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Many restructuring efforts are designed to remove one or more organizational layers to reduce costs.

A) True
B) False

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Which of the following statements about a low-cost producer strategy is true?


A) They believe that people will pay more for a product that is unique in some way.
B) They rely on selling products at the lowest possible cost.
C) They often hinge on adjusting to changing environments quickly.
D) Such companies are more likely to take an organic approach to organizational design.
E) They focus on supplying high quality differentiated products to customers.

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

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Restructuring efforts typically enhance employees' trust in the organization.

A) True
B) False

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Ross and Tony,father and son,opened a large boutique named Tradus in Chicago.The father and son,being the owners of the business concern,decide about the important matters and all the rest of the functions like product,finance,marketing,and personnel are carried out by the department heads who have to act as per the instruction and orders of both of them.Which of the following is true about Tradus?


A) It has a very tall organizational structure.
B) It has a centralized system of decision making.
C) It has a matrix organizational structure.
D) The degree of formalization is very low in the organization.
E) It has a narrow span of control.

F) A) and E)
G) None of the above

Correct Answer

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Organizations which do not proactively develop designs may be forced to change their structure to become more effective.

A) True
B) False

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Companies that have limited customers with varied needs and tastes must develop client structures to organize their business.

A) True
B) False

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The degree to which tasks in an organization are divided into separate jobs refers to:


A) centralization.
B) chain of command.
C) span of control.
D) formalization.
E) work specialization.

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

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A _____ structure is a flat organization with one person as the central decision-making figure.


A) functional
B) product
C) client-based
D) simple
E) matrix

F) A) and D)
G) A) and C)

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


A) numerous
B) at least four
C) two
D) infinite
E) one

F) None of the above
G) All of the above

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Henry Ford was a strong believer in work specialization.

A) True
B) False

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Which of the following refers to the degree to which rules and procedures are used to standardize behaviors and decisions in an organization?


A) Chain of command
B) Formalization
C) Centralization
D) Work specialization
E) Span of control

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

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Which of the following is true about work specialization?


A) It creates more problems in larger firms where flexibility is required.
B) It makes training new employees easier when replacements are needed.
C) It helps employees to upgrade their skills in multiple disciplines.
D) It improves the flexible nature of workers.
E) It implies each worker performs different tasks every day.

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

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Briefly describe the factors that influence the process of organizational design.

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The factors include the environment in w...

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Which of the following is one of the biggest factors of an environment's effect on structure that allows organizations to focus on efficiency?


A) Whether the outside environment is stable or dynamic
B) Whether the external culture clashes with intrinsic values
C) Whether the internal environment is stable or dynamic
D) Whether the competitor's structure matches industry needs
E) Whether the supplier's culture matches with the company

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

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The method by which an organization transforms its inputs into outputs refers to its:


A) structure.
B) technology.
C) specialization.
D) quality.
E) projects.

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

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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.


A) Chain of command
B) Formalization
C) Centralization
D) Work specialization
E) Span of control

F) None of the above
G) All of the above

Correct Answer

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High levels of specialization are more acceptable in smaller firms in which employees must be more flexible in their job duties.

A) True
B) False

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


A) Simple
B) Functional
C) Client-based
D) Product
E) Matrix

F) D) and E)
G) A) and B)

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Which of the following structures generally develop from companies with functional structures whose interests and goals become too diverse for that structure to handle?


A) Mechanistic
B) Global
C) Multi-divisional
D) Matrix
E) Organic

F) B) and E)
G) A) and B)

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


A) Mechanistic
B) Centralized
C) Hierarchical
D) Matrix
E) Organic

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

Correct Answer

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