robbins chapter14

Essentials of Organizational Behavior, 10e (Robbins/Judge)Chapter 14 Foundations of Organization Structure

1) ________ defines how job tasks are formally divided, grouped, and coordinated.A) Organizational structureB) Work specializationC) DepartmentalizationD) Organizational behaviorE) Matrix departmentationAnswer: ADiff: 1 Page Ref: 212Topic: What Is Organizational Structure?

2) Organizational structure has six key elements. Which of the following is not one of these elements?A) centralizationB) departmentalizationC) work specializationD) formalizationE) location of authority Answer: EDiff: 2 Page Ref: 212Topic: What Is Organizational Structure?

3) Consultants Exceptional (CE) has hired you to develop training materials for their consultants. Your first assignment is to develop a training program that helps their consultants to analyze and understand the organizational structure of the company that they are assisting. CE believes that in order to adequately evaluate and understand a client company, consultants need to understand the basic organizational structure of the company. Consultants are then able to recommend actions and changes based on the company's structure. One of the questions you tell the trainees to ask is, "To what degree are tasks subdivided into separate jobs?" This question addresses the issue of ________.A) formalizationB) work specializationC) span of controlD) chain of commandE) matrix restructuringAnswer: BDiff: 2 Page Ref: Exh 14-1Topic: What Is Organizational Structure?AASCB Tag: Analytic Skills

1Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

4) ________ is addressed by asking the question, "On what basis are jobs grouped together?"A) DepartmentalizationB) Work specializationC) Centralization and decentralizationD) FormalizationE) Matrix restructuringAnswer: ADiff: 2 Page Ref: Exh 14-1Topic: What Is Organizational Structure?

5) Consultants Exceptional (CE) has hired you to develop training materials for their consultants. Your first assignment is to develop a training program that helps their consultants to analyze and understand the organizational structure of the company that they are assisting. CE believes that in order to adequately evaluate and understand a client company, consultants need to understand the basic organizational structure of the company. Consultants are then able to recommend actions and changes based on the company's structure. You instruct the trainees to ask about the degree of rules and regulations that direct employees and managers. You want to help them understand the ________.A) chain of commandB) degree of formalizationC) span of controlD) degree of departmentalizationE) idea of matrix restructuringAnswer: BDiff: 2 Page Ref: Exh 14-1Topic: What Is Organizational Structure?AASCB Tag: Reflective Thinking Skills

6) Work specialization is the same as ________.A) departmentalizationB) division of laborC) decentralizationD) job groupingE) chain commandAnswer: BDiff: 1 Page Ref: 213Topic: What Is Organizational Structure?


7) A task that is subdivided into many separate jobs is considered to have a ________.A) high degree of departmentalizationB) low degree of decentralizationC) high degree of work specializationD) low degree of structureE) high degree of matrix structuringAnswer: CDiff: 2 Page Ref: 213Topic: What Is Organizational Structure?

8) In the late 1940s, most manufacturing jobs in industrialized countries were being done with high ________.A) departmentalizationB) decentralizationC) work specializationD) structuralizationE) generalized structureAnswer: CDiff: 2 Page Ref: 213Topic: What Is Organizational Structure?

9) For much of the first half of the century, managers viewed work specialization as ________A) a means to encourage employee satisfactionB) a frustrating cause of reduced product outputC) an unending source of increased productivityD) difficult to implement without automation technologyE) an effective solution to over-centralizationAnswer: CDiff: 2 Page Ref: 213Topic: What Is Organizational Structure?

10) You have divided the jobs performed by your department through work specialization and are now trying to decide how to best group these jobs to improve efficiency and customer service. You are considering whether to group activities by function, product, process, geography, or customer. You have decided that since you are a novice at departmentalization, you will go with the most popular method. You will probably choose ________.A) functionB) productC) processD) customerE) matrixAnswer: ADiff: 2 Page Ref: 214Topic: What Is Organizational Structure?AASCB Tag: Analytic Skills


11) The basis by which jobs are grouped together is termed ________.A) social clusteringB) bureaucracyC) specializationD) centralizationE) departmentalizationAnswer: EDiff: 1 Page Ref: 214Topic: What Is Organizational Structure?

12) One of the most popular ways to group activities is by ________.A) productB) functionC) geographyD) processE) temporalityAnswer: BDiff: 2 Page Ref: 214Topic: What Is Organizational Structure?

13) Proctor & Gamble departmentalizes by Tide, Pampers, Charmin, and Pringles. This is an example of departmentalization by ________.A) functionB) processC) geographyD) productE) interestAnswer: DDiff: 1 Page Ref: 215Topic: What Is Organizational Structure?AASCB Tag: Analytic Skills

14) A plant manager who organizes the plant by separating engineering, accounting, manufacturing, personnel, and purchasing into departments is practicing ________ departmentalization.A) target-customerB) productC) functionalD) geographicE) graphicAnswer: CDiff: 2 Page Ref: 214-215Topic: What Is Organizational Structure?AASCB Tag: Analytic Skills


15) ________ departmentalization achieves economies of scale by placing people with common skills and orientations into common units.A) FunctionalB) ProcessC) ProductD) GeographicE) TemporalAnswer: ADiff: 2 Page Ref: 214-215Topic: What Is Organizational Structure?

16) Which one of the following is not one of the primary ways to group jobs?A) skillB) customerC) functionD) productE) processAnswer: ADiff: 2 Page Ref: 214-215Topic: What Is Organizational Structure?

