Designing Organizational structure and controlling PDF

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TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 1) Organizational design is the organization's formal framework by which job tasks are divided, grouped, and coordinated. Answer: True False

1) _______

2) Organizational structure is the degree to which tasks in an organization are divided into separate jobs. Answer: True False

2) _______

3) The concept of work specialization can be traced back a couple of centuries to Adam Smith's discussion of division of labor. Answer: True False

3) _______

4) Today, most managers see work specialization as a source of ever-increasing productivity. Answer: True False

4) _______

5) Grouping jobs on the basis of product or customer flow is termed 'customer departmentalization'. Answer: True False

5) _______

6) When decisions tend to be made at lower levels in an organization, the organization is said to be decentralized. Answer: True False

6) _______

7) The concept of centralization-decentralization is absolute. Answer: True False

7) _______

8) When effective implementation of company strategies depends on managers having involvement and flexibility to make decisions, the company is probably more decentralized. Answer: True False

8) _______

9) A term for increased decentralization is employee empowerment, which is giving employees more authority to make decisions. Answer: True False

9) _______

10) Many of today's organizations are extremely reliant on strict rules and standardization to guide and regulate employee behavior. Answer: True False

10) ______

11) 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. Answer: True False

11) ______

12) An organic organization would likely be very flexible. Answer: True False

12) ______

13) Innovators need the efficiency, stability, and tight controls of the mechanistic structure. Answer: True False

13) ______

14) The relationship between organizational size and structure tends to be linear. Answer: True False

14) ______

15) Joan Woodward attempted to view organizational structure from a technological perspective. Answer: True False

15) ______

16) Woodward's findings support that there is "one best way" to organize a manufacturing firm. Answer: True False

16) ______

17) Since Woodward's initial work, numerous studies have demonstrated that organizations adapt their structures to their technology. Answer: True False

17) ______

18) Large organizations, such as Aramco, tend to have more specialization and centralization compared to small organizations. Answer: True False

18) ______

19) The strength of the functional structure is that it focuses on results. Answer: True False

19) ______

20) A simple structure is an organizational design that groups similar or related occupational specialties together. Answer: True False

20) ______

21) In divisional structures, the parent corporation typically acts as an external overseer to coordinate and control the various divisions. Answer: True False

21) ______

22) Employee empowerment is a crucial aspect of team structure because there is no line of managerial authority from top to bottom. Answer: True False

22) ______

28) Many organizational design concepts are not applicable to twenty-first century companies. Answer: True False

28) ______

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 31) ________ is the formal arrangement of jobs within an organization. 31) ______ A) Organizational structure B) Organizational design C) Work specialization D) Departmentalization Answer: A 32) Organizational design is based on decisions about ________. A) work specialization and mechanisms B) centralization and matrices C) strategy and structure D) chain of command and span of control Answer: D

32) ______

33) In describing the degree to which tasks in an organization are divided into separate jobs, managers use the term ________. A) departmentalization B) work specialization C) span of control D) chain of command Answer: B

33) ______

34) Which statement accurately defines work specialization? A) It clarifies who reports to whom. B) The degree to which tasks are grouped together. C) Individual employees specialize in doing part of an activity rather than the entire activity. D) Jobs are ranked relative only to their worth or value to the businesses. Answer: C

34) ______

35) On what basis are jobs grouped in order to accomplish organizational goals? A) Centralization B) Formalization C) Departmentalization D) Coordination Answer: C

35) ______

36) Functional departmentalization groups jobs by ________. A) tasks they perform B) type of customer they serve C) territories they serve D) products or services they manufacture or produce Answer: A

36) ______

37) Departmentalization based on ________ groups' jobs is based on the territory or physical location. A) geographic B) functional C) matrix D) product Answer: A

37) ______

38) ________ departmentalization is based on the product or customer flow through the organization. A) Product B) Organizational structure C) Functional D) Process Answer: D

38) ______

39) 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) Customer B) Product C) Outcome D) Geographic Answer: A

39) ______

40) ________ departmentalization is used more in recent years to better monitor the needs of customers and to respond to changes in those needs. A) Needs-based B) Functional C) Customer D) Process Answer: C

40) ______

41) Work teams composed of individuals from various functional specialties are known as ________ teams. A) differentiated B) weak C) product D) cross-functional Answer: D

41) ______

42) The line of authority that extends from the upper levels of management to the lowest levels of the organization is called the ________. A) chain of command B) authorized line of responsibility C) unity of command D) responsibility factor Answer: A

42) ______

43) ________ 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) Unity of command B) Chain of command C) Authority D) Responsibility Answer: C

