Question 1

Which of the following is an advantage of functional departmentalizing?

Accepted Answer

Functional departmentalizing promotes consistency in how functions are carried out because it groups employees based on their specialized roles or tasks, ensuring standardized procedures and practices within each department.

Question 2

Andrew is a mid-level manager with three organizational levels above him and two below him. He has four analysts reporting directly to him. Using Graicunas's formula, calculate the total number of possible relationships between Andrew and his subordinates.

Accepted Answer

Graicunas's formula for calculating the total number of possible relationships in a direct reporting scenario is given by: $V = n + n(n - 1) + \frac{n(n - 1)(n - 2)}{2}$, where $V$ is the total number of relationships and $n$ is the number of subordinates. For Andrew, $n = 4$, so $V = 4 + 4(4 - 1) + \frac{4(4 - 1)(4 - 2)}{2} = 4 + 12 + 12 = 28$. However, the correct formula for calculating the total number of relationships including direct, cross, and direct group relationships is $V = n + n(n - 1) + 2[n(n - 1)(n - 2)/3!]$, which simplifies to $V = n + n(n - 1) + n(n - 1)(n - 2)/3$. Substituting $n = 4$, we get $V = 4 + 4(3) + 4(3)(2)/3 = 4 + 12 + 8 = 24$. It seems there was a mistake in the calculation process described. The correct application of Graicunas's formula for the total number of relationships including direct, cross, and direct group relationships should indeed result in $V = 4 + 12 + 12 = 28$, but this does not match any of the provided options, indicating a misunderstanding in the explanation. The correct calculation using the standard formula $V = n + n(n - 1) + n(n - 1)(n - 2)/2$ for $n = 4$ actually results in $V = 4 + 12 + 12 = 28$, which still does not align with the provided options, suggesting an error in the initial explanation. The correct interpretation of Graicunas's formula and calculation should lead to the correct total number of relationships, which is not accurately reflected in the initial response. The correct answer, based on the standard interpretation of Graicunas's formula, should be recalculated or the correct formula and its application should be clarified to match the provided options.

Question 3

The ________ of an organization refers to the extent to which firms use lateral subdivisions or specialties within an organization.

Accepted Answer

The term "horizontal dimensioning" refers to how an organization structures its various subdivisions or specialties across the same level, emphasizing the breadth of roles and functions within the organization rather than the hierarchy or chain of command, which would be described by vertical dimensioning.

Question 4

Which of the following modes of departmentalization contradicts the principle of the unity of command?

Accepted Answer

The matrix mode of departmentalization contradicts the principle of unity of command because it involves employees reporting to two superiors, one in a functional department and one in a product or project team. This can create conflicts and confusion for employees and lead to difficulty in implementing directives.

Question 5

Graicunas's formula is as follows: . What does C stand for in this formula?

Accepted Answer

The answer of Graicunas's formula is as follows: . What...

Question 6

Which of the following is a criticism of Graicuna's work in span of management?

Accepted Answer

Graicuna's work in span of management only considers the theoretical number of relationships between superiors and subordinates, and not the actual number of relationships that exist in the organization. This is a criticism because it does not fully reflect the complexity of managerial relationships in practice.

Question 7

Which of the following is true about the height of an organization chart?

Accepted Answer

Normally, the greater the height of the organizational chart, the smaller the span of management. This means that as the number of management layers increase in an organization, the distance between the top level and bottom level increases, leading to a decrease in the span of control for each manager.

Question 8

The organization structure at Sinclair Funds, a financial services company, is divided horizontally into Insurance, Mutual Funds, and Wealth Management departments. Identify the departmentalization mode being used here.

Accepted Answer

The departmentalization mode being used here is product or service, as the company has divided its structure based on the different financial services it provides - Insurance, Mutual Funds, and Wealth Management departments.

Question 9

Pixel Technologies, a manufacturer of electronic products and cell phones, has departmentalized the organization on the basis of ________ by dividing the business into two divisions-Electronics Retailers and Cell Phone Retailers.

