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(Download PDF) Fundamentals of Management Essential Concepts and Applications 9th Edition Robbins Test Bank Full Chapter
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Fundamentals of Management, 9e (Robbins)
Chapter 6 Organizational Structure and Design
3) The original ideas about organizational design formulated by Fayol and Weber are now
largely obsolete.
Answer: FALSE
Explanation: Surprisingly, many of the ideas of Fayol and Weber about organizational design
are still valid today.
Diff: 2
Objective: 6.1
Learning Outcome: Summarize the major historical and current approaches to management
4) When work specialization originally began to be implemented early in the twentieth century,
employee productivity initially rose.
Answer: TRUE
Explanation: Initially, managers saw huge increases in productivity as a result of specialization.
However, when work became overly specialized, employee morale and motivation dropped,
erasing many productivity gains.
Diff: 2
Objective: 6.1
Learning Outcome: Discuss factors influencing organizational structure decisions
8) Staff authority is the ability to direct the work of any employee who does not have a higher
rank in the organization.
Answer: FALSE
Explanation: Staff authority is authority over support staff only, not general employees. Thus, a
payroll manager has authority over payroll staff but not other organizational employees.
Diff: 2
Objective: 6.1
Learning Outcome: Discuss factors influencing organizational structure decisions
9) Grouping jobs on the basis of major product areas is termed customer departmentalization.
Answer: FALSE
Explanation: Grouping along the lines of product areas is termed product departmentalization,
not customer departmentalization.
Diff: 2
Objective: 6.1
Learning Outcome: Discuss factors influencing organizational structure decisions
10) Line authority can be exerted only after a manager checks with his or her superior.
Answer: FALSE
Explanation: Line authority does not require checking with superiors. It can be exerted as the
manager sees fit without any kind of consultation.
Diff: 2
Objective: 6.1
Learning Outcome: Discuss factors influencing organizational structure decisions
2
Copyright © 2015 Pearson Education, Inc.
11) Unity of command prevents an employee from trying to follow two conflicting commands at
once.
Answer: TRUE
Explanation: The original management theorists stated that subordinates should not be put in the
position to try to follow two or more conflicting commands at once. Unity of command ensures
that the command from the highest organizational level is followed.
Diff: 2
Objective: 6.1
Learning Outcome: Discuss factors influencing organizational structure decisions
12) Power is a right that a manager has when he or she has a higher rank in an organization.
Answer: FALSE
Explanation: Power can arise from rank, but it also can arise from a particular skill, knowledge,
or access within the organization. For example, the boss's secretary has power to gain access to
the boss without having a high rank in the organization.
Diff: 2
Objective: 6.1
Learning Outcome: Discuss factors influencing organizational structure decisions
13) When decisions tend to be made at lower levels in an organization, the organization is said to
be centralized.
Answer: FALSE
Explanation: Centralized decisions originate at higher rather than lower levels of an
organization.
Diff: 2
Objective: 6.1
Learning Outcome: Discuss factors influencing organizational structure decisions
14) Traditional organizations are structured in a pyramid, with the power and authority located in
the pyramid's broad base.
Answer: FALSE
Explanation: The power and authority in a traditional organization resides at the narrow point of
the pyramid where top management is located, not the base.
Diff: 2
Objective: 6.1
Learning Outcome: Discuss factors influencing organizational structure decisions
15) The two prevalent organizational structure models in today's world are the organic
organization and the inorganic organization.
Answer: FALSE
Explanation: The two structures are termed organic and mechanistic.
Diff: 1
Objective: 6.2
Learning Outcome: Discuss factors influencing organizational structure decisions
3
Copyright © 2015 Pearson Education, Inc.
16) A mechanistic organization is bureaucratic and hierarchical.
Answer: TRUE
Explanation: Mechanistic organizations are formal, hierarchical, impersonal, specialized, and
heavily dependent on rules and protocols.
Diff: 2
Objective: 6.2
Learning Outcome: Discuss factors influencing organizational structure decisions
17) An organic organization tends to be flexible and have few formal rules.
Answer: TRUE
Explanation: An organic organization tries to be nimble in a dynamic business climate, paring
down bureaucratic complexity and focusing on innovation, flexibility, and creativity.
Diff: 2
Objective: 6.2
Learning Outcome: Discuss factors influencing organizational structure decisions
18) Innovators need the efficiency, stability, and tight controls of a mechanistic structure rather
than an organic structure.
Answer: FALSE
Explanation: Innovators usually do better in a flexible organic structure where they are given
leeway to think creatively.
Diff: 2
Objective: 6.2
Learning Outcome: Describe the innovation process and identify strategies for stimulating
creativity and innovation
19) The relationship between organizational size and structure tends to be linear.
Answer: FALSE
Explanation: The greater the size of the organization, the more mechanistic it tends to be.
However, the relationship is not at all linear but rather seems to jump at certain levels in numbers
of employees. An organization with fewer than 100 employees, for example, may be very
organic, while adding just a few more employees could cause the organization to suddenly take
on more mechanistic characteristics.
Diff: 3
Objective: 6.2
Learning Outcome: Discuss factors influencing organizational structure decisions
20) Joan Woodward attempted to view organizational structure from a technological perspective.
Answer: TRUE
Explanation: Woodward looked at how production methods affected organization structure.
Diff: 2
AACSB: Use of information technology
Objective: 6.2
Learning Outcome: Discuss factors influencing organizational structure decisions
4
Copyright © 2015 Pearson Education, Inc.
21) Woodward concluded that mass production worked best with an organic organizational
structure.
Answer: FALSE
Explanation: Woodward found that a mechanistic structure, rather than an organic structure,
worked best with mass production technology.
Diff: 2
AACSB: Use of information technology
Objective: 6.2
Learning Outcome: Discuss factors influencing organizational structure decisions
22) The stability of a mechanistic structure seems to work best in today's dynamic and uncertain
business environment.
Answer: FALSE
Explanation: Most managers feel that today's dynamic environment calls for a more organic
approach, not a more mechanistic approach.
Diff: 2
Objective: 6.2
Learning Outcome: Discuss factors influencing organizational structure decisions
5
Copyright © 2015 Pearson Education, Inc.
26) In a team structure, team members are not held responsible for their decisions.
Answer: FALSE
Explanation: The opposite occurs—team members make decisions and are accountable for their
decisions.
Diff: 2
Objective: 6.3
Learning Outcome: Discuss factors influencing organizational structure decisions
27) In a team structure, there is a clear line of managerial authority from top to bottom.
Answer: FALSE
Explanation: A team makes decisions on its own. For the most part, a team is not subject to
decisions or orders that come from outside the team.
Diff: 2
Objective: 6.3
Learning Outcome: Discuss factors influencing organizational structure decisions
28) Employees in an organization with a matrix design can have two bosses for the same job.
Answer: TRUE
Explanation: An employee in a project group can have a project manager in addition to a
manager from his or her functional department.
Diff: 2
Objective: 6.3
Learning Outcome: Discuss factors influencing organizational structure decisions
29) A significant advantage of the matrix structure is the clear chain of command from top to
bottom of the organization.
Answer: FALSE
Explanation: In a matrix structure in which employees can have multiple supervisors, the chain
of command can become confused and conflicts can arise.
Diff: 2
Objective: 6.3
Learning Outcome: Discuss factors influencing organizational structure decisions
30) When employees in a matrix structure finish a project, they go back to their functional
department.
