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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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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) A) and E)
G) All of the above

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When Happy Feet Shoe, Inc.groups its business units according to where they do business such as North America division, Europe division, Asia division, and Africa division, it is creating which of the following organizational structures?


A) Client-based
B) Product
C) Geographic
D) Functional
E) Simple

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

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A simple structure makes perfect sense for a large organization, with one person as the central decision-making person.

A) True
B) False

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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) None of the above

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Ross and Tony, father and son, opened a large boutique named Tradus in Chicago.The father and son, being the owners of the business concern, decide about the important matters and all the rest of the functions like product, finance, marketing, and personnel are carried out by the department heads who have to act as per the instruction and orders of both of them.Which of the following is true about Tradus?


A) It has a very tall organizational structure.
B) It has a centralized system of decision making.
C) It has a matrix organizational structure.
D) The degree of formalization is very low in the organization.
E) It has a narrow span of control.

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

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There are trade-offs when organizations make jobs highly specialized.

A) True
B) False

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Henry Ford was a strong believer in work specialization.

A) True
B) False

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Which of the following represents every job in the organization and the formal reporting relationships between those jobs?


A) Chain of command
B) Organizational chart
C) Structural map
D) Scalar chain
E) Gantt chart

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

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Which of the following is associated with decentralization in decision making?


A) Moderate spans of control
B) Tall spans of control
C) Wide spans of control
D) Narrow spans of control
E) Flat spans of control

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

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Organizational restructuring has a moderate negative effect on organizational commitment.

A) True
B) False

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Dynamic environments allow organizations to focus on efficiency and require little change over time.

A) True
B) False

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At Light Body Warmer Manufacturing, employees are grouped according to their expertise in an area.All marketing employees are in one department, all finance employees are grouped in another department and similarly, all human resources and manufacturing employees are in their respective departments.Which of the following structures does Light Body Warmer Manufacturing use?


A) Client-based
B) Product
C) Geographic
D) Functional
E) Simple

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

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Organic organizations are efficient, rigid, predictable, and standardized organizations that thrive in stable environments.

A) True
B) False

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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) C) and E)

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According to research, restructuring has _____ effect on task performance.


A) a strong positive
B) a small negative
C) no
D) a strong negative
E) a moderate positive

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

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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) None of the above
G) A) and B)

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When Hyundai Motor Company groups its business units around the different lines of cars such as i10, i20, Zing, Sonata, and Verna, which of the following structures is it creating?


A) Client-based
B) Product
C) Geographic
D) Functional
E) Simple

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

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Scenario: Extreme Rug Tom is the project manager of the corporate structure team at Extreme Rugs.Tom's team has been assigned the task to study and evaluate Extreme Rugs' organizational structure.To collect the preliminary information, Tom divided the tasks among the team members to collect information on different elements of Extreme Rugs' structure.Jeremy was asked to collect information on the degree to which tasks are divided into separate jobs.Joy was asked to collect information on formal authority relationships, Alice started looking into how many employees each manager has responsibility for, and Kathy was asked to collect evidence on the degree to which rules and procedures are used to standardize behaviors at Extreme Rugs.Tom decided to collect information and evidence on where exactly decisions are formally made at Extreme Rugs.The team decided to meet with information in two weeks.Jeremy was given the job of collecting information on which of the following elements of the organizational structure?


A) Chain of command
B) Formalization
C) Centralization
D) Work specialization
E) Span of control

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

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

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An organizational structure formally dic...

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