University of New South Wales

MANF 9400

MULTIPLE CHOICE QUESTIONS

1)According to the textbook, a(n)___is the formal arrangement of jobs within an organisation.

1. 1. mission statement
   2. environmental scan
   3. internal resource analysis
   4. organisational structure
   5. functional division

2. Which of the following is NOT one of the six key elements in organisational design?
   6. work specialisation
   7. departmentalisation
   8. chain of command
   1. bureaucratic design
   10. span of control

3. Organisational design is based on decisions about                             .
   1. work specialisation and departmentalisation
   2. chain of command and span of control
   3. centralisation and decentralisation
   4. both A and B
   5. all of the above

4. Work specialisation is also known as                              .
   1. departmentalisation
   2. centralisation
   3. span of control
   4. formalisation
   5. division of labour

5. The term                         is used to describe the degree to which tasks in an organisation are divided into separate jobs.
   1. work ethics
   2. managerial capitalism
   3. social responsibility
   4. work specialisation
   5. functional design

6. Which of the following is NOT an example of the classical view of work specialisation?
   1. assembly­line production
   2. McDonald's
   3. traditional General Motor's assembly plant
   4. organic organisations
   5. Ford  

7.                        is the basis on which jobs are grouped in order to accomplish organisational goals.
   1. Departmentalisation
   2. Centralisation
   3. Formalisation
   4. Coordination
   5. Efficiency  

8. A local manufacturing organisation has groups of employees who are responsible for sales, marketing,

accounting, human resources, etc. These are examples of what concept?

1. 1. authority
   2. chain of command
   3. empowerment
   4. departmentalisation
   5. social grouping

9. Grouping sporting equipment in one area, men's clothing in another area and cosmetics in a third area is an example of what kind of departmentalisation?
   1. customer
   2. product
   3. geographic
   4. process
   5. outcome  

10. Sales responsibilities divided into south­east Australia, eastern Australia, north­east Australia, middle Australia and Western Australia would be an example of                               departmentalisation.
    1. product
    2. geographic
    3. process
    4. outcome
    5. customer  

11. Grouping activities on the basis of customer flow is                               .
    1. functional departmentalisation
    2. product departmentalisation
    3. geographical departmentalisation
    4. process departmentalisation
    5. technological departmentalisation

12.                        departmentalisation has been used in recent years to better monitor the needs of clients and to respond to changes in those needs.
    1. Needs­based

1. 2. Functional
   3. Process
   4. Customer
   5. Orderly  

13. What type of departmentalisation expects that each department will specialise in one specific phase of the process or product production?
    1. product
    2. geographic
    3. process
    4. outcome
    5. customer  

14. What kind of departmentalisation would be in place in a government organisation where different public service responsibilities are divided into activities for employers, children and the disabled?
    1. product
    2. geographic
    3. process
    4. outcome
    5. customer  

15. Which of the following is NOT a form of departmentalisation suggested by your textbook?
    1. functional departmentalisation
    2. product departmentalisation
    3. geographical departmentalisation
    4. process departmentalisation
    5. technological departmentalisation

16. Today's business environment has greatly increased the use of what type of departmentalisation?
    1. geographic
    2. customer
    3. product
    4. process

1. 5. outcome  

17. According to the textbook, managers are using                            , which are groups of individuals who are experts in various specialties and who work together.
    1. specialised teams
    2. cross­demanded teams
    3. cross­functional teams
    4. multi­skilled teams
    5. simple structured teams

18. Bringing together the company's legal counsel, research engineer and marketing specialist for a project is an example of a(n)                        .
    1. empowered team
    2. process departmentalisation
    3. product departmentalisation
    4. cross­functional team
    5. continuous improvement team

19. The                         is the continuous line of authority that extends from upper organisational levels to the lowest levels and clarifies who reports to whom.
    1. chain of demand
    2. chain of command
    3. demand hierarchy
    4. continuous design structure
    5. none of the above

20. To whom a worker reports concerns which aspect of organisational structure?
    1. chain of command
    2. departmentalisation
    3. pay structure
    4. line of command
    5. authority framework

21.                        entitles a manager to direct the work of a subordinate.
    1. Responsibility
    2. Legitimate power
    3. Rank
    4. Operating responsibility
    5. Authority  

