Question 1

The strength of functional departmentalization lies in putting similar specialists together.

Accepted Answer

A) True 
 B)False  True

Question 2

Which of the following is not a drawback of a narrow span of control?

Accepted Answer

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 helps increase organizational efficiency. C

Question 3

What is work specialization? In which of the three common organizational designs is work specialization most common? explain your answer.

Accepted Answer

Work specialization is also known as division of labor. It describes the degree to which tasks in the organization are subdivided into separate jobs. 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, each step being completed by a separate individual. In essence, individuals specialize in doing part of an activity rather than the entire activity.
Work specialization would be most common in an organization dominated by bureaucracy. Standardization is the key concept that underlies all bureaucracies. The bureaucracy is characterized by highly routine operating tasks achieved through specialization, very formalized rules and regulations, tasks grouped into functional departments, centralized authority, narrow spans of control, and decision making that follows the chain of command. Its primary strength is its ability to perform standardized activities in a highly efficient manner. Putting like specialties together in functional departments results in economies of scale, minimum duplication of personnel and equipment, and employees who have the opportunity to talk "the same language" of their work specialization among their peers.

Question 4

A company oriented around cost minimization is best served by which type of structure?

Accepted Answer

A)   virtual
B)   combination
C)   mechanistic
D)   organic
E)   targeted

Question 5

Globalization serves to reinforce external boundaries within organizations.

Accepted Answer

A) True 
 B)False

Question 6

Organizations following a(n) ________ strategy try to both minimize risk and maximize opportunity for profit, moving into new products or new markets only after innovators have proven their viability.

Accepted Answer

A)   innovation
B)   cost-cutting
C)   imitation
D)   technology
E)   mechanistic

Question 7

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.
-The Acme Products case study notes that the senior management at Acme is concerned because the company takes so long to bring new products to market. Which of the following approaches would your trainees identify as most likely to help resolve this problem?

Accepted Answer

A)   reduction of cross-functional work teams
B)   decentralization of the decision-making process
C)   decreased work specialization
D)   decreased formalization of policies and procedures
E)   reduced diversity within the company's work force

Question 8

All things being equal, the wider or larger the span of control, the more profitable the organization.

Accepted Answer

A) True 
 B)False

Question 9

A task that is subdivided into many separate jobs is considered to have ________.

Accepted Answer

A)   a high degree of departmentalization
B)   a low degree of decentralization
C)   a high degree of work specialization
D)   a low degree of structure
E)   a high degree of matrix structuring

Question 10

A small, core organization that outsources major business functions is a ________ organization.

Accepted Answer

A)   team
B)   virtual
C)   boundaryless
D)   matrix
E)   simple

Question 11

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 ________.

Accepted Answer

The answer of Consultants Exceptional (CE) has hired you to...

Question 12

A strategy that emphasizes the introduction of major new products and services is a(n) ________ strategy.

Accepted Answer

A)   innovation
B)   enhancement
C)   progressive
D)   organic
E)   matrix

Question 13

What is the difference between the mechanistic model and the organic model of organizational structure?

Accepted Answer

The answer of What is the difference between the mechanistic...

Question 14

Which of the following is not a determinant of an organization's structure?

Accepted Answer

A)   strategy
B)   organization size
C)   diversity
D)   technology
E)   environment

Question 15

________ are the greatest disadvantages and threats to the success of a virtual organization.

Accepted Answer

A)   Constant flux and reorganization
B)   Increased technology costs and decentralization
C)   Lack of flexibility and leadership
D)   Lack of qualified contractors and poor management
E)   Poor communication and confusion

Question 16

Which of the following is not an advantage that virtual organizations have over the common organization structures?

Accepted Answer

A)   uses the best talent for each project
B)   decreases flexibility of the project
C)   minimizes bureaucratic overhead
D)   lessens long-term risks associated with investment
E)   decreases costs

Question 17

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 ________.

Accepted Answer

A)   chain of command
B)   degree of formalization
C)   span of control
D)   degree of departmentalization
E)   idea of matrix restructuring

Question 18

The most prominent structural characteristic of the matrix structure is that ________.

Accepted Answer

A)   it strictly follows the chain of command
B)   it breaks the unity-of-command concept
C)   it has a very tall span of control
D)   all departments are highly formalized
E)   it is highly centralized

Question 19

Which one of the following is consistent with a simple structure?

Accepted Answer

A)   high centralization
B)   high horizontal differentiation
C)   high employee discretion
D)   standardization
E)   bureaucracy

Question 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 ________.

Accepted Answer

A)   chain of command
B)   authority
C)   span of control.
D)   unity of command
E)   web of authority

Exam 15: Foundations of Organization Structure