17) Your company decides to establish southern, Midwestern, western, and eastern zones of operation. Based on this expansion, you decide to implement ________ departmentalization.A) areaB) customerC) geographyD) regionalE) matrixAnswer: CDiff: 1 Page Ref: 215Topic: What Is Organizational Structure?AASCB Tag: Analytic Skills

18) Your products fall into several categories with very different production methods for each category. Because of this, you might consider departmentalizing by ________.A) implementationB) methodC) productionD) processE) matrixAnswer: DDiff: 2 Page Ref: 215Topic: What Is Organizational Structure?AASCB Tag: Analytic Skills


19) You discover that your market is clearly divided between very different types of clients, with different support needs. To respond to this market diversity, you will probably choose to departmentalize by ________.A) functionalB) geographyC) supportD) customerE) matrixAnswer: DDiff: 1 Page Ref: 215Topic: What Is Organizational Structure?AASCB Tag: Analytic Skills

20) The unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom is termed ________.A) chain of commandB) authorityC) span of controlD) unity of commandE) web of authorityAnswer: ADiff: 2 Page Ref: 216Topic: What Is Organizational Structure?

21) The right inherent in a managerial position to give orders and expect orders to be obeyed is termed ________.A) chain of commandB) authorityC) powerD) unity of commandE) leadershipAnswer: BDiff: 2 Page Ref: 216Topic: What Is Organizational Structure?

22) The ________ principle helps preserve the concept of an unbroken line of authority.A) span-of-controlB) chain-of-commandC) cross-functionalityD) centralizationE) unity-of-command Answer: EDiff: 2 Page Ref: 216Topic: What Is Organizational Structure?


23) The unity-of-command principle states which of the following?A) Managers should limit their oversight to a maximum of 12 employees.B) Managers should oversee 1-4 employees on average.C) An individual should be directly responsible to only one supervisor.D) Managers should provide direction to their employees in a unified fashion.E) Employees should report directly to two supervisors to maintain task balance. Answer: CDiff: 2 Page Ref: 216Topic: What Is Organizational Structure?

24) The ________ refers to the number of subordinates that a manager directs.A) span of controlB) unity of commandC) chain of commandD) decentralization principleE) leadership webAnswer: ADiff: 2 Page Ref: 216Topic: What Is Organizational Structure?

25) As employees are being empowered to make decisions previously reserved for management, which concept of organizational structure has become less relevant?A) decentralizationB) maintaining the chain of commandC) centalizationD) span of controlE) departmentalizationAnswer: CDiff: 2 Page Ref: 216Topic: What Is Organizational Structure?

26) If you have a narrow span of control, you have a(n) ________ organization.A) efficientB) shortC) tallD) matrixE) fatAnswer: CDiff: 2 Page Ref: 216Topic: What Is Organizational Structure?


27) In reorganizing his division, Matthew must make some decisions regarding the span of control for management within his decision. The question of span of control determines ________.A) who reports to whomB) the number of levels and managers an organization hasC) where decisions are madeD) how jobs will be groupedE) how employees will be compensatedAnswer: BDiff: 2 Page Ref: 216Topic: What Is Organizational Structure?AASCB Tag: Analytic Skills

28) ________ are consistent with recent efforts by companies to reduce costs, cut overhead, speed up decision making, increase flexibility, get closer to customers, and empower employees.A) Wider spans of controlB) Narrower spans of controlC) Matrix structuresD) Simple structuresE) CentralizationAnswer: ADiff: 2 Page Ref: 216-217Topic: What Is Organizational Structure?

29) Which of the following is true regarding organizations that establish wide spans of control?A) At some point, employee performance increases substantially.B) At some point, supervisors become more efficient at providing support.C) At some point, wider spans of control reduce effectiveness.D) At some point, the organization becomes more formalized.E) At some point, the number of managers in the organization decreases.Answer: CDiff: 2 Page Ref: 217Topic: What Is Organizational Structure?


30) In observing the departments in his division, Matthew notices that some managers with wide spans of control seem to perform more effectively than other managers with similarly-sized spans of control. Which of the following statements is most likely true regarding the high-performing managers?A) These managers are paid higher salaries than the low-performing managers.B) These managers discourage employee autonomy, which produces more uniform departmental results.C) The employees within their departments tend to compete to reach productivity goals, which boosts performance.D) The employees within their departments have poor communication with each other.E) The employees within their departments are highly skilled and very knowledgeable about their jobs.Answer: EDiff: 3 Page Ref: 217Topic: What Is Organizational Structure?AASCB Tag: Analytic Skills

31) The best definition for centralization is a situation in which decision making ________.A) is pushed down to lower level employeesB) is concentrated at top management levels in the organizationC) depends on the situationD) is completed in each department and then sent to the president for reviewE) is diffused among a large segment of employeesAnswer: EDiff: 2 Page Ref: 217Topic: What Is Organizational Structure?

32) Which one of the following dichotomies of organizational structure specifically defines where decisions are made?A) complexity/simplicityB) formalization/informalizationC) centralization/decentralizationD) specialization/enlargementE) affectivity/reflexivityAnswer: CDiff: 2 Page Ref: 217Topic: What Is Organizational Structure?

33) Which of the following is a drawback of a narrow span of control? It ________.A) reduces effectivenessB) is more efficientC) encourages overly tight supervision and discourages employee autonomyD) empowers employeesE) increases participatory decision-makingAnswer: CDiff: 3 Page Ref: 216Topic: What Is Organizational Structure?


