Essentials of Organizational Behavior, 10e (Robbins/Judge) Chapter 14 Foundations of Organization Structure 1) defines how job tasks are formally divided, grouped, and coordinated A) Organizational structure B) Work specialization C) Departmentalization D) Organizational behavior E) Matrix departmentation Answer: A Diff: Page Ref: 212 Topic: What Is Organizational Structure? 2) Organizational structure has six key elements Which of the following is not one of these elements? A) centralization B) departmentalization C) work specialization D) formalization E) location of authority Answer: E Diff: Page Ref: 212 Topic: What Is Organizational Structure? 3) Consultants Exceptional (CE) has hired you to develop training materials for their consultants Your first assignment is to develop a training program that helps their consultants to analyze and understand the organizational structure of the company that they are assisting CE believes that in order to adequately evaluate and understand a client company, consultants need to understand the basic organizational structure of the company Consultants are then able to recommend actions and changes based on the company's structure One of the questions you tell the trainees to ask is, "To what degree are tasks subdivided into separate jobs?" This question addresses the issue of A) formalization B) work specialization C) span of control D) chain of command E) matrix restructuring Answer: B Diff: Page Ref: Exh 14-1 Topic: What Is Organizational Structure? AASCB Tag: Analytic Skills Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 4) is addressed by asking the question, "On what basis are jobs grouped together?" A) Departmentalization B) Work specialization C) Centralization and decentralization D) Formalization E) Matrix restructuring Answer: A Diff: Page Ref: Exh 14-1 Topic: What Is Organizational Structure? 5) Consultants Exceptional (CE) has hired you to develop training materials for their consultants Your first assignment is to develop a training program that helps their consultants to analyze and understand the organizational structure of the company that they are assisting CE believes that in order to adequately evaluate and understand a client company, consultants need to understand the basic organizational structure of the company Consultants are then able to recommend actions and changes based on the company's structure You instruct the trainees to ask about the degree of rules and regulations that direct employees and managers You want to help them understand the A) chain of command B) degree of formalization C) span of control D) degree of departmentalization E) idea of matrix restructuring Answer: B Diff: Page Ref: Exh 14-1 Topic: What Is Organizational Structure? AASCB Tag: Reflective Thinking Skills 6) Work specialization is the same as A) departmentalization B) division of labor C) decentralization D) job grouping E) chain command Answer: B Diff: Page Ref: 213 Topic: What Is Organizational Structure? Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 7) A task that is subdivided into many separate jobs is considered to have a A) high degree of departmentalization B) low degree of decentralization C) high degree of work specialization D) low degree of structure E) high degree of matrix structuring Answer: C Diff: Page Ref: 213 Topic: What Is Organizational Structure? 8) In the late 1940s, most manufacturing jobs in industrialized countries were being done with high A) departmentalization B) decentralization C) work specialization D) structuralization E) generalized structure Answer: C Diff: Page Ref: 213 Topic: What Is Organizational Structure? 9) For much of the first half of the century, managers viewed work specialization as A) a means to encourage employee satisfaction B) a frustrating cause of reduced product output C) an unending source of increased productivity D) difficult to implement without automation technology E) an effective solution to over-centralization Answer: C Diff: Page Ref: 213 Topic: What Is Organizational Structure? 10) You have divided the jobs performed by your department through work specialization and are now trying to decide how to best group these jobs to improve efficiency and customer service You are considering whether to group activities by function, product, process, geography, or customer You have decided that since you are a novice at departmentalization, you will go with the most popular method You will probably choose A) function B) product C) process D) customer E) matrix Answer: A Diff: Page Ref: 214 Topic: What Is Organizational Structure? AASCB Tag: Analytic Skills Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 11) The basis by which jobs are grouped together is termed A) social clustering B) bureaucracy C) specialization D) centralization E) departmentalization Answer: E Diff: Page Ref: 214 Topic: What Is Organizational Structure? 12) One of the most popular ways to group activities is by A) product B) function C) geography D) process E) temporality Answer: B Diff: Page Ref: 214 Topic: What Is Organizational Structure? 