Answer: TRUE
Explanation: A matrix structure maintains departments. When projects are finished, employees
return to their original department.
Diff: 2
Objective: 6.3
Learning Outcome: Discuss factors influencing organizational structure decisions
6
Copyright © 2015 Pearson Education, Inc.
31) When employees in a project structure finish a project, they go back to their original
department.
Answer: FALSE
Explanation: In a project structure, an employee has no original department. Instead, after the
project ends the employee enrolls in a new project.
Diff: 2
Objective: 6.3
Learning Outcome: Discuss factors influencing organizational structure decisions
33) Horizontal boundaries separate employees by the amount of power they have in an
organization.
Answer: FALSE
Explanation: Horizontal boundaries separate employees by what they specialize in, not how
much power they have.
Diff: 2
AACSB: Analytic thinking
Objective: 6.3
Learning Outcome: Discuss factors influencing organizational structure decisions
34) A virtual organization relies on freelancers who have no permanent status or position in the
organization.
Answer: TRUE
Explanation: Virtual organizations keep a skeleton staff and rely on the talents of free agents
who perform the work that the organization does.
Diff: 2
Objective: 6.3
Learning Outcome: Discuss factors influencing organizational structure decisions
35) Managers want to eliminate boundaries in organizations primarily to increase stability and
reduce flexibility.
Answer: FALSE
Explanation: Managers primarily want to increase flexibility in boundaryless organizations
without jeopardizing stability.
Diff: 2
Objective: 6.3
Learning Outcome: Discuss factors influencing organizational structure decisions
7
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36) Horizontal boundaries separate employees by the specialization of their job.
Answer: TRUE
Explanation: Horizontal boundaries mark the difference between, for example, an ad executive
and a member of a creative advertising team. Both may have equal ranks in the organization, but
they are separated by what they do.
Diff: 2
AACSB: Analytic thinking
Objective: 6.3
Learning Outcome: Discuss factors influencing organizational structure decisions
37) A network organization uses its own employees and outside suppliers to provide manpower
for projects.
Answer: TRUE
Explanation: A network organization uses its own employees to do some work activities and
networks of outside suppliers to provide other needed product components or work processes.
This organizational form is sometimes called a modular organization by manufacturing firms.
Diff: 2
Objective: 6.3
Learning Outcome: Discuss factors influencing organizational structure decisions
39) The biggest issue in workers working at home or off-site involves fairness.
Answer: FALSE
Explanation: The biggest off-site work issue is security.
Diff: 2
Objective: 6.4
Learning Outcome: Discuss the factors that affect how individuals behave and learn within an
organization
8
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40) A learning organization puts an enormous amount of effort on making sure that all of its
employees are enrolled in some kind of university level class.
Answer: FALSE
Explanation: Learning organizations focus on learning, adapting, and changing within the
business environment, not taking classes.
Diff: 2
AACSB: Communication abilities
Objective: 6.4
Learning Outcome: Discuss the factors that affect how individuals behave and learn within an
organization
41) Organizations that implement flextime programs allow employees to work at home for some
of the work day.
Answer: FALSE
Explanation: Working from home is called telecommuting and gives employees flexibility with
regard to time and location of work. Flextime gives flexibility in time.
Diff: 2
AACSB: Use of information technology
Objective: 6.4
Learning Outcome: Discuss factors influencing organizational structure decisions
42) Contingent workers may make up to 40 percent of the workforce by the end of the decade.
Answer: TRUE
Explanation: The use of contingent workers who do jobs by the piece is increasing every year.
Diff: 3
AACSB: Ethical understanding and reasoning abilities
Objective: 6.4
Learning Outcome: Discuss factors influencing organizational structure decisions
9
Copyright © 2015 Pearson Education, Inc.
44) All of the following are part of the process of organizational design EXCEPT ________.
A) deciding how specialized jobs should be
B) determining rules for employee behavior
C) determining the level at which decisions are made
D) determining goals for the organization
Answer: D
Explanation: D) Organizing jobs, formulating rules, or clarifying a decision-making process are
clearly examples of developing an organization's structure. Determining goals is part of
establishing an organization's mission, not creating its structure that will help carry out that
mission.
Diff: 2
Objective: 6.1
Learning Outcome: Discuss factors influencing organizational structure decisions
45) Which of the following are NOT basic elements of organizational structure?
A) work specialization, span of control
B) chain of command, line authority
C) centralization, decentralization
D) departmentalization, formalization
Answer: B
Explanation: B) The six elements of organizational structure are given in the three incorrect
choices: work specialization, span of control, centralization, decentralization,
departmentalization and formalization. Chain of command and line authority are not included as
basic elements of organizational structure, so "chain of command, line authority" is the correct
response.
Diff: 2
Objective: 6.1
Learning Outcome: Discuss factors influencing organizational structure decisions
10
Copyright © 2015 Pearson Education, Inc.
47) 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) Work specialization clarifies who reports to whom.
Answer: B
Explanation: B) The choice regarding the degree to which tasks are grouped together describes
departmentalization, not specialization. The choices regarding ranking jobs and work
specialization both describe a power relationship in an organization, so they are incorrect. The
choice regarding individual employees accurately identifies the idea that work specialization
requires dividing a task into parts, so it is the correct response.
Diff: 3
Objective: 6.1
Learning Outcome: Discuss factors influencing organizational structure decisions
49) Early users of work specialization in the early twentieth century found that the practice
ultimately resulted in ________.
A) higher profits and better employee morale
B) bored workers with low morale
C) huge and permanent productivity gains
D) better communication among employees
Answer: B
Explanation: B) While managers initially saw profit and productivity gains in work
specialization, the gains were not huge, not permanent, and not accompanied by increases in
morale, so these choices are incorrect. Better communication was never observed by managers
so that choice is incorrect. After initial gains, managers did see an inevitable drop in morale of
employees as they contended with drudgery, making "bored workers with low morale" the
correct response.
Diff: 3
AACSB: Ethical understanding and reasoning abilities
Objective: 6.1
Learning Outcome: Discuss factors influencing organizational structure decisions
11
Copyright © 2015 Pearson Education, Inc.
50) Today, managers favor this approach instead of work specialization.
A) All tasks are performed by all employees.
B) Partners switch jobs every half hour.
C) Employees perform a broad range of tasks.
D) Monotonous tasks are shared by all employees.
Answer: C
Explanation: C) Today's managers prefer an approach in which employees perform many tasks,
eliminating monotony. The other choices given here have been tried in isolated cases, but none
constitutes a prevalent approach of today's managers.
Diff: 2
Objective: 6.1
Learning Outcome: Discuss factors influencing organizational structure decisions
12
Copyright © 2015 Pearson Education, Inc.
53) A soap company that features a bath soap department, a laundry detergent department, and a
dish soap department is using which of the following?
A) process departmentalization
B) functional departmentalization
C) product departmentalization
D) customer departmentalization
Answer: C
Explanation: C) The soap company clearly is organizing by product, not a particular process, the
job people do, or the customer that is served. That makes "product departmentalization" the
correct response.
Diff: 2
Objective: 6.1
Learning Outcome: Discuss factors influencing organizational structure decisions
54) What kind of departmentalization would be in place in a government agency in which there
are separate departments that provide services for employers, employed workers, unemployed
workers, and the disabled?
A) product
B) geographic
C) outcome
D) customer
Answer: D
Explanation: D) Employed workers, unemployed workers, employers, and disabled workers are
categories of people who will use the agency's services—its customers. Therefore, "customer" is
correct and the other choices incorrect.
