Exam 13: Designing Organizational Structures

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Henri Fayol set the maximum span of control at 20 people, but this number may be higher where work activities are routine and standardized.

(True/False)
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Organizational structures are tools for change.

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One of the main forces pushing organizations towards a network structure is the recognition that an organization has only a few core competencies.

(True/False)
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Tall hierarchies tend to encourage employee empowerment and engagement because they focus power around employees rather than managers.

(True/False)
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The main reasons why companies are moving toward flatter organizational structures is because it improves coordination through formal hierarchy.

(True/False)
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Which of the following are contingencies of organizational design?

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All organizational structures have the following two fundamental requirements:

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A corporation that connects work processes around the world, rather than replicating them within each country or region is classified as a:

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Which of the following is pressuring large global organizations to move from geographically based to more client-based divisionalized structures?

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Many companies claim to have a team-based organization, yet relatively few have actually adopted this form of departmentalization. Describe three (3) structural features that would suggest that a company has adopted a team-based organizational structure.

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The shift away from geographic and toward product or client-based divisional structures reflects the trend toward:

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Organizations tend to centralize as their external environment becomes more complex

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Decentralization is the logical choice in simple, integrated (one market), and hostile environments.

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Organizations operating in diverse environments should

(Multiple Choice)
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The current trend is for companies to shift their divisionalized structures away from

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Organic structures are better than mechanistic structures for

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For which type of environment should organizations adopt an organic structure?

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Organizations tend to become less formalized as they age and grow in number of employees.

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The more diversified the environment, the more the firm would benefit from a divisionalized form of departmentalization.

(True/False)
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A divisionalized structure is recommended in

(Multiple Choice)
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