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Learning Objectives:
7.1 Describe the organizing process and how formal and informal organizations differ.
7.2 Identify some common types of organizational structures and discuss the span of control
represented by each one.
7.3 Explain how an organization’s culture is affected by workplace diversity.
7.4 Discuss the pros and cons of using teams and when it is most beneficial to use them.
7.5 Describe the stages of team development and how productive teams can be rewarded.
Quick answer key:
Question #
Multiple Choice
True/False
1
A
False
2
B
False
3
B
True
4
D
True
5
B
True
6
C
False
7
D
True
8
A
True
9
B
False
10
B
False
11
A
True
12
C
False
1
13
B
False
14
D
True
15
A
True
16
B
True
17
C
False
18
D
False
19
D
True
20
B
True
21
A
False
22
B
False
23
D
True
24
C
False
25
B
False
26
A
True
27
D
True
28
A
False
29
B
False
30
C
True
31
B
32
A
33
C
34
D
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Multiple Choice Questions:
1. Which of the following tasks should occur first in the organizing process?
A)
B)
C)
D)
make a list of tasks
divide tasks into groups of activities to create jobs
group jobs together to create departments
establish relationships between jobs to define responsibilities
Learning Objective 7.1
Answer – A
2. In what type of an organization does an employee emerge as a leader, without official
appointment, based on their personal influence among co-workers?
A)
B)
C)
D)
formal
informal
civil
independent
Learning Objective 7.1
Answer – B
3. Which of the following structures defines the boundaries of the formal organization within
which the organization operates?
A)
B)
C)
D)
cooperative structure
organization structure
matrix structure
virtual structure
Learning Objective 7.2
Answer – B
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4. What type of departmentalization occurs when organizational units are defined by the
nature of the work?
A)
B)
C)
D)
natural
customer
product
functional
Learning Objective 7.2
Answer – D
5. Allen knows that his company values integrity and quality above everything else. He has
a good understanding of which aspect of his company?
A)
B)
C)
D)
chain of command
organizational culture
span of control
restructuring
Learning Objective 7.3
Answer – B
6. Which is an organizational benefit of a diverse workplace?
A)
B)
C)
D)
It guarantees the workplace is free from bias.
It meets the requirements for organizational culture.
It enhances workplace creativity and innovation.
It adds additional holidays to the corporate calendar.
Learning Objective 7.3
Answer – C
7. Which statement is true of all teams?
A)
B)
C)
D)
Team members work for the same manager.
Team members have workspaces located near one another.
Team members have lots of workplace contact.
Team members share responsibility for a task or goal.
Learning Objective 7.4
Answer – D
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8. Which factor must be present for a team to be effective?
A)
B)
C)
D)
a clear and compelling performance challenge
a directive for management
an expectation of recognition
a scheduled time to meet each week.
Learning Objective 7.4
Answer – A
9. Kara has been assigned to work on a team to complete a budget project. The team met
for the first time last week to assess skills of the team, address questions about the
project, and discuss a timeline for completion. The team is in which stage of team
development?
A)
B)
C)
D)
performing
forming
norming
storming
Learning Objective 7.5
Answer – B
10. Which is a trait of a high performing team?
A)
B)
C)
D)
culturally diverse
shared purpose
large in size
possess similar skill sets
Learning Objective 7.5
Answer – B
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11. Which of the following best defines the process of analyzing and arranging the pattern of
work tasks and relationships within a company to achieve goals effectively and
efficiently?
A)
B)
C)
D)
organizing
staffing
controlling
leading
Learning Objective 7.1
Answer – A
12. Which of the following best defines the product or framework that comes out of the
organizing process?
A)
B)
C)
D)
formal structure
horizontal structure
organizational structure
informal structure
Learning Objective 7.1
Answer – C
13. Which of the following are two types of organizational structures?
A)
B)
C)
D)
joined and disjointed
informal and formal
horizontal and vertical
united and divided
Learning Objective 7.1
Answer – B
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14. An organizational chart is a published document that graphically represents which type
of organizational structure?
A)
B)
C)
D)
informal
horizontal
vertical
formal
Learning Objective 7.1
Answer – D
15. Which of the following is the last step in the organizing process?
A) Allocate authority and establish relationships so that all members of an
organization will have a clear responsibility.
B) Divide tasks into activities that can be performed by one person.
C) Make a list of all the tasks that must be performed to accomplish a goal.
D) Group together related jobs or sequence jobs in a logical order.
Learning Objective 7.1
Answer – A
16. How are leaders chosen in an informal organizational structure?
A)
B)
C)
D)
Leaders emerge based on higher management recommendation.
Leaders emerge based on an individual’s influence.
Leaders emerge based on quality of work.
Leaders emerge based on years of experience.
Learning Objective 7.1
Answer – B
17. Which of the following best defines the grouping of jobs into related work units?
A)
B)
C)
D)
functional organization
formal organization
departmentalization
organizing
Learning Objective 7.2
Answer – C
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18. Which of the following clearly identifies the four basic functions of organizations?
