Essentials of Organizational Behavior, 10e (Robbins/Judge) Chapter 14 Foundations of Organization Structure 1) ________ defines how job tasks are

formally divided, grouped, and coordinated. A) Organizational structure B) Work specialization C) Departmentalization D) Organizational behavior E) Matrix departmentation Answer: A Diff: 1 Page Ref: 212 Topic: What Is Organizational Structure? 2) Organizational structure has six key elements. Which of the following is not one of these elements? A) centralization B) departmentalization C) work specialization D) formalization E) location of authority Answer: E Diff: 2 Page Ref: 212 Topic: What Is Organizational Structure? 3) Consultants Exceptional (CE) has hired you to develop training materials for their consultants. Your first assignment is to develop a training program that helps their consultants to analyze and understand the organizational structure of the company that they are assisting. CE believes that in order to adequately evaluate and understand a client company, consultants need to understand the basic organizational structure of the company. Consultants are then able to recommend actions and changes based on the company's structure. One of the questions you tell the trainees to ask is, "To what degree are tasks subdivided into separate jobs?" This question addresses the issue of ________. A) formalization B) work specialization C) span of control D) chain of command E) matrix restructuring Answer: B Diff: 2 Page Ref: Exh 14-1 Topic: What Is Organizational Structure? AASCB Tag: Analytic Skills

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4) ________ is addressed by asking the question, "On what basis are jobs grouped together?" A) Departmentalization B) Work specialization C) Centralization and decentralization D) Formalization E) Matrix restructuring Answer: A Diff: 2 Page Ref: Exh 14-1 Topic: What Is Organizational Structure? 5) Consultants Exceptional (CE) has hired you to develop training materials for their consultants. Your first assignment is to develop a training program that helps their consultants to analyze and understand the organizational structure of the company that they are assisting. CE believes that in order to adequately evaluate and understand a client company, consultants need to understand the basic organizational structure of the company. Consultants are then able to recommend actions and changes based on the company's structure. You instruct the trainees to ask about the degree of rules and regulations that direct employees and managers. You want to help them understand the ________. A) chain of command B) degree of formalization C) span of control D) degree of departmentalization E) idea of matrix restructuring Answer: B Diff: 2 Page Ref: Exh 14-1 Topic: What Is Organizational Structure? AASCB Tag: Reflective Thinking Skills 6) Work specialization is the same as ________. A) departmentalization B) division of labor C) decentralization D) job grouping E) chain command Answer: B Diff: 1 Page Ref: 213 Topic: What Is Organizational Structure?

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7) A task that is subdivided into many separate jobs is considered to have a ________. A) high degree of departmentalization B) low degree of decentralization C) high degree of work specialization D) low degree of structure E) high degree of matrix structuring Answer: C Diff: 2 Page Ref: 213 Topic: What Is Organizational Structure? 8) In the late 1940s, most manufacturing jobs in industrialized countries were being done with high ________. A) departmentalization B) decentralization C) work specialization D) structuralization E) generalized structure Answer: C Diff: 2 Page Ref: 213 Topic: What Is Organizational Structure? 9) For much of the first half of the century, managers viewed work specialization as ________ A) a means to encourage employee satisfaction B) a frustrating cause of reduced product output C) an unending source of increased productivity D) difficult to implement without automation technology E) an effective solution to over-centralization Answer: C Diff: 2 Page Ref: 213 Topic: What Is Organizational Structure? 10) You have divided the jobs performed by your department through work specialization and are now trying to decide how to best group these jobs to improve efficiency and customer service. You are considering whether to group activities by function, product, process, geography, or customer. You have decided that since you are a novice at departmentalization, you will go with the most popular method. You will probably choose ________. A) function B) product C) process D) customer E) matrix Answer: A Diff: 2 Page Ref: 214 Topic: What Is Organizational Structure? AASCB Tag: Analytic Skills 11) The basis by which jobs are grouped together is termed ________.

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A) social clustering B) bureaucracy C) specialization D) centralization E) departmentalization Answer: E Diff: 1 Page Ref: 214 Topic: What Is Organizational Structure? 12) One of the most popular ways to group activities is by ________. A) product B) function C) geography D) process E) temporality Answer: B Diff: 2 Page Ref: 214 Topic: What Is Organizational Structure? 13) Proctor & Gamble departmentalizes by Tide, Pampers, Charmin, and Pringles. This is an example of departmentalization by ________. A) function B) process C) geography D) product E) interest Answer: D Diff: 1 Page Ref: 215 Topic: What Is Organizational Structure? AASCB Tag: Analytic Skills 14) A plant manager who organizes the plant by separating engineering, accounting, manufacturing, personnel, and purchasing into departments is practicing ________ departmentalization. A) target-customer B) product C) functional D) geographic E) graphic Answer: C Diff: 2 Page Ref: 214-215 Topic: What Is Organizational Structure? AASCB Tag: Analytic Skills

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15) ________ departmentalization achieves economies of scale by placing people with common skills and orientations into common units. A) Functional B) Process C) Product D) Geographic E) Temporal Answer: A Diff: 2 Page Ref: 214-215 Topic: What Is Organizational Structure? 16) Which one of the following is not one of the primary ways to group jobs? A) skill B) customer C) function D) product E) process Answer: A Diff: 2 Page Ref: 214-215 Topic: What Is Organizational Structure? 17) Your company decides to establish southern, Midwestern, western, and eastern zones of operation. Based on this expansion, you decide to implement ________ departmentalization. A) area B) customer C) geography D) regional E) matrix Answer: C Diff: 1 Page Ref: 215 Topic: What Is Organizational Structure? AASCB Tag: Analytic Skills 18) Your products fall into several categories with very different production methods for each category. Because of this, you might consider departmentalizing by ________. A) implementation B) method C) production D) process E) matrix Answer: D Diff: 2 Page Ref: 215 Topic: What Is Organizational Structure? AASCB Tag: Analytic Skills

