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Chapter 10 Organizational Structure and DesignTRUE/FALSE QUESTIONSDEFINING ORGANIZATIONAL STRUCTURE1. Organizational design is the organizations formal framework by which job tasks are divided, grouped, and coordinated.(False; difficult; p. 266)2. Organizational structure is the degree to which tasks in an organization are divided into separate jobs.(False; moderate; p. 266)3. The concept of work specialization can be traced back a couple of centuries to Adam Smiths discussion of division of labor.(True; moderate; p. 267)4. Originally, when work specialization was implemented, employee productivity rose because it wasnt widely used.(True; moderate; p. 267)5. Today, most managers see work specialization as a source of ever-increasing productivity.(False; moderate; p. 267)6. Grouping jobs on the basis of product or customer flow is termed customer departmentalization.(False; moderate; p. 268)7. When decisions tend to be made at lower levels in an organization, the organization is said to be decentralized.(True; moderate; p. 272)8. The concept of centralization-decentralization is absolute.(False; moderate; p. 272)9. When effective implementation of company strategies depends on managers having involvement and flexibility to make decisions, the company is probably more decentralized.(True; moderate; p. 272)10. A term for increased decentralization is employee empowerment, which is giving employees more authority to make decisions.(True; easy; p. 273)11. The degree of formalization varies widely between organizations and even within organizations. (True; moderate; p. 274)12. Many of todays organizations are extremely reliant on strict rules and standardization to guide and regulate employee behavior.(False; moderate; p. 274)ORGANIZATIONAL DESIGN DECISIONS13. An organic organization tends to be characterized by high specialization, extensive departmentalization, narrow spans of control, high formalization, a limited information network, and little participation in decision making by low-level employees.(False; moderate; p. 275)14. An organic organization would likely be very flexible.(True; moderate; p. 275)15. Innovators need the efficiency, stability, and tight controls of the mechanistic structure.(False; easy; p. 276)16. The relationship between organizational size and structure tends to be linear.(False; difficult; p. 276)17. Joan Woodward attempted to view organizational structure from a technological perspective.(True; moderate; p. 276; AACSB: Technology)18. Woodwards findings support that there is “one best way” to organize a manufacturing firm.(False; moderate; p. 277; AACSB: Technology)19. Since Woodwards initial work, numerous studies have demonstrated that organizations adapt their structures to their technology.(True; moderate; p. 277; AACSB: Technology)COMMON ORGANIZATIONAL DESIGNS20. The strength of the functional structure is that it focuses on results.(False; moderate; p. 278)21. A simple structure is an organizational design that groups similar or related occupational specialties together.(False; easy; p. 279)22. In divisional structures, the parent corporation typically acts as an external overseer to coordinate and control the various divisions.(True; easy; p. 279)23. Employee empowerment is a crucial aspect of team structure because there is no line of managerial authority from top to bottom.(True; moderate; p. 279)24. A matrix design creates a dual chain of demand.(True; easy; p. 281)25. Project structures tend to be rigid and inflexible organizational designs.(False; easy; p. 281)26. Internal boundaries are boundaries that separate the organization from its customers, suppliers, and other stakeholders.(False; moderate; p. 282)27. To minimize or eliminate boundaries, managers might use virtual or network structural designs.(True; easy; p. 282)28. The inspiration of the virtual organization structural approach is the film industry.(True; moderate; p. 282)29. Many organizational design concepts are not applicable to twenty-first century companies.(True; moderate; p. 283)30. It is critical for members in a virtual organization to collaborate on work activities throughout the entire organization.(False; moderate; p. 284)MULTIPLE-CHOICE QUESTIONSFor each of the following choose the answer that most completely answers the question.DEFINING ORGANIZATIONAL STRUCTURE 31. _ is the formal arrangement of jobs within an organization.a. Departmentalizationb. Organizational designc. Organizational structured. Work specialization(c; easy; p. 266)32. Organizational design is based on decisions about _.a. work specialization and mechanismsb. chain of command and span of controlc. centralization and matrices d. strategy and structure(b; moderate; p. 266)33. In describing the degree to which tasks in an organization are divided into separate jobs, managers use the term _.a. work specialization b. departmentalization c. chain of command d. span of control(a; moderate; p. 267)34. 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. It clarifies who reports to whom. (b; difficult; p. 267)35. During the _, managers viewed work specialization as an unending source of increased productivity.a. first half of the twentieth centuryb. 