Answers:

1. E
2. C
3. A
4. E
5. A
6. A
7. CE
8. C
9. D
10. D
11. D
12. B
13. B

Exercises for Chapter 15

1. Organizational structure has six key elements. Which of the following is not one of
these elements?
A) centralization
B) departmentalization
C) work specialization
D) formalization
E) location of authority

2. A plant manager who organizes the plant by separating engineering, accounting,

manufacturing, personnel, and purchasing into departments is practicing ________
departmentalization.
A) process
B) product
C) functional
D) geographic
E) graphic

3. The unbroken line of authority that extends from the top of the organization to the
lowest echelon and clarifies who reports to whom is termed ________.
A) chain of command
B) authority
C) span of control.
D) unity of command
E) web of authority

4. The ________ principle helps preserve the concept of an unbroken line of

authority.
A) span of control
B) chain of command
C) cross-functionality
D) centralization
E) unity-of-command

5. The ________ refers to the number of subordinates that a manager directs.

A) span of control
B) unity of command
C) chain of command
D) decentralization principle
E) leadership web

6. Maya's company needs to dramatically cut costs. Which of the following structural
decisions will help her immediately reduce costs?
A) doubling the span of control
B) decreasing the unity of command
C) increasing the chain of command
D) decentralizing management decisions
E) formalizing work processes

7. ________ is characterized by a low degree of departmentalization, wide spans of

control, authority centralized in a single person, and little formalization.
A) Bureaucracy
B) Matrix organization
C) Simple structure
D) Team structure
E) Centralized structure

8. The most prominent structural characteristic of the matrix structure is that

________.
A) it strictly follows the chain of command
B) it breaks the unity-of-command concept
C) it has a very tall span of control
D) all departments are highly formalized
E) it is highly centralized

9. The major advantage of the virtual organization is its ________.

A) control
B) predictability
C) flexibility
D) empowerment
E) complexity
10. ________ is a systematic effort to make an organization leaner by selling off
business units, closing locations, or reducing staff.
A) Removing boundaries
B) Departmentalizing
C) Decentralizing
D) Downsizing
E) Formalizing

11. Which of the following is not part of an organization's environment?

A) public pressure groups
B) customers
C) personnel
D) competitors
E) the media

12. What are the key dimensions to any organization's environment?

A) stable, abundant, and simple
B) complexity, volatility, and capacity
C) complex, scarce, and dynamic
D) innovative, cost-cutting, and imitation
E) specialization, departmentalization, centralization

13. Volatility refers to the degree of ________ within an environment.

A) support
B) instability
C) flexibility
D) resources
E) pressures