Chapter 10 Organizational Structure and Design

TRUE/FALSE QUESTIONS

DEFINING ORGANIZATIONAL STRUCTURE

1. Organizational design is the organization’s formal framework by which job tasks are divided,
grouped, and coordinated.
(False; difficult; p. 266)

2. Organizational structure is the degree to which tasks in an organization are divided into separate
jobs.
(False; moderate; p. 266)

3. The concept of work specialization can be traced back a couple of centuries to Adam Smith’s
discussion of division of labor.
(True; moderate; p. 267)

4. Originally, when work specialization was implemented, employee productivity rose because it
wasn’t widely used.
(True; moderate; p. 267)

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

(False; moderate; p. 267)

6. Grouping jobs on the basis of product or customer flow is termed customer departmentalization.
(False; moderate; p. 268)

7. When decisions tend to be made at lower levels in an organization, the organization is said to be
decentralized.
(True; moderate; p. 272)

8. The concept of centralization-decentralization is absolute.

(False; moderate; p. 272)
9. When effective implementation of company strategies depends on managers having involvement
and flexibility to make decisions, the company is probably more decentralized.
(True; moderate; p. 272)

10. A term for increased decentralization is employee empowerment, which is giving employees more
authority to make decisions.
(True; easy; p. 273)
11. The degree of formalization varies widely between organizations and even within organizations.
(True; moderate; p. 274)

12. Many of today’s organizations are extremely reliant on strict rules and standardization to guide and
regulate employee behavior.
(False; moderate; p. 274)

ORGANIZATIONAL DESIGN DECISIONS

13. 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.
(False; moderate; p. 275)

14. An organic organization would likely be very flexible.

(True; moderate; p. 275)

15. Innovators need the efficiency, stability, and tight controls of the mechanistic structure.
(False; easy; p. 276)

16. The relationship between organizational size and structure tends to be linear.
(False; difficult; p. 276)

17. Joan Woodward attempted to view organizational structure from a technological perspective.
(True; moderate; p. 276; AACSB: Technology)

18. Woodward’s findings support that there is “one best way” to organize a manufacturing firm.
(False; moderate; p. 277; AACSB: Technology)

19. Since Woodward’s initial work, numerous studies have demonstrated that organizations adapt their
structures to their technology.
(True; moderate; p. 277; AACSB: Technology)

COMMON ORGANIZATIONAL DESIGNS

20. The strength of the functional structure is that it focuses on results.
(False; moderate; p. 278)

21. A simple structure is an organizational design that groups similar or related occupational specialties
together.
(False; easy; p. 279)
22. In divisional structures, the parent corporation typically acts as an external overseer to coordinate
and control the various divisions.
(True; easy; p. 279)

23. Employee empowerment is a crucial aspect of team structure because there is no line of managerial
authority from top to bottom.
(True; moderate; p. 279)

24. A matrix design creates a dual chain of demand.

(True; easy; p. 281)

25. Project structures tend to be rigid and inflexible organizational designs.

(False; easy; p. 281)

26. Internal boundaries are boundaries that separate the organization from its customers, suppliers, and
other stakeholders.
(False; moderate; p. 282)

27. To minimize or eliminate boundaries, managers might use virtual or network structural designs.
(True; easy; p. 282)

28. The inspiration of the virtual organization structural approach is the film industry.
(True; moderate; p. 282)

29. Many organizational design concepts are not applicable to twenty-first century companies.
(True; moderate; p. 283)

30. It is critical for members in a virtual organization to collaborate on work activities throughout the
entire organization.
(False; moderate; p. 284)