1960sc. 1970s and 1980sd. 1990s and beginning of the twenty-first century(a; moderate; p. 267)36. In some jobs, _ work specialization more than offset the economic advantages.a. distrust ofb. human diseconomies fromc. disgust ofd. employees excitement about (b; difficult; p. 267) 37. On what basis are jobs grouped in order to accomplish organizational goals?a. departmentalization b. centralizationc. formalizationd. coordination(a; moderate; p. 268)38. Functional departmentalization groups jobs by _. a. tasks they performb. territories they serve c. products or services they manufacture or produce d. type of customer they serve(a; moderate; p. 268)39. Departmentalization based on _ groups jobs is based on the territory or physical location.a. functional b. productc. geographicd. matrix (c; easy; p. 268)40. _ departmentalization is based on the product or customer flow through the organization.a. Productb. Functionalc. Processd. Organizational structure (c; moderate; p. 268)41. What kind of departmentalization would be in place in a government organization where different public service responsibilities are divided into activities for employers, children, and the disabled?a. productb. geographicc. outcomed. customer (d; moderate; p. 268)42. _ departmentalization is used more in recent years to better monitor the needs of customers and to respond to changes in those needs.a. Needs-basedb. Functionalc. Processd. Customer (d; moderate; p. 268)43. Work teams composed of individuals from various functional specialties are known as _ teams.a. differentiatedb. productc. cross-functionald. weak(c; moderate; p. 268)44. The line of authority that extends from the upper levels of management to the lowest levels of the organization is _.a. authorized line of responsibilityb. unity of commandc. responsibility factord. chain of command(d; moderate; p. 270)45. _ refers to the rights inherent to a position that allows a manager to tell subordinates what to do and expect them to do it.a. Responsibility b. Unity of commandc. Chain of commandd. Authority (d; moderate; p. 270)46. _ is the obligation or expectation to perform a duty.a. Responsibilityb. Unity of commandc. Chain of commandd. Span of control(a; moderate; p. 270) 47. Which one of Fayols 14 principles of management helps preserve the concept of a continuous line of authority?a. unity of demandb. unity of command c. demand structured. continuous demand(b; moderate; p. 270)48. The theory that a person should report to only one manager is called _.a. authorized line of responsibilityb. unity of commandc. responsibility factord. chain of command(b; moderate; p. 270)49. Concepts such as chain of command and authority are considerably less relevant today because of things like _.a. information technologyb. span of controlc. conflicting demands of multiple bossesd. empowerment(a; difficult; p. 270; AACSB: Technology)50. The traditional view was that managers could notand should notdirectly supervise more than _ subordinates.a. three or fourb. five or sixc. seven or eightd. nine or ten(b; moderate; pp. 270-271)51. The concept that defines the number of subordinates that report to a manager and that indirectly specifies the number of levels of management in an organization is called _.a. authorized line of responsibilityb. unity of commandc. responsibility factord. span of control(d; difficult; p. 271)52. All other things being equal, as the span of control grows wider or larger, organizational design becomes more _.a. bureaucraticb. democraticc. effectived. efficient (d;difficult; p. 271)53. When the span of control _, employee performance suffers due to a lack of time, leadership, and support.a. remains too smallb. becomes moderatec. becomes too larged. becomes less cost efficient(c; moderate; p. 271)54. Trends in the past few years have centered on a _ span of control to reduce costs and speed decision making.a. narrowerb. widerc. deeperd. stable(b; moderate; p. 271) 55. The degree to which decision making is confined at a single point in an organization is described as _.a. unity of commandb. chain of commandc. span of managementd. centralization(d; moderate; p. 272)56. What factor influences the amount of centralization an organization uses?a. Decisions are significant.b. The company is geographically dispersedc. The organization is facing the risk of company failure.d. The environment is complex.(c; moderate; p. 272)57. What factor influences the amount of decentralization an organization uses?a. Lower-level managers want a voice in decisions.b. Lower level managers are not as capable at making decisions as upper-level managers.c. Effective implementation of company strategies depends on managers retaining say over what happens.d. The company is large.(a; moderate; p. 272)58. In recent years, there has been a movement to make organizations more flexible and responsive through _.a. centralizationb. decentralizationc. alternative organizational structured. customer-based structure(b; moderate; p. 273)59. The degree to which jobs are standardized and guided by rules and procedures is called _.a. work specializationb. centralizationc. decentralizationd. formalization(d; difficult; p. 273)60. When managers standardize employee behavior through rules and procedures, the jobs are becoming more _.a. diversifiedb. formalizedc. vertical d. horizontal(b; difficult; p. 273) ORGANIZATIONAL DESIGN DECISIONS61. A(n) _ organization is rigidly controlled and efficient.a. organicb. horizontal c. learningd. mechanistic(d; moderate; p. 275)62. Organizations that work like efficient, well-oiled machines are described as _.a. organicb. mechanisticc. rationald. intuitive(b; moderate; p. 275)63. Which of the following would likely be found in mechanistic organizations?a. wide span of controlb. empowered employeesc. decentralized responsibilityd. standardized job specialties (d; difficult; p. 275)64. A(n) _ organization is able to change rapidly as needs require.a. organicb. horizontal c. verticald. mechanistic(a; moderate; p. 275)65. GlaxoSmithKline became more _ when it restructured to allow lab scientists to set the priorities and allocate the resources.a. bureaucraticb. mechanisticc. volatiled. organic (d;difficult; p. 275)66. The appropriate structure for an organization is based on four contingency variables: strategy, size, degree of environmental uncertainty, and _.a. technologyb. historyc. leadershipd. intensity of competition(a; easy; p. 275; AACSB: Technology)67. In describing the relationship between structure and strategy, it can be said that _ .a. structure follows strategyb. strategy follows structurec. strategy and structure are always handled equallyd. strategy follows structure in smaller organizations(a; moderate; p. 276)68. In linking strategy