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1) Organizational design is the process in which managers change or develop an organization's structure.

TRUE

2) There are four basic elements in organizational structure.

FALSE

3) The original ideas about organizational design formulated by Fayol and Weber are now largely obsolete.

FALSE

4) When work specialization originally began to be implemented early in the twentieth century, employee productivity initially rose.

TRUE

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

FALSE

6) The advantage of work specialization is that it tends to result in high employee motivation and high productivity.

FALSE

7) Departmentalization is a how jobs are grouped.

TRUE

8) Staff authority is the ability to direct the work of any employee who does not have a higher rank in the organization.

...

9) Grouping jobs on the basis of major product areas is termed customer departmentalization.

FALSE. Product depart

10) Line authority can be exerted only after a manager checks with his or her superior.

...

11) Unity of command prevents an employee from trying to follow two conflicting commands at once.

TRUE

12) Power is a right that a manager has when he or she has a higher rank in an organization.

TRUE. Authority

13) When decisions tend to be made at lower levels in an organization, the organization is said to be centralized.

FALSE

14) Traditional organizations are structured in a pyramid, with the power and authority located in the pyramid's broad base.

FALSE

15) The two prevalent organization structure models in today's world are the organic organization and the inorganic organization.

FALSE

16) A mechanistic organization is bureaucratic and hierarchical.

TRUE

17) An organic organization tends to be flexible and have few formal rules.

TRUE

18) Innovators need the efficiency, stability, and tight controls of a mechanistic structure rather than an organic structure.

FALSE

19) The relationship between organizational size and structure tends to be linear.

TRUE

22) The stability of a mechanistic structure seems to work best in today's dynamic and uncertain business environment.

...

23) The strength of a simple system is that everything depends on a single person.

TRUE

24) A strength of a functional structure is that it avoids duplication.

FALSE

25) A weakness of the divisional structure is that duplication tends to occur.

TRUE

26) In a team structure, team members are not held responsible for their decisions.

FALSE

28) When an employee in a matrix structure finishes a project, she goes back to her functional department.

TRUE

29) Employees in an organization with a matrix design can have two bosses for the same job.

TRUE

30) A significant advantage of the matrix structure is the clear chain of command from top to bottom of the organization.

FALSE

31) When an employee in a project structure finishes a project, he goes back to his original department.

FALSE

32) Vertical boundaries separate employees by their rank in an organization.

TRUE

35) Managers want to eliminate boundaries in organizations primarily to increase stability and reduce flexibility.

TRUE

36) Horizontal boundaries separate employees by the specialization of their job.

TRUE

38) All learning organizations share a distinct structure.

FALSE

39) A company's organizational culture refers to a system of shared political beliefs.

TRUE

41) An organization's founder has little influence on its culture.

TRUE

42) Strong organizational culture can eliminate the need for rules and bylaws.

TRUE

44) All of the following are part of the process of organizational design EXCEPT ________.

D) determine goals for the organization

46) Which of the following is synonymous with work specialization?

A) division of labor

48) Early supporters of work specialization saw it as ________.

A) a reliable way to increase productivity

51) Functional departmentalization groups jobs by ________.

A) tasks they perform

52) ________ departmentalization is based on territory or the physical location of employees or customers.

C) Geographic

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

55) State motor vehicle offices usually use this kind of departmentalization.

D) process

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

57) The chain of command answers this question.

D) Who reports to whom?

58) Authority gives an individual the right to do this.

A) give orders

59) In the chain of command, each person above you ________.

C) has line authority

61) Line authority gives a manager the ability to direct the work of ________.

B) any subordinate

62) ________ prevents a single employee from getting conflicting orders from two different superiors.

B) Unity of command

64) Which of the following statements is true?

C) Authority is a right.

65) ________ is the obligation or expectation to perform a duty.

A) Responsibility

67) Which of the following statements is true?

C) Authority is a type of power.

69) As represented in a hierarchical organization diagram, authority is based on ________.

B) horizontal position only

70) A construction site supervisor who sees an impending thunderstorm and tells workers to go home is demonstrating ________.