Diff: 2
Objective: 6.1
Learning Outcome: Discuss factors influencing organizational structure decisions
55) State motor vehicle offices usually use this kind of departmentalization.
A) product
B) functional
C) customer
D) process
Answer: D
Explanation: D) Motor vehicle offices organize, for example, by the process of getting a driver's
license. First the customer fills out forms, then takes an eye test, then takes a written test, and so
on. This makes "process" correct.
Diff: 2
Objective: 6.1
Learning Outcome: Discuss factors influencing organizational structure decisions
13
Copyright © 2015 Pearson Education, Inc.
56) The line of authority that extends from the upper levels of management to the lowest levels
of the organization is termed the ________.
A) chain of responsibility
B) unity of command
C) staff authority
D) chain of command
Answer: D
Explanation: D) Unity of command refers to a single authority prevailing when organizational
conflicts arise rather than a hierarchical authority. Staff authority refers to the authority that staff
managers have over support personnel. Only the chain of command describes the hierarchical
relationship between levels of an organization with respect to authority, so that is the correct
response. "Chain of responsibility" is incorrect because it is not a recognized term.
Diff: 1
Objective: 6.1
Learning Outcome: Discuss factors influencing organizational structure decisions
14
Copyright © 2015 Pearson Education, Inc.
59) In the chain of command, each person above you ________.
A) has special privileges
B) receives higher pay
C) has line authority
D) has no right to give you orders
Answer: C
Explanation: C) Line authority is the explicit right to issue orders to a subordinate. People of
higher rank may or may not receive special privileges or more pay than people below, so those
choices are incorrect. Finally, "has no right to give you orders" can be eliminated because it is
the opposite of the correct answer.
Diff: 2
Objective: 6.1
Learning Outcome: Discuss factors influencing organizational structure decisions
61) Line authority gives a manager the ability to direct the work of ________.
A) any employee in the firm
B) any subordinate
C) any subordinate, after consulting with the next higher level
D) only subordinates one level down
Answer: B
Explanation: B) Line authority is the explicit right to issue orders or direct the activities of any
subordinate. Line authority confers this right to a manager without any prior consultation with
higher-ups. This makes "any subordinate" the correct response. "Any subordinate, after
consulting with the next higher level" is incorrect because line authority extends only downward,
not up to higher-ranking individuals.
Diff: 2
Objective: 6.1
Learning Outcome: Discuss factors influencing organizational structure decisions
15
Copyright © 2015 Pearson Education, Inc.
62) ________ prevents a single employee from getting conflicting orders from two different
superiors.
A) Line authority
B) Unity of command
C) Staff authority
D) Chain of command
Answer: B
Explanation: B) Chain of command, line authority, and staff authority are involved in
determining how organizational orders and discipline are handled. However, only unity of
command deals explicitly with resolving conflicting orders, so it is the correct response.
Diff: 2
Objective: 6.1
Learning Outcome: Discuss factors influencing organizational structure decisions
63) The importance of unity of command has diminished in today's workplace because of its
tendency to be ________.
A) inflexible and inefficient
B) ethically questionable
C) chauvinistic and dictatorial
D) too decisive
Answer: A
Explanation: A) Unity of command is a principle that establishes absolute authority of the
superior in an organization. In today's workplace, flexibility is valued over authority so unity of
command has been downgraded. This makes "inflexible and inefficient" the correct response.
Unity of command is not ethically questionable, so that choice can be eliminated. Similarly,
though there may be an element of veracity in the remaining two choices, they can both be ruled
out since being dictatorial or overly decisive are not causes of the diminution of unity of
command.
Diff: 2
Objective: 6.1
Learning Outcome: Discuss factors influencing organizational structure decisions
16
Copyright © 2015 Pearson Education, Inc.
65) ________ is the obligation or expectation to perform a duty.
A) Responsibility
B) Unity of command
C) Chain of command
D) Span of control
Answer: A
Explanation: A) By definition, responsibility is the obligation to perform duties that have been
assigned, so that is the correct choice. An employee's responsibility is to complete the task that
he or she has been assigned. Two of the other choices here, "unity of command" and "chain of
command," refer to giving and following orders, so they can be eliminated. Span of control
refers to the number of employees who report to a manager, so it also is an incorrect choice.
Diff: 1
Objective: 6.1
Learning Outcome: Discuss factors influencing organizational structure decisions
17
Copyright © 2015 Pearson Education, Inc.
68) As represented in a power cone, power is based on ________.
A) vertical position only
B) horizontal position only
C) distance from the center only
D) vertical position and distance from the center
Answer: D
Explanation: D) Vertical position by itself determines authority, not power, so "vertical position
only" is incorrect. Horizontal position on its own determines neither power nor authority, so
"horizontal position only" is incorrect. Distance from the center only partly defines power, so
that choice is incorrect. The remaining choice gives the correct relationship: power is determined
by both vertical position and the distance from the center power core of the diagram.
Diff: 3
AACSB: Analytic thinking
Objective: 6.1
Learning Outcome: Discuss factors influencing organizational structure decisions
70) A construction site supervisor who sees an impending thunderstorm and tells workers to go
home is demonstrating ________.
A) line authority
B) staff delegation
C) provisional accountability
D) responsibility
Answer: A
Explanation: A) This is a perfect example of line authority: the supervisor is exercising the
authority to make a decision and give an order to subordinates without consulting any of his
superiors. This makes "line authority" correct and rules out the other three choices.
Diff: 2
Objective: 6.1
Learning Outcome: Discuss factors influencing organizational structure decisions
18
Copyright © 2015 Pearson Education, Inc.
71) ________ is the power that rests on the leader's ability to punish or control.
A) Reward power
B) Coercive power
C) Expert power
D) Referent power
Answer: B
Explanation: B) Coercive power is the power that comes from fear, so the ability to punish or
control is a coercive power. This makes "coercive power" correct. The leader is not using
expertise, access, or some kind of premium or bonus to influence others, so these choices are
incorrect.
Diff: 2
Objective: 6.1
Learning Outcome: Discuss factors influencing organizational structure decisions
72) A bank manager who passes out bonuses at the end of the year is exercising this.
A) reward power
B) coercive power
C) expert power
D) referent power
Answer: A
Explanation: A) A bonus is a type of reward, so the manager is exercising reward power. The
power is not based on fear (coercive power), expertise, or knowing someone (referent power), so
none of these choices is correct.
Diff: 2
Objective: 6.1
Learning Outcome: Discuss factors influencing organizational structure decisions
73) Your firm's attorney has ________ power when giving legal advice.
A) legitimate
B) status
C) expert
D) coercive
Answer: C
Explanation: C) Legal advice is a type of expertise, so "expert" is the correct response. The
attorney's power is not based on fear, so "coercive" is incorrect. "Legitimate" and "status" are
both incorrect because they refer to a type of hierarchical power, not power that comes from
expertise.
Diff: 2
Objective: 6.1
Learning Outcome: Discuss factors influencing organizational structure decisions
19
Copyright © 2015 Pearson Education, Inc.
74) ________ is the power that arises when a person is close to another person who has great
power and authority.
A) Expert power
B) Referent power
C) Reward power
D) Legitimate power
Answer: B
Explanation: B) The boss's secretary is a classic case of referent power—his or her power is
based on the ability to give access to an important person, the boss. This makes "referent power"
the correct response. The other three choices are incorrect because none of the three describes the
power that comes from proximity and access to a person who has power or resources.