34) Which of the following is not a drawback of a narrow span of control?A) It is expensive.B) It makes vertical communication in the organization more complex.C) Supervisors may lose control of their employees.D) It encourages overly tight supervision.E) It discourages employee autonomy.Answer: CDiff: 3 Page Ref: 217Topic: What Is Organizational Structure?

35) The trend in recent years has been toward ________.A) narrower spans of controlB) wider spans of controlC) a span of control of fourD) an ideal span of control of six to eightE) eliminating spans of control in favor of team structuresAnswer: BDiff: 2 Page Ref: 217Topic: What Is Organizational Structure?

36) In an organization that has high centralization, ________.A) the corporate headquarters is located centrally to branch officesB) all top-level officials are located within the same geographic areaC) action can be taken more quickly to solve problemsD) new employees have a great deal of legitimate authorityE) top managers make all the decisions and lower-level managers merely carry out directionsAnswer: EDiff: 2 Page Ref: 217Topic: What Is Organizational Structure?

37) Your trainees are given a case study concerning a local manufacturing firm called Acme Products. In assessing Acme's organizational structure, your trainees notice that all of the company's decisions are made by top management, with little or no input from lower-level personnel. The trainees most likely identify Acme as a(n) ________ organization.A) decentralizedB) highly formalizedC) aggressively managedD) highly centralizedE) informally structuredAnswer: DDiff: 3 Page Ref: 217Topic: What Is Organizational Structure?AASCB Tag: Analytic Skills


38) Senior management at Acme is concerned because the company takes so long to bring new products to market. Which of the following approaches would your trainees identify as most likely to help resolve this problem?A) reduction of cross-functional work teamsB) decentralization of the decision-making processC) decreased work specializationD) decreased formalization of policies and proceduresE) reduced diversity within the company's work forceAnswer: BDiff: 2 Page Ref: 217Topic: What Is Organizational Structure?AASCB Tag: Reflective Thinking Skills

39) The more that lower-level personnel provide input or are actually given the discretion to make decisions, the more ________ there is within an organization.A) centralizationB) disempowermentC) work specializationD) departmentalizationE) decentralization Answer: EDiff: 2 Page Ref: 217Topic: What Is Organizational Structure?

40) If a job is highly formalized, it would not include which of the following?A) clearly defined procedures on work processesB) explicit job descriptionC) high employee job discretionD) a large number of organizational rulesE) a consistent and uniform outputAnswer: CDiff: 2 Page Ref: 218Topic: What Is Organizational Structure?

41) Employee discretion is inversely related to ________.A) complexityB) standardizationC) specializationD) departmentalizationE) empowermentAnswer: BDiff: 2 Page Ref: 218Topic: What Is Organizational Structure?


42) Which of the following is not a common organizational design?A) simple structureB) bureaucracyC) centralized structureD) matrix structureE) all of the aboveAnswer: CDiff: 2 Page Ref: 218Topic: Common Organizational Designs

43) ________ is characterized by a low degree of departmentalization, wide spans of control, authority centralized in a single person, and little formalizationA) BureaucracyB) Matrix organizationC) Simple structureD) Team structureE) Centralized structureAnswer: CDiff: 2 Page Ref: 219Topic: Common Organizational Designs

44) Which one of the following is consistent with a simple structure?A) high centralizationB) high horizontal differentiationC) high employee discretionD) standardizationE) bureaucracyAnswer: ADiff: 2 Page Ref: 219Topic: Common Organizational Designs

45) A ________ is a flat organization.A) bureaucracyB) centralized structureC) matrix structureD) simple structureE) virtual organizationAnswer: DDiff: 2 Page Ref: 219Topic: Common Organizational Designs


46) The simple structure is most widely practiced in small businesses in which ________.A) the owner also manages the companyB) management is limited to one individualC) managers have a high degree of influence with the company's ownerD) managers are hired directly by the company's ownerE) training budgets are limitedAnswer: ADiff: 2 Page Ref: 219Topic: Common Organizational Designs

47) The strength of the simple structure lies in its ________.A) efficiencyB) simplicityC) centralizationD) span of controlE) specializationAnswer: BDiff: 1 Page Ref: 219Topic: Common Organizational Designs

48) Which of the following is not a weakness of the simple structure?A) It is risky.B) It is prone to information overload.C) There is little unity of command.D) It can lead to slower decision making.E) It is often insufficient in larger organizations.Answer: CDiff: 2 Page Ref: 219Topic: Common Organizational Designs

49) You describe a structure that is flat, has little formalization, and is fast, flexible, and inexpensive to maintain. You are describing the ________.A) matrix structureB) simple structureC) bureaucracyD) team structureE) organizational pyramidAnswer: BDiff: 1 Page Ref: 219Topic: Common Organizational DesignsAASCB Tag: Analytic Skills


50) You assign your students a project that involves developing a business plan for a retail store. The store will have 200 employees and will serve customers both locally and internationally via a storefront and an Internet catalogue. Which of the following organizational designs is least likely to benefit the goals of this retail store?A) matrixB) virtualC) bureaucracyD) teamE) simpleAnswer: EDiff: 3 Page Ref: 219Topic: Common Organizational DesignsAASCB Tag: Reflective Thinking Skills

51) The key component underlying bureaucracies is ________.A) flexibilityB) standardizationC) dual lines of authorityD) wide span of controlE) the organizational pyramidAnswer: BDiff: 1 Page Ref: 219Topic: Common Organizational Designs