Accepted Answer

Pixel Technologies has divided its business into divisions based on the type of customers they serve, namely Electronics Retailers and Cell Phone Retailers, indicating departmentalization by customers.

Question 10

Gizmo Sales, a company that sells office supplies to companies in Atlanta, GA, has organized the business horizontally into departments named North Atlanta, South Atlanta, and Downtown Atlanta. This indicates that Gizmo has departmentalized on the basis of ________.

Accepted Answer

The departmentalization on the basis of territories indicates that Gizmo has organized its business horizontally into departments named after the different regions of Atlanta where it sells its products.

Question 11

Graicunas's formula is as follows: . What does n stand for in this formula?

Accepted Answer

The answer of Graicunas's formula is as follows: . What...

Question 12

________ developed a formula for determining the number of possible relationships between a manager and subordinates when the number of subordinates is known.

Accepted Answer

V. A. Graicunas developed the formula known as the "Graicunas' Formula" which calculates the number of possible relationships between a manager and subordinates based on the number of subordinates. This formula takes into account the direct connections between the manager and each subordinate, as well as the indirect connections between the subordinates themselves.

Question 13

Which of the following is an advantage of departmentalizing by matrix?

Accepted Answer

The answer of Which of the following is an advantage...

Question 14

At Landmark Constructions, crucial projects are handled completely by project managers who are empowered to borrow marketing, sales, engineering, finance and R&D staff and other employees from various parts of the organization to complete their projects. Identify the departmentalization mode being used in this company.

Accepted Answer

Landmark Constructions is using matrix departmentalization. This is characterized by employees being organized into project teams that draw resources from different parts of the organization to complete their assigned projects. The project managers have the authority to borrow employees from different departments to ensure the success of their projects.

Question 15

According to the contingency viewpoint to designing span of management, which of the following situations would warrant a relatively wide span of control?

Accepted Answer

The contingency viewpoint to designing span of management suggests that the nature of the work being supervised is an important factor to consider. In this case, supervising a team of factory workers sewing buttons onto shirts is routine, standardized work that requires less supervision and can be managed with a wider span of control.

Question 16

According to Graicunas's formula for determining the number of possible relationships between a manager and subordinates, as the number of subordinates increases arithmetically, the number of possible relationships between the manager and those subordinates ________.

Accepted Answer

According to Graicunas's formula, the number of possible relationships between a manager and subordinates increases geometrically as the number of subordinates increases arithmetically. This is because the formula takes into account not only the number of subordinates but also the potential relationships between them (i.e. each subordinate can have a relationship with the manager and with other subordinates). As the number of subordinates increases, the potential for more relationships between them also increases at an exponential rate, resulting in a geometric increase in the total number of possible relationships.

Question 17

Which of the following is a potential disadvantage of functional departmentalizing?

Accepted Answer

Functional departmentalizing can create challenges in coordinating between various functions, as employees may prioritize their own functions over others, leading to silos and potential communication breakdowns.

Question 18

The organization structure at Kinetic Machines is horizontally divided into Marketing, Finance, Production, and R&D departments. Identify the departmentalization mode being used here.

Accepted Answer

The organization structure at Kinetic Machines is divided into functional departments such as Marketing, Finance, Production, and R&D. Therefore, the departmentalization mode being used here is functional.

Question 19

________ organizations are also called project organizations.

Accepted Answer

Matrix organizations are also called project organizations because they are designed to allow project managers to have more control over their projects while still having access to resources from various functional areas of the company. In this structure, team members are assigned both to a functional department and to a specific project or team, allowing for greater flexibility and collaboration.

Question 20

Which of the following is the most widely used basis for departmentalization?

Accepted Answer

Work functions are typically the most widely used basis for departmentalization, as it allows for specialized skills and knowledge to be grouped together for efficiency and effectiveness. customer, geography, matrix, and product or service departmentalization can also be used depending on the organization's needs and structure, but work function remains the most popular choice.

Quiz 11: Fundamentals of Organizing