M3319CH8

Which of these depicts the positions in the firm and how they are arranged?
A. Span of control
B. Departmentalization
C. Division of labor
D. Organization chart
E. Value chain
D. Organization chart
An organization chart conveys all of the following EXCEPT:
A. The work performed by each unit
B. Who reports to whom
C. How decisions are made
D. How the work is divided
E. All of the above are evident from organization charts
C. How decisions are made
Which of these is created through division of labor and job specialization?
A. Integration
B. Coordination
C. Differentiation
D. Span of control
E. Managerial competence
C. Differentiation
The assignment of different tasks to different people or groups is the:
A. Strategic plan
B. Organization structure
C. Division of labor
D. Value chain
E. Responsibility chart
C. Division of labor
A process in which different individuals and units perform different tasks is:
A. Accountability
B. Authority
C. Responsibility
D. Specialization
E. Differentiation
D. Specialization
_____ refers to the fact that different people often perform specific parts of the entire task.
A. Integration
B. Specialization
C. Departmentalization
D. Coordination
E. Hierarchy
B. Specialization
Coordination refers to
A. The linking of the various components of an organization
B. Division of labor within an organization
C. The performance of specific tasks by specific people
D. The need for specific tasks in the functional fields
E. All of the above
A. The linking of the various components of an organization
The procedures that link the various parts of the organization for the purpose of achieving the organization’s overall mission are called:
A. Job specialization
B. Diversification
C. Coordination
D. Dynamism
E. Complexity
C. Coordination
In the study by Lawrence and Lorsch, companies in complex, dynamic environments developed _____ levels of differentiation; and _____ levels of integration
A. Low; low
B. Intermediate; high
C. High; high
D. Low; high
E. High; low
C. High; high
Authority is defined as:
A. The right to tell people what to do
B. The right to make decisions
C. The right to give an order to a subordinate
D. All of the above
E. None of the above
D. All of the above
The authority vested in the board of directors is assigned to ________.
A. COO
B. CEO
C. Senior Vice President for legal compliance
D. All of the Vice President’s
E. It is never delegated
B. CEO
The board of directors overseeing an organization is responsible for
A. Selecting the CEO
B. Determining the firm’s strategic direction
C. Assuring ethical and legal conduct
D. Reviewing financial performance
E. All of the above
E. All of the above
Which of the following is NOT among the major duties of a board of directors?
A. Replacing the CEO
B. Ensuring ethical conduct
C. Rewarding all employees
D. Reviewing financial performance
E. All of the above are major duties
C. Rewarding all employees
Large corporations have Boards of Directors that are elected by:
A. Employees
B. Managers of all levels
C. Shareholders
D. Top managers
E. None of the above
C. Shareholders
When top executives of ABC sit on the ABC board, they are called
A. Outsiders
B. Illegal entrants
C. Impatient
D. Overbearing
E. Inside directors
E. Inside directors
The organizational pyramid is commonly called the
A. Corporation
B. Hierarchy
C. Structure
D. Bureaucracy
E. Framework
B. Hierarchy
Top management includes all of these EXCEPT:
A. Chief Financial Officer
B. President
C. Chief Executive Officer
D. Division Supervisor
E. All of the above are included in top management
D. Division Supervisor
The three levels of the organizational hierarchy include:
A. Top, middle and employee
B. Top, middle and operational
C. First, middle and last
D. First, middle and low
E. Top, operational and employees
B. Top, middle and operational
The operational level of the organization includes:
A. The CEO, President and Vice-Presidents
B. Plant and/or departmental managers
C. All levels of middle management
D. First-line managers, supervisors and employees
E. All of the above are operational levels
D. First-line managers, supervisors and employees
A term describing the oversight of the firm by its executive staff and its board of directors is:
A. Corporate governance
B. Coordination
C. Responsibility
D. Unity of command
E. Authority
A. Corporate governance
The authority levels of the organizational pyramid is called the:
A. Chain of command
B. Organization structure
C. Organization hierarchy
D. Span of management
E. Organization control
C. Organization hierarchy
The number of subordinates who report directly to an executive or supervisor is called the
A. Reporting order
B. Span of control
C. Pecking order
D. Bureaucratic oath
E. Authority number
B. Span of control
Narrow spans of control build ____________ organizations.
A. Flat
B. Tall
C. Wide
D. Decentralized
E. Informal
B. Tall
A wide span of control builds a ______________ organization.