52) You extol the virtues and benefits of standardization. You are probably promoting the ________.A) matrix structureB) simple structureC) bureaucracyD) team structureE) organizational pyramidAnswer: CDiff: 2 Page Ref: 219Topic: Common Organizational DesignsAASCB Tag: Analytic Skills

53) A bureaucracy is characterized by all of the following EXCEPT ________.A) highly routine operating tasksB) formalized rules and regulationsC) tasks that are grouped into functional departmentsD) decentralized decision makingE) specializationAnswer: DDiff: 2 Page Ref: 219Topic: Common Organizational Designs


54) The structure that combines functional and product departmentalization is the ________.A) matrix structureB) simple structureC) bureaucracyD) team structureE) organizational pyramidAnswer: ADiff: 2 Page Ref: 220Topic: Common Organizational Designs

55) The matrix structure combines which two forms of departmentalization?A) process and functionalB) functional and productC) product and processD) process and geographicE) geographic and productAnswer: BDiff: 2 Page Ref: 220Topic: Common Organizational Designs

56) You describe to your students a new committee within the university that brings together specialists from all different departments to develop a new interdisciplinary program. The structure probably best meets the definition of the ________.A) matrix structureB) expert structureC) boundaryless structureD) virtual structureE) organizational pyramidAnswer: ADiff: 3 Page Ref: 220Topic: Common Organizational DesignsAASCB Tag: Analytic Skills

57) The structure that creates dual lines of authority is the ________.A) organizational structureB) bureaucracyC) matrix structureD) virtual organizationE) simple structureAnswer: CDiff: 2 Page Ref: 220Topic: Common Organizational Designs


58) The ________ structure violates the unity of command concept.A) simple B) virtual C) matrix D) team E) webAnswer: CDiff: 2 Page Ref: 220Topic: Common Organizational Designs

59) Which one of the following problems is most likely to occur in a matrix structure?A) decreased response to environmental changeB) decreased employee motivationC) loss of economies of scaleD) increases in groupthinkE) employees receiving conflicting directivesAnswer: EDiff: 2 Page Ref: 220Topic: Common Organizational DesignsAASCB Tag: Analytic Skills

60) The strength of the matrix structure is its ________.A) ability to facilitate coordinationB) economies of scaleC) adherence to chain of commandD) standardizationE) social empowermentAnswer: ADiff: 2 Page Ref: 220Topic: Common Organizational Designs

61) A major disadvantage of the matrix structure is ________.A) the confusion it createsB) its simplicityC) its rigid adherence to the unity of commandD) its centralizationE) its rigid role expectationsAnswer: ADiff: 2 Page Ref: 220Topic: Common Organizational Designs


62) The virtual is also called the ________ or ________ organization.A) network; modularB) team; social C) pyramid; multi-levelD) boundaryless; global E) simple; unitaryAnswer: ADiff: 2 Page Ref: 221Topic: New Design Options

63) You have decided to hire other organizations to perform many of the basic functions of your business. You have hired an accounting firm to keep your records, a recruiting firm to handle human resource functions, and a computer firm to handle all records. To keep costs down, you are looking for other areas in which to outsource operations. You have chosen to operate your business as a ________.A) matrix organizationB) virtual organizationC) team structureD) boundaryless structureE) organizational pyramidAnswer: BDiff: 2 Page Ref: 221-222Topic: New Design OptionsAASCB Tag: Analytic Skills

64) Your new organization is looking for maximum flexibility. The most appropriate structure is probably the ________.A) matrix organizationB) virtual organizationC) team structureD) network structureE) organizational pyramidAnswer: BDiff: 2 Page Ref: 222Topic: New Design OptionsAASCB Tag: Analytic Skills


65) A small, core organization that outsources major business functions is a ________ organization.A) teamB) virtualC) boundarylessD) matrixE) simpleAnswer: BDiff: 2 Page Ref: 222Topic: New Design Options

66) The virtual organization stands in sharp contrast to the typical bureaucracy that has many vertical levels of management and where control is sought through ________.A) ownershipB) teamsC) imposing limitsD) directivesE) manipulationAnswer: ADiff: 2 Page Ref: 222Topic: New Design Options

67) The primary drawback of the virtual organization isA) the reduction in management's control over key parts of its business.B) the reliance on the founder/manager of the business.C) the wide spans of control.D) the long chain of command.E) the lack of flexibility.Answer: ADiff: 2 Page Ref: 223Topic: New Design Options

68) The boundaryless organization relies heavily on ________.A) information technologyB) efficient chains of commandC) the simple structureD) the matrix structureE) departmentalizationAnswer: ADiff: 2 Page Ref: 223Topic: New Design Options


69) You have eliminated horizontal, vertical, and external barriers within your organization. You are operating as a(n) ________.A) matrix organizationB) virtual organizationC) team structureD) boundaryless organizationE) organizational pyramidAnswer: DDiff: 2 Page Ref: 223Topic: New Design OptionsAASCB Tag: Analytic Skills

70) The major advantage of the virtual organization is its ________.A) controlB) predictabilityC) flexibilityD) empowermentE) complexityAnswer: CDiff: 2 Page Ref: 223Topic: New Design Options

71) Which organizational design has been called the T-form?A) matrix organizationB) virtual organizationC) team structureD) boundaryless organizationE) bureaucracyAnswer: DDiff: 2 Page Ref: 223Topic: New Design Options

72) The ________ is a structure characterized by extensive departmentalization, high formalization, a limited information network, and centralization.A) mechanistic modelB) organic modelC) traditional modelD) bureaucracy organizationE) simple structureAnswer: ADiff: 2 Page Ref: 224Topic: Why Do Structures Differ?


