Chapter 10 Organizational Structure and DesignTrue/False QuestionsA MANAGERS DILEMMA1.According to the boxed feature, “A Managers Dilemma,” Nokia was once involved in industries ranging from paper to chemicals and rubber.True (moderate)2.According to the boxed feature, “A Managers Dilemma,” Nokia has been competing in the telecommunications industry since 1965.False (moderate)DEFINING ORGANIZATIONAL STRUCTURE3.Organizational design is the organizations formal framework by which job tasks are divided, grouped, and coordinated.False (difficult)4.The concept of work specialization can be traced back a couple of centuries to Adam Smiths discussion of division of labor.True (moderate)5.The degree to which tasks in an organization are divided into separate jobs is division of labor.True (moderate)6.Historically, many organizations have grouped work actions by function departmentalization.True (moderate)7.Grouping jobs on the basis of product or customer flow is termed customer departmentalization.False (moderate)8.Geographic departmentalization has greatly increased in importance as a result of todays competitive business environmentFalse (moderate)9.A group of individuals who are experts in various specialties and who work together is a cross-functional team.True (moderate)10.Authority is the individuals capacity to influence decisions.False (difficult)11.Authority is synonymous with responsibility.False (easy)12.Responsibility is the rights inherent in a managerial position.False (easy)13.A managers span of control refers to the number of subordinates who can be effectively and efficiently supervised.True (moderate)14.The classical view of unity of command suggests that subordinates should have only one superior to whom they report.True (easy)15.The trend in recent years has been toward smaller spans of control.False (easy)16.When decisions tend to be made at lower levels in an organization, the organization is said to be decentralized.True (moderate)17.Decentralization describes the degree to which decision making is concentrated at a single point in the organization.False (moderate)18.In the last 35 years, there has been a trend of organizations moving toward increased decentralization.True (easy)19.Appropriate organizational structure depends on four variables: the organizations strategy, size, technology, and degree of environmental uncertainty.True (difficult)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)ORGANIZATIONAL DESIGN DECISIONS21.An organic organization tends to be characterized by high specialization, extensive departmentalization, narrow spans of control, high formalization, a limited information network, and little participation in decision-making by low-level employees.False (moderate)22.An organic organization would likely be very flexible.True (moderate)23.Innovators need the efficiency, stability, and tight controls of the mechanistic structure.False (easy)24.The relationship between organizational size and structure tends to be linear.False (difficult)25.Joan Woodward attempted to view organizational structure from a technological perspective.True (moderate)26.Woodward demonstrated that organizational structures adapted to their technology.True (moderate)27.Woodwards findings support that there is one best way to organize a manufacturing firm.False (moderate)28.The strength of the functional structure is that it focuses on results.False (moderate) it is the strength of divisional structure.29.According to the text, a functional structure creates strategic business units.False (moderate)COMMON ORGANIZATIONAL DESIGNS30.Project structures tend to be rigid and inflexible organizational designs.False (easy)Multiple ChoiceA MANAGERS DILEMMA31.According to the company profile in “A Managers Dilemma,” the organizational structure of Nokia is best described as _.a. mechanisticb. organic (moderate)c. centralizedd. formalized32.The factor contributing the most to Nokias success in the mobile phone industry according to the company profile in “A Managers Dilemma” is _.a. new product development (moderate)b. government subsidiesc. national trade barriersd. weak competition33._ is the process of creating an organizations structure.a.Human resource managementb.Leadingc.Organizing (moderate)d.Planninge.DepartmentalizationDEFINING ORGANIZATIONAL STRUCTURE34.According to the text, a(n) _ is the formal framework by which job tasks are