Deck 6: Organizing the Business

Question 1

When several employees perform the same simple task,a narrow span of control is most appropriate.

Answer 1

False
Explanation:Job simplicity typically leads to a wider span of control.

Question 2

As organizations grow and become larger,jobs tend to become less specialized.

Answer 2

False
Explanation:As organizations grow, jobs tend to become more specialized; job specialization is a natural part of organizational growth.

Question 3

Job specialization is the process of eliminating unnecessary or undesirable jobs.

Answer 3

False
Explanation:Job specialization is the process of identifying the specific jobs that need to be done and designating the people who will perform them.

Question 4

Accountability refers to the liability of subordinates for accomplishing tasks assigned by managers.

Question 5

The building blocks of all organizations are specialization and centralization.

Question 6

Employees' abilities and the supervisor's managerial skills help determine whether span of control is wide or narrow.

Question 7

The chain of command is depicted by solid lines on an organization chart.

Question 8

Divisional structure is the relationships between group functions and activities that determine authority.

Question 9

For the delegation process to work smoothly,responsibility and authority must be equivalent.

Question 10

Firms with production,marketing,human resource,and finance departments have a process form of organization.

Question 11

Firms typically use the same form of departmentalization at upper and lower levels.

Question 12

Organization charts are graphical representations of employee salary information.

Question 13

Departmentalization refers to the process of grouping jobs into logical units.

Question 14

In a centralized structure,most decision-making authority is delegated to levels of management at various points below the top.

Question 15

Flat organizational structures are usually associated with centralized decision making.

Question 16

International organizational structures are an approach to organizational structure developed in response to the need to manufacture,purchase,and sell in global markets.

Question 17

Geographic departmentalization divides firms according to the areas of the country or the world that they serve.

Question 18

Line departments are linked directly to the production and sales of a specific product.

Question 19

Organizational structure is a function of the organization's mission and strategy.

Question 20

Acme Oil Company has three divisions: Exploration,Extraction,and Refining.This is an example of process departmentalization.

Question 21

Intrapreneuring attempts to create and maintain the innovation and flexibility found in large,bureaucratic structures.

Question 22

Job specialization is a natural part of organizational growth.

Question 23

Which of the following clarifies structure and shows employees where they fit into a firm's operations?

A) delegation
B) departmentalization
C) organization charts
D) mission statement
E) job descriptions

Question 24

Frequently,the informal organization effectively alters a company's formal structure.

Question 25

Coordination across functional departments becomes more complicated in smaller firms than in larger firms.

Question 26

The functional organizational structure is the approach to organizational structure used by most small to medium-sized firms.

Question 27

Line,staff,committee and team forms of authority are not likely to all be found within the same organization.

Question 28

What is the process of designing specific jobs that need to be done and identifying the people who will perform them called?

A) departmentalization
B) job specialization
C) group tasks
D) segmentation
E) team cohesion

Question 29

What do the solid lines on an organization chart show in reporting relationships within a company?

A) mission statement
B) chain of command
C) job specialization
D) grapevine activity
E) market share

Question 30

The informal organization is not as powerful as the formal structure.

Question 31

After an organizational structure has been created,it is permanent and cannot be changed.

Question 32

Which term refers to the specification of jobs to be done within an organization and the ways in which those jobs relate to one another?

A) delegation
B) a mission statement
C) job specialization
D) role responsibility
E) organizational structure

Question 33

A divisional structure relies on functional departmentalization.

Question 34

An international organization is one in which traditional boundaries and structures are minimized or eliminated altogether.

Question 35

Decentralization works best in a complex,rapidly changing environment.

Question 36

A virtual organization has little or no formal structure.

Question 37

The matrix form of organizational structure was pioneered by NASA.

Question 38

A team organization typically does not utilize functional hierarchy.

Question 39

For the delegation process to work smoothly,responsibility must slightly exceed one's level of authority.

Question 40

To avoid bureaucracy within the organization,most large organizations tend to adopt the same types of departmentalization for all levels.

Question 41

Which of the following is a natural part of organizational growth?

A) retrenchment
B) entrepreneurship
C) job specialization
D) outsourcing
E) team consolidation

Question 42

Determining how people performing certain tasks can best be grouped together is called what?

A) departmentalization
B) specialization
C) controlling
D) leadership
E) directing

Question 43

What type of departments are linked to the production and sales of specific products?

A) staff departments
B) matrix departments
C) line departments
D) organizational departments
E) entrepreneurial departments

Question 44

What is authority that flows up and down the chain of command called?

A) staff authority
B) departmental authority
C) delegated authority
D) divisional authority
E) line authority

Question 45

What is an employee's duty to perform an assigned task?

A) delegation
B) authority
C) responsibility
D) accountability
E) specialization

Question 46

What are everyday social interactions among employees that transcend formal jobs and job interrelationships called?

A) traditional structure
B) informal organization
C) networking opportunities
D) production organization
E) community structure

Question 47

Which feature characterizes the organization of centralized firms?

A) flat
B) tall
C) very large
D) responsive to change
E) well capitalized

Question 48

What is dividing a store into a men's department,a women's department,and a luggage department an example of?

A) product departmentalization
B) customer departmentalization
C) process departmentalization
D) geographic departmentalization
E) international departmentalization

Question 49

At Chaparral Steel,some employees transport scrap steel while others operate shredding equipment.What does this example demonstrate?

A) departmentalization
B) specialization
C) functionalization
D) responsibility
E) innovation

Question 50

Which term covers grouping jobs into logical units?