43) ______

44) ________ is the obligation or expectation to perform a duty. A) Span of control B) Responsibility C) Chain of command D) Unity of command Answer: B

44) ______

45) Which one of Fayol's 14 principles of management helps preserve the concept of a continuous line of authority? A) Unity of command. B) Unity of demand. C) Demand structure. D) Continuous demand. Answer: A

45) ______

46) The theory that a person should report to only one manager is called ________. A) responsibility factor B) unity of command C) authorized line of responsibility D) chain of command Answer: B

46) ______

47) Concepts such as chain of command and authority are considerably less relevant today because of things like ________. A) information technology B) empowerment C) conflicting demands of multiple bosses D) span of control Answer: A

47) ______

49) 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 responsibility B) span of control C) unity of command D) responsibility factor Answer: B

49) ______

50) All other things being equal, as the span of control grows wider or larger, organizational design becomes more ________. A) effective B) democratic C) efficient D) bureaucratic Answer: C

50) ______

51) When the span of control ________, employee performance suffers due to a lack of time, leadership, and support. A) becomes less cost efficient B) becomes moderate C) becomes too large D) remains too small Answer: C

51) ______

52) Trends in the past few years have centered on a ________ span of control to reduce costs and speed decision making. A) deeper B) wider C) stable D) narrower Answer: B

52) ______

53) What factor influences the amount of centralization an organization uses? A) The environment is complex. B) Decisions are significant. C) The organization is facing the risk of company failure. D) The company is geographically dispersed. Answer: C

53) ______

55) In recent years, there has been a movement to make organizations more flexible and responsive through ________. A) alternative organizational structure B) decentralization C) centralization D) customer-based structure Answer: B

55) ______

56) The degree to which jobs are standardized and guided by rules and procedures is called ________. A) formalization B) centralization C) work specialization D) decentralization Answer: A

56) ______

57) When managers standardize employee behavior through rules and procedures, the jobs are becoming more ________. A) formalized B) horizontal C) vertical D) diversified Answer: A

57) ______

58) At a company like Eldiar Furniture Manufacturing Company, workers may be assigned specific duties in order to meet the requirements of quality conscious clients. This is called ________. A) job enhancement B) labor intensification C) task specification D) work specialization Answer: D

58) ______

59) An example of ________ is when a hotel, such as Renaissance Dubai Hotel, conducts meetings with employees to gather their suggestions and ideas for implementation. A) employee empowerment B) staff stimulation C) employee incentive scheme D) employee inspiration Answer: A

59) ______

60) A(n) ________ organization is rigidly controlled and efficient. A) horizontal B) mechanistic C) organic Answer: B

60) ______ D) learning

61) Organizations that work like efficient, well-oiled machines are described as ________. A) intuitive B) organic C) rational D) mechanistic Answer: D

61) ______

62) Which of the following would likely be found in mechanistic organizations? A) Decentralized responsibility. B) Standardized job specialties. C) Wide span of control. D) Empowered employees. Answer: B

62) ______

63) A(n) ________ organization is able to change rapidly as needs require. A) organic B) mechanistic C) vertical Answer: A

63) ______ D) horizontal

64) The appropriate structure for an organization is based on four contingency variables: strategy, size, degree of environmental uncertainty, and ________. A) history B) technology C) intensity of competition D) leadership Answer: B

64) ______

66) Structure is related to the size of the organization, such that larger organizations tend to have ________ than smaller organizations. A) fewer rules and regulations B) less centralization C) less departmentalization D) more specialization Answer: D

66) ______

67) Structure is related to the size of the organization, such that larger organizations are more ________. A) mechanistic B) decentralized C) structurally weak D) organic Answer: A

67) ______

70) In Joan Woodward's study of the relationship between technology and structure, the structure that was the most technically complex was ________. A) mass production B) technological production C) process production D) unit production Answer: C

70) ______

71) According to Woodward's studies, what type of production works best with a mechanistic structure? A) Process B) Product C) Mass D) Unit Answer: C

71) ______

72) The greater the environmental uncertainty, the more an organization needs to become ________. A) technologically pure B) supportive of technological change C) organic D) mechanistic Answer: C

72) ______

73) Global competition, accelerated product development by competitors, and increased demands by customers for better service have encouraged organizations to become more ________. A) technologically pure B) task oriented C) mechanistic D) organic Answer: D

73) ______

74) Traditional organizational designs tend to be more mechanistic, and include ________. A) simple, functional, and divisional structures B) functional, strategic, and business unit structures C) simple, functional, and business unit structures D) simple, functional, and corporate structures Answer: A

