Question 1

Departmentalization by function allows employees opportunity to further develop their skills.

Accepted Answer

Departmentalization by function groups employees based on their similar skills and expertise, allowing them to work together and learn from one another. This creates an environment where employees can develop their skills through collaboration and mentorship.

Question 2

A tall organization structure consists of multiple levels of management.

Accepted Answer

A tall organization structure has multiple levels of management, with each level having a narrow span of control and a clear hierarchy of authority. This results in a longer chain of command and can lead to slower decision-making processes.

Question 3

Economies of scale can be achieved through departmentalization.

Accepted Answer

Departmentalization allows for a more efficient use of resources by grouping similar tasks into departments. This can reduce duplication of effort and increase specialization, which can result in cost savings and economies of scale.

Question 4

A flat organizational structure is designed to be more responsive to the needs of management.

Accepted Answer

A flat organizational structure is designed to be more responsive to the needs of employees and customers, as it eliminates unnecessary layers of management and promotes communication and collaboration throughout the organization.

Question 5

Departmentalization by function groups employees based on similar skills, expertise, or resource use.

Accepted Answer

Departmentalization by function groups employees based on similar skills, expertise, or resource use.

Question 6

Departmentalization by function typically increases the cost of doing business.

Accepted Answer

Departmentalization by function often leads to efficiencies because it allows for specialization within each department, which can reduce costs and improve productivity.

Question 7

Some firms use a combination of departmentalization techniques.

Accepted Answer

Many firms use a combination of departmentalization techniques such as functional, product, customer, and geographic departmentalization to efficiently allocate resources and achieve their goals.

Question 8

Managers near the top of an organization have the broadest span of control.

Accepted Answer

Managers near the top typically have a narrower span of control because they deal with more complex and strategic issues, requiring more time and focus on fewer direct reports. Lower-level managers often have a broader span of control, overseeing more routine and less complex tasks.

Question 9

An advantage of a tall organization is that it ensures fast and efficient communications throughout the organization.

Accepted Answer

A tall organization is characterized by many levels of hierarchy, which can slow down communication and decision-making. Flat organizations, on the other hand, have fewer levels of hierarchy and encourage direct communication and collaboration, leading to faster and more efficient communication.

Question 10

An advantage of departmentalization is groupthink.

Accepted Answer

Groupthink is a disadvantage of departmentalization, as it can lead to a lack of diverse perspectives and ideas within the department.

Question 11

Improvements in information technology have permitted companies to increase their span of control.

Accepted Answer

With improved communication and data sharing capabilities, companies can now manage more employees and resources from a central location using fewer managers, which increases their span of control.

Question 12

The decision on how to departmentalize should depend on the customer and the product or service the firm is offering.

Accepted Answer

Departmentalizing should be done based on customer and product/service offered because it ensures that each department is organized in a way that serves the needs of the specific customer and product/service segment.

Question 13

A recent business trend is the elimination of layers of management, creating flatter organizations and subsequently, a wider span of control.

Accepted Answer

This is true, as many companies are shifting towards flatter organizational structures in order to increase efficiency, reduce costs, and improve communication and decision-making processes. This means less hierarchical levels of management and wider spans of control for each manager.

Question 14

Flat organizations have fewer managers.

Accepted Answer

In order to maintain a flat organizational structure, there are fewer layers of management and a wider span of control, meaning that fewer managers are needed to oversee the same number of employees.

Question 15

The traditional way to departmentalize an organization is by geographical area served.

Accepted Answer

The traditional way to departmentalize an organization is by functions, such as marketing, human resources, finance, etc.

Question 16

Departmentalization creates an environment in which people are trained in a variety of managerial responsibilities.

Accepted Answer

Departmentalization primarily involves dividing an organization into different departments, which can lead to specialization in specific tasks or functions rather than training in a variety of managerial responsibilities.

Question 17

Departmentalization is the dividing of organizational functions into separate units.

Accepted Answer

Departmentalization is the process of dividing organizational functions into separate units, typically based on factors such as geography, product lines, customer types, or functions. This helps to increase efficiency, facilitate specialization, and improve coordination within the organization.

Question 18

When employees are self-managed, a company can implement a wider span of control.

Accepted Answer

When employees are self-managed, they take on more responsibility for their tasks and decision-making, allowing managers to oversee more employees and expand their span of control.

Question 19

Organizations that utilize functional departmentalization benefit from improved communication between departments.

Accepted Answer

Functional departmentalization often leads to silos within an organization, where departments become insulated and communication across departments can be hindered, not improved.

Question 20

The more complex the job, the narrower the span of control.

Accepted Answer

This is because complex jobs require more oversight and direction, which necessitate a smaller span of control to ensure effective management and communication.

Quiz 8: Structuring Organizations for Todays Challenges

Departmentalization by function allows employees opportunity to further develop their skills.

A tall organization structure consists of multiple levels of management.

Economies of scale can be achieved through departmentalization.

A flat organizational structure is designed to be more responsive to the needs of management.

Departmentalization by function groups employees based on similar skills, expertise, or resource use.

Departmentalization by function typically increases the cost of doing business.

Some firms use a combination of departmentalization techniques.

Managers near the top of an organization have the broadest span of control.

An advantage of a tall organization is that it ensures fast and efficient communications throughout the organization.

An advantage of departmentalization is groupthink.

Improvements in information technology have permitted companies to increase their span of control.

The decision on how to departmentalize should depend on the customer and the product or service the firm is offering.

A recent business trend is the elimination of layers of management, creating flatter organizations and subsequently, a wider span of control.

Flat organizations have fewer managers.

The traditional way to departmentalize an organization is by geographical area served.

Departmentalization creates an environment in which people are trained in a variety of managerial responsibilities.

Departmentalization is the dividing of organizational functions into separate units.

When employees are self-managed, a company can implement a wider span of control.

Organizations that utilize functional departmentalization benefit from improved communication between departments.

The more complex the job, the narrower the span of control.