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19) You discover that your market is clearly divided between very different types of clients, with different support needs. To respond to this market diversity, you will probably choose to departmentalize by ________. A) functional B) geography C) support D) customer E) matrix Answer: D Diff: 1 Page Ref: 215 Topic: What Is Organizational Structure? AASCB Tag: Analytic Skills 20) The unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom is termed ________. A) chain of command B) authority C) span of control D) unity of command E) web of authority Answer: A Diff: 2 Page Ref: 216 Topic: What Is Organizational Structure? 21) The right inherent in a managerial position to give orders and expect orders to be obeyed is termed ________. A) chain of command B) authority C) power D) unity of command E) leadership Answer: B Diff: 2 Page Ref: 216 Topic: What Is Organizational Structure? 22) The ________ principle helps preserve the concept of an unbroken line of authority. A) span-of-control B) chain-of-command C) cross-functionality D) centralization E) unity-of-command Answer: E Diff: 2 Page Ref: 216 Topic: What Is Organizational Structure?

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23) The unity-of-command principle states which of the following? A) Managers should limit their oversight to a maximum of 12 employees. B) Managers should oversee 1-4 employees on average. C) An individual should be directly responsible to only one supervisor. D) Managers should provide direction to their employees in a unified fashion. E) Employees should report directly to two supervisors to maintain task balance. Answer: C Diff: 2 Page Ref: 216 Topic: What Is Organizational Structure? 24) The ________ refers to the number of subordinates that a manager directs. A) span of control B) unity of command C) chain of command D) decentralization principle E) leadership web Answer: A Diff: 2 Page Ref: 216 Topic: What Is Organizational Structure? 25) As employees are being empowered to make decisions previously reserved for management, which concept of organizational structure has become less relevant? A) decentralization B) maintaining the chain of command C) centalization D) span of control E) departmentalization Answer: C Diff: 2 Page Ref: 216 Topic: What Is Organizational Structure? 26) If you have a narrow span of control, you have a(n) ________ organization. A) efficient B) short C) tall D) matrix E) fat Answer: C Diff: 2 Page Ref: 216 Topic: What Is Organizational Structure?

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27) In reorganizing his division, Matthew must make some decisions regarding the span of control for management within his decision. The question of span of control determines ________. A) who reports to whom B) the number of levels and managers an organization has C) where decisions are made D) how jobs will be grouped E) how employees will be compensated Answer: B Diff: 2 Page Ref: 216 Topic: What Is Organizational Structure? AASCB Tag: Analytic Skills 28) ________ are consistent with recent efforts by companies to reduce costs, cut overhead, speed up decision making, increase flexibility, get closer to customers, and empower employees. A) Wider spans of control B) Narrower spans of control C) Matrix structures D) Simple structures E) Centralization Answer: A Diff: 2 Page Ref: 216-217 Topic: What Is Organizational Structure? 29) Which of the following is true regarding organizations that establish wide spans of control? A) At some point, employee performance increases substantially. B) At some point, supervisors become more efficient at providing support. C) At some point, wider spans of control reduce effectiveness. D) At some point, the organization becomes more formalized. E) At some point, the number of managers in the organization decreases. Answer: C Diff: 2 Page Ref: 217 Topic: What Is Organizational Structure?

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30) In observing the departments in his division, Matthew notices that some managers with wide spans of control seem to perform more effectively than other managers with similarly-sized spans of control. Which of the following statements is most likely true regarding the high-performing managers? A) These managers are paid higher salaries than the low-performing managers. B) These managers discourage employee autonomy, which produces more uniform departmental results. C) The employees within their departments tend to compete to reach productivity goals, which boosts performance. D) The employees within their departments have poor communication with each other. E) The employees within their departments are highly skilled and very knowledgeable about their jobs. Answer: E Diff: 3 Page Ref: 217 Topic: What Is Organizational Structure? AASCB Tag: Analytic Skills 31) The best definition for centralization is a situation in which decision making ________. A) is pushed down to lower level employees B) is concentrated at top management levels in the organization C) depends on the situation D) is completed in each department and then sent to the president for review E) is diffused among a large segment of employees Answer: E Diff: 2 Page Ref: 217 Topic: What Is Organizational Structure? 32) Which one of the following dichotomies of organizational structure specifically defines where decisions are made? A) complexity/simplicity B) formalization/informalization C) centralization/decentralization D) specialization/enlargement E) affectivity/reflexivity Answer: C Diff: 2 Page Ref: 217 Topic: What Is Organizational Structure? 33) Which of the following is a drawback of a narrow span of control? It ________. A) reduces effectiveness B) is more efficient C) encourages overly tight supervision and discourages employee autonomy D) empowers employees E) increases participatory decision-making Answer: C Diff: 3 Page Ref: 216 Topic: What Is Organizational Structure?
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34) Which of the following is not a drawback of a narrow span of control? A) It is expensive. B) It makes vertical communication in the organization more complex. C) Supervisors may lose control of their employees. D) It encourages overly tight supervision. E) It discourages employee autonomy. Answer: C Diff: 3 Page Ref: 217 Topic: What Is Organizational Structure? 35) The trend in recent years has been toward ________. A) narrower spans of control B) wider spans of control C) a span of control of four D) an ideal span of control of six to eight E) eliminating spans of control in favor of team structures Answer: B Diff: 2 Page Ref: 217 Topic: What Is Organizational Structure? 36) In an organization that has high centralization, ________. A) the corporate headquarters is located centrally to branch offices B) all top-level officials are located within the same geographic area C) action can be taken more quickly to solve problems D) new employees have a great deal of legitimate authority E) top managers make all the decisions and lower-level managers merely carry out directions Answer: E Diff: 2 Page Ref: 217 Topic: What Is Organizational Structure? 37) Your trainees are given a case study concerning a local manufacturing firm called Acme Products. In assessing Acme's organizational structure, your trainees notice that all of the company's decisions are made by top management, with little or no input from lower-level personnel. The trainees most likely identify Acme as a(n) ________ organization. A) decentralized B) highly formalized C) aggressively managed D) highly centralized E) informally structured Answer: D Diff: 3 Page Ref: 217 Topic: What Is Organizational Structure? AASCB Tag: Analytic Skills