13) Proctor & Gamble departmentalizes by Tide, Pampers, Charmin, and Pringles This is an example of departmentalization by A) function B) process C) geography D) product E) interest Answer: D Diff: Page Ref: 215 Topic: What Is Organizational Structure? AASCB Tag: Analytic Skills 14) A plant manager who organizes the plant by separating engineering, accounting, manufacturing, personnel, and purchasing into departments is practicing departmentalization A) target-customer B) product C) functional D) geographic E) graphic Answer: C Diff: Page Ref: 214-215 Topic: What Is Organizational Structure? AASCB Tag: Analytic Skills Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 15) departmentalization achieves economies of scale by placing people with common skills and orientations into common units A) Functional B) Process C) Product D) Geographic E) Temporal Answer: A Diff: Page Ref: 214-215 Topic: What Is Organizational Structure? 16) Which one of the following is not one of the primary ways to group jobs? A) skill B) customer C) function D) product E) process Answer: A Diff: Page Ref: 214-215 Topic: What Is Organizational Structure? 17) Your company decides to establish southern, Midwestern, western, and eastern zones of operation Based on this expansion, you decide to implement departmentalization A) area B) customer C) geography D) regional E) matrix Answer: C Diff: Page Ref: 215 Topic: What Is Organizational Structure? AASCB Tag: Analytic Skills 18) Your products fall into several categories with very different production methods for each category Because of this, you might consider departmentalizing by A) implementation B) method C) production D) process E) matrix Answer: D Diff: Page Ref: 215 Topic: What Is Organizational Structure? AASCB Tag: Analytic Skills Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 19) You discover that your market is clearly divided between very different types of clients, with different support needs To respond to this market diversity, you will probably choose to departmentalize by A) functional B) geography C) support D) customer E) matrix Answer: D Diff: Page Ref: 215 Topic: What Is Organizational Structure? AASCB Tag: Analytic Skills 20) The unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom is termed A) chain of command B) authority C) span of control D) unity of command E) web of authority Answer: A Diff: Page Ref: 216 Topic: What Is Organizational Structure? 21) The right inherent in a managerial position to give orders and expect orders to be obeyed is termed A) chain of command B) authority C) power D) unity of command E) leadership Answer: B Diff: Page Ref: 216 Topic: What Is Organizational Structure? 22) The principle helps preserve the concept of an unbroken line of authority A) span-of-control B) chain-of-command C) cross-functionality D) centralization E) unity-of-command Answer: E Diff: Page Ref: 216 Topic: What Is Organizational Structure? Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 23) The unity-of-command principle states which of the following? A) Managers should limit their oversight to a maximum of 12 employees B) Managers should oversee 1-4 employees on average C) An individual should be directly responsible to only one supervisor D) Managers should provide direction to their employees in a unified fashion E) Employees should report directly to two supervisors to maintain task balance Answer: C Diff: Page Ref: 216 Topic: What Is Organizational Structure? 24) The refers to the number of subordinates that a manager directs A) span of control B) unity of command C) chain of command D) decentralization principle E) leadership web Answer: A Diff: Page Ref: 216 Topic: What Is Organizational Structure? 25) As employees are being empowered to make decisions previously reserved for management, which concept of organizational structure has become less relevant? A) decentralization B) maintaining the chain of command C) centalization D) span of control E) departmentalization Answer: C Diff: Page Ref: 216 Topic: What Is Organizational Structure? 26) If you have a narrow span of control, you have a(n) organization A) efficient B) short C) tall D) matrix E) fat Answer: C Diff: Page Ref: 216 Topic: What Is Organizational Structure? Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 27) In reorganizing his division, Matthew must make some decisions regarding the span of control for management within his decision The question of span of control determines A) who reports to whom B) the number of levels and managers an organization has C) where decisions are made D) how jobs will be grouped E) how employees will be compensated Answer: B Diff: Page Ref: 216 Topic: What Is Organizational Structure? AASCB Tag: Analytic Skills 28) are consistent with recent efforts by companies to reduce costs, cut overhead, speed up decision making, increase flexibility, get closer to customers, and empower employees A) Wider spans of control B) Narrower spans of control C) Matrix structures D) Simple structures E) Centralization Answer: A Diff: Page Ref: 216-217 Topic: What Is Organizational Structure? 29) Which of the following is true regarding organizations that establish wide spans of control? A) At some point, employee performance increases substantially B) At some point, supervisors become more efficient at providing support C) At some point, wider spans of control reduce effectiveness D) At some point, the organization becomes more formalized E) At some point, the number of managers in the organization decreases Answer: C Diff: Page Ref: 217 Topic: What Is Organizational Structure? Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 30) In observing the departments in his division, Matthew notices that some managers with wide spans of control seem to perform more effectively than other managers with similarly-sized spans of control Which of the following statements is most likely true regarding the highperforming managers? A) These managers are paid higher salaries than the low-performing managers B) These managers discourage employee autonomy, which produces more uniform departmental results C) The employees within their departments tend to compete to reach productivity goals, which boosts performance D) The employees within their departments have poor communication with each other E) The employees within their departments are highly skilled and very knowledgeable about their jobs Answer: E Diff: Page Ref: 217 Topic: What Is Organizational Structure? AASCB Tag: Analytic Skills 31) The best definition for centralization is a situation in which decision making A) is pushed down to lower level employees B) is concentrated at top management levels in the organization C) depends on the situation D) is completed in each department and then sent to the president for review E) is diffused among a large segment of employees Answer: E Diff: Page Ref: 217 Topic: What Is Organizational Structure? 32) Which one of the following dichotomies of organizational structure specifically defines where decisions are made? A) complexity/simplicity B) formalization/informalization C) centralization/decentralization D) specialization/enlargement E) affectivity/reflexivity Answer: C Diff: Page Ref: 217 Topic: What Is Organizational Structure? 33) Which of the following is a drawback of a narrow span of control? It A) reduces effectiveness B) is more efficient C) encourages overly tight supervision and discourages employee autonomy D) empowers employees E) increases participatory decision-making Answer: C Diff: Page Ref: 216 Topic: What Is Organizational Structure? Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 34) Which of the following is not a drawback of a narrow span of control? A) It is expensive B) It makes vertical communication in the organization more complex C) Supervisors may lose control of their employees D) It encourages overly tight supervision E) It discourages employee autonomy Answer: C Diff: Page Ref: 217 Topic: What Is Organizational Structure? 35) The trend in recent years has been toward A) narrower spans of control B) wider spans of control C) a span of control of four D) an ideal span of control of six to eight E) eliminating spans of control in favor of team structures Answer: B Diff: Page Ref: 217 Topic: What Is Organizational Structure? 36) In an organization that has high centralization, A) the corporate headquarters is located centrally to branch offices B) all top-level officials are located within the same geographic area C) action can be taken more quickly to solve problems D) new employees have a great deal of legitimate authority E) top managers make all the decisions and lower-level managers merely carry out directions Answer: E Diff: Page Ref: 217 Topic: What Is Organizational Structure? 37) Your trainees are given a case study concerning a local manufacturing firm called Acme Products In assessing Acme's organizational structure, your trainees notice that all of the company's decisions are made by top management, with little or no input from lower-level personnel The trainees most likely identify Acme as a(n) organization A) decentralized B) highly formalized C) aggressively managed D) highly centralized E) informally structured Answer: D Diff: Page Ref: 217 Topic: What Is Organizational Structure? AASCB Tag: Analytic Skills 10 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 69) You have eliminated horizontal, vertical, and external barriers within your organization You are operating as a(n) A) matrix organization B) virtual organization C) team structure D) boundaryless organization E) organizational pyramid Answer: D Diff: Page Ref: 223 Topic: New Design Options AASCB Tag: Analytic Skills 70) The major advantage of the virtual organization is its A) control B) predictability C) flexibility D) empowerment E) complexity Answer: C Diff: Page Ref: 223 Topic: New Design Options 71) Which organizational design has been called the T-form? A) matrix organization B) virtual organization C) team structure D) boundaryless organization E) bureaucracy Answer: D Diff: Page Ref: 223 Topic: New Design Options 72) The is a structure characterized by extensive departmentalization, high formalization, a limited information network, and centralization A) mechanistic model B) organic model C) traditional model D) bureaucracy organization E) simple structure Answer: A Diff: Page Ref: 224 Topic: Why Do Structures Differ? 19 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 73) If there is low formalization, a comprehensive information network, and high participation in decision making, one would expect a(n) structure A) simple B) mechanistic C) organic D) stable E) matrix Answer: C Diff: Page Ref: 224 Topic: Why Do Structures Differ? AASCB Tag: Analytic Skills 74) Which of the following is not a determinant of an organization's structure? A) strategy B) organization size C) size of revenues D) technology E) environment Answer: C Diff: Page Ref: 224 Topic: Why Do Structures Differ? 