73) If there is low formalization, a comprehensive information network, and high participation in decision making, one would expect a(n) ________ structure.A) simple B) mechanistic C) organic D) stable E) matrixAnswer: CDiff: 2 Page Ref: 224Topic: Why Do Structures Differ?AASCB Tag: Analytic Skills

74) Which of the following is not a determinant of an organization's structure?A) strategyB) organization sizeC) size of revenuesD) technologyE) environmentAnswer: CDiff: 2 Page Ref: 224Topic: Why Do Structures Differ?

75) All of the following are characteristics of the organic model EXCEPTA) cross-functional teamsB) narrow spans of controlC) cross-hierarchical teamsD) high participation in decision makingE) flatness Answer: BDiff: 2 Page Ref: Exh 14-6Topic: Why Do Structures Differ?

76) Which of the following is NOT a characteristic of the mechanistic model?A) high specializationB) free flow of informationC) centralizationD) high formalizationE) narrower spans of control Answer: BDiff: 2 Page Ref: Exh 14-6Topic: Why Do Structures Differ?


77) A strategy that emphasizes the introduction of major new products and services is a(n) ________ strategy.A) innovationB) enhancementC) progressiveD) organicE) matrixAnswer: ADiff: 2 Page Ref: 225Topic: Why Do Structures Differ?

78) A company oriented around cost minimization is best served by which type of structure?A) virtualB) combinationC) mechanisticD) organicE) targetedAnswer: CDiff: 2 Page Ref: 225Topic: Why Do Structures Differ?

79) Wal-Mart is an example of a company following aA) innovation strategy.B) cost-minimization strategy.C) imitation strategy.D) branding strategy.E) differentiation strategy.Answer: BDiff: 1 Page Ref: 225Topic: Why Do Structures Differ?

80) ________ refers to how an organization transfers its inputs into outputs.A) ProductionB) TechnologyC) OperationsD) ProcessE) EffectivenessAnswer: BDiff: 3 Page Ref: 225Topic: Why Do Structures Differ?


81) Which of the following is not part of an organization's environment?A) public pressure groupsB) customersC) employeesD) competitorsE) government regulatory agenciesAnswer: CDiff: 2 Page Ref: 225Topic: Why Do Structures Differ?

82) Which of the following does not reflect a dynamic environment?A) new competitorsB) difficulties in acquiring raw materialsC) rapidly changing government regulations affecting businessD) no new technological breakthroughs by current competitorsE) continually changing produce preferences by customersAnswer: DDiff: 3 Page Ref: 226Topic: Why Do Structures Differ?AASCB Tag: Analytic Skills

83) Which of the following generalizations about organizational structures and employee performance and satisfaction is most accurate?A) There is fairly strong evidence linking decentralization and job satisfaction.B) No evidence supports a relationship between span of control and employee performance.C) The evidence generally indicates that work specialization contributes to lower employee productivity.D) Employees dislike routine work that makes minimal intellectual demands.E) Large spans of control provide more distant supervision, thereby increasing employee productivity.Answer: BDiff: 3 Page Ref: 227Topic: Organizational Designs and Employee Behavior

84) Which organizational structure still dominates in many parts of Europe and Asia?A) simple structureB) bureaucracyC) virtual organizationD) boundaryless organizationE) matrixAnswer: BDiff: 3 Page Ref: 228Topic: Global ImplicationsAASCB Tag: Multicultural and Diversity Understanding


85) Managers need to address six key elements when they design their organization's structure: work specialization, departmentalization, chain of command, chain of control, centralization and decentralization, and formalization.Answer: FALSEDiff: 2 Page Ref: 212Topic: What Is Organizational Structure?

86) The degree to which tasks in the organization are subdivided into separate jobs is termed departmentalization.Answer: FALSEDiff: 2 Page Ref: Exh 14-1Topic: What Is Organizational Structure?

87) Specialization defines how job tasks are formally defined, grouped, and coordinated.Answer: FALSEDiff: 2 Page Ref: 213Topic: What Is Organizational Structure?

88) Work specialization may result in employee boredom, stress, and absenteeism.Answer: TRUEDiff: 1 Page Ref: 213Topic: What Is Organizational Structure?

89) For much of the first half of this century, managers viewed departmentalization as promoting increased productivity.Answer: FALSEDiff: 2 Page Ref: 213Topic: What Is Organizational Structure?

90) The strength of functional departmentalization lies in the efficiencies obtained by putting similar specialists together.Answer: TRUEDiff: 2 Page Ref: 215Topic: What Is Organizational Structure?

91) Only one form of departmentalization can effectively be implemented in an organization at a time.Answer: FALSEDiff: 2 Page Ref: 215Topic: What Is Organizational Structure?

92) The inherent right in a managerial position to give orders and expect the orders to be obeyed is termed power.Answer: FALSEDiff: 2 Page Ref: 216Topic: What Is Organizational Structure?


93) Departmentalization answers questions for employee such as "To whom do I go if I have a problem?"Answer: FALSEDiff: 2 Page Ref: 216Topic: What Is Organizational Structure?

94) The unbroken line of authority that extends from the top of the organization to the lowest echelon is termed the command line of authority.Answer: FALSEDiff: 1 Page Ref: 216Topic: What Is Organizational Structure?

