Introduction to Business International Edition 10th Edition by William M. Pride - Test Bank Instant Download - Complete Test Bank With Answers Sample Questions Are Posted Below CHAPTER 5 Creating a Flexible Organization LEARNING OBJECTIVES Understand what an organization is and identify its characteristics. Explain why job specialization …
$19.99
Introduction to Business International Edition 10th Edition by William M. Pride – Test Bank
Instant Download – Complete Test Bank With Answers
Sample Questions Are Posted Below
What Is an Organization?
| LO: 1
Page: 191 AACSB: Communication |
1. Define an organization. Relate that definition to a local eating establishment by
showing how this organization fits the definition. |
| LO: 1
Page: 193 AACSB: Communication |
2. Identify and describe the five major steps of the organizing process. |
Job Design
| LO: 2
Page: 194 AACSB: Communication |
3. Why is job specialization needed? |
| LO: 2
Page: 194 AACSB: Communication |
4. What are the benefits of job rotation? |
Departmentalization
| LO: 3
Page: 195 AACSB: Communication |
5. A firm may be departmentalized by function, product, location, or customer.
Explain how each method groups jobs into units.
|
| LO: 3
Page: 195 AACSB: Communication |
6. Select a local organization and discuss the basis on which it is organized. |
Delegation, Decentralization, and Centralization
| LO: 4
Page: 196 AACSB: Communication |
7. Identify and discuss the major steps in the delegation process. |
| LO: 4
Page: 197-198 AACSB: Communication |
8. Why would the decentralization of a firm result from delegation of authority? |
The Span of Management
| LO: 5
Page: 198 AACSB: Communication |
9. What does it mean for a manager to have a wide span of control? Would you
expect the span of control to be wide or narrow when subordinates are highly trained professionals? Support your answer. |
Chain of Command: Line and Staff Management
| LO: 6
Page: 199 AACSB: Communication |
10. How is an organization’s chain of command established? |
| LO: 6
Page: 199 AACSB: Communication |
11. How does a line management position differ from a staff management position? |
Forms of Organizational Structure
| LO: 7
Page: 201–202 AACSB: Communication |
12. Describe the bureaucratic management system. How effectively does the
bureaucratic system respond to change? How is that response influenced by the structure of a bureaucracy? |
| LO: 7
Page: 203 AACSB: Communication |
13. What are the advantages and disadvantages of a matrix structure? |
Additional Factors That Influence an Organization
| LO: 8
Page: 207 AACSB: Communication |
14. What is the informal organization? Where is it shown on the organization chart? |
| LO: 8
Page: 208 AACSB: Communication |
15. If you were a manager, how would you use the grapevine? |
Use the following to answer questions 16–20:
Dramatic Expressions
Dramatic Expressions is a home decorating company that sells many different household accessories ranging from candles to entertainment centers. Wanda is the CEO of the company. She feels that there is not enough specialization within the company and wants to organize the business in a different way. Wanda thinks that the company would be more effective if it were to switch to a new way of organization. For example, there could be a manager in charge of the candles, a different manager in charge of the entertainment centers, and so on.
Another issue that Wanda wants to resolve is that of delegation. She believes that if she could improve her delegating, employees would feel more empowered and want to go above and beyond what they are required to do. There are certain reasons that Wanda has a hard time delegating to others, but she is confident that the problem will be overcome if she works on it.
