106. Differentiation
means that differentiated units are put together so that work is coordinated
into an overall product.
True False |
|
FALSE |
| |
107. The
three broad levels of the organizational pyramid are commonly called the
organizational structure.
True False |
|
FALSE
The
three broad levels of the organizational pyramid, commonly called the hierarchy
include top, middle, and front-line management. |
| |
108. Effective
delegation usually results in the manager losing control of the work to be
accomplished.
True False |
|
FALSE
Effective
delegation leverages the manager's energy and talent and those of his or her
subordinates. It allows managers to accomplish much more than they would be
able to do on their own. |
| |
109. One
advantage of delegation is that it helps develop effective subordinates.
True False |
|
TRUE
Delegation
essentially gives the subordinate a more important job. The subordinate
acquires an opportunity to develop new skills and to demonstrate potential for
additional responsibilities and perhaps promotion. |
| |
110. The
three basic approaches to departmentalization are line, staff, and
matrix.
True False |
|
FALSE |
| |
111. The
functional structure would be most appropriate in complex and changing
environments.
True False |
|
FALSE
Functional
structures may be most appropriate in rather simple, stable environments rather
than those that are complex and changing. |
| |
112. Functional
departmentalization occurs in only large organizations.
True False |
|
FALSE
Functional
departmentalization is common in both large and small organizations. |
| |
113. Macy's
Group, has geographic divisions for its operations serving particular states or
regions of the U.S. Macy's uses a customer division.
True False |
|
FALSE
Macy's
uses geographical divisions, indicated by the regions mentions in the question. |
| |
114. The
primary advantage of both the product and customer/regional approaches to
departmentalization is the ability to focus on customer needs and provide
faster, better service.
True False |
|
TRUE
This is
true, but the duplication of activities across many customer groups and
geographic areas is expensive. |
| |
115. A
broker is someone who assembles and coordinates participants in a
network.
True False |
|
TRUE |
| |
116. The
presence of rules and regulations governing how people in the organization
interact is called formalization.
True False |
|
TRUE |
| |
117. Coordination
by mutual adjustment involves feedback and discussions to jointly figure out
how to approach problems and devise solutions that are agreeable to
everyone.
True False |
|
TRUE |
| |
118. Coordination
by plan deals with exact rules and procedures that spell out what needs to be
done and how.
True False |
|
FALSE |
| |
119. Today's
complex and dynamic organizations must either reduce the need for information
or process more information to cope with high uncertainty and heavy information
demands.
True False |
|
TRUE |
| |
120. An
organization chart conveys which of the following?
A. The work performed by each unit
B. The best number of people that can generally be supervised
C. How decisions are made
D. Where the organization is located
E. How the organization will interact with the external environment |
|
A. The work performed by each unit
The
organization chart depicts the positions in the firm and the way they are
arranged. The chart provides a picture of the reporting structure (who reports
to whom) and the various activities that are carried out by different units.
|
| |
121. The
reporting structure and division of labor in an organization is conveyed by
the
A. organization chart.
B. span of control.
C. organization hierarchy.
D. span of management.
E. managerial assets. |
|
A. organization chart.
The
organization chart depicts the positions in the firm and the way they are
arranged. The chart provides a picture of the reporting structure (who reports
to whom) and the various activities that are carried out by different units.
Division of labor means the work of the organization is subdivided into smaller
tasks.
|
| |
122. Which
of the following is created through division of labor and job
specialization?
A. Integration
B. Coordination
C. Differentiation
D. Span of control
E. Managerial competence |
|
C. Differentiation |
| |
123. The
assignment of different tasks to different people or groups in the organization
is the
A. strategic plan.
B. organization structure.
C. division of labor.
D. value chain.
E. responsibility chart. |
|
C. division of labor. |
| |
124. 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.
The
board, led by the chairperson, makes major decisions affecting the
organization, subject to corporate charter and bylaw provisions. Boards select,
assess, reward, and perhaps replace the CEO; determine the firm's strategic
direction and review financial performance; and assure ethical, socially
responsible, and legal conduct. |
| |
125. Which
of the following is among the major duties of a board of directors?
A. Inspecting the overall advertising and positioning message for the firm
B. Ensuring ethical conduct
C. Reviewing all employees
D. Selecting front-line managers
E. Lobbying on behalf of the firm |
|
B. Ensuring ethical conduct
The
board, led by the chairperson, makes major decisions affecting the
organization, subject to corporate charter and bylaw provisions. Boards select,
assess, reward, and perhaps replace the CEO; determine the firm's strategic
direction and review financial performance; and assure ethical, socially
responsible, and legal conduct.
|
| |
126. Top
management includes which of the following?
A. Chief Financial Officer
B. First-line Manager
C. Operational Supervisors
D. Division Supervisor
E. Personnel Supervisor |
|
A. Chief Financial Officer
Top
management teams typically consist of the CEO, president, chief operating
officer, chief financial officer, and other key executives.
|
| |
127. The
three levels of the organizational hierarchy include
A. top, middle and employee levels.
B. top, middle and operational levels.
C. first, middle and lower levels.
D. top, selected, delegated levels.
E. top, operational and employee levels. |
|
B. top, middle and operational levels.
|
| |
128. The
optimal span of control should be wide when which one of the following factors
is present?