A. Flat
B. Narrow
C. Tall
D. Bureaucratic
E. Formal
A. Flat
The optimal span of control should be wider when the following factors are present EXCEPT:
A. The work is clearly defined
B. Subordinates are poorly trained
C. The manager is highly capable and supportive
D. Jobs are similar
E. Subordinates prefer autonomy
B. Subordinates are poorly trained
The assignment of additional responsibilities to a subordinate is referred to as
A. Pandering
B. Centralization
C. Delegation
D. Span of control
E. Staff management
C. Delegation
A powerful trend for United States businesses over the past few decades has been:
A. Decreasing the number of organizational levels
B. Increasing the number of organizational levels
C. Decreasing the span of control
D. Increasing formalization
E. Increasing standardization
E. Increasing standardization
The number of subordinates who report directly to an executive or supervisor is the:
A. Organization chart
B. Chain of command
C. Span of control
D. Division of labor
E. Span of influence
C. Span of control
The assignment of new or additional responsibilities to a subordinate is known as:
A. Delegation
B. Coordination
C. Integration
D. Standardization
E. Span of control
A. Delegation
The assignment of a task that an employee is supposed to carry out is called his/her:
A. Responsibility
B. Authority
C. Coordination
D. Accountability
E. Span of control
A. Responsibility
The expectation that employees perform a job, take corrective action when necessary and report upward on the status and quality of their performance is called:
A. Responsibility
B. Accountability
C. Authority
D. Coordination
E. Span of control
B. Accountability
Which of the following statements is TRUE regarding delegation?
A. It is important at all hierarchical levels
B. It entails getting work done through others
C. It can occur between any two individuals in any type of structure with regard to any task
D. It is difficult for some managers to do comfortably
E. All of the above are TRUE of delegation
E. All of the above are TRUE of delegation
Perhaps the most important aspect of delegation is:
A. That authority must accompany responsibility
B. That subordinates not be allowed to “take credit” for what was simply delegated to them
C. That delegation never be “upward”
D. Allowing the subordinate to work unencumbered by frequent checkpoints
E. All of the above
A. That authority must accompany responsibility
The assignment of a task that the employee is supposed to carry out is called:
A. Authority
B. Responsibility
C. Span of control
D. Integration
E. Differentiation
B. Responsibility
A common problem for a subordinate in carrying out a delegated task is:
A. Being encumbered by frequent checkpoints
B. Being given more responsibility than authority
C. Having too many details spelled out, effectively eliminating any opportunity for creativity
D. Being given more authority than they need
E. None of the above
B. Being given more responsibility than authority
The legitimate right to make decisions and to tell other people what to do is:
A. Accountability
B. Delegation
C. Specialization
D. Responsibility
E. Authority
E. Authority
The expectation that employees perform a job, take corrective action when necessary and report upward on the status and quality of their performance refers to:
A. Responsibility
B. Coordination
C. Accountability
D. Integration
E. Differentiation
C. Accountability
Yoshiko had numerous duties delegated to her during an accounting internship. Many of these required that she obtain information from other departments. She was often frustrated because some departments repeatedly refused to share information with a “mere intern!” Yoshiko was frustrated because she did not have the power to get the information she needed. Yoshiko’s supervisor made the mistake of:
A. Delegating inappropriate tasks to an intern
B. Taking credit for Yoshiko’s accomplishments
C. Overestimating Yoshiko’s capabilities
D. Delegating responsibility without also delegating adequate authority
E. “Passing the buck” for Yoshiko’s performance
D. Delegating responsibility without also delegating adequate authority
Which of the following is NOT appropriate when delegating?
A. The ultimate responsibility remains with the delegating manager
B. People are assigned tasks to be carried out
C. A manager has a right to expect the subordinate to carry out the job and to take corrective action as needed
D. Managers should utilize delegation to pass responsibility to their subordinates
E. People accepting delegated tasks need the power to draw upon resources necessary to get the job done
D. Managers should utilize delegation to pass responsibility to their subordinates
Which of the following is NOT an advantage of delegation?
A. The manager saves time
B. The manager has more time for other activities
C. The organization’s tasks are carried out efficiently
D. The subordinate has more time
E. The subordinate receives a form of on-the-job training
D. The subordinate has more time
Which of the following tasks should NOT be delegated?
A. Firing a problem employee
B. Creating a report on profits and losses
C. Researching a lease v. buy option
D. Hiring a new employee
E. None of the above is appropriate for delegation
A. Firing a problem employee
Ruby recently accepted a job with a large insurance firm as an internal auditor. Ruby has found that her new job is quite different than the internship she had at an accounting consulting firm. The insurance firm has strictly defined job responsibilities and lines of communication. It seems that for every decision that Ruby needs to make, approval must be obtained from upper management! Overall, she has found the atmosphere to be quite formal as compared to the internship. Ruby has concluded that the insurance firm has:
A. A wide span of control
B. A high degree of centralization
C. Decentralized authority
D. A matrix design
E. An ineffective structure
B. A high degree of centralization
Ideally, decision making should be done by:
A. The board of directors
B. The top management of the organization
C. The customers of the organization
D. The supervisory level employees
E. Those people most familiar with the issue to de decided
E. Those people most familiar with the issue to de decided
At Barney’s Bats, Inc. Inc. top managers make all the decisions and pass them down to lower levels for implementation. Fast Move can be described as a(n) ________ organization.