| Ans: B
Difficulty: Easy LO: 3 Page: 195 AACSB: Analytic |
16. What type of departmentalization does Wanda want to switch to?
a. By function b. By product c. By location d. By customer e. By responsibility |
| Ans: D
Difficulty: Easy LO: 2 Page: 194 AACSB: Analytic |
17. What would be an alternative to specialization if negative consequences were to
develop at Dramatic Expressions? a. Organization b. Occupation c. Circulation d. Rotation e. Generalization |
| Ans: B
Difficulty: Mod. LO: 1 Page: 191–192 AACSB: Analytic |
18. Wanda should address all of the following when it comes to organizing the
business except a. job design. b. regulating behavior. c. establishing a chain of command. d. departmentalization. e. delegation. |
| Ans: B
Difficulty: Diff. LO: 4 Page: 196 AACSB: Analytic |
19. Wanda could best improve delegation by
a. increasing specialization. b. explaining the purpose of each task. c. investing the capital necessary for success. d. changing each job station. e. decreasing job specialization. |
| Ans: A
Difficulty: Diff. LO: 4 Page: 197 AACSB: Analytic |
20. What could be a possible reason for Wanda not wanting to delegate work?
a. The employee was unreliable. b. The employee was not a likable individual. c. The employee was well-organized. d. The work involved strict planning. e. The work took place in an undesirable venue. |
Use the following to answer questions 21–25:
Boss Queen, Inc. (BQI)
Boss Queen, Inc. (BQI) is a business-clothing store for professional women. The owner of the company has designed the business so that she hardly ever has to be there. There are many departmental managers who hold a lot of responsibility. While they are organized separately by department, each manager knows enough about the other departments to be able to fill in at any time. The department managers also delegate a lot of work further down to their employees as a way to empower them. The owner even delegates store-management responsibilities to a different department manager each month. Even though certain people are delegated certain tasks, everyone pitches in, so it is sometimes hard to tell who is really in charge.
The employees are so comfortable with each other that many go out and participate in activities together on the weekends, even when they are not working. However, the owner realizes that she does not want to participate in these events because she does not want to seem that she is favoring certain people over others.
| Ans: B
Difficulty: Mod. LO: 4 Page: 197 AACSB: Analytic |
21. BQI can best be described as a(n) __________ organization.
a. span of management b. decentralized c. ad hoc d. centralized e. autocratic |
| Ans: E
Difficulty: Easy LO: 6 Page: 199–200 AACSB: Analytic |
22. It seems that BQI managers could be considered all of the following except
a. line managers. b. department managers. c. staff managers. d. functional managers. e. owners. |
| Ans: A
Difficulty: Diff. LO: 7 Page: 201 AACSB: Analytic |
23. Which of the following would least describe BQI?
a. Bureaucratic b. Empowered c. Cross-functional d. Cluster e. Laissez-faire |
| Ans: D
Difficulty: Diff. LO: 8 Page: 204 AACSB: Analytic |
24. Which of these options would most likely describe the type of corporate culture at
Boss Queen, Inc.? a. Networked b. Mercenary c. Fragmented d. Communal e. Extrapreneurship |
| Ans: A
Difficulty: Easy LO: 8 Page: 207 AACSB: Analytic |
25. The group of employees that participate in outside activities on the weekend
would be considered a(n) __________ group. a. informal b. inspirational c. affirmative d. business e. departmental |
What Is an Organization?