A) specialization
B) accountability
C) authorization
D) departmentalization
E) process management

Question 51

A snack food firm has one division for the United States,one for Europe,and another for Asia.How is this firm departmentalized?

A) by customer
B) by process
C) by geography
D) by function
E) by productivity

Question 52

What is authority given to a special group of employees that play central roles in the firm's daily operations called?

A) risk aversion
B) committee and team
C) line
D) matrix
E) product and labor

Question 53

What type of departmentalization does Kraft Foods use by having separate divisions for different types of foods?

A) customer
B) functional
C) geographic
D) product
E) brand

Question 54

What kind of departmentalization happens when an organization is divided into operations related to different products?

A) functional departmentalization
B) process departmentalization
C) customer departmentalization
D) geographic departmentalization
E) regional departmentalization

Question 55

What do managers do when the "job" of a firm is broken down into smaller jobs?

A) fragment the task
B) specialize the job
C) respond to the job
D) assign the task
E) control the job

Question 56

Vlasic has separate departments to transform cucumbers into fresh-packed pickles,pickles cured in brine,and relishes.What is this an example of?

A) functional departmentalization
B) process departmentalization
C) customer departmentalization
D) geographic departmentalization
E) centralized departmentalization

Question 57

What is the main organizational characteristic of decentralized firms?

A) flat
B) tall
C) diverse
D) multi-layered
E) matrix

Question 58

Which factor plays a key role in determining an organization's structure?

A) competition and technology
B) location and life-cycle stage
C) profitability and leverage
D) research and development
E) mission and strategy

Question 59

Which term describes creating and maintaining the innovation and flexibility of a small business environment within the confines of a large,bureaucratic structure?

A) basic structuring
B) process organization
C) intrapreneuring
D) extrapolating
E) product innovation

Question 60

What is the power to make the decisions necessary to complete a task called?

A) delegation
B) specification
C) authority
D) responsibility
E) accountability

Question 61

With its many organizational layers,what type of organizational structure does the U.S.Army demonstrate?

A) tall
B) step
C) flat
D) broad
E) triangular

Question 62

In tall organizations,which feature describes the span of control?

A) short
B) tall
C) wide
D) narrow
E) vertical

Question 63

Which form of organization is used by most small to medium-sized firms?

A) divisional
B) functional
C) matrix
D) international
E) stratified

Question 64

After responsibility for a task is assigned,which of the following comes next?

A) the centralization of the task
B) the liability of the task
C) the span of control is decided
D) the work team is created
E) the granting of authority

Question 65

Companies with centralized authority systems typically require multiple layers of management.What type of organizational structures are these companies utilizing?

A) tall
B) short
C) flat
D) broad
E) oblique

Question 66

At McDonald's,most advertising is handled at the corporate level,and any local advertising must be approved by a regional manager.What kind of organization is McDonald's demonstrating?

A) authoritarian
B) committee
C) decentralized
D) centralized
E) team

Question 67

What are an organization's specialists in law,accounting,and human resource management commonly called?

A) profit centers
B) cost centers
C) staff members
D) line members
E) unit managers

Question 68

Which of the following structures relies on product departmentalization?

A) matrix
B) functional
C) divisional
D) international
E) regional

Question 69

In what type of organization do most lower-level decisions need to be approved by upper management before they can be implemented?

A) line
B) staff
C) decentralized
D) centralized
E) learning

Question 70

What kind of organization becomes more responsive to its environment by breaking the company into more manageable units?

A) centralized
B) decentralized
C) geographic
D) process-oriented
E) brand conscious

Question 71

Which term describes groups of operating employees who are empowered to plan and organize their tasks and to perform those tasks with a minimum of supervision?

A) task forces
B) standing committees
C) work teams
D) division committees
E) board members

Question 72

Which of the following BEST describes authority?

A) the power to make the decisions necessary to complete a task
B) the liability of subordinates for accomplishing tasks assigned by managers
C) the number of people supervised by one manager
D) the ability to take on new responsibility
E) the duty to perform an assigned task

Question 73

What is the preferred span of control when jobs are more diversified or prone to change?

A) wide
B) narrow
C) tall
D) deep
E) authoritative

Question 74

Firms with what structure are structured around departments for each basic business action?

A) divisional structure
B) matrix structure
C) functional structure
D) international structure
E) regional structure

Question 75

In what type of organization is decision-making authority delegated to levels of management at various points below the top?

A) centralized
B) decentralized
C) point-of-sale
D) geographic
E) autocratic

Question 76

Which of the following BEST describes responsibility?

A) the power to make the decisions necessary to complete a task
B) the liability of subordinates for accomplishing tasks assigned by managers
C) the number of people supervised by one manager
D) the duty to perform an assigned task
E) the need to prove satisfactory work performance

Question 77

With relatively few layers of managers,what do decentralized organizations tend to reflect?

A) tall organizational structure
B) short organizational structure
C) flat organizational structure
D) elliptical organizational structure
E) triangular organizational structure

Question 78

Which of the following BEST describes accountability?

A) the power to make the decisions necessary to complete a task
B) the obligation employees have to their manager for the successful completion of an assigned task
C) the decision to communicate clear expectations related to assigned tasks
D) the number of people supervised by one manager
E) the duty to perform a financial task

Question 79

Which of the following begins when a manager assigns responsibility to a subordinate?

A) centralization
B) delegation
C) liability
D) authority
E) training

Question 80

What authority is based on special expertise and usually involves counseling and advising?

A) line authority
B) matrix authority
C) delegated authority
D) staff authority
E) divisional authority