75) All of the following are characteristics of the organic model EXCEPT A) cross-functional teams B) narrow spans of control C) cross-hierarchical teams D) high participation in decision making E) flatness Answer: B Diff: Page Ref: Exh 14-6 Topic: Why Do Structures Differ? 76) Which of the following is NOT a characteristic of the mechanistic model? A) high specialization B) free flow of information C) centralization D) high formalization E) narrower spans of control Answer: B Diff: Page Ref: Exh 14-6 Topic: Why Do Structures Differ? 20 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 77) A strategy that emphasizes the introduction of major new products and services is a(n) strategy A) innovation B) enhancement C) progressive D) organic E) matrix Answer: A Diff: Page Ref: 225 Topic: Why Do Structures Differ? 78) A company oriented around cost minimization is best served by which type of structure? A) virtual B) combination C) mechanistic D) organic E) targeted Answer: C Diff: Page Ref: 225 Topic: Why Do Structures Differ? 79) Wal-Mart is an example of a company following a A) innovation strategy B) cost-minimization strategy C) imitation strategy D) branding strategy E) differentiation strategy Answer: B Diff: Page Ref: 225 Topic: Why Do Structures Differ? 80) refers to how an organization transfers its inputs into outputs A) Production B) Technology C) Operations D) Process E) Effectiveness Answer: B Diff: Page Ref: 225 Topic: Why Do Structures Differ? 21 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 81) Which of the following is not part of an organization's environment? A) public pressure groups B) customers C) employees D) competitors E) government regulatory agencies Answer: C Diff: Page Ref: 225 Topic: Why Do Structures Differ? 82) Which of the following does not reflect a dynamic environment? A) new competitors B) difficulties in acquiring raw materials C) rapidly changing government regulations affecting business D) no new technological breakthroughs by current competitors E) continually changing produce preferences by customers Answer: D Diff: Page Ref: 226 Topic: Why Do Structures Differ? AASCB Tag: Analytic Skills 83) Which of the following generalizations about organizational structures and employee performance and satisfaction is most accurate? A) There is fairly strong evidence linking decentralization and job satisfaction B) No evidence supports a relationship between span of control and employee performance C) The evidence generally indicates that work specialization contributes to lower employee productivity D) Employees dislike routine work that makes minimal intellectual demands E) Large spans of control provide more distant supervision, thereby increasing employee productivity Answer: B Diff: Page Ref: 227 Topic: Organizational Designs and Employee Behavior 84) Which organizational structure still dominates in many parts of Europe and Asia? A) simple structure B) bureaucracy C) virtual organization D) boundaryless organization E) matrix Answer: B Diff: Page Ref: 228 Topic: Global Implications AASCB Tag: Multicultural and Diversity Understanding 22 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 85) Managers need to address six key elements when they design their organization's structure: work specialization, departmentalization, chain of command, chain of control, centralization and decentralization, and formalization Answer: FALSE Diff: Page Ref: 212 Topic: What Is Organizational Structure? 86) The degree to which tasks in the organization are subdivided into separate jobs is termed departmentalization Answer: FALSE Diff: Page Ref: Exh 14-1 Topic: What Is Organizational Structure? 87) Specialization defines how job tasks are formally defined, grouped, and coordinated Answer: FALSE Diff: Page Ref: 213 Topic: What Is Organizational Structure? 88) Work specialization may result in employee boredom, stress, and absenteeism Answer: TRUE Diff: Page Ref: 213 Topic: What Is Organizational Structure? 89) For much of the first half of this century, managers viewed departmentalization as promoting increased productivity Answer: FALSE Diff: Page Ref: 213 Topic: What Is Organizational Structure? 90) The strength of functional departmentalization lies in the efficiencies obtained by putting similar specialists together Answer: TRUE Diff: Page Ref: 215 Topic: What Is Organizational Structure? 91) Only one form of departmentalization can effectively be implemented in an organization at a time Answer: FALSE Diff: Page Ref: 215 Topic: What Is Organizational Structure? 92) The inherent right in a managerial position to give orders and expect the orders to be obeyed is termed power Answer: FALSE Diff: Page Ref: 216 Topic: What Is Organizational Structure? 23 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 93) Departmentalization answers questions for employee such as "To whom I go if I have a problem?" Answer: FALSE Diff: Page Ref: 216 Topic: What Is Organizational Structure? 94) The unbroken line of authority that extends from the top of the organization to the lowest echelon is termed the command line of authority Answer: FALSE Diff: Page Ref: 216 Topic: What Is Organizational Structure? 