1.

The process by which managers establish the structure of working relationships among the workers of
the organization is known as
A) planning.
B) leading.
C) organizing.
D) controlling.
2. Organizational ________ is the formal system of task and job reporting relationships that determines
how employees use resources to achieve organizational goals.
A) structure
B) strategy
C) mission
D) policy
3. Organizational ________ is the process by which managers create an organizational structure and
culture that helps a company operate in the most efficient and effective way.
A) strategy
B) policy
C) design
D) tactics
4. Which of the following is a characteristic of a stable external environment?
A) an inflexible structure
B) constant change
C) decentralized authority
D) low uncertainty
5. Managers should design flexible structures, characterized by decentralized authority and empowered
employees, for their organization when its
A) environment is stable.
B) technology is simple.
C) workforce is highly skilled.
D) strategy is well understood
6. The process by which managers decide how to divide into specific jobs the tasks that have to be
performed to provide customers with goods and services is known as job
A) design.
B) delegation.
C) organization.
D) policy.
7. An organizational structure consisting of all the departments within the company that are needed to
produce its goods or services is a ________ structure.
A) functional
B) geographic
C) divisional
D) product
8. Which of the following structures groups together people who perform similar jobs?
A) divisional
B) transitional
C) organic
D) functional
9. The units of Effron, Ltd., are grouped such that the functions that work together to produce a product
are grouped together. This is an example of a(n) ________ structure.
A) divisional
B) transitional
C) organic
D) functional
10. Which of the following structures is an organizational structure composed of separate business units
within which are the functions that work together to produce a specific product for a specific customer?
A) divisional
B) transitional
C) organic
D) functional
11. CrossBorders Delivery Corporation organizes its managers according to the different regions of the
world in which the managers work. This is an example of a ________ structure.
A) geographic
B) customer
C) product
D) matrix
12. When designing an organization, if managers are grouped both by function and by product at the same
time, the organizational structure being used is the ________ structure.
A) market
B) geographic
C) functional
D) matrix
13. The organizational design in which employees are correctly referred to as two-boss employees is a
________ structure.
A) product
B) matrix
C) geographic
D) functional
14. Employees organized according to a matrix structure are grouped by
A) functions and by experience.
B) product and by geographic location.
C) functions and by product.
D) geographic location
15. What is the main problem with the matrix structure's dual reporting relationship?
A) tracking responsibilities
B) tasks are more complex
C) conflicting demands can arise
D) deciding which job will finish faster
16. An organization's hierarchy of authority is also known as its
A) chain of command.
B) span of control.
C) task-flow command.
D) matrix of control.
17. The number of subordinates who report directly to a manager is known as the manager's
A) unity of command.
B) hierarchy of authority.
C) chain of command.
D) span of control.
18. An organizational structure becomes taller when it
A) grows in size and the hierarchy of authority lengthens.
B) maintains its original size and the hierarchy remains constant.
C) hires more employees while keeping the same number of managers.
D) expands its product base but maintains its staff size.