Name: 
 

Chapter 7 Structure and Fundamentals of Organizing



Multiple Choice
Identify the choice that best completes the statement or answers the question.
 

 1. 

The organizational structure for a medium-sized business that sells wooden toys would include:
a.
the number of hierarchical levels in the company
b.
informal communications networks
c.
team equivalencies
d.
the span of control for each subordinate
e.
management coalitions
 

 2. 

_____ means that decision authority is located near the top of the organization, and _____ means that decision authority is pushed down to lower organizational levels.
a.
Centralization; decentralization
b.
Formalization; departmentalization
c.
Departmentalization; formalization
d.
Decentralization; centralization
e.
Centralization; formalization
 

 3. 

A manager once described _____ as “taking an axe and a machine gun to your existing organization."  While he may have been exaggerating some, it is definitely a radical process that can produce dramatic results.
a.
reengineering
b.
boundary spanning
c.
benchmarking
d.
reverse engineering
e.
outsourcing
 

 4. 

In Joan Woodward’s classic study of the relationship between manufacturing technology and organizational structure, it was found that _____ manufacturing tended to be associated with a rigid organizational structure.
a.
small batch
b.
mass production
c.
continuous process
d.
unit production
e.
customized
 

 5. 

The visual representation of an organization’s structure is known as a(n)
a.
organization chart
b.
organization map
c.
organization graph
d.
organization graphic
e.
organization hierarchy
 

 6. 

Factors that typically influence centralization versus decentralization include:
a.
Greater change and uncertainty in the environment
b.
fit with the firm’s strategy
c.
In times of crisis or risk of company failure, authority may be centralized at the top
d.
A and C
e.
A, B, and C
 

 7. 

A structure in which the entire organization is made up of horizontal teams that coordinate their activities and work directly with customers to accomplish the organization’s goals is known as a(n):
a.
control-based structure
b.
hierarchy-based structure
c.
authority-based structure
d.
department-based structure
e.
team-based structure
 

 8. 

Smith’s Structures, a prefabricated steel structure manufacturing company, uses outside suppliers to provide large components of its product, which are then assembled into a final product by a few workers at Smith’s.  This situation is known as a:
a.
disparate control approach
b.
modular approach
c.
virtual approach
d.
departmental approach
e.
network approach
 

 9. 

Advantages to a virtual network approach include:
a.
flexibility and competitiveness on a global scale
b.
ability to draw on resources and expertise worldwide
c.
ability to sell its products and services worldwide
d.
flexibility to hire whatever services are needed
e.
all of the above
 

 10. 

The quality of collaboration across departments is known as:
a.
control
b.
coordination
c.
corruption
d.
collusion
e.
cooperation
 

 11. 

A temporary team or committee formed to solve a specific short-term problem involving several departments is known as a(n):
a.
managerial coordination group
b.
executive committee
c.
command group
d.
task force
e.
multi-functional team
 

 12. 

A person responsible for coordinating the activities of several departments on a full-time basis for the completion of a specific project is known as a:
a.
managerial coordinator
b.
committee leader
c.
command figure
d.
task force chairperson
e.
project manager
 

 13. 

An organized group of related tasks and activities that work together to transform inputs into outputs and create value is known as a:
a.
plan
b.
process
c.
procedure
d.
possibility
e.
project
 

 14. 

Contingency factors that influence organizational structure include:
a.
environment
b.
strategy
c.
technology
d.
A, B and C
e.
A, B but not C
 

 15. 

Three things that an uncertain environment causes within an organization include:
a.
increased coordination to keep departments working together
b.
increased differences occur among departments
c.
adaptation to change
d.
A, B and C
e.
A, B but not C
 



 
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