CHAPTER 3—FUNDAMENTALS OF ORGANIZATION STRUCTURE
MULTIPLE CHOICE
1. Which of the following is not a component in the definition of organization structure?
a. It includes the design systems to ensure effective communication, coordination, and
integration of effort across each position.
b. It identifies the tasks and processes for each position within the organization.
c. It identifies the grouping together of individuals into departments and of departments into
the total organization.
d. It designates formal reporting relationships, including the number of levels in the
hierarchy and the span of control of managers and supervisors.
ANS: B PTS: 1 REF: pg. 94
NAT: AACSB Analytic | AACSB Creation of Value
2. Which of the following is true concerning information in an organization?
a. Information should flow horizontally, but not vertically.
b. Information should flow vertically, but not horizontally.
c. Structure should fit the information requirements of the organization.
d. It is not possible to give people too much information.
ANS: C PTS: 1 REF: pg. 96
NAT: AACSB Analytic | AACSB Creation of Value
3. When problems and decisions are funneled to top levels of the hierarchy for resolution, ____ is being
used.
a. centralized decision making
b. functional structure
c. horizontal linkage
d. full-time integration
ANS: A PTS: 1 REF: pgs. 96-97
NAT: AACSB Reflective Thinking | AACSB Leadership Principles
4. Which of the following is not a structural device used to achieve vertical linkages?
a. Rules and plans
b. Task forces
c. Vertical information systems
d. Hierarchical referral
ANS: B PTS: 1 REF: pg. 99
NAT: AACSB Analytic | AACSB Creation of Value
5. ____ means decision making authority is pushed down to lower organizational levels.
a. Centralized decision making
b. Horizontal linkage
c. Decentralized decision making
d. Vertical linkage
ANS: C PTS: 1 REF: pg. 97
NAT: AACSB Analytic | AACSB Creation of Value
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
, 6. ____ are used to coordinate activities between the top and bottom of an organization and are designed
primarily for control of the organization.
a. Vertical linkages
b. Functional groupings
c. Horizontal linkages
d. Divisional groupings
ANS: A PTS: 1 REF: pg. 99
NAT: AACSB Reflective Thinking | AACSB Group Dynamics
7. Which of the following mechanisms does not provide an improved degree of horizontal coordination
and control?
a. Information systems
b. Task forces
c. Hierarchical referral
d. Teams
ANS: C PTS: 1 REF: pg. 99
NAT: AACSB Analytic | AACSB Creation of Value
8. Which of the following is another strategy for increasing vertical information capacity and includes
periodic reports, written information, and computer-based communications?
a. Systematic integration of systems
b. Vertical information systems
c. Horizontal linkages
d. Vertical linkages
ANS: B PTS: 1 REF: pg. 100
NAT: AACSB Analytic | AACSB Strategy
9. ____ refers to communication and coordination horizontally across organizational departments.
a. Horizontal linkage
b. Full-time integration
c. Horizontal information system
d. Vertical grouping
ANS: A PTS: 1 REF: pg. 100
NAT: AACSB Communication | AACSB Group Dynamics
10. Horizontal linkage mechanisms:
a. cause employees to experience the confusion of not having unity of command.
b. must be added to a divisional structure to coordinate across functional areas.
c. should be avoided because they confuse vertical linkages.
d. enable people in different functional departments to exchange information.
ANS: D PTS: 1 REF: pg. 100
NAT: AACSB Analytic | AACSB Creation of Value
11. A liaison role exists when:
a. there is direct contact between managers affected by a problem.
b. there is an exchange of paperwork about a problem.
c. a temporary committee composed of representatives form each department affected by a
problem is formed.
d. a person located in one department had the responsibility for communicating and
achieving coordination with another department.
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
, ANS: D PTS: 1 REF: pg. 101
NAT: AACSB Reflective Thinking | AACSB Individual Dynamics
12. A ____ is a temporary committee composed of representatives from each organizational unit affected
by a problem.
a. top management team
b. virtual team
c. task force
d. functional team
ANS: C PTS: 1 REF: pg. 101
NAT: AACSB Analytic | AACSB Creation of Value
13. A full-time integrator:
a. improves vertical linkage of the organization.
b. has a title such as product manager.
c. reports to one of the functional departments being coordinated.
d. has the responsibility of coordinating only one department.
ANS: B PTS: 1 REF: pg. 102
NAT: AACSB Reflective Thinking | AACSB Leadership Principles
14. If Brian Ramsaur is the Gaterade product manager at Fencelink, then he is:
a. a liaison.
b. a full-time integrator.
c. head of a task force.
d. in charge of all aspects of its production and sales, with full line authority.
