CH 8 Test Review

Total Flash Cards » 35
 
1. 

106. Differentiation means that differentiated units are put together so that work is coordinated into an overall product.
True False

 

FALSE

 
2. 

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.

 
3. 

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.

 
4. 

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.

 
5. 

110. The three basic approaches to departmentalization are line, staff, and matrix.
True False

 

FALSE

 
6. 

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.

 
7. 

112. Functional departmentalization occurs in only large organizations.
True False

 

FALSE

Functional departmentalization is common in both large and small organizations.

 
8. 

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.

 
9. 

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.

 
10. 

115. A broker is someone who assembles and coordinates participants in a network.
True False

 

TRUE

 
11. 

116. The presence of rules and regulations governing how people in the organization interact is called formalization.
True False

 

TRUE

 
12. 

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

 
13. 

118. Coordination by plan deals with exact rules and procedures that spell out what needs to be done and how.
True False

 

FALSE

 
14. 

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

 
15. 

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.


 
16. 

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.



 
17. 

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

 
18. 

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.

 
19. 

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.

 
20. 

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.


 
21. 

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.


 
22. 

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.

 
23. 

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.


 
24. 

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.


 
25. 

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.


 
26. 

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.


 
27. 

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.


 
28. 

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.

 
29. 

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.

 
30. 

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.

 
31. 

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.

 
32. 

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.


 
33. 

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.


 
34. 

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.

 
35. 

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.