95) The principle of unity of command suggests that managers should support one another.Answer: FALSEDiff: 1 Page Ref: 216Topic: What Is Organizational Structure?

96) Span of command determines the number of levels and managers an organization has.Answer: FALSEDiff: 2 Page Ref: 216Topic: What Is Organizational Structure?

97) All things being equal, the wider or larger the span of control, the more profitable the organization.Answer: FALSEDiff: 3 Page Ref: 216Topic: What Is Organizational Structure?

98) Flat organizational structures result from narrow spans of control.Answer: FALSEDiff: 3 Page Ref: 216Topic: What Is Organizational Structure?

99) Narrow spans of control can result in lack of supervision, causing performance to suffer.Answer: FALSEDiff: 2 Page Ref: 216Topic: What Is Organizational Structure?

100) Having too many people report to you can undermine your effectiveness as a manager.Answer: TRUEDiff: 1 Page Ref: 216Topic: What Is Organizational Structure?

101) The trend in recent years has been toward wider spans of control.Answer: TRUEDiff: 1 Page Ref: 217Topic: What Is Organizational Structure?


102) The more that lower-level personnel provide input or are actually given the discretion to make decisions, the more decentralized the organization.Answer: TRUEDiff: 2 Page Ref: 217Topic: What Is Organizational Structure?

103) A decentralized organization is more likely to result in a feeling of alienation by employees than a centralized organization.Answer: FALSEDiff: 3 Page Ref: 218Topic: What Is Organizational Structure?

104) There has been a marked trend toward centralization in business decision making.Answer: FALSEDiff: 2 Page Ref: 218Topic: What Is Organizational Structure?

105) An increase in the number of rules and regulations results in increased formalization.Answer: TRUEDiff: 1 Page Ref: 218Topic: What Is Organizational Structure?

106) The greater the formalization of an organization, the more input an employee has into how his or her work is done.Answer: FALSEDiff: 3 Page Ref: 218Topic: What Is Organizational Structure?

107) Autonomy and formalization are positively related.Answer: FALSEDiff: 2 Page Ref: 218Topic: What Is Organizational Structure?AASCB Tag: Analytic Skills

108) The simple structure is flexible and inexpensive to maintain, but its chain of command is often ambiguous.Answer: FALSEDiff: 2 Page Ref: 219Topic: Common Organizational Designs

109) A major strength of the simple structure is that it easily adapts to any size organization.Answer: FALSEDiff: 2 Page Ref: 219Topic: Common Organizational Designs


110) One disadvantage of the simple structure is its high risk.Answer: TRUEDiff: 3 Page Ref: 219Topic: Common Organizational Designs

111) The strength of the bureaucracy lies in its ability to perform standardized activities.Answer: TRUEDiff: 2 Page Ref: 219Topic: Common Organizational Designs

112) A major weakness of the bureaucracy is that specialization creates sub-unit conflicts.Answer: TRUEDiff: 2 Page Ref: 219Topic: Common Organizational Designs

113) The bureaucracy is efficient only as long as employees confront problems brought about by programmed decision rules.Answer: TRUEDiff: 1 Page Ref: 220Topic: Common Organizational Designs

114) The matrix structure is characterized by highly routine operating tasks achieved through specialization.Answer: FALSEDiff: 2 Page Ref: 220Topic: Common Organizational Designs

115) A structure that creates dual lines of authority and combines functional and product departmentalization is the matrix structure.Answer: TRUEDiff: 1 Page Ref: 220Topic: Common Organizational Designs

116) The matrix structure facilitates the allocation of specialists.Answer: TRUEDiff: 3 Page Ref: 220Topic: Common Organizational Designs

117) The major disadvantage of the matrix is the propensity for functional unit goals to override organizational goals.Answer: FALSEDiff: 3 Page Ref: 221Topic: Common Organizational Designs


118) You have decided to hire a small shop to do all of your duplicating and printing. This is an example of outsourcing.Answer: TRUEDiff: 2 Page Ref: 221Topic: New Design Options

119) The matrix organization is also called the network or modular organization.Answer: FALSEDiff: 3 Page Ref: 221Topic: New Design Options

120) The virtual organization is effective at reinforcing management control over business operations.Answer: FALSEDiff: 2 Page Ref: 222Topic: New Design Options

121) The major advantage to the virtual organization is its flexibility.Answer: TRUEDiff: 1 Page Ref: 223Topic: New Design Options

122) An organization that seeks to eliminate the chain of command is a boundaryless organization.Answer: TRUEDiff: 1 Page Ref: 223Topic: New Design Options

123) Status and rank are minimized in the boundaryless organization.Answer: TRUEDiff: 2 Page Ref: 223Topic: New Design Options

124) Globalization serves to reinforce external boundaries within organizations.Answer: FALSEDiff: 3 Page Ref: 223Topic: New Design Options

125) The technological thread that makes the boundaryless organization possible is wireless communications.Answer: FALSEDiff: 2 Page Ref: 223Topic: New Design OptionsAASCB Tag: Use of Information Technology


126) An organic model of structure is characterized by extensive departmentalization, high formalization, a limited information network, and centralization.Answer: FALSEDiff: 1 Page Ref: 224Topic: Why Do Structures Differ?

127) The boundaryless organization is an example of the organic model of organizational design.Answer: TRUEDiff: 1 Page Ref: 224Topic: Why Do Structures Differ?