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38) Senior management at Acme is concerned because the company takes so long to bring new products to market. Which of the following approaches would your trainees identify as most likely to help resolve this problem? A) reduction of cross-functional work teams B) decentralization of the decision-making process C) decreased work specialization D) decreased formalization of policies and procedures E) reduced diversity within the company's work force Answer: B Diff: 2 Page Ref: 217 Topic: What Is Organizational Structure? AASCB Tag: Reflective Thinking Skills 39) The more that lower-level personnel provide input or are actually given the discretion to make decisions, the more ________ there is within an organization. A) centralization B) disempowerment C) work specialization D) departmentalization E) decentralization Answer: E Diff: 2 Page Ref: 217 Topic: What Is Organizational Structure? 40) If a job is highly formalized, it would not include which of the following? A) clearly defined procedures on work processes B) explicit job description C) high employee job discretion D) a large number of organizational rules E) a consistent and uniform output Answer: C Diff: 2 Page Ref: 218 Topic: What Is Organizational Structure? 41) Employee discretion is inversely related to ________. A) complexity B) standardization C) specialization D) departmentalization E) empowerment Answer: B Diff: 2 Page Ref: 218 Topic: What Is Organizational Structure?

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42) Which of the following is not a common organizational design? A) simple structure B) bureaucracy C) centralized structure D) matrix structure E) all of the above Answer: C Diff: 2 Page Ref: 218 Topic: Common Organizational Designs 43) ________ is characterized by a low degree of departmentalization, wide spans of control, authority centralized in a single person, and little formalization A) Bureaucracy B) Matrix organization C) Simple structure D) Team structure E) Centralized structure Answer: C Diff: 2 Page Ref: 219 Topic: Common Organizational Designs 44) Which one of the following is consistent with a simple structure? A) high centralization B) high horizontal differentiation C) high employee discretion D) standardization E) bureaucracy Answer: A Diff: 2 Page Ref: 219 Topic: Common Organizational Designs 45) A ________ is a flat organization. A) bureaucracy B) centralized structure C) matrix structure D) simple structure E) virtual organization Answer: D Diff: 2 Page Ref: 219 Topic: Common Organizational Designs

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46) The simple structure is most widely practiced in small businesses in which ________. A) the owner also manages the company B) management is limited to one individual C) managers have a high degree of influence with the company's owner D) managers are hired directly by the company's owner E) training budgets are limited Answer: A Diff: 2 Page Ref: 219 Topic: Common Organizational Designs 47) The strength of the simple structure lies in its ________. A) efficiency B) simplicity C) centralization D) span of control E) specialization Answer: B Diff: 1 Page Ref: 219 Topic: Common Organizational Designs 48) Which of the following is not a weakness of the simple structure? A) It is risky. B) It is prone to information overload. C) There is little unity of command. D) It can lead to slower decision making. E) It is often insufficient in larger organizations. Answer: C Diff: 2 Page Ref: 219 Topic: Common Organizational Designs 49) You describe a structure that is flat, has little formalization, and is fast, flexible, and inexpensive to maintain. You are describing the ________. A) matrix structure B) simple structure C) bureaucracy D) team structure E) organizational pyramid Answer: B Diff: 1 Page Ref: 219 Topic: Common Organizational Designs AASCB Tag: Analytic Skills

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50) You assign your students a project that involves developing a business plan for a retail store. The store will have 200 employees and will serve customers both locally and internationally via a storefront and an Internet catalogue. Which of the following organizational designs is least likely to benefit the goals of this retail store? A) matrix B) virtual C) bureaucracy D) team E) simple Answer: E Diff: 3 Page Ref: 219 Topic: Common Organizational Designs AASCB Tag: Reflective Thinking Skills 51) The key component underlying bureaucracies is ________. A) flexibility B) standardization C) dual lines of authority D) wide span of control E) the organizational pyramid Answer: B Diff: 1 Page Ref: 219 Topic: Common Organizational Designs 52) You extol the virtues and benefits of standardization. You are probably promoting the ________. A) matrix structure B) simple structure C) bureaucracy D) team structure E) organizational pyramid Answer: C Diff: 2 Page Ref: 219 Topic: Common Organizational Designs AASCB Tag: Analytic Skills 53) A bureaucracy is characterized by all of the following EXCEPT ________. A) highly routine operating tasks B) formalized rules and regulations C) tasks that are grouped into functional departments D) decentralized decision making E) specialization Answer: D Diff: 2 Page Ref: 219 Topic: Common Organizational Designs