...

71) ________ is the power that rests on the leader's ability to punish or control.

B) Coercive power

72) A bank manager who passes out bonuses at the end of the year is exercising this.

A) reward power

74) ________ is the power that arises when a person is close to another person who has great power and authority.

B) Referent power

76) The traditional view holds that managers should not directly supervise more than ________ subordinates.

B) five or six

77) Modern managers find that they can ________ if their employees are experienced, well-trained, and motivated.

A) increase their span of control

78) A traditional "top down" organization is ________ organization.

A) a largely centralized

79) ________ reflects the degree to which decision making is distributed through out the hierarchy rather than concentrated at the top.

D) Decentralization

80) In recent years, organizations have become more ________ to be responsive to a dynamic business environment.

B) decentralized

81) In today's decentralized business world, ________ the most important strategic decisions.

C) lower-level managers

82) All of the following are characteristics of a highly formalized organization EXCEPT ________.

C) minimum number of rules

83) Today's managers are moving away from formalization and trying to be this.

B) more flexible

84) Today's managers expect employees to ________.

B) use discretion when it comes to following rules

85) A(n) ________ organization has a high degree of specialization, formalization, and centralization.

D) mechanistic

88) Which term best describes an organic organization?

C) flexible

89) Which word best characterizes a mechanistic organization?

A) hierarchical

90) Strategy, size, technology, and the degree of uncertainty in the environment together make up what are called ________.

A) contingency variables

91) Together, contingency variables determine the ________.

C) structure of an organization

92) A company that is pursuing a cost leadership strategy would be most likely to have this kind of structure.

A) mechanistic

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.

B) organic

98) Woodward concluded that a mechanistic structure worked best for a firm that used ________.

B) mass production

99) In Woodward's study, this type of production combined high vertical differentiation and low horizontal differentiation.

C) process production

100) The greater the environmental uncertainty, the more an organization needs to become ________.

A) organic

101) Global competition forces firms to ________.

A) become lean, fast, and flexible

102) Traditional organizational designs tend to be more mechanistic and include ________.

D) simple, functional, and divisional structures

103) A simple structure is ________ like a mechanistic organization, but ________ like an organic organization.

A) centralized; informal

104) What is a strength of a simple structure?

C) Accountability is clear.

106) This is a key characteristic in an organization with a functional structure.

B) departmentalization

107) This is a weakness of a functional structure.

A) favoring functional goals over organizational goals

108) Avoiding redundancy is a strength of which structure?

C) functional

109) In a ________ structure each business unit has complete autonomy to reach its goals.

B) functional ????

112) As the number of employees in an organization grows, structure tends to become more ________.

A) bureaucratic

113) Looking for ways to make their organization more flexible and innovative, today's managers may choose this kind of structure.

D) team

114) In a team structure, ________.

B) there is no clear line of managerial authority

118) In a matrix structure, a group member will typically report to ________.

B) both a project manager and functional department head

119) When a group member in a matrix structure finishes a project, she ________.

A) returns to her functional department

120) By giving employees two direct superiors, a matrix structure violates this key element of organizational design.

B) chain of command

121) A key difference between a team structure and a matrix structure is that a team structure ________ while a matrix structure does not.

D) holds group members accountable

127) How does a virtual organization save on costs?

D) by keeping only a small permanent staff for administrative purposes only

128) A ________ subcontracts part of a project out to outside suppliers.

D) network organization

131) A learning organization requires employees to ________.

D) share information and collaborate with one another

133) Organizational learning can't take place without ________.

C) a shared vision of the future

135) Which of the following phrases best characterizes the culture of an organization?

B) how things are done around here

138) Which of the following is NOT considered to be a characteristic of organizational culture?

C) purchasing policies

141) All of the following show why corporate rituals can be valuable in a corporate culture EXCEPT ________.

D) rituals intimidate and silence critics of the corporate culture.

142) Which of the following most accurately reflects the difference between strong cultures and weak cultures?

D) Company values are more deeply held and widely shared in strong cultures than in weak cultures.

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