95) The principle of unity of command suggests that managers should support one another Answer: FALSE Diff: Page Ref: 216 Topic: What Is Organizational Structure? 96) Span of command determines the number of levels and managers an organization has Answer: FALSE Diff: Page Ref: 216 Topic: What Is Organizational Structure? 97) All things being equal, the wider or larger the span of control, the more profitable the organization Answer: FALSE Diff: Page Ref: 216 Topic: What Is Organizational Structure? 98) Flat organizational structures result from narrow spans of control Answer: FALSE Diff: Page Ref: 216 Topic: What Is Organizational Structure? 99) Narrow spans of control can result in lack of supervision, causing performance to suffer Answer: FALSE Diff: Page Ref: 216 Topic: What Is Organizational Structure? 100) Having too many people report to you can undermine your effectiveness as a manager Answer: TRUE Diff: Page Ref: 216 Topic: What Is Organizational Structure? 101) The trend in recent years has been toward wider spans of control Answer: TRUE Diff: Page Ref: 217 Topic: What Is Organizational Structure? 24 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 102) The more that lower-level personnel provide input or are actually given the discretion to make decisions, the more decentralized the organization Answer: TRUE Diff: Page Ref: 217 Topic: What Is Organizational Structure? 103) A decentralized organization is more likely to result in a feeling of alienation by employees than a centralized organization Answer: FALSE Diff: Page Ref: 218 Topic: What Is Organizational Structure? 104) There has been a marked trend toward centralization in business decision making Answer: FALSE Diff: Page Ref: 218 Topic: What Is Organizational Structure? 105) An increase in the number of rules and regulations results in increased formalization Answer: TRUE Diff: Page Ref: 218 Topic: What Is Organizational Structure? 106) The greater the formalization of an organization, the more input an employee has into how his or her work is done Answer: FALSE Diff: Page Ref: 218 Topic: What Is Organizational Structure? 107) Autonomy and formalization are positively related Answer: FALSE Diff: Page Ref: 218 Topic: What Is Organizational Structure? AASCB Tag: Analytic Skills 108) The simple structure is flexible and inexpensive to maintain, but its chain of command is often ambiguous Answer: FALSE Diff: Page Ref: 219 Topic: Common Organizational Designs 109) A major strength of the simple structure is that it easily adapts to any size organization Answer: FALSE Diff: Page Ref: 219 Topic: Common Organizational Designs 25 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 110) One disadvantage of the simple structure is its high risk Answer: TRUE Diff: Page Ref: 219 Topic: Common Organizational Designs 111) The strength of the bureaucracy lies in its ability to perform standardized activities Answer: TRUE Diff: Page Ref: 219 Topic: Common Organizational Designs 112) A major weakness of the bureaucracy is that specialization creates sub-unit conflicts Answer: TRUE Diff: Page Ref: 219 Topic: Common Organizational Designs 113) The bureaucracy is efficient only as long as employees confront problems brought about by programmed decision rules Answer: TRUE Diff: Page Ref: 220 Topic: Common Organizational Designs 114) The matrix structure is characterized by highly routine operating tasks achieved through specialization Answer: FALSE Diff: Page Ref: 220 Topic: Common Organizational Designs 115) A structure that creates dual lines of authority and combines functional and product departmentalization is the matrix structure Answer: TRUE Diff: Page Ref: 220 Topic: Common Organizational Designs 116) The matrix structure facilitates the allocation of specialists Answer: TRUE Diff: Page Ref: 220 Topic: Common Organizational Designs 117) The major disadvantage of the matrix is the propensity for functional unit goals to override organizational goals Answer: FALSE Diff: Page Ref: 221 Topic: Common Organizational Designs 26 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 118) You have decided to hire a small shop to all of your duplicating and printing This is an example of outsourcing Answer: TRUE Diff: Page Ref: 221 Topic: New Design Options 119) The matrix organization is also called the network or modular organization Answer: FALSE Diff: Page Ref: 221 Topic: New Design Options 120) The virtual organization is effective at reinforcing management control over business operations Answer: FALSE Diff: Page Ref: 222 Topic: New Design Options 121) The major advantage to the virtual organization is its flexibility Answer: TRUE Diff: Page Ref: 223 Topic: New Design Options 122) An organization that seeks to eliminate the chain of command is a boundaryless organization Answer: TRUE Diff: Page Ref: 223 Topic: New Design Options 123) Status and rank are minimized in the boundaryless organization Answer: TRUE Diff: Page Ref: 223 Topic: New Design Options 124) Globalization serves to reinforce external boundaries within organizations Answer: FALSE Diff: Page Ref: 223 Topic: New Design Options 125) The technological thread that makes the boundaryless organization possible is wireless communications Answer: FALSE Diff: Page Ref: 223 Topic: New Design Options AASCB Tag: Use of Information Technology 27 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 126) An organic model of structure is characterized by extensive departmentalization, high formalization, a limited information network, and centralization Answer: FALSE Diff: Page Ref: 224 Topic: Why Do Structures Differ? 