and structure, most strategic frameworks tend to focus on _.a. the pursuit of meaningful renewal of old ideasb. cost maximizationc. minimizing risk and maximizing profit opportunities by copying market leadersd. the pursuit of imitation (c; difficult; p. 276)69. Structure is related to the size of the organization, such that larger organizations tend to have _ than smaller organizations.a. more specializationb. less departmentalizationc. less centralizationd. fewer rules and regulations(a; moderate; p. 276)70. Structure is related to the size of the organization, such that larger organizations are more _.a. mechanisticb. organicc. structurally weakd. decentralized(a; moderate; p. 276)71. Joan Woodwards study of the relationship between technology and structure is based upon her study of small manufacturing firms in _.a. the northeastern United Statesb. the south of Walesc. Franced. southern England(d; difficult; pp. 276-277; AACSB: Technology)72. As a type of technology, _ centers on large-batch production and requires moderate levels of complexity and sophistication.a. unit productionb. mass productionc. process productiond. service production(b; moderate; p. 277; AACSB: Technology)73. In Joan Woodwards study of the relationship between technology and structure, the structure that was the most technically complex was _.a. unit productionb. mass productionc. process productiond. technological production(c; moderate; p. 277; AACSB: Technology)74. According to Woodwards studies, what type of production works best with a mechanistic structure?a. unitb. processc. productd. mass (d; moderate; p. 277)75. The greater the environmental uncertainty, the more an organization needs to become _.a. organic b. mechanisticc. technologically pured. supportive of technological change(a; moderate; p. 277)76. Global competition, accelerated product development by competitors, and increased demands by customers for better service have encouraged organizations to become more _. a. organicb. mechanisticc. technologically pured. task oriented(a; moderate; p. 277)COMMON ORGANIZATIONAL DESIGNS77. Traditional organizational designs tend to be more mechanistic, and include _.a. simple, functional, and corporate structuresb. simple, functional, and business unit structuresc. functional, strategic, and business unit structuresd. simple, functional, and divisional structures(d; moderate; p. 278)78. What is a strength of a simple structure?a. Employees are grouped with others who have similar tasks.b. It focuses on results.c. It is inexpensive to maintain.d. There are cost-saving advantages from specialization.(c; easy; p. 278)79. What is a weakness of a simple structure?a. Duplication of activities and resources increases costs and reduces efficiency.b. Functional specialists become insulated and have little understanding of what other units are doing.c. Pursuit of functional goals can cause managers to lose sight of whats best for the overall organization.d. Reliance on one person is risky.(d; easy; p. 278)80. The strength of a _ structure is based on results of managers, but it has a weakness because duplication can occur easily within the organizationa. simpleb. functionalc. divisionald. matrix(c; difficult; p. 278)81. A small business with low departmentalization, wide spans of control, centralized authority, and limited formalization can be said to possess a _ structure.a. simpleb. functionalc. divisionald. matrix(a;easy; p. 278)82. An online wine retailer that sells and ships hundreds of wines to customers all over the world with a payroll of six employees, most likely has what kind of organizational structure?a. bureaucratic b. simple c. functionald. divisional(b; difficult; p. 278; AACSB: Globalizations)83. As the number of employees in an organization grows, structure tends to become more _.a. specializedb. informalc. centralizedd. relaxed(a; easy; p. 278)84. What type of organizational structure is made up of autonomous, self-contained units?a. bureaucraticb. simplec. functionald. divisional (d; moderate; p. 279)85. Managers in contemporary organizations are finding that traditional hierarchical designs _ for the environments they face.a. form a foundation b. are somewhat suitable c. are perfectly suitable d. often are not appropriate(d; difficult; p. 279)86. In what type of organizational structure is empowerment most crucial?a. bureaucraticb. simplec. functionald. team (d; easy; p. 279)87. In large organizations, the team structure complements what is typically a _ structure.a. simpleb. divisionalc. matrixd. project(b; moderate; p. 279)88. What is an advantage of a team structure?a. Employees are more involved and empowered.b. The fluid and flexible design can respond to environmental changes.c. It draws on talent wherever it is found.d. It allows for faster decision making.(a; easy; p. 280)89. What is a disadvantage of a team structure?a. There is an increased complexity of assigning people to projects.b. There are task and personality conflicts.c. There is no clear chain of command.d. There are communication difficulties.(a; easy; p. 280)90. When an organization assigns specialists to groups according to the projects they are working on, this is called a _.a. divisional structureb. functional structure c. product structure d. matrix structure(d; difficult; p. 280)91. A matrix structure mixes characteristics of functional departmentalization and _.a. product departmentalizationb. process departmentalization c. a dual chain of commandd. a narrow span of control (a; difficult; p. 281)92. A matrix structure violates a key element of organizational design called _.a. unity of commandb. chain of commandc. span of managementd. decentralization(a; moderate; p. 281) 93. A _ structure is an advanced version of the matrix organization, where employees continuously work on assignments that are oriented to completion of a task.a. weightedb. functional c. conservatived. project (d; difficult; p. 2
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