| Ans: E
Difficulty: Easy LO: 1 Page: 191 AACSB: Analytic |
26. An organization chart reveals
a. staff accountability. b. committee assignments. c. informal authority. d. detailed duties of each manager. e. the company’s organizational structure. |
| Ans: A
Difficulty: Easy LO: 1 Page: 191 AACSB: Analytic |
27. Joel Green has been working at The Bicycle Superstore for about two weeks. This
morning he noticed that the store’s inventory on bicycle tire repair kits is out, but he is unsure of whom he should report to for approval to place an order for more kits. Joel is unclear about the a. chain of command. b. degree of specialization. c. level of authority. d. span of management. e. nature and degree of departmentalization. |
| Ans: B
Difficulty: Mod. LO: 1 Page: 191 AACSB: Analytic |
28. Cory is at the top of her company’s organization chart. Which of the following is
most likely to be her job title? a. Executive manager b. President c. Manager d. Vice president, operations e. Organization leader |
| Ans: D
Difficulty: Diff. LO: 1 Page: 191 AACSB: Analytic |
29. Vice president, marketing—Regional sales manager—District manager—Sales
supervisor represents a(n) a. organization chart. b. command hierarchy. c. corporate organization. d. chain of command. e. departmentalization. |
| Ans: B
Difficulty: Mod. LO: 1 Page: 191 AACSB: Analytic |
30. Upon beginning her career at Davidson Inc., a small consulting firm, Stephanie
Benjamin receives a copy of the firm’s organization chart, which will a. demonstrate the firm’s informal network of communication. b. clarify positions and reporting relationships within the firm. c. not be very useful because small firms don’t usually adhere to a formal structure. d. probably be outdated because small firms are always changing. e. indicate the short-, medium-, and long-term goals of the company. |
| Ans: A
Difficulty: Easy LO: 1 Page: 191 AACSB: Analytic |
31. Distinguishing between positions with direct authority and those that are support
positions establishes an organization’s a. chain of command. b. span of management. c. degree of centralization or decentralization. d. nature and degree of departmentalization. e. degree of specialization. |
| Ans: A
Difficulty: Easy LO: 1 Page: 191 AACSB: Analytic |
32. A locally owned and operated bakery is likely to have
a. a short chain of command. b. a complex chain of command. c. an extensive advisory staff. d. a highly departmentalized structure. e. no organization chart. |
| Ans: E
Difficulty: Mod. LO: 1 Page: 191 AACSB: Analytic |
33. Legal services and public affairs are __________ types of jobs, so they do not fit
directly into the chain of command. a. specialized b. top management c. authoritative d. voluntary e. advisory |
| Ans: B
Difficulty: Mod. LO: 1 Page: 191 AACSB: Analytic |
34. Human resources is a(n) __________ type of job, so it does not fit directly into the
chain of command. a. line b. staff c. advisory d. top management e. authoritative |
| Ans: C
Difficulty: Diff. LO: 1 Page: 191 AACSB: Analytic |
35. The legal affairs attorney working for Intel would most likely occupy a(n)
a. vice president position. b. high position in the chain of command. c. staff position. d. nonessential position. e. authoritarian position. |
| Ans: D
Difficulty: Mod. LO: 1 Page: 192 AACSB: Analytic |
36. Grouping various positions into manageable units determines the __________ of
the organization. a. chain of command b. span of management c. degree of centralization d. nature and degree of departmentalization e. degree of specialization |
| Ans: E
Difficulty: Mod. LO: 1 Page: 191 AACSB: Analytic |
37. The first step in the organizing process is to
a. group the positions into manageable units. b. determine how many subordinates will report to each manager. c. distinguish between direct authority and support positions. d. distribute responsibility and authority within the organization. e. divide the work to be done into parts and assign the parts to positions within the organization. |
| Ans: A
Difficulty: Mod. LO: 1 Page: 192 AACSB: Analytic |
38. Stella Williams is designing the formal organization of her legal clinic. She has
