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98 terms

MBA 560 Ch 5

1) Organizational design is the process in which managers change or develop an organization's structure.
2) There are four basic elements in organizational 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.
5) Today, most managers see work specialization as a source of ever-increasing productivity.
6) The advantage of work specialization is that it tends to result in high employee motivation and high productivity.
7) Departmentalization is a how jobs are grouped.
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.
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.
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.
16) A mechanistic organization is bureaucratic and hierarchical.
17) An organic organization tends to be flexible and have few formal rules.
18) Innovators need the efficiency, stability, and tight controls of a mechanistic structure rather than an organic structure.
19) The relationship between organizational size and structure tends to be linear.
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.
24) A strength of a functional structure is that it avoids duplication.
25) A weakness of the divisional structure is that duplication tends to occur.
26) In a team structure, team members are not held responsible for their decisions.
28) When an employee in a matrix structure finishes a project, she goes back to her functional department.
29) Employees in an organization with a matrix design can have two bosses for the same job.
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.
32) Vertical boundaries separate employees by their rank in an organization.
35) Managers want to eliminate boundaries in organizations primarily to increase stability and reduce flexibility.
36) Horizontal boundaries separate employees by the specialization of their job.
38) All learning organizations share a distinct structure.
39) A company's organizational culture refers to a system of shared political beliefs.
41) An organization's founder has little influence on its culture.
42) Strong organizational culture can eliminate the need for rules and bylaws.
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.