1) Organizational design is the process in which managers change or develop an organization's structure.
3) The original ideas about organizational design formulated by Fayol and Weber are now largely obsolete.
4) When work specialization originally began to be implemented early in the twentieth century, employee productivity initially rose.
6) The advantage of work specialization is that it tends to result in high employee motivation and high productivity.
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
11) Unity of command prevents an employee from trying to follow two conflicting commands at once.
12) Power is a right that a manager has when he or she has a higher rank in an organization.
13) When decisions tend to be made at lower levels in an organization, the organization is said to be centralized.
14) Traditional organizations are structured in a pyramid, with the power and authority located in the pyramid's broad base.
15) The two prevalent organization structure models in today's world are the organic organization and the inorganic organization.
18) Innovators need the efficiency, stability, and tight controls of a mechanistic structure rather than an organic structure.
22) The stability of a mechanistic structure seems to work best in today's dynamic and uncertain business environment.
28) When an employee in a matrix structure finishes a project, she goes back to her functional department.
30) A significant advantage of the matrix structure is the clear chain of command from top to bottom of the organization.
31) When an employee in a project structure finishes a project, he goes back to his original department.
35) Managers want to eliminate boundaries in organizations primarily to increase stability and reduce flexibility.
44) All of the following are part of the process of organizational design EXCEPT ________.
D) determine goals for the organization
48) Early supporters of work specialization saw it as ________.
A) a reliable way to increase productivity
52) ________ departmentalization is based on territory or the physical location of employees or customers.
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?
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
62) ________ prevents a single employee from getting conflicting orders from two different superiors.
B) Unity of command
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
79) ________ reflects the degree to which decision making is distributed through out the hierarchy rather than concentrated at the top.
80) In recent years, organizations have become more ________ to be responsive to a dynamic business environment.
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
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.
90) Strategy, size, technology, and the degree of uncertainty in the environment together make up what are called ________.
A) contingency variables
92) A company that is pursuing a cost leadership strategy would be most likely to have this kind of structure.
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.
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 ________.
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
106) This is a key characteristic in an organization with a functional structure.
107) This is a weakness of a functional structure.
A) favoring functional goals over organizational goals
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 ________.
113) Looking for ways to make their organization more flexible and innovative, today's managers may choose this kind of structure.
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
131) A learning organization requires employees to ________.
D) share information and collaborate with one another
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.