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WorksheetsCHAPTER 10 - ORGANIZATIONAL DESIGN
Total questions: 69
Worksheet time: 2hrs 32mins
________ is the formal arrangement of jobs within an organization.
A) Organizational structure
B) Organizational design
C) Work specialization
D) Departmentalization
Organizational design is based on decisions about ________.
A) work specialization and mechanisms
B) centralization and matrices
C) strategy and structure
D) chain of command and span of control
In describing the degree to which tasks in an organization are divided into separate jobs,
managers use the term ________
A) departmentalization
B) work specialization
C) span of control
D) chain of command
Which statement accurately defines work specialization?
A) It clarifies who reports to whom.
B) The degree to which tasks are grouped together.
C) Individual employees specialize in doing part of an activity rather than the entire activity.
D) Jobs are ranked relative only to their worth or value to the businesses.
On what basis are jobs grouped in order to accomplish organizational goals?
A) Centralization
B) Formalization
C) Departmentalization
D) Coordination
Functional departmentalization groups jobs by ________.
A) tasks they perform
B) type of customer they serve
C) territories they serve
D) products or services they manufacture or produce
Departmentalization based on ________ groups' jobs is based on the territory or physical
location.
geographic
functional
matrix
product
________ departmentalization is based on the product or customer flow through the
organization.
Product
Process
Process
Organizational structure
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?
Customer
Product
Outcome
Geographic
________ departmentalization is used more in recent years to better monitor the needs of
customers and to respond to changes in those needs
Needs-based
Functional
Customer
Process
Work teams composed of individuals from various functional specialties are known as ________ teams.
differentiated
weak
product
cross-functional
The line of authority that extends from the upper levels of management to the lowest levels of the organization is called the ________.
chain of command
authorized line of responsibility
unity of command
responsibility factor
________ refers to the rights inherent to a position that allows a manager to tell subordinates what to do and expect them to do it.
Unity of command
Chain of command
Authority
Responsibility
________ is the obligation or expectation to perform a duty.
A) Span of control
B) Responsibility
C) Chain of command
D) Unity of command
Which one of Fayol's 14 principles of management helps preserve the concept of a continuous line of authority?
A) Unity of command.
B) Unity of demand.
C) Demand structure.
D) Continuous demand.
The theory that a person should report to only one manager is called ________
A) responsibility factor
B) unity of command
C) authorized line of responsibility
D) chain of command
Concepts such as chain of command and authority are considerably less relevant today because of things like ________.
A) information technology
B) empowerment
C) conflicting demands of multiple bosses
D) span of control
The traditional view was that managers could not and should not directly supervise more than ________ subordinates.
A) five or six
B) nine or ten
C) seven or eight
D) three or four
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) span of control
C) unity of command
D) responsibility factor
All other things being equal, as the span of control grows wider or larger, organizational design becomes more ________.
effective
democratic
efficient
bureaucratic
When the span of control ________, employee performance suffers due to a lack of time,
leadership, and support.
A) becomes less cost efficient
B) becomes moderate
C) becomes too large
D) remains too small
Trends in the past few years have centered on a ________ span of control to reduce costs and speed decision making.
deeper
wider
stable
narrower
What factor influences the amount of centralization an organization uses?
A) The environment is complex.
B) Decisions are significant.
C) The organization is facing the risk of company failure.
D) The company is geographically dispersed.
What factor influences the amount of decentralization an organization uses?
A) The company is large.
B) Lower level managers are not as capable at making decisions as upper-level managers.
C) Lower-level managers want a voice in decisions.
D) Effective implementation of company strategies depends on managers retaining say over what happens.
In recent years, there has been a movement to make organizations more flexible and responsive through ________.
A) alternative organizational structure
B) decentralization
C) centralization
D) customer-based structure
The degree to which jobs are standardized and guided by rules and procedures is called _______.
A) formalization
B) centralization
C) work specialization
D) decentralization
When managers standardize employee behavior through rules and procedures, the jobs are becoming more ________.