Diff: 2
Objective: 6.1
Learning Outcome: Discuss factors influencing organizational structure decisions
75) When a top manager decides to hire an individual over the objections of her staff, she is
exercising which kind of power?
A) referent
B) expert
C) coercive
D) legitimate
Answer: D
Explanation: D) When the manager does what she wants over the objection of subordinates, she
is exploiting her position of authority in the vertical organizational hierarchy—in other words,
she is using legitimate power. None of the other choices refers to the vertical power that comes
from one's position in the corporate pyramid.
Diff: 3
Objective: 6.1
Learning Outcome: Discuss factors influencing organizational structure decisions
76) The traditional view holds that managers should not directly supervise more than ________
subordinates.
A) three or four
B) five or six
C) seven or eight
D) nine or ten
Answer: B
Explanation: B) Classical studies and observations limited the number of employees under a
single manager to six, making five or six correct. This view has recently evolved. As
organizations become more sophisticated and workers become better trained and more
accountable, the span of control has increased in size.
Diff: 1
Objective: 6.1
Learning Outcome: Discuss factors influencing organizational structure decisions
20
Copyright © 2015 Pearson Education, Inc.
77) Modern managers find that they can ________ if their employees are experienced, well-
trained, and motivated.
A) increase their span of control
B) decrease their span of control
C) eliminate their span of control
D) fluctuate their span of control
Answer: A
Explanation: A) Having eager, well-trained, experienced employees seems to be the key to
increasing span of control. In a sense, the manager oversees a group of "self-managed"
individuals who are almost equal to him- or herself in accountability and responsibility. In
addition, many of his or her charges may have skills, knowledge, or insights that actually surpass
the manager's own abilities.
Diff: 2
Objective: 6.1
Learning Outcome: Discuss factors influencing organizational structure decisions
21
Copyright © 2015 Pearson Education, Inc.
79) ________ reflects the degree to which decision making is distributed throughout the
hierarchy rather than concentrated at the top.
A) Centralization
B) Span of control
C) Concentration
D) Decentralization
Answer: D
Explanation: D) By definition, decentralization refers to the opposite of top-down decision
making: the more decentralized decisions in an organization are, the less often they are made by
top managers and filter down from above. When decision making is distributed throughout the
hierarchy, it is decentralized, making "decentralization" the correct response. Obviously,
"centralization" is incorrect here. "Span of control" and "concentration" also are wrong because
neither span of control nor concentration refers to decision making that comes from all levels of
an organization.
Diff: 2
Objective: 6.1
Learning Outcome: Discuss factors influencing organizational structure decisions
80) In recent years, organizations have become more ________ to be responsive to a dynamic
business environment.
A) centralized
B) decentralized
C) structured
D) mechanistic
Answer: B
Explanation: B) The fast-changing business environment of today has made managers seek to be
more flexible. A decentralized structure that can effect change from any position in the hierarchy
without waiting for a centralized top-down decree is therefore favored by managers seeking
flexibility. This makes "decentralized" the correct response and rules out the other three choices,
all of which identify inflexible rather than flexible decision making.
Diff: 2
Objective: 6.1
Learning Outcome: Discuss factors influencing organizational structure decisions
22
Copyright © 2015 Pearson Education, Inc.
81) In today's decentralized business world, ________ the most important strategic decisions.
A) top managers still primarily make
B) middle managers make
C) lower-level managers
D) nonmanagerial employees
Answer: A
Explanation: A) Though decentralization has increased greatly in the recent past, the truly
important decisions in most organizations are still made by top managers. The decisions that
middle managers, lower managers, and nonmanagers make are usually of a tactical nature and do
not affect the direction in which the organization is headed.
Diff: 2
Objective: 6.1
Learning Outcome: Identify the different types of decisions managers make and discuss how
they make decisions
82) All of the following are characteristics of a highly formalized organization EXCEPT
________.
A) explicit job descriptions
B) little discretion for employees
C) minimum number of rules
D) a standardized way of doing things
Answer: C
Explanation: C) A formalized organization is very precise and bureaucratic. Jobs are precisely
defined; employees are given little leeway in how they carry out tasks, rules are given great
emphasis, and most activities are routine and standardized. Since rules are important in this kind
of an organization, you would not expect a minimum of rules, making it the correct response.
Diff: 2
Objective: 6.1
Learning Outcome: Discuss factors influencing organizational structure decisions
83) Today's managers are moving away from formalization and trying to be this.
A) more rigorous
B) more flexible
C) more strict
D) less permissive
Answer: B
Explanation: B) Today's managers, if anything, are getting less strict and more permissive,
making "more strict" and "less permissive" incorrect. "More rigorous" is wrong simply because
rigor has not been identified as a current trend among managers. The correct choice identifies
flexibility as the key to dealing with a fast-changing economic environment.
Diff: 2
Objective: 6.1
Learning Outcome: Describe the roles of managers and the skills they need to succeed within an
organization
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84) Today's managers expect employees to ________.
A) ignore rules for the most part
B) use discretion when it comes to following rules
C) faithfully follow rules even when it may harm the organization
D) make their own rules
Answer: B
Explanation: B) Rules have been de-emphasized in today's business environment, but not
forgotten. This rules out ignoring rules and faithfully following rules as the correct answer.
Managers don't want to go so far as having employees make their own rules, which eliminates
that choice. The correct response is using discretion, which reflects a decentralized view of
management in which employees participate in decision making—including the decision to
interpret rules.
Diff: 2
Objective: 6.1
Learning Outcome: Describe the roles of managers and the skills they need to succeed within an
organization
85) A(n) ________ organization has a high degree of specialization, formalization, and
centralization.
A) organic
B) horizontal
C) learning
D) mechanistic
Answer: D
Explanation: D) By definition, a mechanistic organization is hierarchical and highly specialized
with rigid, formal rules and decision making controlled at the top of the corporate pyramid. Both
organic and learning organizations are very nearly opposite to a mechanistic structure, featuring
highly empowered employees, few rules, and flexible, decentralized decision making.
"Horizontal" is incorrect because it does not describe a recognized organizational model.
Diff: 1
Objective: 6.2
Learning Outcome: Discuss factors influencing organizational structure decisions
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87) A(n) ________ organization is able to change rapidly as needs require.
A) organic
B) hierarchical
C) vertical
D) mechanistic
Answer: A
Explanation: A) The hallmark of an organic organization is its ability to be flexible and change
in response to a dynamic business environment. Hierarchical, vertical, and mechanistic
organizations are entities that do not adapt well to new situations, so these choices are incorrect.
Diff: 1
Objective: 6.2
Learning Outcome: Discuss factors influencing organizational structure decisions
25
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90) Strategy, size, technology, and the degree of uncertainty in the environment together make
up what are called ________.
A) contingency variables
B) control factors
C) structure variables
D) probable factors
Answer: A
Explanation: A) The inputs that determine an organization's structure are called contingency
variables—strategy, size, technology, and degree of uncertainty. Each of these variables can
change how a company is organized and structured. For example, as the size of an organization
changes, its structure also gets modified to accommodate its new stature. Since "contingency
variables" is the only choice that correctly identifies these variables, it is the right response.
Diff: 1
Objective: 6.2
Learning Outcome: Discuss factors influencing organizational structure decisions
92) A company that is pursuing a cost leadership strategy would be most likely to have this kind
of structure.
