Course: Introduction to Management

Instructor: Dr. Alia Abdel Hamid Aaref

Sheet (7)
Organizing
MCQ
1) ________ is the formal arrangement of jobs within an organization.
A) Departmentalization
B) Organizational design
C) Organizational structure
D) Work specialization

2) Organizational design is a process that involves decisions about ________.

A) work specialization and cost-leadership
B) chain of command and span of control
C) centralization and differentiation
D) departmentalization and diversification

3) In the early 20th century, automobiles were made one at a time by craftsmen who could
perform every operation necessary to build the car. Henry Ford decided to limit the number of
tasks each worker performed so each person could become expert in his position. With this
practice, Ford introduced ________.
A) departmentalization
B) work specialization
C) centralization
D) formalization

4) The process of grouping jobs together is known as ________.

A) departmentalization
B) centralization
C) formalization
D) organizational design

5) Marcus was asked to represent the cardiac unit as part of a Total Quality Management (TQM)
initiative that is aimed at improving the overall quality of care at his hospital. Other departments,
such as orthopedics, neurology, oncology, and pediatrics also have representatives on this team.
This TQM team is an example of ________.
A) a multi-cultural team
B) a cross-functional team
C) process integration
D) an interdepartmental team
6) The ________ structure assigns specialists from different functional departments to work on
projects being led by a project manager.
A) team
B) learning
C) boundaryless
D) matrix

7) A dual chain of command is the key characteristic of the ________ structure.

A) matrix
B) project
C) team
D) virtual

8) A matrix structure violates which important element of organizational design?

A) unity of command
B) span of control
C) chain of command
D) decentralization

9) Which of the following is a characteristic of a matrix organization?

A) It conforms to the unity of command principle.
B) It consists of outside specialists who are temporarily hired to work on projects.
C) It has formal departments to which employees return after completing a project.
D) It is free of both internal and external boundaries.

10) The line of authority that extends from upper organizational levels to lower levels, clarifying
who reports to whom, is known as the ________.
A) employee power distance
B) unity of command
C) span of control
D) chain of command

11) In the case of functional departmentalization, jobs are grouped according to ________.
A) tasks
B) territories
C) product lines
D) customer flow

12) ________ departmentalization is based on the product or customer flow through the
organization.
A) Product
B) Functional
C) Process
D) Customer
13) What kind of departmentalization would be in place in a government organization where
different public service responsibilities are divided into activities for employees, children, and
the disabled?
A) product departmentalization
B) geographic departmentalization
C) process departmentalization
D) customer departmentalization

14) Wilson is offered a chance to help direct the efforts of some employees assigned to his work
group. This is a chance for Wilson to experience ________.
A) responsibility
B) leadership
C) command
D) authority

15) Melanie has noticed that everyone is very concerned about the line of authority within the
hospital. This implies that the employees at the hospital are worried about the ________.
A) unity of command
B) chain of command
C) span of control
D) departmentalization

16) Bill manages the quality department. His people check parts made by the production
departments to assure all specifications are met. Bill is ________.
A) a non-manager
B) a middle manager
C) a staff manager
D) a line manager

17) Willard has been assigned to a project development team in addition to his regular duties as a
quality engineer. During this assignment he will report to both the project manager and his
quality department manager. This situation ________.
A) violates span of control
B) violates unity of command
C) violates chain of command
D) violates the acceptance theory of authority

18) The ________ determines the number of levels and managers in an organization.
A) delegation of authority
B) unity of command
C) chain of command
D) span of control

19) All other things being equal, the wider or larger the span of control, the more ________ an
organization is.
A) ambitious
B) rigid
C) mechanistic
D) cost efficient

20) Which of the following factors calls for a more centralized organizational structure?
A) when the decisions to be taken are significant
B) when the company is geographically dispersed
C) when the organization is facing a crisis
D) when the environment is complex

21) After extensive job cuts to reduce costs, upper level managers are spending significant
amounts of time solving problems in the production units. Lower level managers are resentful
that they cannot make decisions for their own units. What recommendation would you make for
this firm?
A) Reorganize; departmentalize around customers instead of products.
B) Formalize; write explicit job descriptions, rules, and procedures so the upper managers won't
have to decide each case individually.
C) Centralize; create a department that does nothing but make decisions.
D) Decentralize; give authority to the lower level managers regarding events in their own units.

