Multiple Choice Quiz
1
Which of these statements about organizational structure is(are) true?
A) It refers to the division of labour.
B) It refers to patterns of coordination.
C) It refers to patterns of work flow and formal power that direct organizational activities.
D) Organizational structure reflects cultural and power relationships.
E) All of the above statements are true.

2
Organizational structure refers to coordination and:
A) division of labour.
B) delegation of authority.
C) assumption of authority.
D) decentralized decision making.
E) chain of command.

3
Work is divided into specialized jobs because:
A) it potentially increases work efficiency.
B) job incumbents can master their tasks quickly because work cycles are short.
C) less time is wasted changing from one task to another.
D) training costs are reduced.
E) all of the above.

4
Fundamental requirements of __________ are division of labour into distinct tasks and coordination of that labour.
A) span of control
B) centralization
C) organizational structure
D) job specialization
E) concurrent engineering

5
Coordination through formal hierarchy is a(n) __________ coordinating mechanism.
A) flexible
B) inefficient
C) efficient
D) effortless
E) a contemporary and optimal

6
Each of these are basic elements of organizational structure, EXCEPT:
A) formalization.
B) departmentalization.
C) standardization.
D) centralization.
E) span of control.

7
As organizations grow, they tend to _________ decision making authority.
A) centralize
B) decentralize
C) maintain
D) control
E) standardize

8
A flat organizational structure creates a(n) __________ span of control.
A) tall
B) narrow
C) wide
D) centralized
E) informal

9
__________ is the degree to which organizations standardize behaviour through rules, procedures, formal training, and related mechanisms.
A) Formalization
B) Standardization
C) Centralization
D) Departmentalization
E) Decentralization

10
In a formalized structure, some work rules become so __________ that organizational efficiency would decline if they were actually followed.
A) flexible
B) ordinary
C) decentralized
D) centralized
E) convoluted

11
What is a problem associated with formalization?
A) Rules and procedures reduce organizational flexibility.
B) Employees can become alienated and disempowered.
C) Rules and procedures can become the focus of attention.
D) All of the above.
E) None of the above.

12
Companies with an organic structure have a:
A) wide span of control.
B) little formalization.
C) decentralized decision making.
D) all of the above.
E) none of the above.

13
A(n) ___________ structure has a wide span of control, little formalization, and highly __________ decision-making.
A) organic; decentralized
B) mechanistic; centralized
C) departmental; departmentalized
D) formal; decentralized
E) informal; centralized

14
Departmentalization is a(n)
A) form of informal communication.
B) element of organizational structure.
C) type of formalization.
D) element of standardization.
E) component of a flat span of control.

15
Departmentalization refers to:
A) organic structure.
B) functional structure.
C) tall structure.
D) the organizational chart.
E) span of control.

16
All of these are characteristics of a company with a simple structure, EXCEPT:
A) few people are employed.
B) owner’s direct supervision coordinates work activities.
C) narrowly defined roles.
D) minimal hierarchy.
E) flexible.

17
Which of these is NOT a type of divisional structure?
A) Client
B) Product/service
C) Geographic
D) Functional
E) All are divisional structures

18
An advantage of functional structures is:
A) encourages specialization and increases employee identity with their profession.
B) permits grater specialization so that organization has expertise in each area.
C) direct supervision is easier.
D) creates common pools of talent that typically serve everyone in the organization.
E) all of the above.

19
A divisional structure groups employees around:
A) clients.
B) outputs.
C) geographic areas.
D) all of the above.
E) none of the above.

20
Which structure is usually optimal for project-based organizations with fluctuating workloads?
A) Functional
B) Divisional
C) Matrix
D) Network
E) Virtual

21
A feature of a team-based organizational structure is:
A) building around self-directed work teams.
B) organized around work processes.
C) flat hierarchy.
D) little formalization.
E) all of these.

22
A main force pushing toward a network structure is that an organization has ___________ core competencies.
A) undefined
B) a few
C) many
D) interdependent
E) independent

23
A network structure that represents several independent companies that form unique partnership teams to provide customized products or services, usually to specific clients, for a limited time are known as:
A) host organizations.
B) virtual corporations.
C) global organizations.
D) centralized organizations.
E) formalized organizations.

24
The way an organization positions itself in its setting in relation to stakeholders, given the organization’s resources, capabilities, and mission is referred to as:
A) organizational strategy.
B) network structure.
C) technology utilization.
D) formalization.
E) all of the above.