A) formalized
B) horizontal
C) vertical
D) diversified
At a company like Eldiar Furniture Manufacturing Company, workers may be assigned specific duties in order to meet the requirements of quality conscious clients. This is called ________.
A) job enhancement
B) labor intensification
C) task specification
D) work specialization
An example of ________ is when a hotel, such as Renaissance Dubai Hotel, conducts meetings with employees to gather their suggestions and ideas for implementation
A) employee empowerment
B) staff stimulation
C) employee incentive scheme
D) employee inspiration
A(n) ________ organization is rigidly controlled and efficient.
A) horizontal
B) organic
C) rational
D) mechanistic
Organizations that work like efficient, well-oiled machines are described as ________.
intuitive
organic
rational
mechanistic
Which of the following would likely be found in mechanistic organizations?
A) Decentralized responsibility.
B) Standardized job specialties.
C) Wide span of control.
D) Empowered employees
A(n) ________ organization is able to change rapidly as needs require.
organic
mechanistic
vertical
horizontal
The appropriate structure for an organization is based on four contingency variables: strategy, size, degree of environmental uncertainty, and ________.
history
technology
intensity of competition
leadership
In describing the relationship between structure and strategy, it can be said that ________.
A) structure follows strategy
B) strategy and structure are always handled equally
C) strategy follows structure in smaller organizations
D) strategy follows structure
Structure is related to the size of the organization, such that larger organizations tend to have ________ than smaller organizations
A) fewer rules and regulations
B) less centralization
C) less departmentalization
D) more specialization
Structure is related to the size of the organization, such that larger organizations are more ________.
mechanistic
decentralized
structurally weak
organic
In Joan Woodward's study of the relationship between technology and structure, the structure that was the most technically complex was ________.
A) mass production
B) technological production
C) process production
D) unit production
According to Woodward's studies, what type of production works best with a mechanistic
structure?
Process
Product
Mass
Unit
The greater the environmental uncertainty, the more an organization needs to become ________.
A) technologically pure
B) supportive of technological change
C) organic
D) mechanistic
Global competition, accelerated product development by competitors, and increased demands by customers for better service have encouraged organizations to become more ________.
A) technologically pure
B) task oriented
C) mechanistic
D) organic
Traditional organizational designs tend to be more mechanistic, and include ________.
A) simple, functional, and divisional structures
B) functional, strategic, and business unit structures
C) simple, functional, and business unit structures
D) simple, functional, and corporate structures
What is a strength of a simple structure?
A) It focuses on results.
B) Employees are grouped with others who have similar tasks.
C) It is inexpensive to maintain.
D) There are cost-saving advantages from specialization.
What is a weakness of a simple structure?
A) Reliance on one person is risky.
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) Duplication of activities and resources increases costs and reduces efficiency.
The strength of a ________ structure is based on results of managers, but it has a weakness because duplication can occur easily within the organization.
simple
divisional
functional
matrix
A small business with low departmentalization, wide spans of control, centralized authority, and limited formalization can be said to possess a ________ structure.
matrix
functional
divisional
simple
As the number of employees in an organization grows, structure tends to become more
________.
relaxed
informal
centralized
specialized
What type of organizational structure is made up of autonomous, self-contained units?
Bureaucratic
Simple
Divisional
Functional
Managers in contemporary organizations are finding that traditional hierarchical designs
________ for the environments they face.
A) are often not appropriate
B) are somewhat suitable
C) are perfectly suitable
D) form a foundation
In what type of organizational structure is empowerment most crucial?
Functional
Bureaucratic
Simple
Team
In large organizations, the team structure complements what is typically a ________ structure.
project
divisional
simple
matrix
What is an advantage of a team structure?
A) Employees are more involved and empowered.
B) It allows for faster decision making.
C) The fluid and flexible design can respond to environmental changes.
D) It draws on talent wherever it is found.
What is a disadvantage of a team structure?
A) There is no clear chain of command.
B) There is an increased complexity of assigning people to projects.
C) There are task and personality conflicts.
D) There are communication difficulties.
When an organization assigns specialists to groups according to the projects they are working on, this is called a ________.