A) mechanistic
B) virtual
C) team
D) matrix-project
Answer: A
Explanation: A) In a cost leadership strategy, holding down costs and maximizing efficiency
and productivity are paramount. A mechanistic approach has been found to work best for holding
down costs, so that is the correct response here. Virtual, team, and matrix-project models
typically work better for innovation and creativity rather than the cost-cutting measures needed
for a cost leadership strategy.
Diff: 2
Objective: 6.2
Learning Outcome: Discuss factors influencing organizational structure decisions
26
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93) A company that is trying to be a leader in innovation within its industry would be most likely
to have this kind of structure.
A) mechanistic
B) organic
C) simple
D) functional
Answer: B
Explanation: B) An organic model has been found to work best for innovation and creativity
within an organization, making "organic" the correct response. The other three choices identify
nonorganic approaches that work better for cost-cutting and efficiency than they do for
innovation.
Diff: 2
Objective: 6.2
Learning Outcome: Discuss factors influencing organizational structure decisions
95) As an organization grows to a size of over 2,000 employees, it finds it hard to avoid
becoming more ________.
A) mechanistic
B) organic
C) informal
D) adaptable
Answer: A
Explanation: A) Like an army, the realities of organizing large groups of people require a fairly
rigid, rule-bound structure. This causes large organizations to become more mechanistic as they
increase in size. If anything, as organizations grow they become less organic, informal, and
adaptable, making all of these choices incorrect.
Diff: 2
Objective: 6.2
Learning Outcome: Discuss factors influencing organizational structure decisions
27
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96) Joan Woodward conducted pioneering studies on how this affected the structure of
companies.
A) ethics
B) technology
C) values
D) corporate culture
Answer: B
Explanation: B) Woodward studied factories that used different technologies to produce goods,
discovering trends in the way technology affected organizational structure. Woodward did not
observe firms with respect to ethical, value-based, or cultural concerns, making all of these
choices incorrect for this question.
Diff: 1
AACSB: Use of information technology
Objective: 6.2
Learning Outcome: Discuss factors influencing organizational structure decisions
97) Recent studies on Woodward's initial research found that if the technology was nonroutine,
this structure worked best.
A) mechanistic
B) traditional
C) inorganic
D) organic
Answer: D
Explanation: D) Woodward's findings showed that no matter how vertical differentiation
differed, low horizontal differentiation correlated with an organic model. A mechanistic or
traditional structure correlated with high horizontal differentiation, eliminating those two
choices. "Inorganic" is ruled out because inorganic is not a recognized model.
Diff: 2
AACSB: Use of information technology
Objective: 6.2
Learning Outcome: Discuss factors influencing organizational structure decisions
98) Woodward concluded that a mechanistic structure worked best for a firm that used
________.
A) unit production
B) mass production
C) process production
D) quality production
Answer: B
Explanation: B) Woodward found that mass production technology correlated with a
mechanistic structure, making that the correct choice and eliminating the other choices.
Diff: 2
AACSB: Use of information technology
Objective: 6.2
Learning Outcome: Discuss factors influencing organizational structure decisions
28
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99) In Woodward's study, this type of production was the most complex and the most
sophisticated.
A) unit production
B) mass production
C) process production
D) technological production
Answer: C
Explanation: C) Woodward found that process production was very hierarchical, that is,
vertically differentiated into levels of organizational authority, but low in horizontal
differentiation, meaning there was little specialization. The other technologies did not match this
profile, so the other three choices are incorrect.
Diff: 2
AACSB: Use of information technology
Objective: 6.2
Learning Outcome: Discuss factors influencing organizational structure decisions
100) The greater the environmental uncertainty, the more an organization needs to become
________.
A) organic
B) mechanistic
C) stable
D) high-tech
Answer: A
Explanation: A) Increased uncertainty in a business environment requires an organization to be
more flexible and adaptable—in other words, more organic. High uncertainty would militate
against being more mechanistic, and it would have little influence on the stability of an
organization or the degree to which it was "high-tech."
Diff: 2
Objective: 6.2
Learning Outcome: Discuss factors influencing organizational structure decisions
29
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102) Traditional organizational designs tend to be more mechanistic and include ________.
A) simple, complex, and divisional structures
B) simple, functional, and dysfunctional structures
C) functional, divisional, and vertical structures
D) simple, functional, and divisional structures
Answer: D
Explanation: D) The original organizational theorists divided organizations into three categories:
simple, functional, and divisional. Several other categories and subcategories have subsequently
been added, but these traditional characterizations still stand up well today. For example, the
newly identified matrix model is a modification of the original functional design, with teams
forming from individuals within a functional system.
Diff: 1
Objective: 6.3
Learning Outcome: Discuss factors influencing organizational structure decisions
103) A simple structure is ________ like a mechanistic organization, but ________ like an
organic organization.
A) centralized; informal
B) informal; decentralized
C) decentralized; formal
D) centralized; formal
Answer: A
Explanation: A) A simple structure is largely a one-person show, with a single person being the
originator and driving force behind the organization he or she formed. A single person makes
virtually all important decisions in a simple structure, making the system highly centralized.
However, since the simple structure is largely used in very small companies, it is also typically
very informal. The combination of being centralized and informal matches the choice with the
same description.
Diff: 3
Objective: 6.3
Learning Outcome: Discuss factors influencing organizational structure decisions
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107) This is a weakness of a functional structure.
A) favoring functional goals over organizational goals
B) favoring organizational goals over functional goals
C) failing to attain functional goals
D) overemphasizing organizational goals
Answer: A
Explanation: A) The risk that any functional structure with strong departments runs is that
departmental goals will begin to eclipse overall organizational goals. A department will become
so focused on its task that it might take actions that are less than beneficial or even harmful to the
organization itself. Given this tendency, it is easy to see that the choices regarding favoring and
overemphasizing organizational goals are not correct, as organizational goals are not likely to be
favored. The risk of not meeting functional goals is always possible, but certainly would not be
considered a weakness of the functional structure.
Diff: 3
Objective: 6.3
Learning Outcome: Discuss factors influencing organizational structure decisions
109) In a ________ structure each business unit has complete autonomy to reach its goals.
A) simple
B) functional
C) divisional
D) matrix
Answer: C
Explanation: C) A divisional structure combines a number of separate business units under the
umbrella of the main organization. These units are almost completely autonomous but benefit
from the resources and brand of the combined organization. The divisional structure allows more
autonomy for its subunits than any other structure, making divisional the correct response.
Diff: 2
Objective: 6.3
Learning Outcome: Discuss factors influencing organizational structure decisions
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110) A media company that has separate, autonomous companies for movies, TV, Internet, and
print journalism is most likely a ________ structure.
A) divisional
B) functional
C) simple
D) matrix
Answer: A
Explanation: A) An organization that features autonomous branches that function like
independent companies is likely to be a divisional structure. This media company fits the
description of a divisional structure, making that the correct response and ruling out a functional,
simple, or matrix structure.
Diff: 3
Objective: 6.3
Learning Outcome: Discuss factors influencing organizational structure decisions
111) Having separate payroll departments in each division of a divisional structure is an example
of which of the following?
A) efficiency, because payroll departments compete
B) duplication, because a single payroll department could do the job
C) effectiveness, because separate payroll departments create jobs
D) efficiency, because separate payroll departments can share methods of operation
Answer: B
Explanation: B) Separate departments that perform the same task is an example of redundancy,
not efficiency or effectiveness. The organization is wasting resources by having different units
perform tasks that could be done by a single unit. This makes the choice regarding duplication
the correct response.