127) The boundaryless organization is an example of the organic model of organizational design Answer: TRUE Diff: Page Ref: 224 Topic: Why Do Structures Differ? 128) Mechanistic structures are high in formalization Answer: TRUE Diff: Page Ref: 224 Topic: Why Do Structures Differ? 129) Businesses structured according to the mechanistic model usually have high employee participation in decision making Answer: FALSE Diff: Page Ref: 224 Topic: Why Do Structures Differ? 130) An organization's business strategy is usually determined by the organization's business structure Answer: FALSE Diff: Page Ref: 224 Topic: Why Do Structures Differ? 131) An innovation strategy works well only for businesses organized within a simple structure Answer: FALSE Diff: Page Ref: 225 Topic: Why Do Structures Differ? 132) Businesses using innovation strategy seek to quickly move into new markets after the viability of those markets has been proven Answer: FALSE Diff: Page Ref: 225 Topic: Why Do Structures Differ? 133) An organization pursues a price-minimization strategy by controlling costs, avoiding unnecessary innovation or marketing expenses, and cutting prices in selling basic products Answer: FALSE Diff: Page Ref: 225 Topic: Why Do Structures Differ? 28 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 134) The size of an organization affects the organization's structure at a decreasing rate of impact Answer: TRUE Diff: Page Ref: 225 Topic: Why Do Structures Differ? 135) Adding 500 employees to an organization that has only 300 members is likely to result in a shift toward a more organic structure Answer: FALSE Diff: Page Ref: 225 Topic: Why Do Structures Differ? AASCB Tag: Analytic Skills 136) Technology is associated with how an organization transfers its inputs into outputs Answer: TRUE Diff: Page Ref: 225 Topic: Why Do Structures Differ? 137) Organizations operating in highly scarce, dynamic, and complex environments fare best if under organic structures Answer: TRUE Diff: Page Ref: 226 Topic: Why Do Structures Differ? 138) Organizational structure has little bearing on employee attitudes and behavior Answer: FALSE Diff: Page Ref: 226 Topic: Organizational Designs and Employee Behavior 139) Research supports the notion that employees prefer organic business structures Answer: FALSE Diff: Page Ref: 226-227 Topic: Organizational Designs and Employee Behavior 140) Organizations that are less centralized have greater employee input in business decision making Answer: TRUE Diff: Page Ref: 227 Topic: Organizational Designs and Employee Behavior 141) What is organizational structure? Answer: An organizational structure defines how job tasks are formally divided, grouped, and coordinated The elements that must be addressed are work specialization, departmentalization, chain of command, span of control, centralization and decentralization, and formalization Page Ref: 212 Topic: What Is Organizational Structure? 29 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 142) Explain the organizational component of work specialization Discuss its advantages and drawbacks Answer: The essence of work specialization is that, rather than an entire job being done by one individual, it is broken down into a number of steps, with each step being completed by a separate individual In essence, individuals specialize in doing part of an activity rather than the entire activity Management saw this as a means to make the most efficient use of its employees' skills In most organizations, some tasks require highly developed skills and others can be performed by untrained workers If all workers were engaged in each step of, say, an organization's manufacturing process, all would have to have the skills necessary to perform both the most demanding and the least demanding jobs The result would be that, except when performing the most skilled or highly complex tasks, employees would be working below their skill levels And because skilled workers are paid more than unskilled workers and their wages tend to reflect their highest level of skill, it represents an inefficient use of organizational resources to pay highly skilled workers to easy tasks Managers also saw other efficiencies that could be achieved through work specialization Employee skills at performing a task successfully increase through repetition Less time is spent in changing tasks, in putting away one's tools and equipment from a prior step in the work process, and in getting ready for another Equally important, training for specialization is more efficient from the organization's perspective It's easier and less costly to find and train workers to specific and repetitive tasks For much of the first half of the twentieth century, managers viewed work specialization as an unending source of increased productivity And they were probably right Because specialization was not widely practiced, its introduction almost always generated higher productivity But by the 1960s, there came increasing evidence that a good thing can be carried too far The point had been reached in some jobs at which the human diseconomies from specializationwhich surfaced as boredom, fatigue, stress, low productivity, poor quality, increased absenteeism, and high turnovermore than offset the economic advantages Most managers today see work specialization as neither obsolete nor an unending source of increased productivity Rather, managers recognize the economies it provides in certain types of jobs and the problems it creates when it's carried too far Page Ref: 213-214 Topic: What Is Organizational Structure? 