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MGT CHAP10.doc

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Ryerson University
Global Management Studies
GMS 200
Masoomeh Moharrer

Chapter 10: Organizing 1 Multiple Choice Questions CHAPTER INTRODUCTION 132. Which of the following statements accurately describe the use of organization structures in the contemporary business environment? A. Some organizations follow traditional structural patterns. B. Some organizations follow nontraditional structural patterns that emphasize teams and networks. C. Organizations in high tech industries try new organizational structures whereas companies in both light and heavy manufacturing stick with traditional structures. D. A and B. E. A and C. D GT Ap 133. Organizations that consistently deliver above-average returns and outperform their competitors have structures that reflect all of the following characteristics EXCEPT: A. They emphasize empowerment and support employees. B. They are responsive to client or customer needs. C. They stay flexible in dealing with a dynamic environment. D. They emulate their competition. E. They give continual attention to quality improvements. D GT Ap ORGANIZING AS A MANAGEMENT FUNCTION (STUDY QUESTION 1) 134. __________ is the process of arranging people and other resources to work together to accomplish a goal. A. Planning. B. Organizing C. Controlling. D. Leading. E. Strategizing. B KT Fa 135. When a manager divides work up into manageable components, arranges resources, and coordinates results to achieve a common purpose, the manager is practicing __________. A. Leadership. B. Organizing. C. Strategic planning. D. Forecasting. E. Setting objectives. B GT Fa 2 Schermerhorn & Wright: Management 136. Given a clear mission, core values, objectives and strategy, __________ begins the process of implementation by clarifying jobs and working relationships. A. Planning. B. Controlling. C. Organizing. D. Coordinating. E. Leading. C GT Fa 137. Which management function clarifies who is responsible for what, identifies the person in charge, and determines how different people relate to and work with one another? A. Planning. B. Coordinating. C. Controlling. D. Organizing. E. Leading. D GT Fa 138. In the management process of organizing, the strategic leadership challenge is to __________. A. Choose the best organizational form to fit the strategy and other situational demands. B. Choose strategy to best fit the established organizational form. C. Choose the strategy and organizational form that are easiest to implement. D. Choose the organizational form that adapts the strategy to the demands of the situation. E. Choose the organizational form that employees will like the best. A GT Fa What Is Organization Structure? 139. Organization structure refers to the system of __________ that link together the work of diverse individuals and groups. A. Tasks and workflows. B. Reporting relationships. C. Communication channels. D. All of the above. E. None of the above. D KT Fa 140. __________ is the system of tasks, workflows, reporting relationships, and communication channels that link together the work of diverse individuals and groups. A. Job design. B. Management. C. Organization structure. D. Strategy. E. A work plan. C KT Fa Chapter 10: Organizing 3 141. Any organization structure should __________ and __________. A. Allocate task assignments through a division of labour … provide for the coordination of performance results. B. Allocate task assignments through a division of labour … provide for the creation of a horizontal organization. C. Allocate organizational resources to important departments … provide for the oversight of less important departments. D. Assign good leaders to the effective work teams … assign poorer leaders to marginally effective work teams. E. Assign organizational objectives to divisions, departments, and work teams … provide for the coordination of performance results. A GT Fa 142. Which of the following is the most accurate description regarding the purpose of an organization structure? A. To divide up and coordinate resources and tasks to be done for performance success. B. To identify relationships betweensuppliers and company buyers. C. To design titles for different types of workers. D. To allocate management authority to department heads. E. To assign daily work tasks to workers. A GT Fa Formal Structures 143. __________ is a diagram that shows reporting relationships and the formal arrangement of work positions within an organization. A. A flow chart. B. A PERT diagram. C. An organization chart. D. An input/output diagram. E. A structural diagram. C KT Fa 144. Positions and job titles, lines of authority, and formal communication channels are often demonstrated for a company by drawing a special diagram. This diagram is called __________. A. A flow chart. B. A PERT diagram. C. An organization chart. D. An input/output diagram. E. A structural diagram. C GT Fa 4 Schermerhorn & Wright: Management 145. Which of the following pieces of information cannot be determined from an organization chart? A. Formal communication channels. B. Type of work performed. C. Division of work. D. Levels of