Diff: 3
Objective: 6.3
Learning Outcome: Discuss factors influencing organizational structure decisions
112) As the number of employees in an organization grows, structure tends to become more
________.
A) bureaucratic
B) informal
C) decentralized
D) relaxed
Answer: A
Explanation: A) Size increases complexity, so an organization inevitably becomes more
bureaucratic and centralized as it increases in size—simply to manage the increase in complexity
it faces. This makes "bureaucratic" the correct response. The other three choices identify traits
that a larger organization tends to move away from as it grows: informality and less top-down in
decision making.
Diff: 1
Objective: 6.3
Learning Outcome: Discuss factors influencing organizational structure decisions
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113) Looking for ways to make their organization more flexible and innovative, today's
managers may choose this kind of structure.
A) simple
B) divisional
C) functional
D) team
Answer: D
Explanation: D) Simple, divisional, and functional structures are traditional organization types
that have many strengths but do not typically specialize in being flexible or innovative. That
makes the team structure the best candidate here, as it is typically employed in firms that seek to
be creative and adaptable.
Diff: 2
Objective: 6.3
Learning Outcome: Describe the innovation process and identify strategies for stimulating
creativity and innovation
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115) In a team structure, team members ________.
A) are subject to decisions made by their supervisors
B) can influence decisions made by top managers
C) make decisions and are accountable for their decisions
D) make decisions only after first checking with management
Answer: C
Explanation: C) Within a team structure, team members are empowered to make and influence
decisions. This privilege does have its price—team members are held accountable for their
decisions and cannot make excuses that they were "only following orders." The choice regarding
accountability, therefore, is the correct response, making the choices regarding supervisors and
top managers, both traditional arrangements, incorrect. The choice regarding checking with
management is also incorrect because team members do not typically need to consult
management before making decisions that affect their team's functioning.
Diff: 3
Objective: 6.3
Learning Outcome: Discuss factors influencing organizational structure decisions
116) All of the following are necessary for successful team structure EXCEPT ________.
A) well-trained team members
B) team members with cross-functional skills
C) team members with years of management experience
D) a fair and well-run team-based pay plan
Answer: C
Explanation: C) An effective team needs skilled, highly trained, versatile team members. It also
requires a specialized pay plan to avoid conflicts and misunderstandings. An effective team
typically does not need management experience, making the choice regarding team members
with years of management experience the correct response.
Diff: 2
Objective: 6.3
Learning Outcome: Discuss factors influencing organizational structure decisions
117) In a ________, employees are recruited from functional departments to work on a specific
project for a limited time period.
A) team structure
B) divisional structure
C) product structure
D) matrix structure
Answer: D
Explanation: D) Of the contemporary organizational designs, only the matrix structure preserves
functional departments within its format. Team and product structures do not recruit group
members from existing functional departments, so those choices are incorrect. A divisional
structure does not typically engage in project work, so that choice also is incorrect.
Diff: 3
Objective: 6.3
Learning Outcome: Discuss factors influencing organizational structure decisions
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118) In a matrix structure, a group member will typically report to ________.
A) a project manager only
B) both a project manager and functional department head
C) a functional department head only
D) Group members are fully autonomous in a matrix structure, so they don't report to anyone.
Answer: B
Explanation: B) Since group members in a matrix structure are recruited from functional
departments, they report to their project manager and their department head. This makes the
choice regarding both a project manager and functional department head the correct response and
eliminates the choices regarding a project manager only and a functional department head only.
The choice regarding group members being fully autonomous is incorrect because matrix group
members do need to report to managers.
Diff: 2
Objective: 6.3
Learning Outcome: Discuss factors influencing organizational structure decisions
119) When a group member in a matrix structure finishes a project, he or she ________.
A) returns to his or her functional department
B) stays with the group to take on a new project
C) enters a pool of available employees from the entire organization
D) starts looking for a new job
Answer: A
Explanation: A) A key difference between a matrix structure and a project structure is that group
members return to their departments after finishing a project in a matrix system. In a project
system, group members have no "home" department and go on to new projects when they
complete their current project. The choice regarding staying with the group describes the
arrangement in a team structure while the remaining two choices match the situation in a project
structure.
Diff: 2
Objective: 6.3
Learning Outcome: Discuss factors influencing organizational structure decisions
120) By giving employees two direct superiors, a matrix structure violates this key element of
organizational design.
A) unity of command
B) chain of command
C) span of management
D) decentralization
Answer: A
Explanation: A) Unity of command requires that a single voice be dominant in the event that
there are conflicting orders in an organization. Since a matrix system can give a single employee
two bosses, it violates the unity of command tradition.
Diff: 2
Objective: 6.3
Learning Outcome: Discuss factors influencing organizational structure decisions
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121) A key difference between a team structure and a matrix structure is that a team structure
________ while a matrix structure does not.
A) empowers group members
B) works on projects
C) has fairly permanent groups or teams
D) holds group members accountable
Answer: C
Explanation: C) Both matrix and team structures feature small groups working together on
projects with empowered employees who are held accountable for their decisions. A key
difference between the two structures is that teams can be fairly permanent while matrix groups
return to their functional departments when their project is complete.
Diff: 2
Objective: 6.3
Learning Outcome: Discuss factors influencing organizational structure decisions
123) Which of the following areas has opened up new possibilities for how and where employees
work?
A) information technology
B) human resources
C) organizational design
D) global competition
Answer: A
Explanation: A) It's fair to say that the world of work will never be like it was 10 years ago. IT
has opened up new possibilities for employees to do their work in locations as remote as
Patagonia or in the middle of downtown Seattle. Although organizations have always had
employees who traveled to distant corporate locations to take care of business, these employees
no longer have to find the nearest pay phone or wait to get back to "the office" to see what
problems have cropped up.
Diff: 3
Objective: 6.3
Learning Outcome: Discuss factors influencing organizational structure decisions
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124) Which of the following is biggest concern when doing work at anytime and anywhere?
A) employee payroll
B) security
C) employee accountability
D) customer satisfaction
Answer: B
Explanation: B) The biggest issue in doing work anywhere, anytime is security. Companies
must protect their important and sensitive information. However, software and other disabling
devices have minimized security issues considerably.
Diff: 3
Objective: 6.3
Learning Outcome: Discuss factors influencing organizational structure decisions
126) A virtual organization is essentially ________ who come together for a particular project.
A) a group of employees from a single company
B) a group of free agents
C) a team of employees from different departments of a company
D) a group of top managers and CEOs
Answer: B
Explanation: B) A virtual organization maintains a small administrative staff but relies on
freelancers to perform tasks, complete projects, and do the work of the organization. The
freelancers do not come from a single organization, nor are they high-ranked corporate
managers. Instead, the freelancers come from a variety of different places and typically are
unaffiliated with any permanent organization or company.
Diff: 2
Objective: 6.3
Learning Outcome: Discuss factors influencing organizational structure decisions
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127) How does a virtual organization save on costs?
A) by hiring people who specialize in what they do
B) by hiring fewer people than they need and making them work much longer hours
C) by eliminating all administrative duties
D) by keeping only a small permanent staff for administrative purposes only
Answer: D
Explanation: D) A virtual organization can temporarily grow to a large size by hiring large
numbers of freelancers. However, it keeps costs to a minimum by paying these individuals only
for actual work they do and not providing benefits and compensation when there is no work for
them to perform. This makes "keeping only a small permanent staff" the correct response.
