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Exam 15: Organizational Structure

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Question 51

Multiple Choice

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In Grand Stand Organization, a furniture manufacturing company, the arrival and departure times to and from work are specified to the minute, with time clocks used to control deviant behavior. It can be said that the company is high in:

A) formalization.
B) centralization.
C) decentralization.
D) work differentiation.
E) division of labor.

F) D) and E)
G) B) and C)

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Question 52

Multiple Choice

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The process of creating, selecting, or changing the structure of an organization is called:

A) formalization.
B) organizational design.
C) specialization.
D) span of control.
E) work differentiation.

F) All of the above
G) B) and E)

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Question 53

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In a traditional organizational structure, every employee has one person to whom they report.

_____ organizations are flexible, adaptive, outward-focused organizations that thrive in dynamic environments.

If decision making is pushed down to lower-level employees, and these employees feel empowered to make decisions on their own, an organization has a _____ structure.

The matrix structure gives each employee _____ chain(s) of command.

Companies that follow a low-cost producer strategy believe that people will pay more for a product that is unique in some way.

Wide spans of control allow managers to be much more hands-on with employees.

Companies that have a small number of customers with similar needs and tastes must develop client structures to organize their business.

Tom is the project manager of the Organizational Development team at Extreme Rugs. Tom's team has been assigned the task of studying and evaluating Extreme Rugs' organizational structure. Tom divided the tasks among the team members to collect preliminary information on different elements of Extreme Rugs' structure. Jeremy was asked to collect information on the degree to which tasks are divided into separate jobs. Joy was asked to collect information on formal authority relationships. Alice started looking into how many employees each manager has responsibility for, and Kathy was asked to collect evidence on the degree to which rules and procedures are used to standardize behaviors at Extreme Rugs. Tom himself decided to collect information and evidence on where exactly decisions are formally made at Extreme Rugs. The team decided to meet with information in two weeks. On which element of organizational structure is Tom collecting information?

Tom is the project manager of the Organizational Development team at Extreme Rugs. Tom's team has been assigned the task of studying and evaluating Extreme Rugs' organizational structure. Tom divided the tasks among the team members to collect preliminary information on different elements of Extreme Rugs' structure. Jeremy was asked to collect information on the degree to which tasks are divided into separate jobs. Joy was asked to collect information on formal authority relationships. Alice started looking into how many employees each manager has responsibility for, and Kathy was asked to collect evidence on the degree to which rules and procedures are used to standardize behaviors at Extreme Rugs. Tom himself decided to collect information and evidence on where exactly decisions are formally made at Extreme Rugs. The team decided to meet with information in two weeks. Jeremy was given the job of collecting information on which of the following elements of the organizational structure?

Organizational performance increases as span of control increases, but only up to a certain point.

Which of the following elements of an organizational structure is also referred to as a company's division of labor?

_____ structures are perhaps the most common form of organizational design.

Which of the following statements about an organization in a dynamic business environment is True?

Which element of the organizational structure signifies formal authority relationships?

Many layoff survivors experience a great deal of guilt and remorse following a layoff.

Splash Hair Care Inc. is growing very fast in both sales and number of employees. It manufactures and sells hair products for youth, male, female, elderly, and ethnic populations all over the United States and several other countries. So far, the company has followed a simple structure. However, with fast-paced growth, it has become a necessity that the company explore other organizational structures. John, a long-time employee at Splash Hair Care, has collected information on how some of its competitors have organized their companies. Streaks Inc. groups its employees by their different areas of expertise such as Marketing, Finance, Human Resources, and Operations. Pure Oil, primarily in the United States, groups its activities as Northeast Division, Southeast Division, Northwest Division, Southwest Division, and Central Division. Curlz Inc. has organized its employees according to the accounts they serve, such as Large Company contracts, Internet Sales, Individual Sales, and Small Salon Direct Sales. Finally, Color Lite International has grouped its business units around popular colors such as Red Division, Silver Division, Rainbow Division, Black and Brown Division, and Shades of Blonde Division. Which of the following describes Color Lite International's organizational structure?

Which of the following statements is True?

A _____ structure makes perfect sense for a small organization because employees can come and go with no major ripple effects on the organization.