Producttitle answer reference contemporary structures learning outcome

This OpenStax ancillary resource is © Rice University under a CC BY 4.0 International license; it may be reproduced or modified but must be attributed to Chapter 7 DESIGNING ORGANIZATIONAL STRUCTURES

TRUE-FALSE QUESTIONS

2. The time that an employee spends on a particular job determines his or her specialization of labor.

a. True
b. False

a. True
b. False

Title: ANSWER: F REFERENCE: Building Organizational Structures LEARNING OUTCOME: 1 RATIONALE: Process departmentalization is departmentalization based on the goods or services produced or sold by the organizational unit.

Title: ANSWER: T REFERENCE: Using Teams to Enhance Motivation and Performance LEARNING OUTCOME: 3 7. The standards used to determine actions acceptable to the group are called norms.

a. True
b. False

a. True
b. False

Title: ANSWER: F REFERENCE: Authority--Establishing Organizational Relationships LEARNING OUTCOME: 4 RATIONALE: Managerial hierarchy refers to the level of management within an organization.
10. Managerial hierarchy refers to the number of subordinates overseen by each supervisor.

a. True
b. False

Title: ANSWER: T REFERENCE: Building Organizational Structures LEARNING OUTCOME: 1
13. The line organization is designed with direct, clear lines of authority and communication flowing from the top managers downward.

Title: ANSWER: F REFERENCE: Degree of Centralization LEARNING OUTCOME: 5 RATIONALE: A company that is decentralized has given a great deal of decision-making authority to lower-level managers.
15. A company that is centralized has given a great deal of decision-making authority to lower-level managers.

a. True
b. False

b. False

Title: ANSWER: T REFERENCE: Organizational Design Considerations LEARNING OUTCOME: 6 17. A tall organization structure has many managerial levels and a long chain of command.

a. True
b. False

Title: ANSWER: T REFERENCE: The Informal Organization LEARNING OUTCOME: 7 20. The informal organization can help the formal organization to achieve its goals.

a. True
b. False

Title: ANSWER: F REFERENCE: Trends in Organizational Culture LEARNING OUTCOME: 8 RATIONALE: The purpose of reengineering is to improve production operations.

Title: ANSWER: T REFERENCE: Trends in Organizational Culture LEARNING OUTCOME: 8 25. The virtual corporation expands the traditional boundaries of an organization.

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Title: ANSWER: T REFERENCE: Trends in Organizational Culture LEARNING OUTCOME: 8
27. One of the most difficult challenges when merging two global companies is uniting the two company’s organizational culture.

a. True
b. False

2. One of the primary goals of Burberry, a British retailer, is to expand its market. When the company allocated resources so that it could open two stores in Japan, it was engaged in which management function?

A. organizing
B. implementing
C. resource planning
D. benchmarking
E. operational planning

B. implementing
C. resource planning
D. benchmarking
E. operational planning

Title: ANSWER: A REFERENCE: Building Organizational Structures LEARNING OUTCOME: 1 4. The management activity of organizing.

Title: ANSWER: C REFERENCE: Building Organizational Structures LEARNING OUTCOME: 1 7. _____ is the degree to which tasks are subdivided into smaller jobs.

A. Task subdivision
B. Functional divisionalization
C. Specialization
D. Task-objective division
E. Task breakdown

Title: ANSWER: D REFERENCE: Building Organizational Structures LEARNING OUTCOME: 1 9. Division of labor refers to:
A. how the unity of command is assigned
B. the width of the managerial hierarchy
C. the degree to which tasks are subdivided into smaller groups
D. the process to dividing work into separate jobs
E. the size of the span of management

Title: ANSWER: C REFERENCE: Building Organizational Structures LEARNING OUTCOME: 1 10. Specialization refers to the:
A. depth of the organization chart
B. width of the managerial hierarchy
C. degree to which tasks are subdivided into smaller groups
D. process to dividing work into separate jobs
E. size of the span of management

Title: ANSWER: B REFERENCE: Building Organizational Structures LEARNING OUTCOME: 1
13. A(n) _____ is a picture of the relationships among tasks and those employees given authority to do those tasks.

A. informal chart
B. organization chart
C. formal picture
D. relationship chart
E. functional chart

15. An advertising agency that has separate departments for artwork, creative design, print advertising, radio advertising, television advertising, and specialty advertising is using _____ departmentalization.