A)
B)
C)
D)
production, marketing, training, finance
training, marketing, human resources, finance
production, training, human resources, finance
production, marketing, human resources, finance
Learning Objective 7.2
Answer – D
19. Which of the following best defines the placement of all activities necessary to produce
and market a product or service under one manager?
A)
B)
C)
D)
hybrid organization
customer organization
geographic organization
product organization
Learning Objective 7.2
Answer – D
20.Which type of organization permits the use of local employees or salespeople, and
creates customer goodwill and awareness of local needs?
A)
B)
C)
D)
production organization
geographic organization
customer organization
hybrid organization
Learning Objective 7.2
Answer – B
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21. Which of the following best defines an organizational structure that uses multiple types
of departmentalization within the organization?
A)
B)
C)
D)
hybrid organization
matrix organization
functional organization
customer organization
Learning Objective 7.2
Answer – A
22. Which of the following is a disadvantage of a line structure?
A) A line structure can cause an organization to have too many locations, which ben
be costly.
B) A line structure causes an organization to become too dependent on one or
two capable employees.
C) A line structure causes duplication of facilities and equipment within an
organization.
D) A line structure causes conflict due to different departments in the organization
striving for different goals.
Learning Objective 7.2
Answer – B
23. Which of the following best describes functions that are advisory and supportive in
nature; designed to contribute to the efficiency and maintenance of the organization?
A)
B)
C)
D)
line functions
organizational functions
matrix functions
staff functions
Learning Objective 7.2
Answer – D
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24. Which type of structure is also referred to as a team structure?
A)
B)
C)
D)
virtual structure
matrix structure
horizontal structure
staff structure
Learning Objective 7.3
Answer – C
25. Which of the following best defines an organization where decision making authority is at
the top of the organization and employees have little freedom to make their own
decisions?
A)
B)
C)
D)
decentralized organization
centralized organization
virtual organization
functional organization
Learning Objective 7.3
Answer – B
26. Which of the following is a benefit of diversity in the workplace?
A)
B)
C)
D)
expanded global reach to new markets
the ability for a business to function without creativity and innovation
singular beliefs and cross-cultural experiences
minimal alliances with customers and suppliers
Learning Objective 7.3
Answer – A
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27. Which of the following best defines a company program designed to solve current and
future inequities in employment of minorities?
A)
B)
C)
D)
Equal Employment Opportunity (EEO)
Minority Job Act (MJA)
Employment Opportunity for Minorities (EOM)
Affirmative Action
Learning Objective 7.3
Answer – D
28. Which of the following clearly identifies a situation where a team would be beneficial?
A)
B)
C)
D)
When no individual expert exists to help solve an issue.
When risk is not a desirable path to take.
When a sense of community and support is not needed.
When a team would be made up of twenty or more members.
Learning Objective 7.4
Answer – A
29. Which of the following is not a type of team?
A)
B)
C)
D)
teams that recommend things
teams that organize things
teams that make or do things
teams that run things
Learning Objective 7.4
Answer – B
30.What is the ideal size of a team in order for it to be productive and successful?
A)
B)
C)
D)
2 to 4
9 to 12
5 to 8
8 to 11
Learning Objective 7.4
Answer – C
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31. Which of the following best defines the type of rewards that are distributed to individuals
for their unique contribution to the team?
A)
B)
C)
D)
functional team rewards
competitive team rewards
cooperative team rewards
non-competitive team rewards
Learning Objective 7.4
Answer – B
32. In which stage of the team development process does hostility and infighting occur?
A)
B)
C)
D)
storming
forming
norming
performing
Learning Objective 7.5
Answer - A
33. What is the final stage of the team development process?
A)
B)
C)
D)
forming
storming
adjourning
performing
Learning Objective 7.5
Answer – C
34. In which stage of the team development process do the individuals begin to come
together as a group?
A)
B)
C)
D)
storming
forming
performing
norming
Learning Objective 7.5
Answer – D
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True/false Questions:
1. Informal organizational structure provides the framework or chain of command for
determining accountability, the distribution of responsibilities, and the authority needed
to discharge them.
Learning Objective 7.1
Answer – False
2. An organizational chart is a published document that graphically represents the informal
organizational structure.
Learning Objective 7.1
Answer – False
3. Organizing is the process of analyzing and arranging the pattern of work tasks and
relationships to achieve goals efficiently and effectively.
Learning Objective 7.1
Answer – True
4. The first step in the organizing process is to make a list of all the tasks that must be
performed to accomplish a goal.
Learning Objective 7.1
Answer – True
5. Departmentalization is the arrangement of jobs into related work units.
Learning Objective 7.2
Answer – True
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6. Geographic organization is an organizational structure that uses multiple types of
departmentalization within the organization.
Learning Objective 7.2
Answer – False
7. Product organization is the placement of all activities necessary to produce and market a
production or service under one manager.
Learning Objective 7.2
Answer – True
8. Staff functions are functions that are advisory and supportive in nature; designed to
contribute to the efficiency and maintenance of the organization.
Learning Objective 7.2
Answer – True
9. A line structure is an organizational structure that results when staff specialists are
added to a line organization.
Learning Objective 7.2
Answer – False
10. Under a matrix structure employees working on a project are officially signed to the
project exclusively and not to their functional departments.