A) matrix structure
B) product structure
C) functional structure
D) divisional structure
A matrix structure mixes characteristics of functional departmentalization and ________.
A) process departmentalization
B) a narrow span of control
C) a dual chain of command
D) product departmentalization
A matrix structure violates a key element of organizational design called ________.
A) unity of command
B) span of management
C) chain of command
D) decentralization
A ________ structure is an advanced version of the matrix organization, where employees
continuously work on assignments that are oriented to completion of a task.
project
functional
weighted
conservative
A ________ design is not limited to horizontal, vertical, or external boundary imposed by a
conventional structure.
A) learning organization's
B) functional organization's
C) boundaryless organization's
D) threatened organization's
A ________ organization consists of a small core of full-time employees and temporarily hires outside specialists to work on emergent opportunities
virtual
learning
network
modular
A ________ organization is a small core organization that outsources major business functions such as munufacturing allowing to the firm to concentrate on its core competencies.
modular
network
virtual
learning
A learning organization has developed its ________.
A) educational department to keep employees trained
B) barriers to entry of its markets
C) a sustainable competitive advantage that is easy to maintain
D) capacity to adapt and change
Organizational learning can't take place without ________.
structure
motivation
goals
sharing information
Researchers have concluded that the structures and strategies of organizations worldwide are________ and the behavior within them is ________.
A) dissimilar; consistent with the individual cultures
B) dissimilar; similar
C) similar; also similar
D) similar; consistent with the individual cultures
One study showed that ________ may be more important in less economically developed
countries and less important in more economically developed countries.
formalization
span of control
departmentalization
chain of command
Ismail (Scenario)
Ismail 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. Ismail's employer decided to reorganize, in an attempt to increase productivity.
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) centralization
C) chain of command
D) departmentalization
Ismail is offered a chance to help direct the efforts of some employees assigned to his work group. This is a chance for Ismail to experience ________.
divisional structure
authority
responsibility
functional structure
Ismail majored in engineering and really enjoyed the work assigned to him. 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) cross-functional team assignment
B) alternative work assignment
C) centralized work assignment
D) career degrading assignment
Ismail sees this new assignment as an increase in ________, or an obligation or expectation for him to perform at a new level.
responsibility
divisional structure
functional structure
authority
During his career, Ismail saw his job change from an engineering role to a more complex job assignment. Eventually, Ismail's department evolved to become an advanced structure in which Ismail continually worked on projects. This structure is known as a ________ structure.
simple
project
divisional
functional
You Can Take That to the Bank (Scenario)
Changes in banking regulations, a series of loan defaults by customers, and a decline in the real estate market have forced Eastern Bank, a large regional Gulf bank, to downsize in an effort to improve profitability and bolster its sagging stock price. Sawsan, a regional branch supervisor, has been tasked with preparing a management report concerning how these cuts are affecting bank operations and customer service. Sawsan believes that the most important problem that has emerged concerns the span of control and decision-making authority within the bank. In the past, bank policy was that no manager should supervise more than six subordinates and only managers could make decisions for their individual units However, with many of the cuts coming in middle management, upper management has increased its span of control while still insisting on managerial-only decision making at the unit level. The result is that upper managers spend all of their time putting out fires and subordinates feel they are getting answers too slowly. As a result, lower level employees are requesting greater authority to make decisions on their own. However, they are not as experienced at making decisions as upper-level managers. Sawsan believes that structural changes must be made that reflect Eastern Bank's new situation.
Based upon the description of Eastern Bank's situation, which aspect of the current situation is inconsistent with Eastern Bank's decision to maintain a centralized form of decision making?
A) The company is large.
B) The organization is facing a crisis.
C) Lower-level managers want a voice in decisions.
D) Lower-level managers are not as experienced at making decisions as upper-level managers.