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54) The structure that combines functional and product departmentalization is the ________. A) matrix structure B) simple structure C) bureaucracy D) team structure E) organizational pyramid Answer: A Diff: 2 Page Ref: 220 Topic: Common Organizational Designs 55) The matrix structure combines which two forms of departmentalization? A) process and functional B) functional and product C) product and process D) process and geographic E) geographic and product Answer: B Diff: 2 Page Ref: 220 Topic: Common Organizational Designs 56) You describe to your students a new committee within the university that brings together specialists from all different departments to develop a new interdisciplinary program. The structure probably best meets the definition of the ________. A) matrix structure B) expert structure C) boundaryless structure D) virtual structure E) organizational pyramid Answer: A Diff: 3 Page Ref: 220 Topic: Common Organizational Designs AASCB Tag: Analytic Skills 57) The structure that creates dual lines of authority is the ________. A) organizational structure B) bureaucracy C) matrix structure D) virtual organization E) simple structure Answer: C Diff: 2 Page Ref: 220 Topic: Common Organizational Designs

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58) The ________ structure violates the unity of command concept. A) simple B) virtual C) matrix D) team E) web Answer: C Diff: 2 Page Ref: 220 Topic: Common Organizational Designs 59) Which one of the following problems is most likely to occur in a matrix structure? A) decreased response to environmental change B) decreased employee motivation C) loss of economies of scale D) increases in groupthink E) employees receiving conflicting directives Answer: E Diff: 2 Page Ref: 220 Topic: Common Organizational Designs AASCB Tag: Analytic Skills 60) The strength of the matrix structure is its ________. A) ability to facilitate coordination B) economies of scale C) adherence to chain of command D) standardization E) social empowerment Answer: A Diff: 2 Page Ref: 220 Topic: Common Organizational Designs 61) A major disadvantage of the matrix structure is ________. A) the confusion it creates B) its simplicity C) its rigid adherence to the unity of command D) its centralization E) its rigid role expectations Answer: A Diff: 2 Page Ref: 220 Topic: Common Organizational Designs

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62) The virtual is also called the ________ or ________ organization. A) network; modular B) team; social C) pyramid; multi-level D) boundaryless; global E) simple; unitary Answer: A Diff: 2 Page Ref: 221 Topic: New Design Options 63) You have decided to hire other organizations to perform many of the basic functions of your business. You have hired an accounting firm to keep your records, a recruiting firm to handle human resource functions, and a computer firm to handle all records. To keep costs down, you are looking for other areas in which to outsource operations. You have chosen to operate your business as a ________. A) matrix organization B) virtual organization C) team structure D) boundaryless structure E) organizational pyramid Answer: B Diff: 2 Page Ref: 221-222 Topic: New Design Options AASCB Tag: Analytic Skills 64) Your new organization is looking for maximum flexibility. The most appropriate structure is probably the ________. A) matrix organization B) virtual organization C) team structure D) network structure E) organizational pyramid Answer: B Diff: 2 Page Ref: 222 Topic: New Design Options AASCB Tag: Analytic Skills

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65) A small, core organization that outsources major business functions is a ________ organization. A) team B) virtual C) boundaryless D) matrix E) simple Answer: B Diff: 2 Page Ref: 222 Topic: New Design Options 66) The virtual organization stands in sharp contrast to the typical bureaucracy that has many vertical levels of management and where control is sought through ________. A) ownership B) teams C) imposing limits D) directives E) manipulation Answer: A Diff: 2 Page Ref: 222 Topic: New Design Options 67) The primary drawback of the virtual organization is A) the reduction in management's control over key parts of its business. B) the reliance on the founder/manager of the business. C) the wide spans of control. D) the long chain of command. E) the lack of flexibility. Answer: A Diff: 2 Page Ref: 223 Topic: New Design Options 68) The boundaryless organization relies heavily on ________. A) information technology B) efficient chains of command C) the simple structure D) the matrix structure E) departmentalization Answer: A Diff: 2 Page Ref: 223 Topic: New Design Options

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69) You have eliminated horizontal, vertical, and external barriers within your organization. You are operating as a(n) ________. A) matrix organization B) virtual organization C) team structure D) boundaryless organization E) organizational pyramid Answer: D Diff: 2 Page Ref: 223 Topic: New Design Options AASCB Tag: Analytic Skills 70) The major advantage of the virtual organization is its ________. A) control B) predictability C) flexibility D) empowerment E) complexity Answer: C Diff: 2 Page Ref: 223 Topic: New Design Options 71) Which organizational design has been called the T-form? A) matrix organization B) virtual organization C) team structure D) boundaryless organization E) bureaucracy Answer: D Diff: 2 Page Ref: 223 Topic: New Design Options 72) The ________ is a structure characterized by extensive departmentalization, high formalization, a limited information network, and centralization. A) mechanistic model B) organic model C) traditional model D) bureaucracy organization E) simple structure Answer: A Diff: 2 Page Ref: 224 Topic: Why Do Structures Differ?