management. E. Informal decision-making coalitions. E GT Ap 146. The structure of an organization in its official state is called the organization’s _________. A. Informal structure. B. Formal structure. C. Hierarchy or authority. D. Levels of management. E. Channel outline. B KT Fa 147. The __________ of the organization represents the way the organization is intended to function in terms of division of work, supervisory relationships, communication channels, major subunits, and levels of management. A. Informal structure. B. Hierarchy or authority. C. Management chart. D. Channel outline. E. Formal structure. E GT Fa Informal Structures 148. The __________ is a “shadow’ organization made up of the unofficial, but often critical, working relationships between organizational members. A. Formal structure. B. Organizational chart. C. Informal structure. D. Adaptive organizational structure. E. Horizontal organizational structure. C KT Fa 149. Informal structure and formal structure are useful terms to distinguish between __________. A. The way work actually gets done and the way it is mapped on the organization chart. B. Relationships in the shadow organization and relationships on the organization chart. C. Unofficial and official working relationships and communications patterns. D. All of the above. E. None of the above. D GT Ap Chapter 10: Organizing 5 150. Bill, a recent MBA graduate in the field of accounting, is the finance manager of ABC Company. Bill has a problem with a shadow organization in his division. One sensible first step in Bill’s management strategy might be __________. A. Meeting with his employees to let them know he is the boss. B. Promising bonuses only to those employees who agree with him and work with him. C. Seeking to understand and work with the shadow organization. D. Firing the people who are members of the shadow organization. E. Assuming his staff is trying to undermine him and act accordingly. C GT Ap 151. The following five examples describe different types of relationships between employees in XYZ Company. Which set of relationships indicates the existence of a shadow organization? A. Department managers report directly to the vice presidents in charge of their division. B. An employee asks questions of an immediate supervisor, gets answers, and works closely with this person. C. In one department, superior-subordinate relationships are strained. Subordinates take direction from the manager of another department. D. Members of a word processing pool provide secretarial services for all divisions on a first come, first served basis. E. The company president delegates authority to division managers, division managers delegate authority to department managers, and department managers delegate authority to support staff. C GT Ap 152. Which of these statements is NOT correct about informal structures? A. They can help organization members accomplish their work. B. They help people overcome limits to the formal structure. C. They allow people to support one another. D. They can help satisfy important social needs of people. E. They always work against the achievement of high productivity. E GT Fa 153. The process of learning that occurs as people work and interact together throughout the workday is called __________ learning. A. Casual. B. Informal. C. Interactive. D. Formal. E. Social. B GT Fa 154. Which statement about an informal structure in an organization is FALSE? A. An informal structure can breed resistance to change. B. Informal structures can be susceptible to rumors. C. Informal structures overcome gaps in formal structures. D. Informal structures satisfy social needs. E. Informal structures always serve the best interests of the organization. E GT Fa 6 Schermerhorn & Wright: Management TRADITIONAL ORGANIZATION STRUCTURES (STUDY QUESTION 2) 155. The process of making decisions on how to group work positions into formal teams that are linked together so they operate in a coordinated manner within the larger organization is called __________. A. Organizing. B. Restructuring. C. Departmentalization. D. Differentiation. E. Integration. C KT Fa 156. The process of grouping work positions into formal teams and departments, and then linking them together within the organization is known as __________. A. Differentiation. B. Departmentalization. C. Structural team development. D. Organizing. E. Functional team management. B KT Fa 157. Three common types of traditional organizational structures are __________. A. Centralized, decentralized, and integrated. B. Functional, horizontal, and vertical. C. Divisional, centralized, and line. D. Functional, divisional, and matrix. E. Matrix, staff, and functional. D GT Fa Functional Structures 158. A __________ groups together people who have similar skills and who perform similar tasks. A. Divisional structure. B. Informal structure. C. Matrix structure. D. Integrated structure. E. Functional structure. E KT Fa 159. When an organization chart shows vice presidents of marketing, manufacturing, finance, and human resources reporting directly to the president of a company, the top management group is organized as a __________ structure. A. Horizontal. B. Vertical. C. Functional. D. Divisional. E. Matrix. C