divided the work to be done; now she should a. group the various positions into manageable units or departments. b. distribute responsibility and authority within the organization. c. determine how many subordinates will report to each manager. d. determine the degree of centralization. e. determine the span of management. |
| Ans: C
Difficulty: Easy LO: 1 Page: 192 AACSB: Analytic |
39. The step of distributing responsibility and authority within the organization is
called a. the chain of command. b. the span of management. c. delegation. d. departmentalization. e. the degree of specialization. |
| Ans: D
Difficulty: Mod. LO: 1 Page: 191 AACSB: Analytic |
40. Jacob has divided the work to be done by his plumbing supplies company into
parts and assigned those parts to positions within his company. What is this step of organizing a business known as? a. Departmentalization b. Delegation c. Span of management d. Job design e. Division of labor |
| Ans: E
Difficulty: Mod. LO: 1 Page: 192 AACSB: Analytic |
41. During her company’s reorganization, Linda was in charge of grouping the
various positions in the firm into manageable units. This is called a. reorganization. b. job redesign. c. classification. d. activity division. e. departmentalization. |
| Ans: D
Difficulty: Diff. LO: 1 Page: 192 AACSB: Analytic |
42. Where does establishing the organization chart fit into the process of organizing a
business? a. The organization chart should be the starting point for organizing the business. b. This step should be taken immediately after job design is complete. c. This should be done after the various positions are grouped in departments. d. The chart should be established as the last step of organizing the business. e. This should be done just before the firm creates the span of management. |
| Ans: C
Difficulty: Diff. LO: 1 Page: 192 AACSB: Analytic |
43. Brian Smith is in the process of designing the formal organization of his auto-parts
store. He has grouped the various positions he employs into manageable units. His next step is to a. divide the work to be done and assign the parts to positions within the organization. b. determine how many subordinates will report to each manager. c. distribute responsibility and authority within the organization. d. determine the nature and degree of departmentalization. e. determine the span of management. |
Job Design
| Ans: C
Difficulty: Easy LO: 2 Page: 193-194 AACSB: Analytic |
44. The various tasks in IBM’s manufacturing plant are arranged so that one worker
draws the wiring, another strengthens the wires, a third cuts them, a fourth inserts them, and a fifth seals them together. This is an example of job a. rotation. b. redesign. c. specialization. d. enrichment. e. enlargement. |
| Ans: B
Difficulty: Mod. LO: 2 Page: 193-194 AACSB: Analytic |
45. The separation of all organizational activities into distinct tasks and the
assignment of different tasks to different people is called job a. rotation. b. specialization. c. enlargement. d. enrichment. e. organization. |
| Ans: C
Difficulty: Easy LO: 2 Page: 193-194 AACSB: Analytic |
46. In a furniture factory, one worker cuts the wood according to the design, another
glues the furniture together, and another stains and finishes the furniture. This is an example of a. departmentalization. b. decentralization. c. job specialization. d. job rotation. e. an automated assembly line. |
| Ans: C
Difficulty: Mod. LO: 2 Page: 194 AACSB: Analytic |
47. The book, The Wealth of Nations, published in the eighteenth century, emphasizes
the power of a. job rotation. b. technical job training. c. job specialization. d. job design. e. assembly-line production. |
| Ans: C
Difficulty: Mod. LO: 2 Page: 194 AACSB: Analytic |
48. Ted Landry finds he has less and less energy to go to work each day. On average
he misses two days a week. Ted may be suffering from boredom, which is one negative side effect of job a. rotation. b. enrichment. c. specialization. d. enlargement. e. enhancement. |
| Ans: B
Difficulty: Mod. LO: 2 Page: 194 AACSB: Analytic |
49. A benefit of job specialization is that it
a. is more difficult to design equipment. b. is easier to train new employees. c. is more time-consuming to change from one operation to another. d. eliminates boredom. e. enriches the job. |
| Ans: A
Difficulty: Mod. LO: 2 Page: 194 AACSB: Analytic |