A. customer
B. functional
C. size
D. geographic
E. hierarchical

Title: ANSWER: D REFERENCE: Building Organizational Structures LEARNING OUTCOME: 1 RATIONALE: Product departmentalization is departmentalization that is based on the goods produced or sold by the organizational unit.

18. Gambrinus is a large company that owns and operates the breweries that produce Moosehead Lager, Bridgeport Ale, Pete's Wicked Ale, Corona beer, Trumer Pilsner, and Shiner Bock. Each brewery is run as an independent division and each produces a malt liquor that appeals to a different market. This is an example of departmentalization by:
A. customer
B. size
C. geography
D. product
E. process

20. Coca-Cola Enterprises (CCE) is the largest bottler and distributor of Coke products in the world. It is organized around its North America division and its European division. This departmentalization by _____ allows CCE to respond to the demands of different markets.

A. process
B. customer
C. geography
D. function
E. product

A. A functional organization
B. Subordinated management
C. A cartel
D. A matrix structure
E. A committee structure

Title: ANSWER: B REFERENCE: Contemporary Structures LEARNING OUTCOME: 2 23. Which of the following is NOT an advantage associated with matrix structures?

Title: ANSWER: C REFERENCE: Contemporary Structures LEARNING OUTCOME: 2 24. Another name for the matrix structure is the:
A. quality management approach
B. line-and-staff structure

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27. Pharmacie & Upjohn, a pharmaceutical company, uses a functional structure (research, development, manufacturing, and marketing) within each of its three largest major product divisions. This company is an example of a:
A. functional organization
B. product organization
C. committee structure
D. networked organization
E. matrix structure

Title: ANSWER: B REFERENCE: Contemporary Structures LEARNING OUTCOME: 2
28. A structure in which authority and responsibility are held by a group of workers rather than a single manager is called a _____ structure.

C. Committee structures are not dominated by any single individual.

D. Committee meetings are typically short and reach solutions quickly.

A. matrix
B. committee
C. functional
D. subordinated
E. cluster

Title: ANSWER: A REFERENCE: Contemporary Structures LEARNING OUTCOME: 2 RATIONALE: A structure in which authority and responsibility are held by a group of workers rather than a single manager is called a committee structure. Easier activity coordination is one of the advantages of this form of organizational structure.

33. _____ could be used to explain why members of the night shift at a textile mill refuse to fill openings on the day shift even though most of the people who work at the plant feel day work is preferable to night work.

A. Team synergy
B. Group cohesiveness
C. Organizational philosophy
D. Group custom
E. Group resistance

36. Hugh Larrimore, Wilson Knight, and Frieda Perez have worked together for twelve years. They always clock in and clock out together. If one of the threesome happens to be late, the others will wait for him or her. This commonly accepted behavior for this informal group is called a(n):
A. group norm
B. organizational policy
C. work procedure
D. self-mandated regulation
E. company policy

Title: ANSWER: C REFERENCE: Using Teams to Enhance Motivation and Performance LEARNING OUTCOME: 3
37. One of the advantages of work group cohesiveness is:
A. the absence of conflict with other work groups
B. formalized group norms
C. reduced employee turnover
D. the absence of resistance to change
E. groupthink

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40. The typical problem-solving team:
A. makes final decisions
B. allocates resources
C. is comprised of employees from several different functional areas
D. meets on a regular basis to share information and discuss ways to improve processes E. is accurately described by all of the above

B. Groups tend to generate significantly fewer alternatives than an individual.

C. The participation of group members decreases the likelihood that a decision will be accepted by the employees.

Title: ANSWER: A REFERENCE: Using Teams to Enhance Motivation and Performance LEARNING OUTCOME: 3
45. A team made up of employees from about the same hierarchical level, but different functional areas of

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Title: ANSWER: B REFERENCE: Authority--Establishing Organizational Relationships LEARNING OUTCOME: 4 48. The managerial hierarchy is also called the:
A. managerial continuum
B. management pyramid
C. control continuum
D. management matrix
E. span of management

Title: ANSWER: C REFERENCE: Authority--Establishing Organizational Relationships LEARNING OUTCOME: 4 49. The three basic levels of the managerial hierarchy are:
A. functional, process, and product
B. strategic, tactical, and functional
C. top, middle, and supervisory
D. planning, coordinating, and controlling
E. none of the above

Title: ANSWER: D REFERENCE: Authority--Establishing Organizational Relationships LEARNING OUTCOME: 4 RATIONALE: The higher a manager, the more power he or she has. The amount of power increases as you move up the managerial hierarchy. The number of employees being managed increases as you move down the managerial hierarchy
51. Which of the following statements about the managerial hierarchy is true?

