approaching retirement. He wants PAOC to develop the
capacity to adapt itself and change because each member
will take an active role in identifying and resolving work-
related issues. Abdul wants the firm to become a ________.
A) learning organization
B) threatened organization
C) functional structure
D) boundaryless organization

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