50. When a worker has to learn only a specific, highly specialized task, that individual
should be able to learn to do it very efficiently. However, this efficiency could eventually become inhibited by job monotony and boredom. This situation could be alleviated through a. job rotation. b. technical job training. c. job specialization. d. job design. e. assembly-line production. |
| Ans: D
Difficulty: Diff. LO: 2 Page: 194 AACSB: Analytic |
51. In a recent task force meeting, the human resources manager gave many reasons
why the organization needed some specialization. In so doing, she stated that a. a worker who learns only a specific, highly specialized task becomes inefficient at that task. b. a worker who does the same job over and over loses time changing from one operation to another. c. the more specialized the job, the harder it may be to design specialized equipment for those doing it. d. the more specialized the job, the easier it is to train new employees when an employee quits or is absent. e. the job of most organizations is simply too large for one person to handle. Several people carrying out different functions are needed. |
| Ans: E
Difficulty: Diff. LO: 2 Page: 194 AACSB: Analytic |
52. Employees at a chemical factory are systematically moved every two weeks
among three different departments in the organization. This is called a. job trading. b. specialization. c. departmentalization by function. d. job enlargement. e. job rotation. |
| Ans: B
Difficulty: Mod. LO: 2 Page: 194 AACSB: Analytic |
53. Workers at the U.S. Nissan subsidiary plants are less likely to become bored or
dissatisfied with their jobs because Nissan practices job a. enlargement. b. rotation. c. enrichment. d. generalization. e. substitution. |
| Ans: D
Difficulty: Mod. LO: 2 Page: 194 AACSB: Analytic |
54. Ford and Xerox are two companies that have begun moving away from strict job
specialization to alleviate employee motivation problems. Each company has adopted a job design alternative that involves workers in a wider variety of tasks. The method they have employed is known as job a. enlargement. b. enrichment. c. generalization. d. rotation. e. substitution. |
| Ans: B
Difficulty: Mod. LO: 2 Page: 194 AACSB: Analytic |
55. Cindy has been assigned to a different job every week for four weeks. Now, in the
fifth week, she has returned to the first job. Cindy has been a part of the company’s job __________ plan to provide workers with experience in various jobs so that they are less likely to become bored. a. enlargement b. rotation c. enrichment d. specialization e. skills |
Departmentalization
| Ans: E
Difficulty: Mod. LO: 3 Page: 195 AACSB: Analytic |
56. If a new company desires to departmentalize in a way that will simplify
supervision and facilitate coordination, it will most likely departmentalize by a. product. b. location. c. worker skill level. d. customer. e. function. |
| Ans: B
Difficulty: Mod. LO: 3 Page: 194 AACSB: Analytic |
57. Grouping jobs into manageable units according to some reasonable scheme is
known as a. job description. b. departmentalization. c. centralized organization. d. bureaucratic structuring. e. informal organizing. |
| Ans: E
Difficulty: Mod. LO: 3 Page: 195 AACSB: Analytic |
58. The Morgan Company, a small furniture manufacturer, divides its organization
into marketing, human resources, accounting, and production departments. This is an example of departmentalization by a. location. b. specialty. c. product. d. taste. e. function. |
| Ans: E
Difficulty: Mod. LO: 3 Page: 194–195 AACSB: Analytic |
59. Location, product, function, and customer are common bases for a firm’s
a. span of management. b. job design. c. job specialization. d. chain of command. e. departmentalization. |
| Ans: B
Difficulty: Diff. LO: 3 Page: 195 AACSB: Analytic |
60. A computer manufacturer is first divided into the following groups: Home
Office/Personal Use, Small Business, Large Business, and Educational Institutions. Within each of these divisions, management is organized into finance, operations, marketing, and human resources. This company is organized first by __________, then by __________. a. function; customer b. customer; function c. product; function d. product; customer e. customer; location |