22) As organizations become more flexible and responsive to environmental trends, there is a
distinct shift toward ________ decision making.
A) centralized
B) decentralized
C) concentrated
D) departmentalized

23) Bob works in a mid-sized organization with other skilled workers who all pitch in to do what
needs to be done to satisfy the customer. It is likely Bob works in a ________ organization.
A) formalized
B) decentralized
C) departmentalized
D) cross-functional

24) In highly ________ organizations, there are explicit job descriptions, numerous
organizational rules, and clearly defined procedures covering work processes.
A) formalized
B) decentralized
C) departmentalized
D) specialized

25) A(n) ________ organization is highly specialized and rigidly departmentalized.

A) organic
B) complex
C) learning
D) mechanistic
26) A(n) ________ organization is highly adaptive, loose, and flexible.
A) organic
B) centralized
C) customer-oriented
D) mechanistic
27) Paul Abdul Oil Corporation (PAOC) began as a relatively small oil company. As PAOC has
grown, the company has gained a highly trained group of managers and analysts at the corporate
headquarters. This group is highly adaptive in its structure. Members of this group do not have
standardized jobs, but are empowered to handle diverse job activities and problems. PAOC
seems to have a(n) ________ structure.
A) mechanistic
B) divisional
C) functional
D) organic

28) Large organizations are more ________.

A) mechanistic
B) organic
C) disorganized
D) decentralized

29) Ben operates a farmer's market. Every year he offers the same vegetables to the same
customers and faces the same rivalry from other truck farmers. A(n) ________ would best fit
Ben's situation.
A) formalized design
B) mechanistic design
C) centralized design
D) organic design

30) Worldwide economic downturn, global competition, accelerated product innovation by

competitors, and increased demands from customers for high quality and faster deliveries
encourage organizations to become more ________.
A) organic
B) mechanistic
C) centralized
D) formalized

31) Which of the following traditional organizational designs focuses on results by holding
division managers responsible for what happens to their products and services?
A) simple structure
B) functional structure
C) divisional structure
D) matrix structure

32) In which of the following traditional organizational designs does duplication of activities and
resources lead to an increase in costs and reduced efficiency?
A) divisional structure
B) team structure
C) matrix structure
D) project structure

33) A ________ is an organizational design that groups similar or related occupational

specialties together.
A) matrix structure
B) functional structure
C) divisional structure
D) simple structure

34) The ________ is an organizational structure made up of separate business units with each
unit having limited autonomy.
A) bureaucratic structure
B) simple structure
C) functional structure
D) divisional structure

True & False, Correct and Justify

1) Managers today continue to see work specialization as important because it helps employees
be more efficient.
2) The chain of command is a principle that states that a person should report to only one boss.
3) All other things unchanged, the narrower the span of control, the more efficient the
organization is.
4) Given other things unchanged, managers with well-trained and experienced employees can
function well with a wider span of control than those with a less talented workforce.
5) Employee empowerment gives employees more authority to delegate responsibility.
6) In highly formalized organizations, employees have more discretion in how they do their
work.
7) An organic organization strictly adheres to the chain-of-command principle and has a wide
span of control.
8) An organic organization is low in centralization.
9) Innovators need the efficiency, stability, and tight controls of the mechanistic structure.
Essay
1) Define the process of organizing and explain how it helps an organization.
2) Write a short essay on work specialization. How does specialization affect productivity?
How does it affect a firm's cost structure?
3) What is meant by departmentalization? In a short essay, list and discuss the three common
forms of departmentalization, their advantages and disadvantages.
4) In a short essay, explain authority and responsibility
5) Discuss the differences between line and staff authority.
6) List a few factors that influence the amount of centralization or decentralization in an
organization.
7) Explain centralization, decentralization.
8) Explain the difference between delegation of authority and employee empowerment.
9) Explain the concepts of mechanistic and organic structures
10) List and discuss the three contingency variables that should be considered while designing an
appropriate organizational structure.