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Chapter 10 – Organizational Structure and Design
True/False Questions
A MANAGER’S DILEMMA
1.
According to the boxed feature, “A Manager’s Dilemma,” Nokia was once
involved in industries ranging from paper to chemicals and rubber.
2.
According to the boxed feature, “A Manager’s Dilemma,” Nokia has been
competing in the telecommunications industry since 1965.
DEFINING ORGANIZATIONAL STRUCTURE
3.
Organizational design is the organization's formal framework by which job tasks
are divided, grouped, and coordinated.
4.
The concept of work specialization can be traced back a couple of
centuries to Adam Smith's discussion of division of labor.
5.
The degree to which tasks in an organization are divided into separate
jobs is division of labor.
6.
Historically, many organizations have grouped work actions by
function departmentalization.
True (moderate) True (moderate) False (difficult)
False (moderate) True (moderate)
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7.
True (moderate)
Grouping jobs on the basis of product or customer flow is termed
customer departmentalization.
8.
Geographic departmentalization has greatly increased in importance as
a result of today’s competitive business environment False (moderate)
9.
A group of individuals who are experts in various specialties and who
work together is a cross-functional team.
10.
11.
12.
13.
A manager's span of control refers to the number of subordinates
who can be effectively and efficiently supervised.
True (moderate)
Responsibility is the rights inherent in a managerial position. False (easy)
Authority is synonymous with responsibility. False (easy)
Authority is the individual's capacity to influence decisions. False (difficult) True (moderate) False (moderate)
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14.
The classical view of unity of command suggests that subordinates
should have only one superior to whom they report.
15.
16.
When decisions tend to be made at lower levels in an organization, the
organization is said to be decentralized.
17.
Decentralization describes the degree to which decision making is
concentrated at a single point in the organization.
18.
In the last 35 years, there has been a trend of organizations moving
toward increased decentralization.
19.
Appropriate organizational structure depends on four variables: the
organization's strategy, size, technology, and degree of environmental uncertainty.
20.
Standardization refers to the degree to which jobs within the
organization are standardized and the extent to which employee behavior is guided by rules and procedures.
False (moderate) True (difficult) True (easy) False (moderate) True (moderate)
The trend in recent years has been toward smaller spans of control. False (easy) True (easy)
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