A. Integrated
B. Centralized
C. Differentiated
D. Decentralized
E. None of the above
B. Centralized
Decision making that is spread throughout an organization is:
A. Decentralized
B. Departmental
C. Shadow management
D. Delegatory
E. Centralized
A. Decentralized
An organization in which high-level executives make most decisions and pass them down to lower levels for implementation is a:
A. Matrix organization
B. Divisional organization
C. Functional organization
D. Centralized organization
E. Decentralized organization
D. Centralized organization
Departments that are titled marketing, finance, operations, accounting and finance are departmentalized by:
A. Product
B. Geography
C. Matrix
D. Function
E. Customer
D. Function
For the organization, Trade Tools Manufacturing Company, which of these would be considered a staff department?
A. Research
B. Legal
C. Accounting
D. Public Relations
E. All of the above
E. All of the above
Subdividing an organization into smaller units is
A. Departmentalization
B. Usually less cost efficient
C. More expensive
D. Not effective for decentralized organizations
E. All of the above
A. Departmentalization
An organization with departmentalization around specialized activities, such as production, marketing or human resources is called a:
A. Centralized organization
B. Matrix organization
C. Functional organization
D. Divisional organization
E. Network organization
C. Functional organization
Which of the following was not identified in your text as a form of departmentalization?
A. Product
B. Geometrical
C. Matrix
D. Functional
E. Customer
B. Geometrical
Which of the following statements regarding departmentalization is FALSE?
A. The most traditional approach is functional
B. Functional departmentalization isn’t as strong of an organizational “building block” as it once was
C. Organizations will be most effective if they utilize a consistent form of departmentalization
D. In a product structure, information needs are managed more easily
E. Geographical departmentalization can allow an organization to provide faster service
C. Organizations will be most effective if they utilize a consistent form of departmentalization
An organization with departmentalization that groups units around products, customers or geographic regions is called a:
A. Divisional organization
B. Centralized organization
C. Matrix organization
D. Functional organization
E. Virtual organization
A. Divisional organization
Which of the following is an advantage of functional departmentalization?
A. It is useful in a complex environment
B. Employees are able to focus on unique customer needs
C. It encourages generalist training
D. Decision making and lines of communication are simple
E. All of the above
D. Decision making and lines of communication are simple
Which form of departmentalization is useful in a stable environment with a low need for flexibility?
A. Geographic
B. Functional
C. Matrix
D. Customer
E. Product
B. Functional
Which of the following is an advantage of product departmentalization?
A. Information needs are managed more easily
B. It is suitable for stable environments
C. Efficient resource utilization
D. Decision making and lines of communication are simple
E. All of the above
A. Information needs are managed more easily
Play Ball, Inc. began business by making shoes for athletes. They soon expanded into making shoes for non-athletic purposes. They now manufacture and distribute clothing, sporting equipment and protective sports gear worldwide. They are departmentalized by athletic equipment, shoes and clothing. Play Ball utilized which form of departmentalization?
A. Geographic
B. Functional
C. Matrix
D. Customer
E. Product
E. Product
Which type of departmentalization requires diligent attention to managing decentralization and delegation?
A. Functional
B. Product
C. Customer
D. Geographic
E. Geometric
B. Product
Sports International (SI) began business by making shoes for athletes. They soon expanded into making shoes for non-athletic purposes. They now manufacture and distribute clothing, sporting equipment and protective sports gear worldwide. They are departmentalized by products sold to serious athletes, products sold to “weekend” athletes and products sold to sports teams. SI has utilized which form of departmentalization?
A. Geographic
B. Functional
C. Matrix
D. Customer
E. Product
D. Customer
Which of the following is an advantage of customer departmentalization?
A. Information needs are managed more easily
B. Employees are able to focus on unique customer needs
C. Efficient resource utilization
D. Decision making and lines of communication are simple
E. All of the above
B. Employees are able to focus on unique customer needs
A matrix organization is:
A. The same as a functional organization
B. The same as a product organization
C. A hybrid of the functional and divisional organizations
D. Considered out-of-date compared to the organic organization
E. More easily managed than a product organization
C. A hybrid of the functional and divisional organizations
In the standard matrix organization, each employee reports to a functional and a(n) ____________ manager.