GT Ap Chapter 10: Organizing 7 160. Which of the following statements accurately describes the nature of functional structures? A. Members of functional departments share technical expertise, interests, and responsibilities. B. Members of each function work within their respective areas of expertise. C. When each function does its jobs properly, the business should operate successfully. D. All of the above. E. None of the above. D GT Fa 161. Which of the following is NOT an advantage of grouping people with similar interests and skills together in the same work unit? A. Supports in-depth training. B. Allows assignments to be consistent with technical training. C. Reduces accountability for total product or service delivery. D. Provides clear career paths. E. Produces economies of scale with efficient use of resources. C GT Fa 162. Potential disadvantages of functional structures include all of the following EXCEPT: A. Difficulties in pinpointing responsibilities for cost containment, product or service quality, timeliness, and innovation. B. Provides for clear career paths. C. Sense of cooperation and common purpose tends to break down. D. Narrow view of performance objectives. E. Too many decisions referred upward in the organizational hierarchy. B GT Fa 163. The _________ problem refers to the lack of communication, coordination, and collabourative problem solving across functions. A. Horizontal silos. B. Vertical bug-a-boo. C. Functional chimneys. D. Divisional smokestack. E. Matrix identity. C KT Fa 164. The functional chimneys problem can _________. A. Slow decision making. B. Diminish cooperation and commitment to a common purpose. C. Interfere with coordination across functions. D. All of the above. E. None of the above. D GT Fa 8 Schermerhorn & Wright: Management Divisional Structures 165. A(n) _________ groups together people who work on the same product or process, serve similar customers, or work in the same area or geographic region. A. Divisional structure. B. Informal structure. C. Matrix structure. D. Integration structure. E. Functional structure. A KT Fa 166. All of the following are potential advantages of using a divisional structure EXCEPT: A. More flexibility in responding to environmental changes. B. Establishes clear points of responsibility for product or service delivery. C. Expertise is focused on specific customers, products, or regions. D. Duplication of resources and efforts across divisions. E. Greater ease in changing size by adding or deleting divisions. D GT Fa 167. Which of the following is NOT a potential disadvantage of using a divisional structure for departmentalization? A. Increasing costs due to duplication of resources and efforts across divisions. B. Creating unhealthy rivalries as divisions compete for available resources. C. Enhancing the ability to respond to environmental change. D. Reducing economies of scale. E. Emphasizing divisional needs and goals to the detriment of organizational goals. C GT Fa 168. A(n) __________ structure involves creating work units based on product, process, customer, or geographic territory. A. Functional. B. Divisional. C. Organic. D. Mechanistic. E. Matrix. B GT Fa 169. __________structures group together jobs and activities dealing with a single product or service. A. Product structures. B. Geographical structures. C. Area structures. D. Customer structures E. Process structures. A KT Fa Chapter 10: Organizing 9 170. __________ clearly identify costs, profits, problems, and successes in a market area with a central point of accountability. A. Product structures. B. Geographical structures. C. Area structures. D. Customer structures E. Process structures. A GT Fa 171. __________ structures group together jobs and activities that are being performed in the same location. A. Product. B. Market. C. Geographical. D. Customer. E. Process. C KT Fa 172. __________ structures are typically used when there is a need to differentiate products or services in various locations, such as in different regions of a nation or in international operations where there is a need to focus on the requirements of particular cultures and regions of the world. A. Product. B. Market. C. Geographical. D. Customer. E. Process. C GT Fa 173. Structures that group together jobs and activities that are serving the same customers or clients are called __________ structures. A. Product. B. Process. C. Matrix. D. Customer. E. Geographical. D KT Fa 174. __________ are particularly appealing because they can best serve the special needs of different customer groups. A. Product structures. B. Process structures. C. Matrix structures. D. Customer structures. E. Geographical structures. D GT Fa 10 Schermerhorn & Wright: Management 175. A __________ is a group of tasks related to one another that collectivelycreates something of value to a customer. A. Work team. B. Work process. C. Job. D. Work group. E. Manufacturing system. B GT Fa 176. Structures that group together jobs and activities that are part of the same processes are called __________ structures. A. Geographical. B. Product. C. Matrix. D. Customer. E. Process. E KT Fa Matrix Structures 177. A matrix structure basically combines