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73) If there is low formalization, a comprehensive information network, and high participation in decision making, one would expect a(n) ________ structure. A) simple B) mechanistic C) organic D) stable E) matrix Answer: C Diff: 2 Page Ref: 224 Topic: Why Do Structures Differ? AASCB Tag: Analytic Skills 74) Which of the following is not a determinant of an organization's structure? A) strategy B) organization size C) size of revenues D) technology E) environment Answer: C Diff: 2 Page Ref: 224 Topic: Why Do Structures Differ? 75) All of the following are characteristics of the organic model EXCEPT A) cross-functional teams B) narrow spans of control C) cross-hierarchical teams D) high participation in decision making E) flatness Answer: B Diff: 2 Page Ref: Exh 14-6 Topic: Why Do Structures Differ? 76) Which of the following is NOT a characteristic of the mechanistic model? A) high specialization B) free flow of information C) centralization D) high formalization E) narrower spans of control Answer: B Diff: 2 Page Ref: Exh 14-6 Topic: Why Do Structures Differ?

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77) A strategy that emphasizes the introduction of major new products and services is a(n) ________ strategy. A) innovation B) enhancement C) progressive D) organic E) matrix Answer: A Diff: 2 Page Ref: 225 Topic: Why Do Structures Differ? 78) A company oriented around cost minimization is best served by which type of structure? A) virtual B) combination C) mechanistic D) organic E) targeted Answer: C Diff: 2 Page Ref: 225 Topic: Why Do Structures Differ? 79) Wal-Mart is an example of a company following a A) innovation strategy. B) cost-minimization strategy. C) imitation strategy. D) branding strategy. E) differentiation strategy. Answer: B Diff: 1 Page Ref: 225 Topic: Why Do Structures Differ? 80) ________ refers to how an organization transfers its inputs into outputs. A) Production B) Technology C) Operations D) Process E) Effectiveness Answer: B Diff: 3 Page Ref: 225 Topic: Why Do Structures Differ?

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81) Which of the following is not part of an organization's environment? A) public pressure groups B) customers C) employees D) competitors E) government regulatory agencies Answer: C Diff: 2 Page Ref: 225 Topic: Why Do Structures Differ? 82) Which of the following does not reflect a dynamic environment? A) new competitors B) difficulties in acquiring raw materials C) rapidly changing government regulations affecting business D) no new technological breakthroughs by current competitors E) continually changing produce preferences by customers Answer: D Diff: 3 Page Ref: 226 Topic: Why Do Structures Differ? AASCB Tag: Analytic Skills 83) Which of the following generalizations about organizational structures and employee performance and satisfaction is most accurate? A) There is fairly strong evidence linking decentralization and job satisfaction. B) No evidence supports a relationship between span of control and employee performance. C) The evidence generally indicates that work specialization contributes to lower employee productivity. D) Employees dislike routine work that makes minimal intellectual demands. E) Large spans of control provide more distant supervision, thereby increasing employee productivity. Answer: B Diff: 3 Page Ref: 227 Topic: Organizational Designs and Employee Behavior 84) Which organizational structure still dominates in many parts of Europe and Asia? A) simple structure B) bureaucracy C) virtual organization D) boundaryless organization E) matrix Answer: B Diff: 3 Page Ref: 228 Topic: Global Implications AASCB Tag: Multicultural and Diversity Understanding

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85) Managers need to address six key elements when they design their organization's structure: work specialization, departmentalization, chain of command, chain of control, centralization and decentralization, and formalization. Answer: FALSE Diff: 2 Page Ref: 212 Topic: What Is Organizational Structure? 86) The degree to which tasks in the organization are subdivided into separate jobs is termed departmentalization. Answer: FALSE Diff: 2 Page Ref: Exh 14-1 Topic: What Is Organizational Structure? 87) Specialization defines how job tasks are formally defined, grouped, and coordinated. Answer: FALSE Diff: 2 Page Ref: 213 Topic: What Is Organizational Structure? 88) Work specialization may result in employee boredom, stress, and absenteeism. Answer: TRUE Diff: 1 Page Ref: 213 Topic: What Is Organizational Structure? 89) For much of the first half of this century, managers viewed departmentalization as promoting increased productivity. Answer: FALSE Diff: 2 Page Ref: 213 Topic: What Is Organizational Structure? 90) The strength of functional departmentalization lies in the efficiencies obtained by putting similar specialists together. Answer: TRUE Diff: 2 Page Ref: 215 Topic: What Is Organizational Structure? 91) Only one form of departmentalization can effectively be implemented in an organization at a time. Answer: FALSE Diff: 2 Page Ref: 215 Topic: What Is Organizational Structure? 92) The inherent right in a managerial position to give orders and expect the orders to be obeyed is termed power. Answer: FALSE Diff: 2 Page Ref: 216 Topic: What Is Organizational Structure?