A. Mechanistic
B. Organic
C. Product
D. Geographic
E. Matrix
C. Product
Which of the following is FALSE about matrix organizations?
A. Extensive communication exists
B. Employees learn collaborative skills
C. Dual career ladders exist
D. Resource utilization is efficient
E. It is synonymous with the “one employee-one boss” rule
E. It is synonymous with the “one employee-one boss” rule
Which of the following is an advantage of matrix departmentalization?
A. Information needs are managed more easily
B. It violates unity of command
C. Efficient resource utilization
D. Decision making and lines of communication are simple
E. All of the above
C. Efficient resource utilization
Which of these is a disadvantage of the matrix design?
A. Decision making is decentralized
B. Resource utilization is inefficient
C. Upper management loses touch with operational levels
D. Jockeying for power over subordinates can arise
E. Dual career ladders exist
D. Jockeying for power over subordinates can arise
Which of the following statements is FALSE regarding managing the matrix design?
A. Product managers and functional managers must be skilled at collaboration
B. The two-boss employees must be skilled at prioritizing multiple demands
C. Many of the disadvantages stem from the difficulties in answering to two bosses
D. Some people function poorly in a matrix and must leave the company
E. All of the above are TRUE
E. All of the above are TRUE
The matrix organization today:
A. Must be looked at as a process
B. Is almost non-existent
C. Has not proven effective at consolidating costs
D. Has fallen out of favor with profit-oriented organizations
E. All of the above have proven true of matrix organizations
A. Must be looked at as a process
An aspect of the organization’s internal environment created by job specialization and the division of labor is:
A. Responsibility
B. Differentiation
C. Integration
D. Division of labor
E. Decentralization
B. Differentiation
The degree to which differentiated work units work together and coordinate their efforts is called:
A. Hierarchy
B. Accountability
C. Integration
D. Responsibility
E. Authority
C. Integration
Establishing common routines and procedures that apply uniformly to everyone is called::
A. Formalization
B. Accountability
C. Responsibility
D. Authority
E. Standardization
E. Standardization
Establishing common rules and procedures that apply uniformly to everyone is:
A. Division of labor
B. Self-control
C. Standardization
D. Self-direction
E. Sequential management
C. Standardization
Interdependent units that are required to meet deadlines and objectives that contribute to a common goal are known as:
A. Coordination by plan
B. Cooperation by mutual adjustment
C. Standardization
D. Subunits
E. Hierarchy
A. Coordination by plan
An approach that involves feedback and discussions to jointly figure out how to approach problems and devise solutions that are agreeable to everyone is known as:
A. Coordination by mutual adjustment
B. Management by objectives
C. Organization structure
D. Chain of command
E. Hierarchy
A. Coordination by mutual adjustment
Coordination method(s) include
A. Planning
B. Standardization
C. Mutual adjustment
D. All of the above
E. None of the above
E. None of the above
Creating slack resources basically means that:
A. A manager limits the availability of resources to some units
B. Each unit is provided with the minimal resources it needs
C. More resources are made available to each unit in case they need them “in a pinch.”
D. Each unit is differentiated by functional specialty
E. Time, money and other resources are tightly budgeted
C. More resources are made available to each unit in case they need them “in a pinch.”
Michael Shaffer’s job as a representative of CommuniCo is to handle communications between the organization and the local community. Michael is best described as a (an):
A. Mutual adjustment officer
B. Program manager
C. Individual task force
D. Liaison
E. None of the above
D. Liaison
Investing in information systems and creating lateral relationships results in:
A. A reduced need for information
B. An increased availability of resources
C. A reduction of need to share information across units
D. The ability of an organization to process more information
E. None of the above
D. The ability of an organization to process more information
The reporting structure and division of labor in an organization is the:
A. Organization chart
B. Span of control
C. Organization hierarchy
D. Span of management
E. Managerial assets
A. Organization chart
Susan is a new management trainee at Barney’s Bats, Inc. She has just graduated with her bachelor’s degree in management and is anxious to use her education. She has been at work several days and has some questions about how the organization is managed and how the principles of organization structure are used in the company. She believes there is too much specialization and that the span of control in the company is not optimal.
Susan is looking for a long-term career with this company. Where can she look to view possible career paths with this company?
A. Minimum job qualifications for entry-level jobs
B. The organization chart
C. Ask the director of public relations
D. Company financial statements
E. There is probably no way to answer this question
B. The organization chart
Susan is a new management trainee at Barney’s Bats, Inc. She has just graduated with her bachelor’s degree in management and is anxious to use her education. She has been at work several days and has some questions about how the organization is managed and how the principles of organization structure are used in the company. She believes there is too much specialization and that the span of control in the company is not optimal.
