Question 1

Mow and Trim, a sole proprietorship that uses contract labor, has all of its authority centralized in a single person (the owner), a flat hierarchy, few rules, and low work specialization. Mow and Trim is an organization with a

Accepted Answer

An organization with a simple structure has authority centralized in a single person, a flat hierarchy, few rules, and low work specialization.

Question 2

The structure of Cakes and Such consists of people with similar specialties put together in formal groups, such as the marketing, accounting, and human resource departments. Cakes and Such has a ________ structure.

Accepted Answer

The description of people with similar specialties placed in formal groups, such as marketing, accounting, and human resources departments, matches the definition of functional structure. This structure is characterized by functional departments, which group together employees with similar skills and expertise.

Question 3

________ is the process of assigning managerial authority and responsibility to lower-level managers and employees.

Accepted Answer

Delegation is the process of assigning managerial authority and responsibility to managers and employees lower in the hierarchy.

Question 4

During weekly conference calls, Zeke, a sales manager for a national chain of clothing stores, and the other managers in his district explain to their district manager the reasons for different decisions; they also explain why certain costs and sales were higher or lower than they were the previous week. ________ is the explanation of their decisions and work results.

Accepted Answer

Accountability means managers must report and justify work results to the managers above them.

Question 5

Niall, the president of Tutors For Hire, told one of his new hires that "Managers at this company are encouraged to solve their own problems rather than buck the decision to a higher level, and decisions are made more quickly, which increases our organization's flexibility and efficiency." The key benefits of ________ are the advantages that Niall related to his new hires.

Accepted Answer

An advantage in having decentralized authority is that managers are encouraged to solve their own problems rather than buck the decision to a higher level. In addition, decisions are made more quickly, which increases the organization's flexibility and efficiency.

Question 6

A hierarchy of authority is ________. Most military organizations are known for having a strong hierarchy of authority.

Accepted Answer

The hierarchy of authority, or chain of command, is a control mechanism for making sure the right people do the right things at the right time. If coordinated effort is to be achieved, some people (namely, managers) need to have more authority, or the right to direct the work of others.

Question 7

Willis, the produce department manager at Shop More, has eight employees in his department, also known as his ________. All eight of these employees report directly to him.

Accepted Answer

The span of control, or span of management, refers to the number of people reporting directly to a given manager.

Question 8

Typhanie, a customer service representative with WestComm Wireless Services, was asked by one of her customers if WestComm would be interested in joining the chamber of commerce to meet potential customers and increase its contacts in the local business community. Typhanie believes this is a very good idea and approached her manager, Deondre, about becoming a chamber member. Deondre said to Typhanie, "Because the cost of membership is over $500 and you will have to leave the office to attend meetings, I will have to get approval from management above me." WestComm is an example of an organization with

Accepted Answer

With centralized authority, important decisions are made by higher-level managers.

Question 9

Bekah, the manager of Fit and Trim Nutrition Services, was telling her new nutritionist that "I have many decisions to make in a day, and as the manager, during the course of a week, I have to give orders to most of the 35 employees. Then there is my budget and the clinic's resources, which I oversee." Bekah's ________ gives her the right to make decisions, give orders, and utilize resources.

Accepted Answer

Authority refers to the rights inherent in a managerial position to make decisions, give orders, and utilize resources.

Question 10

________ are the two kinds of spans of control.

Accepted Answer

There are two kinds of spans of control, narrow (or tall) and wide (or flat).

Question 11

With ________, important decisions are made by middle-level and supervisory-level managers.

Accepted Answer

With decentralized authority, important decisions are made by middle-level and supervisory-level managers.

Question 12

Global IT has designed its corporate structure with divisions based on their location. For example, there are the Southern and Northern Divisions, and globally there are the European Division and the Asian Division. Global IT is an example of a structure with

Accepted Answer

Geographic divisions group activities around defined regional locations.

Question 13

During a meeting, Tyrone, a branch manager for Fishers Credit Union, pointed to the corporate organization chart on the wall. Tyrone remarked that "These people provide advice, recommendations, and research for us, and they are indicated with a dotted line. Leona (our CEO) and the vice presidents of our organization are up here, indicated on the organization chart by a solid line vertical line." ________ are indicated on the organization chart by a solid line, and ________ are indicated by a dotted line.

Accepted Answer

Staff personnel have authority functions; they provide advice, recommendations, and research to line managers (example: specialists such as legal counsels). Staff positions are indicated on the organization chart by a dotted line (usually a horizontal line). Line managers have authority to make decisions and usually have people reporting to them (examples: the president, the vice presidents, the director of personnel, and the head of accounting). Line positions are indicated on the organization chart by a solid line (usually a vertical line).

Question 14

Bianca, the CEO of Solar Tiles, has only three people reporting to her: the vice president of marketing, vice president of HR, and vice president of accounting. Bianca has a

Accepted Answer

When a manager has a limited number of people reporting directly to her, she has a narrow span of control.

Question 15

Andrea, a sales associate in the fine china department of the David's Department Store, reports to Chris, the home furnishings department manager. This morning, Chris asked Andrea to change the price tags on the crystal wine glasses. While working on this task, Pietro, the bedding department manager, told Andrea that he wanted her to unload some comforters. To solve this conflict, Andrea turns to the principle of unity of command under which

Accepted Answer

A principle stressed by early management scholars was that of unity of command, in which an employee should report to no more than one manager to avoid conflicting priorities and demands.

Question 16

Antwan was recently promoted to the position of shift supervisor at If The Shoe Fits, and he is now responsible for making decisions on numerous matters in the store and giving orders to the floor staff. At the same time, Antwan has the obligation to perform the many new tasks assigned to him as a supervisor, such as overseeing the closing work and the cleaning of the store. Antwan's obligations are known as his

Accepted Answer

Responsibility is the obligation you have to perform the tasks assigned to you. The higher level the manager, the more responsibility he or she has.

Question 17

Organizational design is concerned with an organization developing

Accepted Answer

Organizational design is concerned with designing the optimal structures of accountability and responsibility that an organization uses to execute its strategies. We may categorize organizational designs as three types: (1) traditional designs, (2) horizontal designs, and (3) designs that open boundaries between organizations.

Question 18

Rondelle, the manager of a busy hair salon, knows that she needs to entrust many of her tasks to supervisors and other employees. ________ is this process of assigning tasks to lower-level supervisors and employees. Rondelle follows the 70 percent rule, which states that she should assign tasks to employees who can perform each task at least 70 percent as well as Rondelle can.

Accepted Answer

Delegation is the process of assigning managerial authority and responsibility to managers and employees lower in the hierarchy.

Question 19

________ enables a manager to make decisions, give orders, and utilize resources. For example, the manager of a local coffee shop has the right to hire and fire baristas based on their punctuality, performance, and customer-service ratings.

Accepted Answer

Authority refers to the rights inherent in a managerial position to make decisions, give orders, and utilize resources. Authority is distinguished from power, which is the extent to which a person is able to influence others so they respond to orders.

Question 20

Disney has different divisions for movies, cable television, stores, theme parks, and so on. The Disney theme parks part of the empire alone has divisions spanning restaurants, entertainment, cruises, and hotels. Disney is an example of an organization with ________ divisions.

Accepted Answer

Product divisions group activities around similar products or services.

Quiz 8: Organizational Culture, Structure, and Design: Building Blocks of the Organization

Mow and Trim, a sole proprietorship that uses contract labor, has all of its authority centralized in a single person (the owner) , a flat hierarchy, few rules, and low work specialization. Mow and Trim is an organization with a