Which of the following statements about the organizational structure of a business is true?

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Question 1

What specific information can a complete organizational chart give? Select the correct answer.

a) It shows what specific decisions are taken on different levels of the hierarchy.

b) It shows the general logic for grouping the company into units on different levels.

c) It gives us complete information about the degree of decentralization.

Question 2

What is the major importance, from a managerial point of view, of a formal organizational structure?

a) It is instrumental in securing the legality of the company.

b) It is primarily useful for coordinating behaviour in the company.

c) It is instrumental in securing the legality of the company.

Question 3

Which option is true concerning Taylor's functional foremanship?

a) It prescribed a unitary leadership model with a clear chain of command.

b) It prescribed a model in which each employee could report directly to a number of managers.

c) It prescribed a model in which each manager is assigned a number of functional duties to secure an unbroken chain of command.

Question 4

Which of the following statements is not in line with Max Weber's view on bureaucracy?

a) The bureaucracy should not be viewed as superior to other forms of organizing when it comes to building a stable and reliable organization.

b) The bureaucracy derives its strength from its reliance on systems of rules.

c) The bureaucracy relies on legal authority rather than other forms of authority.

Question 5

Lawrence and Lorsch describe differentiation as an important element of a formal structure. Which option is true about differentiation?

a) It describes how organizations differ from each other in order to build competitiveness.

b) It describes how tasks are divided in the organization.

c) It describes the unique features of the formal structure that enables the organization to reach its goals.

Question 6

The so called Aston Group developed a conceptual framework where a number of structural factors were studied. Which option contains only factors that were studied by the Aston Group?

a) Specialization, organizational culture and formalization.

b) Specialization, centralization and goal setting.

c) Specialization, formalization and configuration.

Question 7

Which of the statements below best captures the definition of specialization by the Aston Group?

a) The division of labour within the organization.

b) The unique set of goals that define the direction of an organization.

c) The concentration of decision-making authority centrally in the organization.

Question 8

What is a divisional structure? Pick the option that best matches the definition of a divisional structure in Chapter 2.

a) Divisions are usually organized around the basic production flow of the organization.

b) Divisions are usually organized around the important functions such as production and marketing.

c) Divisions are usually organized around the products of the company.

Question 9

In what ways does the configurational approach differ from contingency theory?

a) The configurational approach tries to integrate strategy and structure to describe strategic types.

b) The configurational approach criticizes contingency theory for overemphasizing the role of the environment in shaping the organizational structure.

c) The configurational approach avoids describing specific forms of organizing.

Question 10

The concept of boundaries has been called into question as a reaction to contingency theory and the configurational approach. Which of the following statements best captures the new view on organizational boundaries?

a) Boundaries are disappearing altogether.

b) The trend is that boundaries are becoming more and more important to safeguard the organization from its environment.

c) Boundaries are becoming more and more open.

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