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93) Departmentalization answers questions for employee such as "To whom do I go if I have a problem?" Answer: FALSE Diff: 2 Page Ref: 216 Topic: What Is Organizational Structure? 94) The unbroken line of authority that extends from the top of the organization to the lowest echelon is termed the command line of authority. Answer: FALSE Diff: 1 Page Ref: 216 Topic: What Is Organizational Structure? 95) The principle of unity of command suggests that managers should support one another. Answer: FALSE Diff: 1 Page Ref: 216 Topic: What Is Organizational Structure? 96) Span of command determines the number of levels and managers an organization has. Answer: FALSE Diff: 2 Page Ref: 216 Topic: What Is Organizational Structure? 97) All things being equal, the wider or larger the span of control, the more profitable the organization. Answer: FALSE Diff: 3 Page Ref: 216 Topic: What Is Organizational Structure? 98) Flat organizational structures result from narrow spans of control. Answer: FALSE Diff: 3 Page Ref: 216 Topic: What Is Organizational Structure? 99) Narrow spans of control can result in lack of supervision, causing performance to suffer. Answer: FALSE Diff: 2 Page Ref: 216 Topic: What Is Organizational Structure? 100) Having too many people report to you can undermine your effectiveness as a manager. Answer: TRUE Diff: 1 Page Ref: 216 Topic: What Is Organizational Structure? 101) The trend in recent years has been toward wider spans of control. Answer: TRUE Diff: 1 Page Ref: 217 Topic: What Is Organizational Structure?
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102) The more that lower-level personnel provide input or are actually given the discretion to make decisions, the more decentralized the organization. Answer: TRUE Diff: 2 Page Ref: 217 Topic: What Is Organizational Structure? 103) A decentralized organization is more likely to result in a feeling of alienation by employees than a centralized organization. Answer: FALSE Diff: 3 Page Ref: 218 Topic: What Is Organizational Structure? 104) There has been a marked trend toward centralization in business decision making. Answer: FALSE Diff: 2 Page Ref: 218 Topic: What Is Organizational Structure? 105) An increase in the number of rules and regulations results in increased formalization. Answer: TRUE Diff: 1 Page Ref: 218 Topic: What Is Organizational Structure? 106) The greater the formalization of an organization, the more input an employee has into how his or her work is done. Answer: FALSE Diff: 3 Page Ref: 218 Topic: What Is Organizational Structure? 107) Autonomy and formalization are positively related. Answer: FALSE Diff: 2 Page Ref: 218 Topic: What Is Organizational Structure? AASCB Tag: Analytic Skills 108) The simple structure is flexible and inexpensive to maintain, but its chain of command is often ambiguous. Answer: FALSE Diff: 2 Page Ref: 219 Topic: Common Organizational Designs 109) A major strength of the simple structure is that it easily adapts to any size organization. Answer: FALSE Diff: 2 Page Ref: 219 Topic: Common Organizational Designs

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110) One disadvantage of the simple structure is its high risk. Answer: TRUE Diff: 3 Page Ref: 219 Topic: Common Organizational Designs 111) The strength of the bureaucracy lies in its ability to perform standardized activities. Answer: TRUE Diff: 2 Page Ref: 219 Topic: Common Organizational Designs 112) A major weakness of the bureaucracy is that specialization creates sub-unit conflicts. Answer: TRUE Diff: 2 Page Ref: 219 Topic: Common Organizational Designs 113) The bureaucracy is efficient only as long as employees confront problems brought about by programmed decision rules. Answer: TRUE Diff: 1 Page Ref: 220 Topic: Common Organizational Designs 114) The matrix structure is characterized by highly routine operating tasks achieved through specialization. Answer: FALSE Diff: 2 Page Ref: 220 Topic: Common Organizational Designs 115) A structure that creates dual lines of authority and combines functional and product departmentalization is the matrix structure. Answer: TRUE Diff: 1 Page Ref: 220 Topic: Common Organizational Designs 116) The matrix structure facilitates the allocation of specialists. Answer: TRUE Diff: 3 Page Ref: 220 Topic: Common Organizational Designs 117) The major disadvantage of the matrix is the propensity for functional unit goals to override organizational goals. Answer: FALSE Diff: 3 Page Ref: 221 Topic: Common Organizational Designs

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118) You have decided to hire a small shop to do all of your duplicating and printing. This is an example of outsourcing. Answer: TRUE Diff: 2 Page Ref: 221 Topic: New Design Options 119) The matrix organization is also called the network or modular organization. Answer: FALSE Diff: 3 Page Ref: 221 Topic: New Design Options 120) The virtual organization is effective at reinforcing management control over business operations. Answer: FALSE Diff: 2 Page Ref: 222 Topic: New Design Options 121) The major advantage to the virtual organization is its flexibility. Answer: TRUE Diff: 1 Page Ref: 223 Topic: New Design Options 122) An organization that seeks to eliminate the chain of command is a boundaryless organization. Answer: TRUE Diff: 1 Page Ref: 223 Topic: New Design Options 123) Status and rank are minimized in the boundaryless organization. Answer: TRUE Diff: 2 Page Ref: 223 Topic: New Design Options 124) Globalization serves to reinforce external boundaries within organizations. Answer: FALSE Diff: 3 Page Ref: 223 Topic: New Design Options 125) The technological thread that makes the boundaryless organization possible is wireless communications. Answer: FALSE Diff: 2 Page Ref: 223 Topic: New Design Options AASCB Tag: Use of Information Technology

