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Many restructuring efforts are designed to remove one or more organizational layers to reduce costs.

A) True
B) False

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Wide spans of control allow managers to be much more hands-on with employees.

A) True
B) False

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Which of the following is a bureaucratic organizational form in which employees are grouped into divisions around products, geographic regions, or clients?


A) Mechanistic structures
B) Global structures
C) Multi-divisional structures
D) Matrix structures
E) Organic structures

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

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Which of the following is a characteristic of a mechanistic organization?


A) Employees are given a very narrow view of the tasks they are to perform.
B) Employees think more broadly in terms of where their responsibilities lie.
C) Employees are encouraged to make their own decisions when appropriate.
D) Employees are encouraged to develop knowledge outside of their specialization.
E) Lateral communication is encouraged.

F) B) and C)
G) All of the above

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Many small companies evolve into functionally based structures as they grow larger.

A) True
B) False

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Scenario: Extreme Rug Ron is the project manager of the corporate structure team at Extreme Rugs.Ron's team has been assigned the task to study and evaluate Extreme Rugs' organizational structure.To collect the preliminary information, Ron 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.Ron 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.On which element of organizational structure is Alice looking out for information?


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

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

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Companies that focus on a differentiation strategy are more likely to take a mechanistic approach to organizational design.

A) True
B) False

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As organizations become larger, they tend to become more _____ in nature.


A) simple
B) cultural
C) mechanistic
D) organic
E) flat

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

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What steps can an organization take to reduce the negative effects of restructuring efforts on employees? Explain.

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The negative effects of restructuring ar...

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Differentiate between functional and multi-divisional structures.Provide a diagram of each.

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A functional structure groups employees ...

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Homely Furniture is a custom manufacturer of hand-crafted furniture.The company has 94 locations throughout the country and relies on decentralized decision making to meet the needs of the dynamic environment and customer needs.Which of the following approaches to organizational design may be appropriate for Homely Furniture?


A) Simple
B) Global
C) Mechanistic
D) Organic
E) Matrix

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

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Distinguish between tall and flat organizational structures and state at least two disadvantages of tall organizational structures.

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A tall organizational structure has many...

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Organic organizations encourage lateral communication.

A) True
B) False

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Although matrix structures have been around since the 1960s, the number of organizations using them has declined since organizations prefer to work in groups rather than in teams.

A) True
B) False

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Companies that follow a low-cost producer strategy believe that people will pay more for a product that is unique in some way.

A) True
B) False

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


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

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

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High levels of specialization are more acceptable in smaller firms in which employees must be more flexible in their job duties.

A) True
B) False

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The process of changing an organizational structure is called:


A) restructuring.
B) structuring.
C) centralizing.
D) formalization.
E) layoff.

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

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_____ organizations are flexible, adaptive, outward-focused organizations that thrive in dynamic environments.


A) Mechanistic
B) Centralized
C) Hierarchical
D) Matrix
E) Organic

F) B) and C)
G) None of the above

Correct Answer

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More complex forms of organizational design that try to take advantage of two types of structures at the same time are called _____ structures.


A) simple
B) functional
C) client-based
D) product
E) matrix

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

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