30 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 143) What is departmentalization? What are five common ways that an organization can group activities? Give an example of each Answer: The basis by which jobs are grouped together is called departmentalization Tasks can be grouped by function performed, the type of product the organization produces, on the basis of geography or territory, process used, or by the particular type of customer the organization seeks to reach One of the most popular ways to group activities is by functions performed A manufacturing manager might organize his or her plant by separating engineering, accounting, manufacturing, personnel, and supply specialists into common departments Tasks can also be departmentalized by type of product the organization produces Procter & Gamble is organized along these lines Each major product is placed under the authority of an executive who has complete global responsibility for that product Another way to departmentalize is on the basis of geography or territory The sales function, for instance, may have western, southern, midwestern, and eastern regions Each of these regions is, in effect, a department organized around geography Process departmentalization can be used to group departments At an Alcoa aluminum tubing plant in upstate New York, production is organized into five departments: casting; press; tubing; finishing; and inspecting, packing, and shipping Each department specializes in one specific phase in the production of aluminum tubing A final category is to use the particular type of customer the organization seeks to reach Microsoft recently reorganized around four customer markets: consumers, large corporations, software developers, and small businesses Page Ref: 214-215 Topic: What Is Organizational Structure? 144) What is the chain of command within an organization? Answer: The chain of command is an unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom It answers questions for employees such as "To whom I go if I have a problem?" and "To whom am I responsible?" The two complementary concepts are authority and unity of command Authority refers to the rights inherent in a managerial position to give orders and expect the orders to be obeyed The unity of command principle helps preserve the concept of an unbroken line of authority It states that a person should have one and only one superior to whom he or she is directly responsible Page Ref: 215-216 Topic: What Is Organizational Structure? 145) Why is span of control important within an organization? Answer: The question of span of control is important because, to a large degree, it determines the number of levels and managers an organization has It answers the question "How many employees can a manager efficiently and effectively direct?" All things being equal, the wider or larger the span of control, the more efficient the organization Page Ref: 216 Topic: What Is Organizational Structure? 31 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 146) What is the difference between centralization and decentralization? Answer: The term centralization refers to the degree to which decision making is concentrated at a single point in the organization The concept includes only formal authority, that is, the rights inherent in one's position The more that lower-level personnel provide input or are actually given the discretion to make decisions, the more decentralization there is An organization characterized by centralization is an inherently different structural animal from one that is decentralized In a decentralized organization, action can be taken more quickly to solve problems, more people provide input into decisions, and employees are less likely to feel alienated from those who make the decisions that affect their work lives Page Ref: 217-219 Topic: What Is Organizational Structure? 