32) A ________ 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) networked organizational structure
E) hierarchical organization
33) The simple structure is most widely practiced in small businesses in which ________.
A) the manager and owner are one and the same
B) the number of employees is between 100 to 150
C) employees are highly skilled
D) managers are hired directly by the company’s owner
E) training budgets are limited
34) Mark is the owner of a local shoe business. He has fifteen employees who report directly to him and he makes all the decisions regarding the type and quality of shoes and looks after the shop’s finances. Which type of organizational structure does Mark have?
A) bureaucracy
B) virtual structure
C) matrix structure
D) boundaryless structure
E) simple structure
35) Which of the following statements is true about the simple structure?
A) It is very expensive to operate.
B) It is characterized by a high degree of formalization.
C) It becomes increasingly inadequate as an organization grows.
D) It is most widely adopted in large businesses in which the manager and owner are different.
E) It is characterized by a narrow span of control.
36) Which of the following is a characteristic of a simple structure?
A) high centralization
B) inflexibility
C) narrow spans of control
D) ambiguous accountability
E) high degree of formalization
37) The key concept that underlies all bureaucracies is ________.
A) efficiency
B) standardization
C) increased flexibility
D) decentralization
E) specialization
38) Which of the following statements is true regarding a bureaucracy?
A) Bureaucracies are characterized by a low degree of formalization.
B) Bureaucracy is an ideal organizational design for those organizations that operate under highly uncertain conditions.
C) Typically, bureaucracies have wider spans of control.
D) Bureaucracies can get by with less talented middle- and lower-level managers.
E) Bureaucracies encourage employee empowerment.
39) Which of the following types of organizational designs combines two forms of departmentalization, functional and product?
A) simple structure
B) bureaucracy
C) matrix structure
D) virtual structure
E) boundaryless structure
40) The strength of product departmentalization in the matrix structure is that it facilitates ________.
A) coordination among specialties
B) implementation of a high degree of centralization
C) adherence to chain of command
D) standardization
E) employee empowerment
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