ANS: B PTS: 1 REF: pg. 102
NAT: AACSB Analytic | AACSB Individual Dynamics
Organization Chart 3.1
15. Reference Organization Chart 3.1. Which of the following is correct?
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
MULTIPLE CHOICE
1. Which of the following is not a component in the definition of organization structure?
a. It includes the design systems to ensure effective communication, coordination, and
integration of effort across each position.
b. It identifies the tasks and processes for each position within the organization.
c. It identifies the grouping together of individuals into departments and of departments into
the total organization.
d. It designates formal reporting relationships, including the number of levels in the
hierarchy and the span of control of managers and supervisors.
ANS: B PTS: 1 REF: pg. 94
NAT: AACSB Analytic | AACSB Creation of Value
2. Which of the following is true concerning information in an organization?
a. Information should flow horizontally, but not vertically.
b. Information should flow vertically, but not horizontally.
c. Structure should fit the information requirements of the organization.
d. It is not possible to give people too much information.
ANS: C PTS: 1 REF: pg. 96
NAT: AACSB Analytic | AACSB Creation of Value
3. When problems and decisions are funneled to top levels of the hierarchy for resolution, ____ is being
used.
a. centralized decision making
b. functional structure
c. horizontal linkage
d. full-time integration
ANS: A PTS: 1 REF: pgs. 96-97
NAT: AACSB Reflective Thinking | AACSB Leadership Principles
4. Which of the following is not a structural device used to achieve vertical linkages?
a. Rules and plans
b. Task forces
c. Vertical information systems
d. Hierarchical referral
ANS: B PTS: 1 REF: pg. 99
NAT: AACSB Analytic | AACSB Creation of Value
5. ____ means decision making authority is pushed down to lower organizational levels.
a. Centralized decision making
b. Horizontal linkage
c. Decentralized decision making
d. Vertical linkage
ANS: C PTS: 1 REF: pg. 97
NAT: AACSB Analytic | AACSB Creation of Value
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
, 6. ____ are used to coordinate activities between the top and bottom of an organization and are designed
primarily for control of the organization.
a. Vertical linkages
b. Functional groupings
c. Horizontal linkages
d. Divisional groupings
ANS: A PTS: 1 REF: pg. 99
NAT: AACSB Reflective Thinking | AACSB Group Dynamics
7. Which of the following mechanisms does not provide an improved degree of horizontal coordination
and control?
a. Information systems
b. Task forces
c. Hierarchical referral
d. Teams
ANS: C PTS: 1 REF: pg. 99
NAT: AACSB Analytic | AACSB Creation of Value
8. Which of the following is another strategy for increasing vertical information capacity and includes
periodic reports, written information, and computer-based communications?
a. Systematic integration of systems
b. Vertical information systems
c. Horizontal linkages
d. Vertical linkages
ANS: B PTS: 1 REF: pg. 100
NAT: AACSB Analytic | AACSB Strategy
9. ____ refers to communication and coordination horizontally across organizational departments.
a. Horizontal linkage
b. Full-time integration
c. Horizontal information system
d. Vertical grouping
ANS: A PTS: 1 REF: pg. 100
NAT: AACSB Communication | AACSB Group Dynamics
10. Horizontal linkage mechanisms:
a. cause employees to experience the confusion of not having unity of command.
b. must be added to a divisional structure to coordinate across functional areas.
c. should be avoided because they confuse vertical linkages.
d. enable people in different functional departments to exchange information.
ANS: D PTS: 1 REF: pg. 100
NAT: AACSB Analytic | AACSB Creation of Value
11. A liaison role exists when:
a. there is direct contact between managers affected by a problem.
b. there is an exchange of paperwork about a problem.
c. a temporary committee composed of representatives form each department affected by a
problem is formed.
d. a person located in one department had the responsibility for communicating and
achieving coordination with another department.
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
, ANS: D PTS: 1 REF: pg. 101
NAT: AACSB Reflective Thinking | AACSB Individual Dynamics
12. A ____ is a temporary committee composed of representatives from each organizational unit affected
by a problem.
a. top management team
b. virtual team
c. task force
d. functional team
ANS: C PTS: 1 REF: pg. 101
NAT: AACSB Analytic | AACSB Creation of Value
13. A full-time integrator:
a. improves vertical linkage of the organization.
b. has a title such as product manager.
c. reports to one of the functional departments being coordinated.
d. has the responsibility of coordinating only one department.
ANS: B PTS: 1 REF: pg. 102
NAT: AACSB Reflective Thinking | AACSB Leadership Principles
14. If Brian Ramsaur is the Gaterade product manager at Fencelink, then he is:
a. a liaison.
b. a full-time integrator.
c. head of a task force.
d. in charge of all aspects of its production and sales, with full line authority.
ANS: B PTS: 1 REF: pg. 102
NAT: AACSB Analytic | AACSB Individual Dynamics
Organization Chart 3.1
15. Reference Organization Chart 3.1. Which of the following is correct?
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