| Ans: B
Difficulty: Mod. LO: 3 Page: 195 AACSB: Analytic |
61. Which of the following is a disadvantage of departmentalization by function?
a. Supervision is very difficult because workers are involved in different types of activities. b. This method tends to emphasize the department rather than the organization as a whole. c. It causes duplication of the same specialized activities throughout the organization. d. This method requires an extremely large administrative staff. e. Coordination is very complex because of the way job duties are distributed. |
| Ans: D
Difficulty: Mod. LO: 3 Page: 195 AACSB: Analytic |
62. General Motors has separate divisions for Chevrolet, Pontiac, Oldsmobile, Buick,
and Cadillac. This is an example of departmentalization by a. function. b. location. c. customer. d. product. e. model. |
| Ans: D
Difficulty: Mod. LO: 3 Page: 195 AACSB: Analytic |
63. Most large organizations use
a. departmentalization by product. b. departmentalization by location. c. departmentalization by customer. d. a combination of departmentalization bases. e. no departmentalization. |
| Ans: A
Difficulty: Easy LO: 3 Page: 195 AACSB: Analytic |
64. The president of Digital Equipment Corporation discovered that his company was
having a problem with counterproductive product groups who were working selfishly rather than cooperating with one another. To solve the problem, he combined the company’s twelve U.S. product groups into three regional management centers. This solution is referred to as departmentalization by a. location. b. function. c. product. d. customer. e. objective. |
| Ans: A
Difficulty: Easy LO: 3 Page: 195 AACSB: Analytic |
65. Grouping the United States into the Northeast Region, the Northwest Region, the
Southeast Region, and the Southwest Region would be departmentalization by a. location. b. customer. c. function. d. product. e. task. |
| Ans: D
Difficulty: Mod. LO: 3 Page: 195 AACSB: Analytic |
66. Mark Stanford is the vice president of the northwest division of his company.
Mark’s company is departmentalized by a. area. b. product. c. function. d. location. e. customer. |
| Ans: B
Difficulty: Mod. LO: 3 Page: 195 AACSB: Analytic |
67. Citibank has one group of loan officers who handle consumer loans and another
group who work in the commercial loan area. Grouping work units this way is known as departmentalization by a. function. b. customer. c. product. d. specialty. e. location. |
| Ans: C
Difficulty: Mod. LO: 3 Page: 195 AACSB: Analytic |
68. A firm organized on the basis of retail customers and wholesale customers utilizes
the concept of departmentalization by a. location. b. function. c. customer. d. product. e. task. |
| Ans: C
Difficulty: Diff. LO: 3 Page: 195 AACSB: Analytic |
69. If First National Bank were to assign one of its bank tellers to business merchants
and two others to individual accounts, it would be departmentalizing on the basis of a. location. b. population. c. customer. d. function. e. service. |
| Ans: B
Difficulty: Diff. LO: 3 Page: 195 AACSB: Analytic |
70. Although departmentalization may be determined within an organization on the
basis of one criterion, such as location, most organizations find __________ to be a more efficient means of conducting business. a. decentralization b. more than one basis for departmentalization c. delegation of authority d. centralization e. managerial decision making |
Delegation, Decentralization, and Centralization
| Ans: A
Difficulty: Mod. LO: 4 Page: 195 AACSB: Analytic |
71. The assignment of part of a manager’s work and authority to a worker is called
a. delegation. b. responsibility. c. authorization. d. accountability. e. relegation. |
| Ans: A
Difficulty: Mod. LO: 4 Page: 195–196 AACSB: Analytic |
72. Amy, an administrative assistant in the business division of a university, is
assigned the responsibility of serving the needs of the division’s professors. However, Amy often reads books and looks at catalogs during working hours because she has plenty of free time. It appears that the professors in the division have failed to a. delegate. b. work hard. c. teach class. d. prioritize. e. be held accountable. |
| Ans: D
Difficulty: Easy LO: 4 Page: 196 AACSB: Analytic |
73. Delegation consists of giving a subordinate all of the following except
a. responsibility. b. authority. c. accountability. d. a line position. e. both accountability and a line position. |
| Ans: D
Difficulty: Mod. LO: 4 Page: 196 AACSB: Analytic |
74. Dana is assigned to create a training program for newly hired mortgage loan
officers. She has the __________ to complete this assignment. a. authority b. delegation c. network d. responsibility e. accountability |
| Ans: C
Difficulty: Easy LO: 4 Page: 196 AACSB: Analytic |
75. One’s duty to do a job or perform a task is called
a. authority. b. accountability. c. responsibility. d. delegation. e. obligation. |