"Eliminating all administrative duties" is incorrect because a virtual organization does keep a
small administrative staff. "Hiring people who specialize in what they do" is incorrect because
hiring people with specialties does not necessarily keep costs down. "Hiring fewer people than
they need" is incorrect because virtual organizations typically do not hire fewer workers than are
necessary.
Diff: 2
Objective: 6.3
Learning Outcome: Discuss factors influencing organizational structure decisions
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129) A building contractor follows the network organization model when he does which of the
following?
A) does the framing and tiling by himself
B) hires three workers to help with framing
C) gives orders to workers
D) farms out the plumbing to a plumbing firm
Answer: D
Explanation: D) A building contractor functions as a network organization when he farms out
work to others. The contractor, for example, may do one part of the job himself and subcontract
phases of the job that he is not qualified to do. This makes" farms out the plumbing" the correct
response. Doing the framing and tiling on his own, hiring workers, or issuing orders does not
qualify the contractor as a networker; that occurs only when he actually subcontracts a part of the
job to another organization or individual.
Diff: 3
Objective: 6.3
Learning Outcome: Discuss factors influencing organizational structure decisions
40
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131) A learning organization requires employees to ________.
A) encode information to prevent competitors from stealing ideas
B) collaborate with competitors
C) make all ideas public
D) share information and collaborate with one another
Answer: D
Explanation: D) Collaboration is critical to a learning organization, making "share information
and collaborate with one another" the correct response. Note that collaboration is limited to the
inside of the organization, making both "collaborate with competitors" and "make all ideas
public" incorrect. "Encode information" is wrong because it focuses on employees failing to
share information, something that a learning organization would not do.
Diff: 2
AACSB: Communication abilities
Objective: 6.4
Learning Outcome: Discuss the factors that affect how individuals behave and learn within an
organization
132) All of the following are characteristic of learning organizations EXCEPT ________.
A) a strong sense of community
B) a collaborative environment
C) managers who serve as facilitators
D) fear of making mistakes
Answer: D
Explanation: D) To function well, learning organizations need a strong sense of community and
skilled managers who facilitate collaboration. This leaves "fear of making mistakes" as the
correct response—learning organizations want their employees to be creative and recognize that
part of the creative process is to make mistakes.
Diff: 2
AACSB: Communication abilities
Objective: 6.4
Learning Outcome: Discuss the factors that affect how individuals behave and learn within an
organization
41
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133) Organizational learning can't take place without ________.
A) complete privacy for employees
B) a clear chain of command
C) a shared vision of the future
D) a stable structure or hierarchy
Answer: C
Explanation: C) Learning organizations are often boundaryless organizations in which such
things as chain of command, a rigid hierarchy, and excessive privacy are out of place. One thing
that learning organizations do require is a vision of the future to guide employees toward
common goals.
Diff: 2
AACSB: Communication abilities
Objective: 6.4
Learning Outcome: Discuss the factors that affect how individuals behave and learn within an
organization
42
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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.
135) 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
Answer: A
Explanation: A) Increasing the number of tasks that employees perform is an example of
becoming less specialized. It would not increase how many departments there are nor affect
authority relationships or decision making, so all of these choices would be incorrect.
Diff: 3
AACSB: Analytic thinking
Objective: 6.1
Learning Outcome: Discuss factors influencing organizational structure decisions
136) Eric, who is trained as an engineer, is now in a group with production workers and
marketing specialists from different departments designing a new product that the company plans
to offer. This situation could be described as a(n) ________.
A) alternative assignment
B) collective assignment
C) advanced assignment
D) project assignment
Answer: D
Explanation: D) Since Eric is working with employees from different departments, it appears
that he is working on a project team within a matrix structure. He will go on to design the new
product, then move back to his original position in the organization. None of the other terms
given here matches a recognized work structure, so they are incorrect.
Diff: 2
AACSB: Analytic thinking
Objective: 6.3
Learning Outcome: Discuss factors influencing organizational structure decisions
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137) Eric is offered a chance to help direct the efforts of some employees assigned to his work
group. This is a chance for Eric to experience ________.
A) functional structure
B) divisional structure
C) responsibility
D) authority
Answer: D
Explanation: D) By definition, authority gives an employee the right to direct the work of others
and give orders if necessary. This means that Eric is assuming authority. Assuming responsibility
would be just meeting organizational obligations. The other two choices are incorrect because
they refer to organizational design structures, not abilities that Eric might assume.
Diff: 2
AACSB: Analytic thinking
Objective: 6.1
Learning Outcome: Discuss factors influencing organizational structure decisions
138) 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
Answer: C
Explanation: C) Assuming authority is about giving orders and directing the work of others
while assuming responsibility is about fulfilling one's obligations with respect to the
organization. Since Eric is meeting expectations, "responsibility" is the correct response.
Diff: 2
AACSB: Analytic thinking
Objective: 6.1
Learning Outcome: Discuss factors influencing organizational structure decisions
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139) In a short essay, list and explain three key elements in designing an organization's structure.
Answer: (any three of the following)
Work specialization
This concept describes the degree to which tasks in an organization are divided into separate
jobs. The essence of work specialization is that an entire job is not done by one individual, but
instead is broken down into steps, with each step completed by a different person.
Departmentalization
The basis by which jobs are grouped together is called departmentalization. The five common
forms of departmentalization include functional, product, geographical, process, and customer
departmentalization.
Chain of command
This is the continuous line of authority that extends from upper organizational levels to the
lowest levels and clarifies who reports to whom. It helps employees answer questions such as
"Who do I go to if I have a problem?" and "To whom am I responsible?"
Span of control
The question of how many employees a manager can efficiently and effectively supervise is
important because, to a large degree, it determines the number of levels and managers an
organization has. Trends in today's organizations show wider spans of control that reflect better-
trained employees who are more independent and accountable.
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140) In a short essay, list and discuss three common forms of departmentalization.
Answer: (any three of the following)
Functional departmentalization
Jobs are grouped by the functions (i.e., marketing, finance, human resources) performed. This
approach can be used in all types of organizations, although the functions change to reflect the
organization's objectives and work activities.
Product departmentalization
Jobs are grouped by product line. In this approach, each major product area is placed under the
authority of a manager who is a specialist in, and is responsible for, everything having to do with
that product line. Examples might include men's shoes, women's shoes, men's clothing, women's
clothing, and so on.
Geographical departmentalization
Jobs are grouped on the basis of a territory or geography that is served. Territory might reflect
the location of employees, customers, plants, and so on.
Process departmentalization
This method groups jobs on the basis of product or customer flow. In this approach, work
activities follow a natural processing flow of product or even customers. An example of process
departmentalization is a motor vehicles office that is organized around a process that customers
use to obtain permits, licenses, and other services.
Customer departmentalization
Jobs are grouped on the basis of common customers who have common needs or problems that
can best be met by having specialists for each. An example of customer departmentalization
includes separate retail, wholesale, and government customers at a large firm.
Diff: 2
AACSB: Analytic thinking
Objective: 6.1
Learning Outcome: Discuss factors influencing organizational structure decisions
46
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141) In a short essay, list and discuss two contingency variables that should be considered in
determining an appropriate structure in organizational design.
Answer: (any two of the following)
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143) In a short essay, describe the characteristics of a functional structure.
Answer: A functional structure is an organizational design that groups similar or related
occupational specialties together. It is a functional approach to departmentalization applied to the
entire organization. For example, an organization could be structured by the separate functions of
operations, finance, human resources, marketing, and R&D. Strengths of a functional structure
include advantages from specialization—economies of scale and little redundancy. Weaknesses
of a functional structure involve employees putting the functional goals ahead of the goals of the
entire organization.