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126) An organic model of structure is characterized by extensive departmentalization, high formalization, a limited information network, and centralization. Answer: FALSE Diff: 1 Page Ref: 224 Topic: Why Do Structures Differ? 127) The boundaryless organization is an example of the organic model of organizational design. Answer: TRUE Diff: 1 Page Ref: 224 Topic: Why Do Structures Differ? 128) Mechanistic structures are high in formalization. Answer: TRUE Diff: 1 Page Ref: 224 Topic: Why Do Structures Differ? 129) Businesses structured according to the mechanistic model usually have high employee participation in decision making. Answer: FALSE Diff: 2 Page Ref: 224 Topic: Why Do Structures Differ? 130) An organization's business strategy is usually determined by the organization's business structure. Answer: FALSE Diff: 1 Page Ref: 224 Topic: Why Do Structures Differ? 131) An innovation strategy works well only for businesses organized within a simple structure. Answer: FALSE Diff: 2 Page Ref: 225 Topic: Why Do Structures Differ? 132) Businesses using innovation strategy seek to quickly move into new markets after the viability of those markets has been proven. Answer: FALSE Diff: 2 Page Ref: 225 Topic: Why Do Structures Differ? 133) An organization pursues a price-minimization strategy by controlling costs, avoiding unnecessary innovation or marketing expenses, and cutting prices in selling basic products. Answer: FALSE Diff: 2 Page Ref: 225 Topic: Why Do Structures Differ?

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134) The size of an organization affects the organization's structure at a decreasing rate of impact. Answer: TRUE Diff: 3 Page Ref: 225 Topic: Why Do Structures Differ? 135) Adding 500 employees to an organization that has only 300 members is likely to result in a shift toward a more organic structure. Answer: FALSE Diff: 3 Page Ref: 225 Topic: Why Do Structures Differ? AASCB Tag: Analytic Skills 136) Technology is associated with how an organization transfers its inputs into outputs. Answer: TRUE Diff: 2 Page Ref: 225 Topic: Why Do Structures Differ? 137) Organizations operating in highly scarce, dynamic, and complex environments fare best if under organic structures. Answer: TRUE Diff: 3 Page Ref: 226 Topic: Why Do Structures Differ? 138) Organizational structure has little bearing on employee attitudes and behavior. Answer: FALSE Diff: 1 Page Ref: 226 Topic: Organizational Designs and Employee Behavior 139) Research supports the notion that employees prefer organic business structures. Answer: FALSE Diff: 2 Page Ref: 226-227 Topic: Organizational Designs and Employee Behavior 140) Organizations that are less centralized have greater employee input in business decision making. Answer: TRUE Diff: 1 Page Ref: 227 Topic: Organizational Designs and Employee Behavior 141) What is organizational structure? Answer: An organizational structure defines how job tasks are formally divided, grouped, and coordinated. The elements that must be addressed are work specialization, departmentalization, chain of command, span of control, centralization and decentralization, and formalization. Page Ref: 212 Topic: What Is Organizational Structure? 142) Explain the organizational component of work specialization. Discuss its advantages and
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drawbacks. Answer: The essence of work specialization is that, rather than an entire job being done by one individual, it is broken down into a number of steps, with each step being completed by a separate individual. In essence, individuals specialize in doing part of an activity rather than the entire activity. Management saw this as a means to make the most efficient use of its employees' skills. In most organizations, some tasks require highly developed skills and others can be performed by untrained workers. If all workers were engaged in each step of, say, an organization's manufacturing process, all would have to have the skills necessary to perform both the most demanding and the least demanding jobs. The result would be that, except when performing the most skilled or highly complex tasks, employees would be working below their skill levels. And because skilled workers are paid more than unskilled workers and their wages tend to reflect their highest level of skill, it represents an inefficient use of organizational resources to pay highly skilled workers to do easy tasks. Managers also saw other efficiencies that could be achieved through work specialization. Employee skills at performing a task successfully increase through repetition. Less time is spent in changing tasks, in putting away one's tools and equipment from a prior step in the work process, and in getting ready for another. Equally important, training for specialization is more efficient from the organization's perspective. It's easier and less costly to find and train workers to do specific and repetitive tasks. For much of the first half of the twentieth century, managers viewed work specialization as an unending source of increased productivity. And they were probably right. Because specialization was not widely practiced, its introduction almost always generated higher productivity. But by the 1960s, there came increasing evidence that a good thing can be carried too far. The point had been reached in some jobs at which the human diseconomies from specializationwhich surfaced as boredom, fatigue, stress, low productivity, poor quality, increased absenteeism, and high turnovermore than offset the economic advantages. Most managers today see work specialization as neither obsolete nor an unending source of increased productivity. Rather, managers recognize the economies it provides in certain types of jobs and the problems it creates when it's carried too far. Page Ref: 213-214 Topic: What Is Organizational Structure?

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143) What is departmentalization? What are five common ways that an organization can group activities? Give an example of each. Answer: The basis by which jobs are grouped together is called departmentalization. Tasks can be grouped by function performed, the type of product the organization produces, on the basis of geography or territory, process used, or by the particular type of customer the organization seeks to reach. One of the most popular ways to group activities is by functions performed. A manufacturing manager might organize his or her plant by separating engineering, accounting, manufacturing, personnel, and supply specialists into common departments. Tasks can also be departmentalized by type of product the organization produces. Procter & Gamble is organized along these lines. Each major product is placed under the authority of an executive who has complete global responsibility for that product. Another way to departmentalize is on the basis of geography or territory. The sales function, for instance, may have western, southern, mid-western, and eastern regions. Each of these regions is, in effect, a department organized around geography. Process departmentalization can be used to group departments. At an Alcoa aluminum tubing plant in upstate New York, production is organized into five departments: casting; press; tubing; finishing; and inspecting, packing, and shipping. Each department specializes in one specific phase in the production of aluminum tubing. A final category is to use the particular type of customer the organization seeks to reach. Microsoft recently reorganized around four customer markets: consumers, large corporations, software developers, and small businesses. Page Ref: 214-215 Topic: What Is Organizational Structure? 144) What is the chain of command within an organization? Answer: The chain of command is an unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom. It answers questions for employees such as "To whom do I go if I have a problem?" and "To whom am I responsible?" The two complementary concepts are authority and unity of command. Authority refers to the rights inherent in a managerial position to give orders and expect the orders to be obeyed. The unity of command principle helps preserve the concept of an unbroken line of authority. It states that a person should have one and only one superior to whom he or she is directly responsible. Page Ref: 215-216 Topic: What Is Organizational Structure? 145) Why is span of control important within an organization? Answer: The question of span of control is important because, to a large degree, it determines the number of levels and managers an organization has. It answers the question "How many employees can a manager efficiently and effectively direct?" All things being equal, the wider or larger the span of control, the more efficient the organization. Page Ref: 216 Topic: What Is Organizational Structure?

