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Chapter 10 – Organizational Structure and Design
True/False Questions
A MANAGER'S DILEMMA
1. According to the boxed feature, “A Manager’s Dilemma,” Nokia was once involved in industries ranging from paper to chemicals and rubber.
True (moderate)
2. According to the boxed feature, “A Manager’s Dilemma,” Nokia has been competing in the telecommunications industry since 1965。
False (moderate)
DEFINING ORGANIZATIONAL STRUCTURE
3. Organizational design is the organization’s formal framework by which job tasks are divided, grouped, and coordinated。
False (difficult)
4。 The concept of work specialization can be traced back a couple of centuries to Adam Smith's discussion of division of labor.
True (moderate)
5. The degree to which tasks in an organization are divided into separate jobs is division of labor。
True (moderate)
6。 Historically, many organizations have grouped work actions by function departmentalization.
True (moderate)
7。 Grouping jobs on the basis of product or customer flow is termed customer departmentalization.
False (moderate)
8。 Geographic departmentalization has greatly increased in importance as a result of today's competitive business environment
False (moderate)
9。 A group of individuals who are experts in various specialties and who work together is a cross—functional team。
True (moderate)
10. Authority is the individual’s capacity to influence decisions.
False (difficult)
11. Authority is synonymous with responsibility。
False (easy)
12. Responsibility is the rights inherent in a managerial position.
False (easy)
13. A manager's span of control refers to the number of subordinates who can be effectively and efficiently supervised。
True (moderate)
14。 The classical view of unity of command suggests that subordinates should have only one superior to whom they report。
True (easy)
15。 The trend in recent years has been toward smaller spans of control.
False (easy)
16. When decisions tend to be made at lower levels in an organization, the organization is said to be decentralized。
True (moderate)
17。 Decentralization describes the degree to which decision making is concentrated at a single point in the organization。
False (moderate)
18. In the last 35 years, there has been a trend of organizations moving toward increased decentralization.
True (easy)
19. Appropriate organizational structure depends on four variables: the organization’s strategy, size, technology, and degree of environmental uncertainty.
True (difficult)
20. Standardization refers to the degree to which jobs within the organization are standardized and the extent to which employee behavior is guided by rules and procedures.
False (moderate)
ORGANIZATIONAL DESIGN DECISIONS
21. 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。
False (moderate)
22。 An organic organization would likely be very flexible.
True (moderate)
23. Innovators need the efficiency, stability, and tight controls of the mechanistic structure。
False (easy)
24。 The relationship between organizational size and structure tends to be linear。
False (difficult)
25。 Joan Woodward attempted to view organizational structure from a technological perspective.
True (moderate)
26。 Woodward demonstrated that organizational structures adapted to their technology.
True (moderate)
27. Woodward's findings support that there is ”one best way" to organize a manufacturing firm。
False (moderate)
28。 The strength of the functional structure is that it focuses on results.
False (moderate) it is the strength of divisional structure.
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29. According to the text, a functional structure creates strategic business units。
False (moderate)
COMMON ORGANIZATIONAL DESIGNS
30。 Project structures tend to be rigid and inflexible organizational designs.
False (easy)
Multiple Choice
A MANAGER’S DILEMMA
31。 According to the company profile in “A Manager’s Dilemma,” the organizational structure of Nokia is best described as ______________.
a. mechanistic
b. organic (moderate)
c. centralized
d. formalized
32。 The factor contributing the most to Nokia’s success in the mobile phone industry according to the company profile in “A Manager’s Dilemma” is ______________。
a. new product development (moderate)
b. government subsidies
c. national trade barriers
d. weak competition
33。 ______________ is the process of creating an organization's structure.
a. Human resource management
b. Leading
c。 Organizing (moderate)
d. Planning
e. Departmentalization
DEFINING ORGANIZATIONAL STRUCTURE
34. According to the text, a(n) ______________ is the formal framework by which job tasks are divided, grouped, and coordinated.
a. mission statement
b. environmental scan
c. internal resource analysis
d. organizational structure (moderate)
35。 Which of the following is not one of the six key elements in organizational design?