elements of __________and __________ structures. A. Horizontal … vertical. B. Horizontal … divisional. C. Functional … vertical. D. Functional … divisional. E. Vertical … divisional. D KT Fa 178. Which structural approach makes use of permanent cross-functional teams to integrate functional expertise in support of a clear divisional focus on a product, project, or program? A. Hybrid. B. Matrix. C. Divisional. D. Functional. E. Individual. B GT Fa 179. Workers in a matrix structure belong to at least two formal groups at the same time. These two groups are a __________ group and a __________ group. A. Functional … product, project, or program. B. Suplier …. distributor C. Union … product, project, or program. D. Functional … nonfunctional. E. Functional … total quality. A GT Fa Chapter 10: Organizing 11 180. Which one of the following is NOT an advantage of using the matrix structure? A. The matrix structure allows for better interfunctional cooperation in operations and problem solving. B. The matrix structure makes it easier to add, remove, or change operations to meet changing demands. C. The matrix structure improves performance accountability. D. The matrix structure minimizes overhead costs. E. The matrix structure improves strategic management since top managers are freed from unnecessary problem solving. D GT Fa 181. If an organization is concerned about frequently adding and deleting new products or services and also wants to make sure that customers or clients always have a program manager available to respond to questions and concerns, the__________ structural form is a good choice. A. Horizontal. B. Vertical. C. Functional. D. Divisional. E. Matrix. E GT Ap 182. Which of the following is NOT an advantage of matrix organizations? A. Promotes interfunctional cooperation B. Creates permanent cross-functional teams. C. More responsive to customer needs. D. Prevents power struggles from erupting. E. Managerial accountability is increased. D GT Fa 183. Power struggles due to a “two-boss” system can cause problems within a __________ structure. A. Horizontal. B. Vertical. C. Functional. D. Divisional. E. Matrix. E GT Fa 184. All the following are potential disadvantages of the matrix structure EXCEPT: A. Adding team leaders increases costs. B. “Groupitis”. C. Problem solving is forced down the hierarchy to where the best information is available. D. Power struggles between functional and program managers. E. Confusion of team members regarding task direction. C GT Fa 12 Schermerhorn & Wright: Management DIRECTIONS IN ORGANIZATION STRUCTURES (STUDY QUESTION 3) 185. Which of the following statements is/are correct regarding the forces influencing developments in organization structures? A. The global economy and hypercompetition are putting increasing pressures on organization structures. B. Structural innovation is an important part of meeting the demands of complex and changeable environments. C. Managers need to design organizational structures to respond to performance demands for more speed to market, greater customer orientation, constant productivity improvements, and better technology utilization. D. All of the above acorrectstatements regarding the forces influencing developments in organization structures. E. All of the above arecorrectstatements regarding the forces influencing developments in organization structures. D GT Fa 186. All but one of the following items are included among the guidelines for capitalizing on the opportunities afforded by horizontal structures. Which item is NOT one of these guidelines? A. Focus the organization around processes, not functions. B. Put people in charge of core processes. C. Increase hierarchy and decrease the use of teams. D. Empower people to make decisions critical to performance. E. Utilize information technology. C MN Fa 187. All of the following are guidelines for mobilizing the opportunities of horizontal structures EXCEPT: A. Focus the organization around functions, not processes. B. Decrease hierarchy and increase the use of teams. C. Emphasize multiskilling and multiple competencies. D. Teach people how to work in partnership with others. E. Build a culture of openness, collabouration, and performance commitment. A MN Fa Team Structures 188. A __________ uses both permanent and temporary cross-functional teams to solve problems, complete special projects, and accomplish daily tasks. A. Geographical structure. B. Cross-functional structure. C. Team structure. D. Divisional structure. E. Matrix structure. C KT Fa Chapter 10: Organizing 13 189. A(n) __________ brings together members from different areas of work responsibility. A. Interdepartmental team. B. Cross-functional team. C. Self-managing team. D. Task team. E. Network team. B KT Fa 190. A __________ is set up for a particular task or project and disbands once it is a completed. A. Matrix structure. B. Self-managing team. C. Project team. D. Process team. E. Network team. C KT Fa 191. All except one of the following are potential advantages of using a team structure. Which one is NOT a potential advantage? A. Boosting the morale of members. B. Gaining increased knowledge o
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