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Paul's Creations makes handcrafted furniture out of vine twisted sassafras wood. Paul's could make the furniture more efficiently, but the individual touch and specially selected wood draws in customers who are willing to pay a premium for Paul's Creations' furniture. Paul's Creations is an example of a


A) matrix.
B) differentiator.
C) low-cost producer.
D) mechanistic design.
E) geographic structure

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

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Sky Dry Incorporated has over a dozen levels of management, and each manager is responsible for overseeing an average of three subordinates. Mountain Light Corporation has three levels of management, and each manager is responsible for overseeing an average of twenty subordinates. Classify Sky Dry and Mountain Light as having a tall or flat organizational structure, and explain why. State at least two disadvantages of tall organizational structures.

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Student answers will vary but should dem...

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A ________ span of control creates a ________ organization structure.


A) wide; flat
B) tall; flat
C) moderate; narrow
D) narrow; flat
E) flat; moderate

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

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Shane is the project manager of the organizational development team at Solid Hardwoods. Shane's team has been assigned the task of studying and evaluating Solid Hardwoods' organizational structure. Shane divided the tasks among the team members to collect preliminary information on different elements of Solid Hardwoods' structure. Meg was asked to collect information on the degree to which tasks are divided into separate jobs. Andrea was asked to collect information on formal authority relationships. Francine started looking into how many employees each manager has responsibility for, and Carol was asked to collect evidence on the degree to which rules and procedures are used to standardize behaviors at Solid Hardwoods. Shane decided to personally collect information and evidence on where exactly decisions are formally made at Solid Hardwoods. The team decided to meet with information in two weeks. On which element of organizational structure is Shane collecting information?


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

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

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Which of the following statements is True?


A) Wide spans of control tend to be associated with centralized decision making.
B) Narrow spans of control tend to be associated with decentralized decision making.
C) A high level of work specialization tends to bring about a high level of work formalization.
D) Mechanistic organizations are typified by a structure that relies on low levels of work formalization.
E) Organic organizations are typified by a structure that relies on high degrees of work specialization.

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

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Employees tend to be more satisfied with jobs that require them to perform a specialized kind of activity.

A) True
B) False

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Shane is the project manager of the organizational development team at Solid Hardwoods. Shane's team has been assigned the task of studying and evaluating Solid Hardwoods' organizational structure. Shane divided the tasks among the team members to collect preliminary information on different elements of Solid Hardwoods' structure. Meg was asked to collect information on the degree to which tasks are divided into separate jobs. Andrea was asked to collect information on formal authority relationships. Francine started looking into how many employees each manager has responsibility for, and Carol was asked to collect evidence on the degree to which rules and procedures are used to standardize behaviors at Solid Hardwoods. Shane decided to personally collect information and evidence on where exactly decisions are formally made at Solid Hardwoods. The team decided to meet with information in two weeks. Andrea was asked to collect information on which of the following elements of the organizational structure?


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

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

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Which of the following has been the most common kind of restructuring in recent years?


A) from a functional to a geographic-based structure
B) from a product to a client-based structure
C) from a bureaucratic to a matrix structure
D) a flattening of the organization
E) creating a tall structure in the organization

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

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Define organizational structure. What is an organizational chart, and how does it affect an organization?

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An organizational structure formally dic...

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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 scenarios exemplifies span of control?


A) Briley is responsible for the fall seasonal product line.
B) Vanna is responsible for managing 16 employees.
C) Savannah makes all decisions affecting shipping.
D) Octavio performs one single task repeatedly.
E) Lucy earns over $100,000 per year.

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

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Companies that follow a low-cost producer strategy believe that people will pay more for a product that is unique in some way.

A) True
B) False

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The most common kind of restructuring in recent years has been a "flattening" of the organization.

A) True
B) False

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


A) team-based
B) mechanistic
C) at least two
D) infinite
E) organic

F) B) and D)
G) B) and C)

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As companies grow larger, their organizational charts get simpler.

A) True
B) False

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Which of the following is a necessary coordination mechanism that organizations rely on to get a standardized product or deliver a standardized service?


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

F) None of the above
G) C) and D)

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Tatum is the CEO of a company that is undergoing a major restructuring. How should she deal with the employees who survive the layoffs in the restructuring?


A) remove any control they may have
B) give them a voice in the process
C) tell them as little as possible
D) halve their workload
E) boost their salary

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

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Span of control


A) is the degree to which tasks in an organization are divided into separate jobs.
B) answers the question of "who reports to whom?" and signifies formal authority relationships.
C) refers to where decisions are formally made in organizations.
D) refers to the number of employees each manager is responsible for in the organization.
E) is the degree to which rules and procedures are used to standardize behaviors and decisions in an organization.

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

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A plastic injection molding company, Flexiplast, has diversified to the point that the products it sells are very different and managing them has become overwhelming. Which of the following structures would help Flexiplast manage this situation?


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

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

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Shane is the project manager of the organizational development team at Solid Hardwoods. Shane's team has been assigned the task of studying and evaluating Solid Hardwoods' organizational structure. Shane divided the tasks among the team members to collect preliminary information on different elements of Solid Hardwoods' structure. Meg was asked to collect information on the degree to which tasks are divided into separate jobs. Andrea was asked to collect information on formal authority relationships. Francine started looking into how many employees each manager has responsibility for, and Carol was asked to collect evidence on the degree to which rules and procedures are used to standardize behaviors at Solid Hardwoods. Shane decided to personally collect information and evidence on where exactly decisions are formally made at Solid Hardwoods. The team decided to meet with information in two weeks. Francine is looking into information on which element of organizational structure?


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

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

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