22.                        is the obligation to perform assigned activities.
    1. Authority
    2. Responsibility
    3. Chain of command
    4. Unity of command
    5. Formalisation  

23. The                         principle (one of Fayol's 14 principles of management) helps preserve the concept of a continuous line of authority.
    1. unity of demand
    2. unity of command
    3. unity of direction
    4. demand structure
    5. continuous demand

24. Span of control refers to which of the following concepts?
    1. how much power a manager has in the organisation
    2. the geographic dispersion of a manager's subunits of responsibility
    3. how many subordinates a manager can effectively and efficiently supervise
    4. the number of subordinates affected by a single managerial order
    5. the amount of time it takes to pass information down through a manager's line of command

25. Other things being equal, the wider or larger the span of control, the more                               the organisational design.
    1. bureaucratic
    2. democratic
    3. effective
    4. efficient
    5. classical  

26. Wider spans of control may be viewed as more efficient, but eventually, wider spans tend to have what effect on organisations?
    1. reduced effectiveness
    2. increased turnover
    3. loss of managerial power
    4. customer dissatisfaction
    5. rigid chains of command

27. A high­tech manager who supervises the development of a new computer chip needs        compared to a manager who supervises the mailing of unemployment insurance checks at the local government office.
    1. about the same span of control
    2. a narrower span of control
    3. a wider span of control
    4. a more informal span of control
    5. elimination of the span of control

28. In general, span of control is                            for managers.
    1. increasing
    2. decreasing
    3. staying the same
    4. significantly decreasing
    5. no longer important

29.                        describes the degree to which decision making is concentrated at a single point in the organisation.

1. 1. Decentralisation
   2. Centralisation
   3. Transnationalism
   4. Formalisation
   5. Cross­sectional analysis

30. If lower­level employees provide input or are actually given the discretion to make decisions, the organisation is more                         .
    1. formalised
    2. centralised
    3. decentralised
    4. mechanistic
    5. organic  

31. Recently, there has been a distinct trend toward                          .
    1. smaller spans of control
    2. decentralised decision­making
    3. decreased flexibility
    4. emphasis on chain of command
    5. mechanistic organisations

32. Which of the following factors would NOT influence an organisation to have a higher degree of centralisation?
    1. Environment is stable.
    2. Company is geographically dispersed.
    3. Company is large.
    4. Decisions are significant.
    5. Organisation is facing a crisis.

33.                        refers to the degree to which jobs within the organisation are standardised and the extent to which employee behaviour is guided by rules and procedures.
    1. Standardisation
    2. Centralisation

1. 3. Chain of command
   4. Strategy
   5. Formalisation

34. All of the following factors indicate that a decentralised organisation would be most effective EXCEPT when                      .
    1. the environment is complex
    2. decisions are relatively minor
    3. the organisation is facing a crisis
    4. the company is geographically dispersed
    5. effective implementation of strategies depends on managers having involvement and flexibility to make decisions

35. Which of the following factors describes an environment in which a high degree of decentralisation is desired?
    1. The environment is complex and uncertain.
    2. Lower­level managers do not want to have a say in decisions.
    3. Decisions are significant.
    4. The company is large.
    5. The organisation is facing a crisis or the risk of company failure.

36. The                         organisational structure is characterised by high specialisation, extensive departmentalisation, narrow spans of control and high formalisation.
    1. mechanistic
    2. organic
    3. contingency
    4. adhocracy
    5. functional  

37. Which of the following is NOT a characteristic of a mechanistic organisation?
    1. high specialisation

1. 2. wide spans of control
   3. high formalisation
   4. limited information network
   5. extensive departmentalisation

38. What type of organisational form follows classical principles such as clear chain of command?
    1. organic
    2. linear
    3. decentralised
    4. mechanistic
    5. adhocracy  

39. Which of the following would likely be found in mechanistic organisations?
    1. wide span of control
    2. empowered employees
    3. decentralised responsibility
    4. few rules and/or regulations
    5. standardised job specialties

40. All of the following are characteristics of an organic organisation EXCEPT                                       .
    1. narrow spans of control
    2. cross­hierarchical teams
    3. free flow of information
    4. low formalisation
    5. cross­functional teams

41. In recent restructuring of the pharmaceutical company GlaxoSmithKline, where the lab scientists set priorities and allocate resources, the change has helped produce an entrepreneurial environment akin to a smaller biotechnology outfit. This is an example of what type of organisation?
    1. bureaucratic
    2. mechanistic
    3. volatile
    4. nouvelle