147) Describe the three common organizational designs: simple structure, bureaucracy, and matrix structure Answer: The simple structure is said to be characterized most by what it is not rather than what it is The simple structure is not elaborate It has a low degree of departmentalization, wide spans of control, authority centralized in a single person, and little formalization The simple structure is a "flat" organization; it usually has only two or three vertical levels, a loose body of employees, and one individual in whom the decision-making authority is centralized Standardization is the key concept that underlies the bureaucracy It is characterized by highly routine operating tasks achieved through specialization, very formalized rules and regulations, tasks that are grouped into functional departments, centralized authority, narrow spans of control, and decision making that follows the chain of command The matrix combines two forms of departmentalization: functional and product It breaks the unity-of-command concept Employees in the matrix have two bossestheir functional department managers and their product managers Therefore, the matrix has a dual chain of command Page Ref: 218-221 Topic: Common Organizational Designs 148) Explain the virtual organization and the boundaryless organization Answer: The virtual organization is sometimes called the network or modular organization Typically, a small, core organization outsources major business functions In structural terms, the virtual organization is highly centralized, with little or no departmentalization Why own when you can rent is the question that captures the essence of the virtual organization Jack Welch coined the term boundaryless organization to describe his idea of what he wanted GE to become He wanted to eliminate vertical and horizontal boundaries within GE and break down external barriers between the company and its customers and suppliers The boundaryless organization seeks to eliminate the chain of command, have limitless spans of control, and replace departments with empowered teams Because it relies so heavily on information technology, some have called this structure the T-form or technology-based organization By removing vertical boundaries, management flattens the hierarchy Status and rank are minimized Page Ref: 221-222 Topic: New Design Options 32 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 149) What is the difference between the mechanistic model and the organic model of organizational structure? Answer: The mechanistic model is generally synonymous with the bureaucracy in that it has extensive departmentalization, high formalization, a limited information network (mostly downward communication), and little participation by low-level members in decision making At the other extreme is the organic model This model looks a lot like the boundaryless organization It is flat, uses cross-hierarchical and cross-functional teams, has low formalization, possesses a comprehensive information network and it involves high participation in decision making Page Ref: 224 and Exh14-6 Topic: Why Do Structures Differ? 150) Explain the implications of different organizational designs for employee behavior Answer: A review of the evidence linking organizational structures to employee performance and satisfaction leads to a pretty clear conclusion ∙ you can't generalize Not everyone prefers the freedom and flexibility of organic structures Individual differences must be addressed The evidence generally indicates that work specialization contributes to higher productivity but at the price of reduced job satisfaction Work specialization is not an unending source of higher productivity Problems start to surface, and productivity begins to suffer, when the human diseconomies of doing repetitive and narrow tasks overtake the economies of specialization As the workforce has become more highly educated and desirous of jobs that are intrinsically rewarding, the point where productivity begins to decline seems to be reached more quickly than in decades past Negative behavioral outcomes from high specialization are most likely to surface in professional jobs occupied by individuals with high needs for personal growth and diversity A review of the research indicates that it is probably safe to say there is no evidence to support a relationship between span of control and employee performance There is some evidence indicating that a manager's job satisfaction increases as the number of employees he or she supervises increases Fairly strong evidence has linked centralization and job satisfaction In general, organizations that are less centralized have a greater amount of participative decision making Participative decision making is positively related to job satisfaction But, again, individual differences surface The decentralization-satisfaction relationship is strongest with employees who have low self-esteem Because individuals with low self-esteem have less confidence in their abilities, they place a higher value on shared decision making, which means that they're not held solely responsible for decision outcomes To maximize employee performance and satisfaction, individual differences, such as experience, personality, and the work tasks, should be taken into account Page Ref: 226-227 Topic: Organizational Designs and Employee Behavior 33 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall ... A) narrower spans of control B) wider spans of control C) a span of control of four D) an ideal span of control of six to eight E) eliminating spans of control in favor of team structures Answer:... spans of control B) Narrower spans of control C) Matrix structures D) Simple structures E) Centralization Answer: A Diff: Page Ref: 216-217 Topic: What Is Organizational Structure? 29) Which of. .. diffused among a large segment of employees Answer: E Diff: Page Ref: 217 Topic: What Is Organizational Structure? 32) Which one of the following dichotomies of organizational structure specifically