a. work specialization
b. departmentalization
c。 chain of command
d. bureaucratic design (difficult)
e. span of control
36. Work specialization is also known as ______________.
a。 departmentalization.
b. centralization。
c。 span of control.
d。 formalization。
e. division of labor。 (easy)
37. The term ______________ is used to describe the degree to which tasks in an organization are divided into separate jobs。
a. work ethics
b. managerial capitalism
c. social responsibility
d. work specialization (moderate)
38。 When did the idea of enlarging, rather than narrowing, job scope begin?
a. 1950s
b。 1960s (moderate)
c。 1970s
d. 1980s
e。 1990s
39。 Which of the following is not an example of the classical view of division of labor?
a. assembly-line production
b. Burger King
c。 Taco Bell
d。 TQM (moderate)
e. Kentucky Fried Chicken
40. ______________ is the basis on which jobs are grouped in order to accomplish organizational goals.
a. Departmentalization (moderate)
b。 Centralization
c. Formalization
d。 Coordination
e。 Efficiency
41。 A local manufacturing organization has groups of employees who are responsible for sales, marketing, accounting, human resources, etc. These are examples of what concept?
a. authority
b. chain of command
c. empowerment
d。 departmentalization (moderate)
e. social grouping
42. Grouping sporting equipment in one area, men's clothing in another area, and cosmetics in a third area, is an example of what kind departmentalization?
a。 customer
b. product (easy)
c. geographic
d。 process
e。 outcome
43. Sales responsibilities divided into the southwest, midwest, southern, northern, and western regions would be an example of ______________ departmentalization.
a. product
b。 geographic (easy)
c。 process
d。 outcome
e. customer
44. Grouping activities on the basis of customer flow is ______________.
a. functional departmentalization.
b。 product departmentalization。
c。 geographical departmentalization.
d。 process departmentalization. (moderate)
e. technological departmentalization.
45. What type of departmentalization expects that each department will specialize in one specific phase of the process or product production?
a。 product
b. geographic
c. process (easy)
d. outcome
e. customer
46. 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. product
b. geographic
c. process
d。 outcome
e。 customer (moderate)
47. Which of the following is not a form of departmentalization suggested by your text?
a。 functional departmentalization
b. product departmentalization
c。 geographical departmentalization
d。 process departmentalization
e。 technological departmentalization (difficult)
48。 Today's competitive business environment has greatly increased the importance of what type of departmentalization?
a。 geographic
b. customer (difficult)
c。 product
d。 process
e。 outcome
49。 According to the text, managers are using ______________, which are groups of individuals who are experts in various specialties and who work together.
a. specialized teams
b. cross-demanded teams
c. cross-functional teams (moderate)
d. simple structured teams
50。 Which of the following is a contemporary addition to the historical view of departmentalization?
a。 increased rigidity
b。 cross-functional teams (moderate)
c. enhanced centralization
d。 elimination of product departmentalization
e。 addition of sales departmentalization
51. Bringing together the company's legal counsel, research engineer, and marketing specialist for a project is an example of a(n) ______________。
a. empowered team.
b。 process departmentalization。
c. product departmentalization。
d。 cross-functional team. (moderate)
e. continuous improvement team.
52。 The ______________ is the continuous line of authority that extends from upper organizational levels to the lowest levels and clarifies who reports to whom.
a. chain of demand
b. chain of command (easy)
c. demand hierarchy
d. continuous design structure
53. To whom a worker reports concerns which aspect of organizational structure?
a。 chain of command (moderate)
b。 departmentalization
c。 pay structure
d。 line of command
e. authority framework
54。 ______________ entitles a manager to direct the work of a subordinate。
a. Responsibility
b. Legitimate power
c. Rank
d. Operating responsibility
e。 Authority (moderate)
55。 ______________ is the obligation to perform assigned activities.
a. Authority
b. Responsibility (easy)
c. Chain of command
d。 Unity of command
e. Formalization
56. The ______________ principle (one of Fayol’s 14 principles of management) helps preserve the concept of a continuous line of authority.
