About This Chapter
This topic covers exam-style review based on key concepts such as the bureaucratic structure, the centralization, the chain of command, and the formalization. It features a comprehensive MCQ bank as well as topic-based True or False exercises, designed to evaluate your understanding and enhance exam readiness. An answer key is provided for self-assessment and review. The learning objectives include: What are some of the more common organizational forms that an organization might adopt for its structure? What are the major elements of an organizational structure? What is organizational design, and what factors does the organizational design process depend on?
Question 1
Multiple Choice
Medium
Bureaucratic structure Exam

A bureaucratic structure is an organizational form that exhibits many of the facets of the ________ organization.

  • simple
  • global
  • adaptive
  • organic
  • mechanistic
Correct Answer: mechanistic
Explanation:

A bureaucratic structure is an organizational form that exhibits many of the facets of the mechanistic organization. Bureaucracies are designed for efficiency and rely on high levels of work specialization, formalization, centralization of authority, rigid and well-defined chains of command, and relatively narrow spans of control.

Glossary:

Bureaucratic Structure: An organizational form that exhibits many of the facets of a mechanistic organization.

Question 2
Multiple Choice
Hard
Centralization Exam

Jeff and Matthew, father and son, opened a large boutique named Modus in Chicago. Being the owners of the business, they decide all of the important matters. All the rest of the decisions like product, finance, marketing, and personnel are carried out by the department heads, who have to act according to Jeff's and Matthew's instructions and orders. Which of the following is True about Modus?

  • The degree of formalization is very low in the organization.
  • It has a centralized system of decision making.
  • It has a very tall organizational structure.
  • It has a matrix organizational structure.
  • It has a narrow span of control.
Correct Answer: It has a centralized system of decision making.
Explanation:

Centralization reflects where decisions are formally made in organizations. If only the top managers within a company have the authority to make final decisions, it is a highly "centralized" structure.

Glossary:

Decision Making: The process of generating and choosing from a set of alternatives to solve a problem.

Question 3
True False
Easy
Centralization Exam

Decentralized organizational structures tend to concentrate power and authority within a relatively tight group of individuals in the firm.

True
False
Correct Answer: False
Explanation:

Centralized organizational structures tend to concentrate power and authority within a relatively tight group of individuals in the firm because they're the ones who have formal authority over important decisions.

Glossary:

Organizational Structure: Formally dictates how jobs and tasks are divided and coordinated between individuals and groups within the company.

Question 4
Multiple Choice
Hard
Centralization Exam

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?

  • work specialization
  • chain of command
  • span of control
  • formalization
  • centralization
Correct Answer: chain of command
Explanation:

Chain of command answers the question of "who reports to whom?" and signifies formal authority relationships.

Glossary:

Chain Of Command: Answer to the question of “who reports to whom?” and signifies formal authority relationships.

Question 5
True False
Easy
Centralization Exam

If technologies need to be changed often to suit consumer needs, the decisions should be centralized.

True
False
Correct Answer: False
Explanation:

If technologies need to be changed or altered to suit the needs of various consumers, it follows that decisions would be more decentralized and the rules and procedures the organization relies on would need to be more flexible.

Glossary:

Needs: Groupings or clusters of outcomes viewed as having critical psychological or physiological consequences.

Question 6
Multiple Choice
Easy
Centralization Exam

Centralization reflects

  • where decisions are formally made in organizations.
  • the degree to which tasks in an organization are divided into separate jobs.
  • how many employees each manager in the organization has responsibility for.
  • the answer to the question of "who reports to whom?" and signifies formal authority relationships.
  • the degree to which rules and procedures are used to standardize behaviors and decisions in an organization.
Correct Answer: where decisions are formally made in organizations.
Explanation:

Centralization reflects where decisions are formally made in organizations.

Glossary:

Centralization: Refers to where decisions are formally made in organizations.

Question 7
Multiple Choice
Medium
Centralization Exam

If decision making is pushed down to lower-level employees, and these employees feel empowered to make decisions on their own, an organization has a ________ structure.

