Questions and Answers on Organizational Structure and Design
Chapter 10 Organizational Structure and Design
True/False Questions
DEFINING ORGANIZATIONAL STRUCTURE
1. Organizational design is the organization’s formal framework by which job tasks are divided, grouped, and coordinated.
(False; difficult; p. 266)
2. Organizational structure is the degree to which tasks in an organization are divided into separate jobs.
(False; moderate; p. 266)
3. The concept of work specialization can be traced back a couple of centuries to Adam Smith’s discussion of division of labor.
(True; moderate; p. 267)
4. Originally, when work specialization was implemented, employee productivity rose because it wasn’t widely used.
(True; moderate; p. 267)
5. Today, most managers see work specialization as a source of ever-increasing productivity.
(False; moderate; p. 267)
6. Grouping jobs on the basis of product or customer flow is termed customer departmentalization.
(False; moderate; p. 268)
7. When decisions tend to be made at lower levels in an organization, the organization is said to be decentralized.
(True; moderate; p. 272)
8. The concept of centralization-decentralization is absolute.
(False; moderate; p. 272)
9. When effective implementation of company strategies depends on managers having involvement and flexibility to make decisions, the company is probably more decentralized.
(True; moderate; p. 272)
10. A term for increased decentralization is employee empowerment, which is giving employees more authority to make decisions.
(True; easy; p. 273)
11. The degree of formalization varies widely between organizations and even within organizations.
(True; moderate; p. 274)
12. Many of today’s organizations are extremely reliant on strict rules and standardization to guide and regulate employee behavior.
(False; moderate; p. 274)
ORGANIZATIONAL DESIGN DECISIONS
13. An organic organization tends to be characterized by high specialization, extensive departmentalization, narrow spans of
True/False Questions
DEFINING ORGANIZATIONAL STRUCTURE
1. Organizational design is the organization’s formal framework by which job tasks are divided, grouped, and coordinated.
(False; difficult; p. 266)
2. Organizational structure is the degree to which tasks in an organization are divided into separate jobs.
(False; moderate; p. 266)
3. The concept of work specialization can be traced back a couple of centuries to Adam Smith’s discussion of division of labor.
(True; moderate; p. 267)
4. Originally, when work specialization was implemented, employee productivity rose because it wasn’t widely used.
(True; moderate; p. 267)
5. Today, most managers see work specialization as a source of ever-increasing productivity.
(False; moderate; p. 267)
6. Grouping jobs on the basis of product or customer flow is termed customer departmentalization.
(False; moderate; p. 268)
7. When decisions tend to be made at lower levels in an organization, the organization is said to be decentralized.
(True; moderate; p. 272)
8. The concept of centralization-decentralization is absolute.
(False; moderate; p. 272)
9. When effective implementation of company strategies depends on managers having involvement and flexibility to make decisions, the company is probably more decentralized.
(True; moderate; p. 272)
10. A term for increased decentralization is employee empowerment, which is giving employees more authority to make decisions.
(True; easy; p. 273)
11. The degree of formalization varies widely between organizations and even within organizations.
(True; moderate; p. 274)
12. Many of today’s organizations are extremely reliant on strict rules and standardization to guide and regulate employee behavior.
(False; moderate; p. 274)
ORGANIZATIONAL DESIGN DECISIONS
13. An organic organization tends to be characterized by high specialization, extensive departmentalization, narrow spans of