128) Mechanistic structures are high in formalization.Answer: TRUEDiff: 1 Page Ref: 224Topic: Why Do Structures Differ?

129) Businesses structured according to the mechanistic model usually have high employee participation in decision making.Answer: FALSEDiff: 2 Page Ref: 224Topic: Why Do Structures Differ?

130) An organization's business strategy is usually determined by the organization's business structure.Answer: FALSEDiff: 1 Page Ref: 224Topic: Why Do Structures Differ?

131) An innovation strategy works well only for businesses organized within a simple structure.Answer: FALSEDiff: 2 Page Ref: 225Topic: Why Do Structures Differ?

132) Businesses using innovation strategy seek to quickly move into new markets after the viability of those markets has been proven.Answer: FALSEDiff: 2 Page Ref: 225Topic: Why Do Structures Differ?

133) An organization pursues a price-minimization strategy by controlling costs, avoiding unnecessary innovation or marketing expenses, and cutting prices in selling basic products.Answer: FALSEDiff: 2 Page Ref: 225Topic: Why Do Structures Differ?


134) The size of an organization affects the organization's structure at a decreasing rate of impact.Answer: TRUEDiff: 3 Page Ref: 225Topic: Why Do Structures Differ?

135) Adding 500 employees to an organization that has only 300 members is likely to result in a shift toward a more organic structure.Answer: FALSEDiff: 3 Page Ref: 225Topic: Why Do Structures Differ?AASCB Tag: Analytic Skills

136) Technology is associated with how an organization transfers its inputs into outputs.Answer: TRUEDiff: 2 Page Ref: 225Topic: Why Do Structures Differ?

137) Organizations operating in highly scarce, dynamic, and complex environments fare best if under organic structures.Answer: TRUEDiff: 3 Page Ref: 226Topic: Why Do Structures Differ?

138) Organizational structure has little bearing on employee attitudes and behavior.Answer: FALSEDiff: 1 Page Ref: 226Topic: Organizational Designs and Employee Behavior

139) Research supports the notion that employees prefer organic business structures.Answer: FALSEDiff: 2 Page Ref: 226-227Topic: Organizational Designs and Employee Behavior

140) Organizations that are less centralized have greater employee input in business decision making.Answer: TRUEDiff: 1 Page Ref: 227Topic: Organizational Designs and Employee Behavior

141) What is organizational structure?Answer: An organizational structure defines how job tasks are formally divided, grouped, and coordinated. The elements that must be addressed are work specialization, departmentalization, chain of command, span of control, centralization and decentralization, and formalization. Page Ref: 212Topic: What Is Organizational Structure?


142) Explain the organizational component of work specialization. Discuss its advantages and drawbacks.Answer: The essence of work specialization is that, rather than an entire job being done by one individual, it is broken down into a number of steps, with each step being completed by a separate individual. In essence, individuals specialize in doing part of an activity rather than the entire activity. Management saw this as a means to make the most efficient use of its employees' skills. In most organizations, some tasks require highly developed skills and others can be performed by untrained workers. If all workers were engaged in each step of, say, an organization's manufacturing process, all would have to have the skills necessary to perform both the most demanding and the least demanding jobs. The result would be that, except when performing the most skilled or highly complex tasks, employees would be working below their skill levels. And because skilled workers are paid more than unskilled workers and their wages tend to reflect their highest level of skill, it represents an inefficient use of organizational resources to pay highly skilled workers to do easy tasks.

Managers also saw other efficiencies that could be achieved through work specialization. Employee skills at performing a task successfully increase through repetition. Less time is spent in changing tasks, in putting away one's tools and equipment from a prior step in the work process, and in getting ready for another. Equally important, training for specialization is more efficient from the organization's perspective. It's easier and less costly to find and train workers to do specific and repetitive tasks.

For much of the first half of the twentieth century, managers viewed work specialization as an unending source of increased productivity. And they were probably right. Because specialization was not widely practiced, its introduction almost always generated higher productivity. But by the 1960s, there came increasing evidence that a good thing can be carried too far. The point had been reached in some jobs at which the human diseconomies from specializationwhich surfaced as boredom, fatigue, stress, low productivity, poor quality, increased absenteeism, and high turnovermore than offset the economic advantages.

Most managers today see work specialization as neither obsolete nor an unending source of increased productivity. Rather, managers recognize the economies it provides in certain types of jobs and the problems it creates when it's carried too far. Page Ref: 213-214Topic: What Is Organizational Structure?


143) What is departmentalization? What are five common ways that an organization can group activities? Give an example of each.Answer: The basis by which jobs are grouped together is called departmentalization. Tasks can be grouped by function performed, the type of product the organization produces, on the basis of geography or territory, process used, or by the particular type of customer the organization seeks to reach. One of the most popular ways to group activities is by functions performed. A manufacturing manager might organize his or her plant by separating engineering, accounting, manufacturing, personnel, and supply specialists into common departments. Tasks can also be departmentalized by type of product the organization produces. Procter & Gamble is organized along these lines. Each major product is placed under the authority of an executive who has complete global responsibility for that product. Another way to departmentalize is on the basis of geography or territory. The sales function, for instance, may have western, southern, mid-western, and eastern regions. Each of these regions is, in effect, a department organized around geography. Process departmentalization can be used to group departments. At an Alcoa aluminum tubing plant in upstate New York, production is organized into five departments: casting; press; tubing; finishing; and inspecting, packing, and shipping. Each department specializes in one specific phase in the production of aluminum tubing. A final category is to use the particular type of customer the organization seeks to reach. Microsoft recently reorganized around four customer markets: consumers, large corporations, software developers, and small businesses. Page Ref: 214-215Topic: What Is Organizational Structure?

