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Chapter 9 Questions

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Co u r s e T i t l e : P r i n c i p l e s o f M a n a g e m e n t ( 2 )

Co u r s e Co d e : M G T 1 2 1 E
Chapter 9: Organizational Structure and Design

Question (1): MCQ


1. The process of dividing work activities into separate job tasks is known as ________.
A. Work specialization
B. Differentiation
C. Chain of command
D. The span of control.

2. That a person should report to only one manager is:


A. Unity of command
B. Responsibility
C. Authority
D. Formalization

3. 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. Chain of command
D. Span of control

4. Latitia instructs all the employees of her organization to report to her directly. She asks them to
send her individual end-of-day updates as well. Latitia incorporates the _____ as a component of
the chain of command in her organization.
A. Dispersion of command.
B. Unity of command.
C. Decentralization of command.
D. Horizontal structure of command

5. ………………..is the organization’s formal framework by which job tasks are divided, grouped, and
coordinated
A. Organizing
B. Organizational Chart
C. Organizational Design
D. Organizational Structure

6. Functional departmentalization groups jobs by ______________.


A. Tasks they perform
B. Territories they serve
C. Products or services they manufacture or produce
D. Type of customer they serve

7. The ________ structure assigns specialists from different functional departments to work on
projects being led by a project manager.
A. Divisional
B. Functional
C. Simple
D. Matrix

8. _____ is a power that has been legitimized by an organization.


A. Specialization
B. Coordination
C. Delegation
D. Authority

9. Minkolet, an accessory company, requires that all its employees, including sales personnel,
accountants, human resource personnel, and research personnel, report to the Chief Executive
Officer. All decisions are made by the Chief Executive Officer. The lower-level managers and the
employees do not have a say in any of the decisions made. Minkolet is an example of an _____
organization.
A. Decentralized
B. Centralized
C. Restructured
D. Tall

10. A(n) ________ organization is highly formalized and centralized.


A. Rational
B. Mechanistic
C. Organic
D. Intuitive
Question (2): True or False

1. Work specialization is also known as the division of labor.


2. Managers today continue to see work specialization as important because it helps
employees be more efficient.
3. The chain of command is a principle that states that a person should report to only one
boss.
4. An organic organization strictly adheres to the chain-of-command principle and has a
small span of control.
5. Process departmentalization is based on the product or customer flow through the
organization.
6. Responsibility refers to the rights inherent in a managerial position to tell people what to
do and to expect them to do it.
7. Eric is offered a chance to help direct the efforts of some employees assigned to his work
group. This is a chance for Eric to experience authority.
8. Authority is the obligation or expectation to perform a duty.
9. When Eric is offered a chance to help direct the efforts of some employees assigned to
his work group, he sees this new assignment as increase in his responsibility.

Question (3): Essay Questions

1. Can an organization’s structure be changed quickly? Why or why not? Should it be


changed quickly? Explain.
Answer The larger an organization is, the more difficult it will be to effectively implement the change in
its overall structure. The basic structure can be changed by doing nothing more than putting out a new
organizational chart and giving people new titles, but changes to work specialization,
departmentalization, and the overall chain of command can be a challenge - especially if the
organization is fairly large. An example would be an organization that is acquiring another organization
and wants to integrate some of its structure. This can, and often is, complicated and time-consuming.

2. What is a characteristic of an organic organizational structure?


Answer An organic organizational structure is characterized by low centralization. Companies that adopt
this structure also have low complexity and low formalization.

3. What is an example of an organic organizational structure?

Answer An example of a company that adopts an organic organizational structure is a small internet start-
up company. Small companies do not have complex processes. They also employ a horizontal approach
to communication where all employees communicate directly with each other and the supervisors.
4. What are mechanistic and organic organizational structures?

Answer A mechanistic organizational structure is characterized by high centralization, complexity, and


formalization. On the other hand, an organic organizational structure is characterized by low
centralization, low formalization, and low complexity.
5. What is the difference between an organic and a mechanistic organization?
Answer A mechanistic organizational structure has a well-defined hierarchy of power. However, in an
organic organization, the hierarchy of authority is loosely defined.

6. What types of skills would a manager need to effectively work in a project structure? In a
boundary-less organization? In a learning organization?
Answer In all of these types of organizations, flexibility, and adaptability are critical. In the project
structure, conflict management skills are particularly useful. In a boundary-less organization, the ability
to interact effectively with people at all levels and in all areas of the organization is crucial to success. In
a learning organization, a manager needs the ability to communicate both by listening and speaking
because of the frequency and importance of sharing information in this type of organization.

7. How can an organization operate without boundaries?


Answer While the term ‘boundary-less’ may imply something akin to chaos, it refers to the idea that
organizations can operate effectively by remaining flexible and unstructured. There are two types:

• Internal—the horizontal ones imposed by work specialization and departmentalization and


the vertical ones that separate employees into organizational levels and hierarchies.
• External—the boundaries that separate the organization from its customers, suppliers, and
other stakeholders. To minimize or eliminate these boundaries, managers might use virtual
or network structural designs.

8. The boundary-less organization has the potential to create a major shift in our living and
working patterns. Do you agree or disagree? Explain.

Answer Agree with the following statement “The boundary-less organization has the potential to create
a major shift in the way we work”. The reason for agreeing with this is it helps an individual with self-
confidence, takes initiative, and trusts others.

9. Describe the four contemporary organizational designs. How are they similar? Different?
Answer In a team structure, the entire organization is made up of work teams. The matrix structure
assigns specialists from different functional departments to work on one or more projects being led by
project managers. A project structure is one in which employees continuously work on projects. A virtual
organization consists of a small core of full-time employees and outside specialists temporarily hired as
needed to work on projects. A network organization is an organization that uses its own employees to
do some work activities and networks of outside suppliers to provide other needed product components
or work processes. A learning organization is one that has developed the capacity to continuously learn,
adapt, and change. It has certain structural characteristics including an emphasis on sharing information
and collaborating on work activities, minimal structural and physical barriers, and an empowered work
team.

10. With the availability of advanced information technology that allows an organization's
work to be done anywhere at any time, is organizing still an important managerial
function? Why or why not?

Answer Although an organization's work may be done anywhere at any time, organizing is still an
important managerial function because the work still has to be divided, grouped, and coordinated.

11. Researchers are now saying that efforts to simplify work tasks actually have negative
results for both companies and their employees. Do you agree? Why or why not?

Answer Agree. Simplifying work tasks could have the negative effect of becoming too monotonous for
employees, resulting in employee dissatisfaction, which in turn could result in a higher level of employee
turnover than the organization would prefer.
Question (1): MCQ

Answers
1 A
2 A
3 C
4 B
5 D
6 A
7 D
8 D
9 B
10 B

Question (2): True or False

1. True
2. True
3. False
4. False
5. True
6. False
7. True
8. False
9. True

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