1. 5. organic  

42. Which of the following is NOT one of the four contingency variables that help determine appropriate organisational structure?
    1. organisational size
    2. organisational strategy
    3. organisational technology
    4. organisational age
    5. degree of environmental uncertainty

43. Which of the following is an accurate statement about organisational structure and strategy?
    1. Strategy should follow structure.
    2. Strategy and structure are equal in temporal importance.
    3. Strategy and structure are not linked.
    4. Structure should follow strategy.
    5. Mechanistic and organic organisations have distinct differences in the application of the relationship between strategy and structure.

44. Structure is related to the size of the organisation, in that larger organisations usually have more                                                                                                                                                                                                                     .
    1. specialisation
    2. departmentalisation
    3. centralisation
    4. both A and B
    5. all of the above

45. Most current strategy­structure contingency frameworks tend to focus on three strategy dimensions. These dimensions are               .
    1. revenue maximisation, customer satisfaction and visibility
    2. customer satisfaction, employee satisfaction and ethics
    3. innovation, cost minimisation and imitation
    4. legal considerations, profit maximisation and innovation

1. 5. long­term survival, profit maximisation and customer satisfaction

46. What kind of relationship is there between organisational size and degree of mechanistic structure? A) ­1.0

2. unclear
3. positive
4. bimodal
5. exponential  

47. Joan Woodward's research was the first major attempt to view organisational structure from a                                

perspective.

1. 1. strategic
   2. contingency
   3. size
   4. departmental
   5. technological

48. The three production categories that Joan Woodward divided organisations into in order to uncover relationships between organisational structure and technology are                                                                  .
    1. unit, mass and process
    2. unit, product and cost
    3. product, cost and customer
    4. mass, process and cost
    5. process, unit and product

49. According to Woodward's studies, what type of production works best with a mechanistic structure?
    1. unit
    2. process
    3. product
    4. mass
    5. just­in­time  

50. Which of the following is NOT a characteristic that would suggest unit production would be a best 'fit'?
    1. low horizontal differentiation
    2. low vertical differentiation
    3. small­batch, custom products
    4. low formalisation
    5. mechanistic structure

51. A characteristic that both unit production and process production have is that the most effective organisational structure for both technologies is                                                                            .
    1. organic
    2. mechanistic
    3. adhocracy
    4. matrix
    5. team  

52. Woodward's studies generally demonstrate that organisation                            should adapt to their                        .
    1. processes; environment
    2. employees; leaders
    3. technologies; legal constraints
    4. structures; technology
    5. outputs; resources

53. Which type of environment is best suited for mechanistic organisations?
    1. dynamic
    2. manufacturing
    3. service
    4. combination
    5. stable  

.

54. According to the textbook, all of the following are examples of the more traditional organisational designs EXCEPT                    .

1. the simple structure
2. the functional structure
3. the matrix structure
4. the divisional structure

55. Which of the following is NOT characteristic of a simple organisational structure?

1. narrow spans of control
2. low degree of departmentalisation
3. centralised decision making
4. little formalisation
5. information arrangement of employees

56. Which of the following terms is associated with a simple organisational structure?

1. elaborate
2. high complexity
3. formal
4. decentralised
5. flexible  

57. A wine store that employs six people most likely has what kind of organisational structure?

1. bureaucracy
2. simple
3. functional
4. divisional
5. team­based  

58. All of the following are strengths of a simple organisational structure EXCEPT                                      .

1. it is fast
2. it is inexpensive to maintain
3. it is less risky

4. accountability is clear
5. it is flexible  

59. A bureaucratic or mechanistic design may use a                                                                                              structure that groups similar or related occupational specialties together.

1. matrix
2. functional
3. divisional
4. geographic
5. team­based  

60. A                         structure creates strategic business units.

1. matrix
2. functional
3. divisional
4. geographic
5. team­based  

61. What type of organisational structure is made up of autonomous units?

1. bureaucracy
2. simple
3. functional
4. divisional
5. team­based  

62. Maryanne coordinates the activities of TeamCo’s individual units and offers support services to the help the managers reach their performance goals. What type of organisational design does TeamCo use to manage their individual units?

1. divisional
2. functional
3. simple
4. structural
5. organic