a. unity of demand
b. unity of command (moderate)
c. demand structure
d. continuous demand
57. Span of control refers to which of the following concepts?
a。 how much power a manager has in the organization
b。 the geographic dispersion of a manager’s subunits of responsibility
c。 how many subordinates a manager can effectively and efficiently supervise (moderate)
d. the number of subordinates affected by a single managerial order
e. the amount of time it takes to pass information down through a manager’s line of command
58. Other things being equal, the wider or larger the span of control, the more ______________ the organizational design.
a。 bureaucratic
b. democratic
c. effective
d。 efficient (difficult)
e. classical
59。 Wider spans of control may be viewed as more efficient, but eventually, wider spans tend to have what effect on organizations?
a. reduced effectiveness (difficult)
b。 increased turnover
c。 loss of managerial power
d。 customer dissatisfaction
e。 rigid chains of command
60. An organization that spends money on maintaining a well—trained work force can expect which of the following span-of-control outcomes?
a. increased contempt for management
b. increased voluntary turnover
c。 centralized authority
d. less direct supervision (moderate)
e。 increased need for managerial-level employees
61. A high—tech manager who supervises the development of a new computer chip needs ______________ compared to a manager who supervises the mailing of unemployment insurance checks at the local government office.
a。 about the same span of control
b. a narrower span of control (difficult)
c. a wider span of control
d。 a more informal span of control
e。 elimination of the span of control
62。 In general, span of control is ______________ for managers.
a。 increasing (easy)
b。 decreasing
c。 staying the same
d。 significantly decreasing
e. no longer important
63。 ______________ describes the degree to which decision making is concentrated at a single point in the organization。
a. Decentralization
b. Centralization (moderate)
c. Transnationalism
d. Cross sectional analysis
64。 If lower-level employees provide input or are actually given the discretion to make decisions, the organization is ______________。
a. formalized。
b。 centralized。
c。 decentralized。 (easy)
d. mechanistic.
e。 organic。
65。 Recently, there has been a distinct trend toward ______________.
a。 smaller spans of control。
b。 decentralized decision—making. (moderate)
c。 decreased flexibility.
d。 emphasis on chain of command。
e。 mechanistic organizations。
66. Which of the following factors WOULD NOT influence an organization to have a higher degree of centralization?
a。 Environment is stable。
b. Company is geographically dispersed。 (difficult)
c. Company is large.
d。 Decisions are significant.
e. Organization is facing a crisis.
67. ______________ refers to the degree to which jobs within the organization are standardized and the extent to which employee behavior is guided by rules and procedures.
a. Standardization
b。 Centralization
c. Chain of command
d。 Strategy
e。 Formalization (moderate)
68. All of the following factors indicate that a decentralized organization would be most effective EXCEPT when ______________。
a。 the environment is complex。
b. decisions are relatively minor。
c。 the organization is facing a crisis. (difficult)
d。 the company is geographically dispersed.
e. effective implementation of strategies depends on managers having involvement and flexibility
to make decisions.
69。 Which of the following factors describes an environment in which a high degree of decentralization is desired?
a. Environment is complex, uncertain. (moderate)
b。 Lower-level managers do not want to have a say in decisions.
c. Decisions are significant.
d。 Company is large。
e. Organization is facing a crisis or the risk of company failure。
70。 The ______________ organizational structure is characterized by high specialization, extensive departmentalization, narrow spans of control and high formalization.
a。 mechanistic (easy)
b. organic
c. contingency
d. adhocracy
e. functional
71。 Which of the following is NOT a characteristic of a mechanistic organization?
a. high specialization
b. wide spans of control (moderate)
c。 high formalization
d. limited information network
e。 extensive departmentalization
72. What type of organizational form follows classical principles such as unity of command?
a. organic
b. linear
c。 decentralized
d。 mechanistic (moderate)
e。 adhocracy
ORGANIZATIONAL DESIGN DECISIONS
73。 Which of the following would likely be found in mechanistic organizations?
a. wide span of control
b。 empowered employees
c。 decentralized responsibility
d. f
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