Diff: 2
AACSB: Analytic thinking
Objective: 6.3
Learning Outcome: Discuss factors influencing organizational structure decisions
145) In a short essay, describe the matrix structure. What are its advantages and disadvantages?
Answer: The matrix structure is an organizational structure that assigns specialists from
different functional departments to work on one or more projects being led by project managers.
Each product is managed by an individual who staffs his or her product team with people from
each of the functional departments. The addition of this vertical dimension to the traditional
horizontal functional departments, in effect, "weaves together" elements of functional and
product departmentalization, creating a matrix arrangement. One unique aspect of this design is
that it creates a dual chain of command, which violates the classical organizing principle of unity
of command. Employees in a matrix organization have two managers who share authority: their
functional area manager and their product or project manager. The project managers have
authority over the functional members who are part of their project team in areas related to the
project's goals. However, decisions such as promotions, salary recommendations, and annual
reviews typically remain the functional manager's responsibility. To work effectively, project
and functional managers have to communicate regularly, coordinate work demands on
employees, and resolve conflicts together.
Diff: 3
AACSB: Analytic thinking
Objective: 6.3
Learning Outcome: Discuss factors influencing organizational structure decisions
48
Copyright © 2015 Pearson Education, Inc.
146) In a short essay, describe the boundaryless organization.
Answer: Another approach to contemporary organizational design is the concept of a
boundaryless organization, an organization whose design is not defined by, or limited to, the
horizontal, vertical, or external boundaries imposed by a predefined structure. To minimize or
eliminate these boundaries, managers might use virtual or network structural designs. Advances
in technology have facilitated the movement toward more boundaryless organizations.
Diff: 2
AACSB: Analytic thinking
Objective: 6.4
Learning Outcome: Discuss factors influencing organizational structure decisions
147) In a short essay, describe a learning organization. What structural aspects does a learning
organization need?
Answer: A learning organization is an organization that has developed the capacity to
continuously learn, adapt, and change. In a learning organization, employees continually acquire
and share new knowledge and are willing to apply that knowledge in making decisions or
performing their work.
What structural aspects does a learning organization need? First, it is critical for members in a
learning organization to share information and collaborate on work activities throughout the
entire organization—across different functional specialties and even at different organizational
levels. To do this requires minimal structural and physical barriers. In such a boundaryless
environment, employees can work together and collaborate in doing the organization's work the
best way they can and learn from each other.
Finally, because of this need to collaborate, teams also tend to be an important feature of a
learning organization's structural design. Employees work in teams that are empowered to make
decisions about doing whatever work needs to be done or to resolve issues. With empowered
employees and teams, there is little need for "bosses" to direct and control. Instead, managers
serve as facilitators, supporters, and advocates.
Diff: 3
AACSB: Analytic thinking
Objective: 6.4
Learning Outcome: Discuss the factors that affect how individuals behave and learn within an
organization
49
Copyright © 2015 Pearson Education, Inc.
Another random document with
no related content on Scribd:
*$1.50 University press, Brookland, Washington,
D.C. 304
20–221
20–1611
“It is agreeable to say that Dr Ryan argues the living wage question
better than almost anybody else.”
“The story is lacking in form and consistency; the latter half, which
tells the love story, has the greater driving force. The character of
Laddie is, within limits, fairly clear and truthful. Mr Sadler’s method
is psychological, but not unduly so, and the story of the partial love
affairs which accompany his great love is done with some originality
and insight.”
20–18944
“Not the least stimulating portions are those devoted to the sailing
vessels in which the author has pursued his study of man and
nature.” Margaret Ashmun
“It makes one long for Stevenson, who could be frank and
downright enough, but never wrote with a leer.” E. L. Pearson
20–3413
“The descriptions are written in simple direct form, and are easily
understood and applied.”
20–100
“Real art here, with the scientist’s passion for strict accuracy. It is a
book for the whole family, a book to be kept and cherished and
handed on to the children as they grow old enough to appreciate it.”
Hildegarde Hawthorne
19–15405
“Here, then, is a book which few men, and no woman, could have
written, full of knowledge that comes of experience, and is therefore,
as a rule, useless to others—full of the ripe humour that characterizes
all the best things of the world.” R. S.
“No man could be less of a pedant. His erudition does not obtrude
itself; it merely supplies suitably evocative expressions; the bubbles
wink, and so does he. There is the very spirit of wine in the genial
ferocity with which he denounces those who would deprive him of
that good gift.”
20–4267
20–8649
The book has grown out of an earlier publication, ‘A course in
Zionism,’ now out of print. The present volume is more than twice
the size of the first and presents as many more problems and facts
concerning the Zionist movement. Its purpose is to serve not only for
individual perusal but as a text-book for groups of students. Of its
thirty-three chapters the first ten deal with Zionist theory, history
and organization, the next ten with more specialized phases of the
movement, and the last thirteen with Palestine. Each chapter is
followed by a short bibliography and there are important appendices,
a general bibliography, an index and illustrations.
20–8860
20–3787
“Whoever reads this book from cover to cover will surely agree that
no woman ever had a life of more varied experiences nor went
through them all with a stauncher courage.” So writes Mrs Sanchez
in the preface to this biography of her sister Fanny, wife of Robert
Louis Stevenson. There are thirteen chapters: Ancestors; Early days
in Indiana; On the Pacific slope; France, and the meeting at Grez; In
California with Robert Louis Stevenson; Europe and the British Isles;
Away to sunnier lands; The happy years in Samoa; The lonely days of
widowhood; Back to California; Travels in Mexico and Europe; The
last days at Santa Barbara. There are a number of portraits and other
illustrations. Letters from Henry James and others are quoted and
the book closes with an account of the services at Vailima in 1915
when the ashes of Mrs Stevenson were carried to her husband’s
resting place on the summit of Mount Vaea.
“One might venture to say she has written a manly book. She has
drawn the character of a frank and courageous woman with a
straightforwardness that would surely have pleased its possessor.”
+ The Times [London] Lit Sup p699 O 28
’20 2000w
19–19136
20–17899
The sections of this new book of poems are called Smoke nights,
People who must, Broken-face gargoyles, Playthings of the wind,
Mist forms, Accomplished facts, Passports, Circles of doors, Haze,
Panels. Some of the poems are reprinted from Poetry, the New
Republic, Liberator, and other periodicals.
“Mr Sandburg has no sense of the past, no vision of the future, and
so his reality is a little huddled bunch of dried-up aspects out of
which have escaped the aspects of life about which he is so
passionately concerned. This is a great pity, because I believe there is
no poet in the country who has by nature the qualities of spirit which,
if fused and blended in the proper alembic, would not make some of
the loveliest and most convincing poems of our day.” W: S.
Braithwaite
“Sandburg has lost (at least temporarily) the one and only thing
which makes him great—the ability to determine when he has
written something good. He now apparently believes that everything
he writes is a poem. He imitates Gary, and turns his product out on a
quantity basis.” Arthur Wilson
“‘Smoke and steel’ is longer than either of the earlier volumes, and
not so uniformly good. Over many pages, it must be admitted, Mr
Sandburg has rather obviously repeated himself, has put himself
through motions that were more profitable once than they are now.
But the book as a whole has great fascination and pull. Technically,
Mr Sandburg is as interesting as any poet alive.”