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Exam 15: Organizational Structure

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Question 31

Multiple Choice

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Which of the following is associated with decentralization in decision making?

A) Moderate spans of control
B) Tall spans of control
C) Wide spans of control
D) Narrow spans of control
E) Flat spans of control

F) A) and B)
G) A) and C)

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Question 32

True/False

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Although matrix structures have been around since the 1960s,the number of organizations using them has declined since organizations prefer to work in groups rather than in teams.

A) True
B) False

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Question 33

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The chain of command signifies the flow of authority to attain order,control,and predictable performance.

For a restructuring to be successful,mere changes in the lines on an organizational chart are not sufficient; it demands a different way of working for the employees.

When Happy Feet Shoe,Inc.groups its business units according to where they do business such as North America division,Europe division,Asia division,and Africa division,it is creating which of the following organizational structures?

A large company recently adopted a structure in order to give its top managers more responsibility and flexibility.The company is now structured around four customer groupings: consumers,corporations,small and mid-sized businesses,and government and educational buyers.Which of the following organizational structures has this company created?

Many small companies evolve into functionally based structures as they grow larger.

The biggest weakness of a functional structure is that:

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.

Which of the following is the main reason behind many organizations flattening their organizations?

Scenario: Extreme Rug Tom is the project manager of the corporate structure team at Extreme Rugs.Tom's team has been assigned the task to study and evaluate Extreme Rugs' organizational structure.To collect the preliminary information,Tom divided the tasks among the team members to collect 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 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.

Although not much is known about the effect of restructuring on affective commitment,restructuring generally results in _____ level(s) of affective commitment on the part of employees.

As companies become larger,they need to use a combination of specialization,formalization,and centralization to control their activities,thereby becoming more mechanistic in nature.

Scenario: Splash Hair Care Inc.

Which of the following signifies the structure that organic organizations rely on?

A bureaucratic structure is an organizational form that exhibits many of the facets of the _____ organization.

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

Organic organizations are efficient,rigid,predictable,and standardized organizations that thrive in stable environments.

Companies that focus on a differentiation strategy are more likely to take a mechanistic approach to organizational design.

Which of the following is a characteristic of a mechanistic organization?