A. The work is ambiguous.
B. Subordinates are untrained and cannot obtain much information.
C. The manager has just taken over the position.
D. Jobs are similar.
E. Subordinates prefer close supervisory control. |
|
D. Jobs are similar.
The span
of control should wide when jobs are similar, and performance measures are
comparable.
|
| |
129. Which
of the following is an important aspect of delegation?
A. Authority must accompany responsibility.
B. Subordinates must not be allowed to "take credit" for what
was simply delegated to them.
C. Delegation should never be "upward."
D. The subordinate should be allowed to work unencumbered by frequent
checkpoints.
E. The span of control should be very narrow for effective delegation. |
|
A. Authority must accompany responsibility.
The
person who gets the assignment should be given the authority, time, and
resources to carry out the task successfully.
|
| |
130. Sharon
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!" Sharon was frustrated because she did not have
the power to get the information she needed. In this situation, Sharon's
supervisor most likely made the mistake of
A. delegating inappropriate tasks to an intern.
B. delegating responsibility without also delegating adequate authority to
Sharon.
C. "passing the buck" for Sharon's performance.
D. taking credit for Sharon's accomplishments.
E. overestimating Sharon's capabilities. |
|
B. delegating responsibility without also delegating adequate
authority to Sharon.
The person
who gets the assignment should be given the authority, time, and resources to
carry out the task successfully. Clearly Sharon did not have this.
|
| |
131. Gabriella
recently accepted a job with a large insurance firm as an internal auditor.
Gabriella 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 Gabriella 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. Gabriella has correctly concluded that of the
following choices, 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 staff. |
|
B. a high degree of centralization.
In a
centralized organization, important decisions usually are made at the top. This
is the situation facing Gabriella in her job.
|
| |
132. At
Sam's Soccer, Inc. Inc. top managers make all the decisions and pass them down
to lower levels for implementation. Sam's Soccer can be described as a(n)
________ organization.
A. integrated
B. centralized
C. differentiated
D. decentralized
E. horizontal |
|
B. centralized
In a
centralized organization, important decisions usually are made at the top. This
is the situation at Sam's Soccer, Inc.
|
| |
133. 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.
|
| |
134. All
Gold Manufacturing Company manufactures the solid gold tableware used by the
government officials in the country of Completely Decadent. Which of these
would be considered a line department at All Gold Manufacturing Company?
A. Research
B. Legal
C. Accounting
D. Public relations
E. Manufacturing |
|
E. Manufacturing
Line
departments are those that have responsibility for the principal activities of
the firm. Line units deal directly with the organization's primary goods or
services; in this case they deal with manufacturing gold tableware. |
| |
135. Hot
Tamales, Inc. began business by making hot sauce specifically targeted to the
Hispanic market. They soon expanded into making various types of hot sauce for
different tastes. They now manufacture and distribute sauces, kitchen equipment
and specialty spices worldwide. They are departmentalized by sauces, kitchen
equipment, and spices. Hot Tamales, Inc. utilizes which form of
departmentalization?
A. Geographic
B. Functional
C. Matrix
D. Customer
E. Product |
|
E. Product
Organizations
can create a divisional structure in several ways including product divisions. |
| |
136. 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. |
| |
137. 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
Customer
divisions are those built around groups of customers such as serious athletes,
"weekend" athletes, and sports teams.
|
| |
138. Which
of the following statements about matrix organizations is true?
A. A matrix organization is the same as a functional organization.
B. A matrix organization is the same as a product organization.
C. A matrix organization is a hybrid of the functional and divisional
organizational forms.
D. A matrix organization is considered out-of-date compared to the organic
organization.
E. A matrix organization is more easily managed than a product
organization. |
|
C. A matrix organization is a hybrid of the functional and divisional
organizational forms.
A matrix
organization is a hybrid form of organization in which functional and
divisional forms overlap.
|
| |
139. Establishing
common routines and standard operating procedures that apply uniformly to
everyone is called
A. formalization.
B. accountability.
C. responsibility.
D. authority.
E. standardization. |
|
E. standardization. |
| |
Scenario
D. "This company needs better integration!" Alyssa was thinking about
that quote as she was working on a project for the president of her company,
who was also her boss. He had asked her to put together a plan to transition
their firm to a more tightly integrated one. Alyssa recalled from her college
management classes that the particular structure an organization adopts may use
a variety of approaches to help them make certain that interdependent units and
individuals will work together to achieve a common purpose. Somehow she had to
address this in her report.
140. One
thing that Alyssa was considering was to be sure the firm focused on regulating
what the employees do to better integrate the firm. Which of the following
actions should Alyssa recommend to her boss to best accomplish this goal?
A. Coordinate by standardization
B. Formalize all processes with the approval of the Board
C. Change the organization to a matrix structure
D. Accumulate the right resources and eliminate resources that don't
provide value
E. Centralize decision making |
|
A. Coordinate by standardization
Standardization
constrains actions and integrates various units by regulating what people do.
|
| |