Learning Objective 7.2
Answer – False
11. In a horizontal structure teams manage everything, including themselves, and they’re
held accountable for performance goals.
Learning Objective 7.2
Answer – True
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12. A decentralized organization is where decision making authority is at the top of the
organization; while a centralized organization is where decision making is pushed down
to lower levels and employees have greater freedom to make decisions.
Learning Objective 7.2
Answer – False
13. Span of control is defined as the number of employees within an entire organization.
Learning Objective 7.2
Answer – False
14. A flat structure is an organization with few levels and relatively large spans of
management control at each level; while a tall structure is an organization with many
levels and relatively small spans of management control.
Learning Objective 7.2
Answer – True
15. Organizational culture is the underlying set of assumptions, beliefs, attitudes, values,
and expectations, shared by employees of an organization.
Learning Objective 7.3
Answer – True
16. Diversity is the difference or individual attributes which distinguish one person from
another.
Learning Objective 7.3
Answer – True
17. Affirmative action is a system of organizational justice, stipulated by law, that applies to
all aspects of employment and is intended to provide equal opportunity for all members
of the labor force.
Learning Objective 7.3
Answer – False
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18. Teams are better when individual experts exist, because experts can assist teams in
difficult situations.
Learning Objective 7.4
Answer – False
19. Teams are better when risk is desirable.
Learning Objective 7.4
Answer – True
20.The first team skill a manager must possess is being able to assess whether or not a
team is appropriate.
Learning Objective 7.4
Answer – True
21. The key to team performance is cohesiveness.
Learning Objective 7.4
Answer – False
22. The best individual performer will create the highest-performing team.
Learning Objective 7.4
Answer – False
23. Most teams can be classified in one of three ways: teams that recommend things, teams
that make or do things, and teams that run things.
Learning Objective 7.4
Answer – True
24. Teams that oversee some business, ongoing programs or significant functional activities
are teams that recommend things.
Learning Objective 7.4
Answer – False
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25. The five disciplines essential to high performance teams include large size, capable and
complementary members, different purpose and performance objectives, productive
norms and working approach, and individual accountability.
Learning Objective 7.4
Answer – False
26. High-performing teams rarely consist of more than 10 people and ideally are between 5
and 8 members.
Learning Objective 7.4
Answer – True
27. High-performing teams know precisely what they are expected to accomplish and how
they will be measured and evaluated as a team.
Learning Objective 7.4
Answer – True
28. Cooperative team rewards are rewards that are distributed to individuals for their unique
contribution to the team.
Learning Objective 7.4
Answer – False
29. The forming stage of team development is a period of high emotion and tension among
members.
Learning Objective 7.5
Answer – False
30.The norming stage of team development is the point at which the team begins to come
together as a coordinated group.
Learning Objective 7.5
Answer – True
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Short Answer questions:
1. Explain the difference between a formal and informal organizational structure.
Answer – A formal organizational structure provides the framework or chain of
command for determining accountability, the distribution of responsibilities, and the
authority needed to discharge them. An informal organizational structure is unpublished
and it arises out of the everyday relationships that exist between employees.
2. Accurately identify the steps of the organizing process.
Answer – The organizing project consists of the following steps:
1.
2.
3.
4.
Make a list of all the tasks that must be performed to accomplish a goal.
Divide the tasks into activities that can be performed by one person.
Group together related jobs or sequence jobs in a logical order.
Allocate authority and establish relationships between the various jobs so that
all members of an organization have a clear idea of their responsibilities and
authority.
3. Properly define and differentiate between a functional organization, production
organization, geographic organization, customer organization, and hybrid organization.
Answer – A functional organization is the categorization of organizational units in terms
of the nature of the work. Production organization is the placement of all activities
necessary to produce and market a product or service under one manager. Geographic
organization is the categorization of organizational units by geography, while customer
organization is the categorization of or organizational units by customers served. Finally
a hybrid organization is an organizational structure that uses multiple types of
departmentalization within the organization.
4. What is the difference between a flat structure and tall structure?
Answer – A flat structure is an organization with few levels and relatively large spans of
management control at each level, while a tall structure is an organization with many
levels and relatively small spans of management control.
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5. What are the three classifications/types of teams and how are they differentiated?
Answer – The three types of teams are teams that recommend things, teams that make
or do things, and teams that run things.
Teams that recommend things include task forces and project groups formed to study
and solve particular problems. Teams that make or do things include people on or near
the frontlines who are responsible for manufacturing, development, marketing, service,
and other value-adding activities of a business. Teams that run things are teams that
oversee some business, ongoing programs, or significant functional activities.
6. Identity the 5 traits of high-performing teams.
Answer – The five traits of high-performing teams include: (1) small size, (2) capable
and complementary members, (3) shared purpose and performance objectives, (4)
productive norms and working approach, and (5) mutual accountability.
7. What are the five stages of team development?
Answer – The four stages of team development including, forming, storming, norming,
performing, and adjourning.
8. Identify the four stages of a well-constructed agenda.
Answer – A well-constructed agenda includes the initial stage, kickoff stage, summary
stage, and evaluation stage.
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