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Copyright (c) 2013 Pearson Education, Inc.
Fundamentals of Management, 8e (Robbins et al.)
Chapter 5 Basic Organizational Structure and Design
I True or false
1) Organizational design is the process in which managers change or develop an organizations structure.
2) There are four basic elements in organizational structure.
3) The original ideas about organizational design formulated by Fayol and Weber are now largely obsolete.
4) When work specialization originally began to be implemented early in the twentieth century, employee productivity initially rose.
5) Today, most managers see work specialization as a source of ever-increasing productivity.
6) The advantage of work specialization is that it tends to result in high employee motivation and high productivity.
7) Departmentalization is how jobs are grouped.
8) Staff authority is the ability to direct the work of any employee who does not have a higher rank in the organization.
9) Grouping jobs on the basis of major product areas is termed customer departmentalization.
10) Line authority can be exerted only after a manager checks with his or her superior.
11) Unity of command prevents an employee from trying to follow two conflicting commands at once.
12) Power is a right that a manager has when he or she has a higher rank in an organization.
13) When decisions tend to be made at lower levels in an organization, the organization is said to be centralized.
14) Traditional organizations are structured in a pyramid, with the power and authority located in the pyramids broad base.
15) The two prevalent organization structure models in todays world are the organic organization and the inorganic organization.
16) A mechanistic organization is bureaucratic and hierarchical.
17) An organic organization tends to be flexible and have few formal rules.
18) Innovators need the efficiency, stability, and tight controls of a mechanistic structure rather than an organic structure.
19) The relationshi
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