74) ______

75) What is a strength of a simple structure? A) It focuses on results. B) Employees are grouped with others who have similar tasks. C) It is inexpensive to maintain. D) There are cost-saving advantages from specialization. Answer: C

75) ______

76) What is a weakness of a simple structure? A) Reliance on one person is risky. 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 what's best for the overall organization. D) Duplication of activities and resources increases costs and reduces efficiency. Answer: A

76) ______

77) The strength of a ________ structure is based on results of managers, but it has a weakness because duplication can occur easily within the organization. A) simple B) divisional C) functional D) matrix Answer: B

77) ______

78) A small business with low departmentalization, wide spans of control, centralized authority, and limited formalization can be said to possess a ________ structure. A) matrix B) functional C) divisional D) simple Answer: D

78) ______

79) An online Arabic sweets retailer that sells and ships sweets to customers all over the world and has a payroll of six employees, is likely to have which kind of organizational structure? A) Simple B) Divisional C) Functional D) Bureaucratic Answer: A

79) ______

80) As the number of employees in an organization grows, structure tends to become more ________. A) relaxed B) informal C) centralized D) specialized Answer: D

80) ______

81) What type of organizational structure is made up of autonomous, self-contained units? A) Bureaucratic B) Simple C) Divisional D) Functional Answer: C

81) ______

82) Managers in contemporary organizations are finding that traditional hierarchical designs ________ for the environments they face. A) are often not appropriate B) are somewhat suitable C) are perfectly suitable D) form a foundation Answer: A

82) ______

83) In what type of organizational structure is empowerment most crucial? A) Functional B) Bureaucratic C) Simple Answer: D

83) ______ D) Team

84) In large organizations, the team structure complements what is typically a ________ structure. A) project B) divisional C) simple D) matrix Answer: B

84) ______

94) Why is keeping employees connected a major structural design challenge for managers? A) Employees are widely dispersed. B) Work is done at the employer's place of business under a manager's supervision. C) Work tasks are fairly predictable and constant. D) Most jobs are full-time and continue indefinitely. Answer: A

94) ______

95) A learning organization has developed its ________. A) educational department to keep employees trained B) barriers to entry of its markets C) a sustainable competitive advantage that is easy to maintain D) capacity to adapt and change Answer: D

95) ______

96) Some organizational theorists go so far as to say that an organization's ability to ________ may be the only sustainable source of competitive advantage. A) apply what they learn B) keep employees connected C) maintain its structure D) manage a global structure Answer: A

96) ______

97) Organizational learning can't take place without ________. A) structure B) motivation C) goals D) sharing information Answer: D

97) ______

98) Researchers have concluded that the structures and strategies of organizations worldwide are ________ and the behavior within them is ________. A) dissimilar; consistent with the individual cultures B) dissimilar; similar C) similar; also similar D) similar; consistent with the individual cultures Answer: D

98) ______

99) One study showed that ________ may be more important in less economically developed countries and less important in more economically developed countries. A) formalization B) span of control C) departmentalization D) chain of command Answer: A

99) ______

100) The jobs of assembly-line employees are to be changed to allow more tasks to be done by individual workers. This is a reduction in ________. A) work specialization B) centralization C) chain of command D) departmentalization Answer: A

100) _____

101) Ismail majored in engineering and really enjoyed the work assigned to him. The reorganization changed some of his work assignments to include working on a team with production workers and marketing specialists, designing the newest products the company will offer. This could be described as a(n) ________. A) cross-functional team assignment B) alternative work assignment C) centralized work assignment D) career degrading assignment Answer: A

101) _____

102) Ismail is offered a chance to help direct the efforts of some employees assigned to his work group. This is a chance for Ismail to experience ________. A) divisional structure B) authority C) responsibility D) functional structure Answer: B

102) _____

103) Ismail sees this new assignment as an increase in ________, or an obligation or expectation for him to perform at a new level. A) responsibility B) divisional structure C) functional structure D) authority Answer: A

103) _____

104) During his career, Ismail saw his job change from an engineering role to a more complex job assignment. Eventually, Ismail's department evolved to become an advanced structure in which Ismail continually worked on projects. This structure is known as a ________ structure. A) simple B) project C) divisional D) functional Answer: B

104) _____

105) Maha is very concerned about the formal framework by which job tasks within her nursing unit are divided, grouped, and coordinated within her unit. This framework is known as the unit's ________. A) organizational structure B) staff C) span of control D) formal organizational chart Answer: A

105) _____

106) Maha's unit specializes in cardiology cases. Dividing up work units in such a manner is most representative of ________ departmentalization. A) product B) customer C) functional D) process Answer: B

106) _____

107) Maha was asked to represent her cardiac unit as part of a Total Quality Ma...