  • flat
  • decentralized
  • wide
  • narrow
  • centralized
Correct Answer: decentralized
Explanation:

If decision making is pushed down to lower-level employees, and these employees feel empowered to make decisions on their own, the organization has a decentralized structure.

Glossary:

Centrality: How important a person’s job is and how many people depend on that person to accomplish their tasks.

Question 8
Multiple Choice
Easy
Chain of command Exam

Which element of the organizational structure signifies formal authority relationships?

  • chain of command
  • formalization
  • centralization
  • work specialization
  • span of control
Correct Answer: chain of command
Explanation:

Chain of command answers the question of "who reports to whom?" and signifies formal authority relationships.

Glossary:

Chain Of Command: Answer to the question of “who reports to whom?” and signifies formal authority relationships.

Question 9
True False
Medium
Chain of command Exam

A company's chain of control determines how many employees report to each manager.

True
False
Correct Answer: False
Explanation:

Chain of command details who reports to whom. Span of control describes how many employees report to each manager.

Question 10
True False
Easy
Chain of command Exam

The chain of command helps the organization to attain order, control, and predictable performance.

True
False
Correct Answer: True
Explanation:

The chain of command can be seen as the specific flow of authority down through the levels of an organization's structure. Organizations depend on this flow of authority to attain order, control, and predictable performance.

Glossary:

Chain Of Command: Answer to the question of “who reports to whom?” and signifies formal authority relationships.

Question 11
Multiple Choice
Hard
Chain of command Exam

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?

  • formalization
  • centralization
  • span of control
  • work specialization
  • chain of command
Correct Answer: centralization
Explanation:

Centralization reflects where decisions are formally made in organizations. If only the top managers within a company have the authority to make final decisions, it is a highly "centralized" structure.

Glossary:

Centralization: Refers to where decisions are formally made in organizations.

Question 12
Multiple Choice
Medium
Formalization Exam

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

  • formalization
  • centralization
  • span of control
  • chain of command
  • work specialization
Correct Answer: formalization
Explanation:

Formalization is a necessary coordination mechanism that organizations rely on to get a standardized product or deliver a standardized service.

Glossary:

Formalization: The degree to which rules and procedures are used to standardize behaviors and decisions in an organization.

Question 13
Multiple Choice
Hard
Formalization Exam

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. Meg was given the job of collecting information on which of the following elements of the organizational structure?

  • work specialization
  • chain of command
  • span of control
  • formalization
  • centralization
Correct Answer: work specialization
Explanation:

Work specialization is the way in which tasks in an organization are divided into separate jobs. In some organizations, this categorization is referred to as a company's division of labor.

Glossary:

Work Specialization: The degree to which tasks in an organization are divided into separate jobs.

Question 14
Multiple Choice
Medium
Formalization Exam

In Big Bluff Heirlooms, a furniture manufacturing company, the arrival and departure times to and from work are specified to the minute, with time clocks used to control deviant behavior. It can be said that the company is high in

  • formalization.
  • centralization.
  • decentralization.
  • division of labor.
  • work differentiation.
Correct Answer: formalization.
Explanation:

A company is high in formalization when there are many specific rules and procedures used to standardize behaviors and decisions.

Glossary:

Formalization: The degree to which rules and procedures are used to standardize behaviors and decisions in an organization.

Question 15
Multiple Choice
Easy
Formalization Exam

Formalization refers to

  • where decisions are formally made in organizations.
  • the degree to which tasks in an organization are divided into separate jobs.
  • how many employees each manager in the organization has responsibility for.
  • the answer to the question of "who reports to whom?" and signifies formal authority relationships.
  • the degree to which rules and procedures are used to standardize behaviors and decisions in an organization.
Correct Answer: the degree to which rules and procedures are used to standardize behaviors and decisions in an organization.
Explanation:

The degree to which rules and procedures are used to standardize behaviors and decisions in an organization refers to formalization.

Glossary:

Formalization: The degree to which rules and procedures are used to standardize behaviors and decisions in an organization.