Susan believes that there is too much specialization in the company. Therefore, she appears to favor:
A. Low differentiation
B. High differentiation
C. Less coordination
D. A new job
E. More levels in the hierarchy
A. Low differentiation
Susan is a new management trainee at Barney’s Bats, Inc. She has just graduated with her bachelor’s degree in management and is anxious to use her education. She has been at work several days and has some questions about how the organization is managed and how the principles of organization structure are used in the company. She believes there is too much specialization and that the span of control in the company is not optimal.
Given Susan’s belief about the level of specialization in the company, if she is not happy working under these conditions, she might look for a new company that operates in a _________ environment.
A. Simple, complex
B. Simple, stable
C. Complex, dynamic
D. Simple, dynamic
E. None of the above
B. Simple, stable
Suppose you are promoted to a managerial position in a firm that you have been working for about five years. You are pleased with your new job but are concerned about problems you have been having. You are required, as part of your job, to determine the employees’ leave schedules. However, when you tell an employee that he/she can’t take leave on a certain day, the owner of the company allows them to go anyway. Consequently, the employees you manage are beginning to bypass you and do not seem to view you as a manager. Worse than that, after the owner has allowed the employee to take leave, if their work doesn’t get completed in their absence, the owner is upset with you!
In this organization, the ultimate authority will rest with:
A. The employees
B. The manager
C. The owner
D. All of the above
E. None of the above
C. The owner
Suppose you are promoted to a managerial position in a firm that you have been working for about five years. You are pleased with your new job but are concerned about problems you have been having. You are required, as part of your job, to determine the employees’ leave schedules. However, when you tell an employee that he/she can’t take leave on a certain day, the owner of the company allows them to go anyway. Consequently, the employees you manage are beginning to bypass you and do not seem to view you as a manager. Worse than that, after the owner has allowed the employee to take leave, if their work doesn’t get completed in their absence, the owner is upset with you!
In this situation, the basic problem is that the manager doesn’t have the ___________ to carry out the ___________ he has been given.
A. Responsibility, authority
B. Authority, responsibility
C. Accountability, authority
D. Authority, accountability
E. Responsibility, tasks
B. Authority, responsibility
Suppose you are promoted to a managerial position in a firm that you have been working for about five years. You are pleased with your new job but are concerned about problems you have been having. You are required, as part of your job, to determine the employees’ leave schedules. However, when you tell an employee that he/she can’t take leave on a certain day, the owner of the company allows them to go anyway. Consequently, the employees you manage are beginning to bypass you and do not seem to view you as a manager. Worse than that, after the owner has allowed the employee to take leave, if their work doesn’t get completed in their absence, the owner is upset with you!
In this situation, the manager will have to rely more on:
A. Accountability
B. Responsibility
C. Authority
D. Informal influence tactics
E. All of the above
D. Informal influence tactics
Suppose you are at a convention with other managers who work in your industry. You have noticed their titles printed on their name badges and believe you may be able to determine what type of structure their organizations use.
Manager A’s title is Vice President for Production.
Manager B’s title is Coordinator for Truck Sales. Manager B tells you that he reports to both a Marketing supervisor and a Truck Department supervisor.
Manager C’s title is Vice President for Asian Operations.
Manager A works in a _____________ structure.
A. Functional
B. Divisional
C. Geographic divisional
D. Customer divisional
E. Matrix
A. Functional
Suppose you are at a convention with other managers who work in your industry. You have noticed their titles printed on their name badges and believe you may be able to determine what type of structure their organizations use.
Manager A’s title is Vice President for Production.
Manager B’s title is Coordinator for Truck Sales. Manager B tells you that he reports to both a Marketing supervisor and a Truck Department supervisor.
Manager C’s title is Vice President for Asian Operations.
Manager B works in a _____________ structure.
A. Functional
B. Divisional
C. Geographic divisional
D. Customer divisional
E. Matrix
E. Matrix
Suppose you are at a convention with other managers who work in your industry. You have noticed their titles printed on their name badges and believe you may be able to determine what type of structure their organizations use.
Manager A’s title is Vice President for Production.
Manager B’s title is Coordinator for Truck Sales. Manager B tells you that he reports to both a Marketing supervisor and a Truck Department supervisor.
Manager C’s title is Vice President for Asian Operations.
Manager C works in a _____________ structure.
A. Functional
B. Divisional
C. Geographic divisional
D. Customer divisional
E. Matrix
C. Geographic divisional