144) What is the chain of command within an organization?Answer: The chain of command is an unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom. It answers questions for employees such as "To whom do I go if I have a problem?" and "To whom am I responsible?" The two complementary concepts are authority and unity of command. Authority refers to the rights inherent in a managerial position to give orders and expect the orders to be obeyed. The unity of command principle helps preserve the concept of an unbroken line of authority. It states that a person should have one and only one superior to whom he or she is directly responsible. Page Ref: 215-216Topic: What Is Organizational Structure?

145) Why is span of control important within an organization?Answer: The question of span of control is important because, to a large degree, it determines the number of levels and managers an organization has. It answers the question "How many employees can a manager efficiently and effectively direct?" All things being equal, the wider or larger the span of control, the more efficient the organization. Page Ref: 216Topic: What Is Organizational Structure?


146) What is the difference between centralization and decentralization?Answer: The term centralization refers to the degree to which decision making is concentrated at a single point in the organization. The concept includes only formal authority, that is, the rights inherent in one's position. The more that lower-level personnel provide input or are actually given the discretion to make decisions, the more decentralization there is. An organization characterized by centralization is an inherently different structural animal from one that is decentralized. In a decentralized organization, action can be taken more quickly to solve problems, more people provide input into decisions, and employees are less likely to feel alienated from those who make the decisions that affect their work lives. Page Ref: 217-219Topic: What Is Organizational Structure?

147) Describe the three common organizational designs: simple structure, bureaucracy, and matrix structure.Answer: The simple structure is said to be characterized most by what it is not rather than what it is. The simple structure is not elaborate. It has a low degree of departmentalization, wide spans of control, authority centralized in a single person, and little formalization. The simple structure is a "flat" organization; it usually has only two or three vertical levels, a loose body of employees, and one individual in whom the decision-making authority is centralized. Standardization is the key concept that underlies the bureaucracy. It is characterized by highly routine operating tasks achieved through specialization, very formalized rules and regulations, tasks that are grouped into functional departments, centralized authority, narrow spans of control, and decision making that follows the chain of command. The matrix combines two forms of departmentalization: functional and product. It breaks the unity-of-command concept. Employees in the matrix have two bossestheir functional department managers and their product managers. Therefore, the matrix has a dual chain of command. Page Ref: 218-221Topic: Common Organizational Designs

148) Explain the virtual organization and the boundaryless organization.Answer: The virtual organization is sometimes called the network or modular organization. Typically, a small, core organization outsources major business functions. In structural terms, the virtual organization is highly centralized, with little or no departmentalization. Why own when you can rent is the question that captures the essence of the virtual organization. Jack Welch coined the term boundaryless organization to describe his idea of what he wanted GE to become. He wanted to eliminate vertical and horizontal boundaries within GE and break down external barriers between the company and its customers and suppliers. The boundaryless organization seeks to eliminate the chain of command, have limitless spans of control, and replace departments with empowered teams. Because it relies so heavily on information technology, some have called this structure the T-form or technology-based organization. By removing vertical boundaries, management flattens the hierarchy. Status and rank are minimized.Page Ref: 221-222Topic: New Design Options


149) What is the difference between the mechanistic model and the organic model of organizational structure?Answer: The mechanistic model is generally synonymous with the bureaucracy in that it has extensive departmentalization, high formalization, a limited information network (mostly downward communication), and little participation by low-level members in decision making. At the other extreme is the organic model. This model looks a lot like the boundaryless organization. It is flat, uses cross-hierarchical and cross-functional teams, has low formalization, possesses a comprehensive information network and it involves high participation in decision making. Page Ref: 224 and Exh14-6Topic: Why Do Structures Differ?

150) Explain the implications of different organizational designs for employee behavior.Answer: A review of the evidence linking organizational structures to employee performance and satisfaction leads to a pretty clear conclusion ∙ you can't generalize. Not everyone prefers the freedom and flexibility of organic structures. Individual differences must be addressed. The evidence generally indicates that work specialization contributes to higher productivity but at the price of reduced job satisfaction. Work specialization is not an unending source of higher productivity. Problems start to surface, and productivity begins to suffer, when the human diseconomies of doing repetitive and narrow tasks overtake the economies of specialization. As the workforce has become more highly educated and desirous of jobs that are intrinsically rewarding, the point where productivity begins to decline seems to be reached more quickly than in decades past. Negative behavioral outcomes from high specialization are most likely to surface in professional jobs occupied by individuals with high needs for personal growth and diversity.

A review of the research indicates that it is probably safe to say there is no evidence to support a relationship between span of control and employee performance. There is some evidence indicating that a manager's job satisfaction increases as the number of employees he or she supervises increases.

Fairly strong evidence has linked centralization and job satisfaction. In general, organizations that are less centralized have a greater amount of participative decision making. Participative decision making is positively related to job satisfaction. But, again, individual differences surface. The decentralization-satisfaction relationship is strongest with employees who have low self-esteem. Because individuals with low self-esteem have less confidence in their abilities, they place a higher value on shared decision making, which means that they're not held solely responsible for decision outcomes. To maximize employee performance and satisfaction, individual differences, such as experience, personality, and the work tasks, should be taken into account. Page Ref: 226-227Topic: Organizational Designs and Employee Behavior


robbins chapter14

Documents