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146) What is the difference between centralization and decentralization? Answer: The term centralization refers to the degree to which decision making is concentrated at a single point in the organization. The concept includes only formal authority, that is, the rights inherent in one's position. The more that lower-level personnel provide input or are actually given the discretion to make decisions, the more decentralization there is. An organization characterized by centralization is an inherently different structural animal from one that is decentralized. In a decentralized organization, action can be taken more quickly to solve problems, more people provide input into decisions, and employees are less likely to feel alienated from those who make the decisions that affect their work lives. Page Ref: 217-219 Topic: What Is Organizational Structure? 147) Describe the three common organizational designs: simple structure, bureaucracy, and matrix structure. Answer: The simple structure is said to be characterized most by what it is not rather than what it is. The simple structure is not elaborate. It has a low degree of departmentalization, wide spans of control, authority centralized in a single person, and little formalization. The simple structure is a "flat" organization; it usually has only two or three vertical levels, a loose body of employees, and one individual in whom the decision-making authority is centralized. Standardization is the key concept that underlies the bureaucracy. It is characterized by highly routine operating tasks achieved through specialization, very formalized rules and regulations, tasks that are grouped into functional departments, centralized authority, narrow spans of control, and decision making that follows the chain of command. The matrix combines two forms of departmentalization: functional and product. It breaks the unity-of-command concept. Employees in the matrix have two bossestheir functional department managers and their product managers. Therefore, the matrix has a dual chain of command. Page Ref: 218-221 Topic: Common Organizational Designs 148) Explain the virtual organization and the boundaryless organization. Answer: The virtual organization is sometimes called the network or modular organization. Typically, a small, core organization outsources major business functions. In structural terms, the virtual organization is highly centralized, with little or no departmentalization. Why own when you can rent is the question that captures the essence of the virtual organization. Jack Welch coined the term boundaryless organization to describe his idea of what he wanted GE to become. He wanted to eliminate vertical and horizontal boundaries within GE and break down external barriers between the company and its customers and suppliers. The boundaryless organization seeks to eliminate the chain of command, have limitless spans of control, and replace departments with empowered teams. Because it relies so heavily on information technology, some have called this structure the T-form or technology-based organization. By removing vertical boundaries, management flattens the hierarchy. Status and rank are minimized. Page Ref: 221-222 Topic: New Design Options

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149) What is the difference between the mechanistic model and the organic model of organizational structure? Answer: The mechanistic model is generally synonymous with the bureaucracy in that it has extensive departmentalization, high formalization, a limited information network (mostly downward communication), and little participation by low-level members in decision making. At the other extreme is the organic model. This model looks a lot like the boundaryless organization. It is flat, uses cross-hierarchical and cross-functional teams, has low formalization, possesses a comprehensive information network and it involves high participation in decision making. Page Ref: 224 and Exh14-6 Topic: Why Do Structures Differ? 150) Explain the implications of different organizational designs for employee behavior. Answer: A review of the evidence linking organizational structures to employee performance and satisfaction leads to a pretty clear conclusion you can't generalize. Not everyone prefers the freedom and flexibility of organic structures. Individual differences must be addressed. The evidence generally indicates that work specialization contributes to higher productivity but at the price of reduced job satisfaction. Work specialization is not an unending source of higher productivity. Problems start to surface, and productivity begins to suffer, when the human diseconomies of doing repetitive and narrow tasks overtake the economies of specialization. As the workforce has become more highly educated and desirous of jobs that are intrinsically rewarding, the point where productivity begins to decline seems to be reached more quickly than in decades past. Negative behavioral outcomes from high specialization are most likely to surface in professional jobs occupied by individuals with high needs for personal growth and diversity. A review of the research indicates that it is probably safe to say there is no evidence to support a relationship between span of control and employee performance. There is some evidence indicating that a manager's job satisfaction increases as the number of employees he or she supervises increases. Fairly strong evidence has linked centralization and job satisfaction. In general, organizations that are less centralized have a greater amount of participative decision making. Participative decision making is positively related to job satisfaction. But, again, individual differences surface. The decentralization-satisfaction relationship is strongest with employees who have low self-esteem. Because individuals with low self-esteem have less confidence in their abilities, they place a higher value on shared decision making, which means that they're not held solely responsible for decision outcomes. To maximize employee performance and satisfaction, individual differences, such as experience, personality, and the work tasks, should be taken into account. Page Ref: 226-227 Topic: Organizational Designs and Employee Behavior

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