Sawsan believes that Eastern Bank should be more highly adaptive and flexible. She would like Eastern Bank to possess more of a(n) ________ structure?
organic
technological
mechanistic
formalized
Custom Leather (Scenario)
Lamia has been hired as a consultant for XYZ Consulting. Her first assignment is to work with one of XYZ's newest clients, Custom Leather, Inc., a manufacturer of high-end leather furniture. Custom Leather was founded over a decade ago with the idea that great looking, comfortable leather furniture could be custom made and delivered to customers in 30 days. Traditionally, retailers stock leather sofas to satisfy the desire to receive new furniture fast limiting the choice of colors and style for the consumer. In stark contrast, Custom Leather offers 13 different styles in over 70 different colors from rich, deep browns to bright, sunflower; sleek, silver grays and bright, ruby red through a select group of retail outlets. Each piece is built to the customer's individual requirements and is shipped within 2-3 weeks. However, the emergence of a new manufacturing technology has enabled a few, traditionally mass-production competitors to offer greater customization, minimizing some of Custom Leather's competitive advantage. As a result, Custom Leather is considering sweeping changes to current work processes and organizational structure.
Many of Custom Leather's 75 employees are highly skilled and experienced artisans. Many
long-time employees are stockholders and all participate in the profit sharing plan. While there
is division of labor, the jobs most floor employees perform are not highly standardized.
Management has found that employees take great pride in their craft, and thus they require
minimal formal rules and little direct supervision. These traits are most typical of a(n) ________
organization.
informal
organic
mechanistic
empowered
After reading Woodward's work at Lamia's suggestion, Custom Leather CEO, Masoud, asks her about other contingency factors that should be considered in optimally designing the firm's structure. Lamia responds that another contingency factor linked to structure is ________.
process
size
organizational complexity
market orientation
Masoud is interested in learning more about the link between strategic decision making and
organizational structure. Lamia suggested he read the research and writings of ________, which
were based on studies of U.S. firms in the late 1950s and early 1960s and remain the most
seminal study in this area.
Joan Woodward
Raymond Kramer
Alfred Chandler
Arthur Miller
Masoud is considering doubling the size of his workforce in conjunction with expanding the number of retail outlets that carry Custom Leather products. Lamia tells him that he should expect the organization to become more ________ as a result of this change.
mechanistic
complex
formalized
organic
Since Custom Leather produces individually customized couches, this could best be referred to as what kind of production?
Mass
Unit
Process
Environmental
Custom Leather's competitors typically produce their couches in large batches. This could best be referred to as what kind of production?
Process
Unit
Mass
Environmental
Lamia tells Masoud that studies have found that as environmental uncertainty increases,
________ designs tend to be most effective
mechanistic
centralized
organic
traditional
Black Gold (Scenario)
Jamal Oil Corporation (JOC) began as a relatively small oil company. However, through the years it has grown to become an international corporation.
The original entrepreneurial venture consisted only of Mr. Jamal and a few employees. It was an informal organization, and everyone reported to Jamal. This is best described as a ________ structure.
functional
divisional
simple
matrix
A sharp rise in oil prices helped JOC expand. Jamal 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
functional
divisional
simple functional
matrix
Jamal 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 continued to be operated as a
separate company. In beginning a new phase in the history of Jamal Oil Corporation, a ________
structure should be implemented to allow the company to continue to grow.
matrix
divisional
functional
simple
To deal with the workload in an effective manner,JOC's executive management group assigns specialists from the different functional departments to work on one or more work groups that are led by project managers. This popular contemporary design is called a(n) ________ structure.
organic
divisional
matrix
functional
Twenty years after founding JOC, Jamal decides he is approaching retirement. He wants JOC to develop the capacity to adapt itself and change because each member will take an active role in dentifying and resolving work-related issues. Jamal wants the firm to become a ________.
A) learning organization
B) functional structure
C) threatened organization
D) boundaryless organization
Several years after the retirement of Mr. Jamal, management at JOC decided to sell off its oil
exploration and drilling supply holdings, and instead focus on the more profitable distribution
end of the business. In conjunction with this decision, management decided to outsource most of
its non core functions, such as accounting, payroll, and human resources. These moves are
consistent with what type of contemporary organizational design?
A) a modular organization
B) a virtual organization
C) a matrix organization
D) a network organization