A. The lower a manager, the more power he or she has.

52. Which of the following statements about the management pyramid is true?

A. All companies use the management pyramid structure.

Title: ANSWER: A REFERENCE: Authority--Establishing Organizational Relationships LEARNING OUTCOME: 4 53. The _____ defines the relationships of authority from one level of organization to the next, from top to bottom.

A. chain of command
B. functional chain
C. chain of accountability
D. chain of order
E. structural chain

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56. A research employee at the European Metabolic Diseases Group would have a boss at the company’s European Research department and a boss at the company’s European Metabolic Diseases product group.

A. Responsibility sharing
B. Functionalization
C. Delegation of authority
D. Job enrichment
E. Networking

Title: ANSWER: B REFERENCE: Authority--Establishing Organizational Relationships LEARNING OUTCOME: 4 RATIONALE: Delegation is the sharing of job duties and authority with subordinates.

October 22, 2018 15

A. substitution
B. delegation of authority
C. transposition
D. job-sharing
E. deputing

Title: ANSWER: E REFERENCE: Authority--Establishing Organizational Relationships LEARNING OUTCOME: 4 64. ______ is the legitimate power granted by the organization and acknowledged by the employees.

A. Functionalization
B. Coordination
C. Cooperation
D. Centralization
E. Authority

E. delegation

Title: ANSWER: E REFERENCE: Authority--Establishing Organizational Relationships LEARNING OUTCOME: 4 67. One of the advantages of a wide span of control is:
A. a high degree of control
B. a lack of synchronization
C. an absence of managerial support
D. close supervision of employees
E. greater organizational flexibility

A. age of the subordinates
B. multiculturalism of the subordinates
C. competence of other supervisors
D. size of managerial hierarchy
E. ability of the manager to delegate responsibility

Title: ANSWER: B REFERENCE: Building Organizational Structures LEARNING OUTCOME: 1
71. A _____ organization is a design with direct, clear lines of authority and communication flowing from the top managers downward.

E. centralized

Title: ANSWER: B REFERENCE: Building Organizational Structures LEARNING OUTCOME: 1 73. The quality control engineer at a petrochemical refinery is in a _____ position.

A. line
B. matrix
C. functional
D. staff
E. advisory

Title: ANSWER: B REFERENCE: Building Organizational Structures LEARNING OUTCOME: 1
76. Reginald Harvey works in the public relations office of a company that manufactures pharmaceuticals.

Title: ANSWER: A REFERENCE: Building Organizational Structures LEARNING OUTCOME: 1 78. Typical line positions are found in _____ departments.

A. production and marketing
B. human resources and legal
C. legal and marketing
D. public relations and marketing
E. human resources and public relations

A. centralized
B. hierarchical
C. decentralized
D. subordinated
E. functional

Title: ANSWER: B REFERENCE: Degree of Centralization LEARNING OUTCOME: 5
81. ______ is the practice of giving a great deal of authority and decision-making freedom to lower-level managers.

Whatley delegates as much authority as possible to her fourteen subordinates although she still retains

ultimate responsibility. Whatley manages a _____ department.

Title: ANSWER: D REFERENCE: Degree of Centralization LEARNING OUTCOME: 5 85. Decentralization is usually desirable in a company when:
A. the company is operating in a pure competition
B. the company is geographically concentrated
C. the organization has fewer than 30 employees
D. the firm is operating in a dynamic environment
E. employees refuse to accept any accountability

Title: ANSWER: A REFERENCE: Organizational Design Considerations LEARNING OUTCOME: 6
86. A(n) _____ organization is characterized by a relatively high degree of job specialization, rigid departmentalization, many layers of management, narrow spans of control, centralized decision making, and a long chain of command.

A. matrix
B. tall
C. flat
D. narrow
E. mechanistic

Title: ANSWER: B REFERENCE: Organizational Design Considerations LEARNING OUTCOME: 6
89. A company with a narrow span of control, which tends to have many managerial levels and a long chain of command, is said to have a ______ organizational structure.