| Ans: B
Difficulty: Diff. LO: 4 Page: 197 AACSB: Analytic |
76. Which of the following statements about accountability is false?
a. Managers create accountability. b. Managers delegate accountability. c. Accountability is the obligation of the worker. d. Creating accountability is a step in the delegation process. e. Managers are accountable for tasks they assign. |
| Ans: B
Difficulty: Diff. LO: 4 Page: 197 AACSB: Analytic |
77. Ann delegated work to an employee who mismanaged public funds. Ann, rather
than the employee, was reprimanded for this mismanagement. Ann is now reluctant to delegate because she a. does not care whether the work is properly done. b. knows the person who delegates remains accountable for the work. c. does not trust any of her subordinates. d. fears a subordinate will do the work so well that he or she will attract the approval of top management. e. is so disorganized that she simply cannot plan and assign work effectively. |
| Ans: D
Difficulty: Mod. LO: 4 Page: 195 AACSB: Analytic |
78. Mark left his position as a manager for JCPenney after two years. He complained
of being burned out from having to fulfill too many roles and tasks for one position. Mark probably never learned to use the tool of a. segmentation. b. decentralization. c. control. d. delegation. e. centralization. |
| Ans: C
Difficulty: Mod. LO: 4 Page: 196 AACSB: Analytic |
79. Janet is a runner for a large law firm. Her duties include purchasing supplies for
the copy room. Janet was given permission by the office manager to sign credit-card receipts when making purchases. Janet has been given __________ to use the firm’s credit card. a. responsibility b. obligation c. authority d. staff centrality e. accountability |
| Ans: C
Difficulty: Easy LO: 4 Page: 196 AACSB: Analytic |
80. Susan was given the responsibility for chairing a campus committee. To complete
the delegation process, she should be given the __________ to carry out this responsibility. a. duty b. subordinates c. authority d. skills e. salary |
| Ans: C
Difficulty: Diff. LO: 4 Page: 197 AACSB: Analytic
|
81. As a new manager for Sears, Peter is unwilling to delegate work. He realizes that,
although he can delegate assignments to others, he cannot delegate his a. power to carry them out. b. authority. c. obligation to see that tasks are completed. d. responsibility to carry out assignments. e. function to complete tasks. |
| Ans: B
Difficulty: Mod. LO: 4 Page: 197 AACSB: Analytic |
82. Jason assigns responsibility to a subordinate for preparing a sales presentation for
an important potential client and authorizes the necessary expenditures of money and human resources, but he still requires a dress rehearsal to be presented to him before the actual presentation. Jason realizes that accountability cannot be a. created. b. delegated. c. assigned. d. expected. e. accepted. |
| Ans: A
Difficulty: Easy LO: 4 Page: 196 AACSB: Analytic |
83. Authority and __________ are synonymous terms.
a. power b. responsibility c. duty d. delegation e. accountability |
| Ans: D
Difficulty: Mod. LO: 4 Page: 197 AACSB: Analytic |
84. The degree of centralization of an organization is based on the
a. degree of departmentalization. b. level of bureaucracy. c. organization chart. d. delegation of authority. e. degree of job specialization. |
| Ans: A
Difficulty: Mod. LO: 4 Page: 197 AACSB: Analytic |
85. The more complex and uncertain a company’s environment, the more likely it is
that the company will a. decentralize the organization. b. have a split between decentralized and centralized decision making. c. centralize the organization. d. increase the span of control, thus increasing the number of employees on board. e. decrease the span of control, thus decreasing the workforce. |
| Ans: E
Difficulty: Diff. LO: 4 Page: 197 AACSB: Analytic |
86. Since Sears operates in a complex and dynamic environment, its store managers
are given significant freedom to run their stores. This indicates that top leaders at Sears a. centralize decision making. b. deemphasize lower-level management training. c. control their managers tightly. d. deemphasize lower-level management accountability. e. decentralize authority. |
| Ans: B
Difficulty: Mod. LO: 4 Page: 197 AACSB: Analytic |
87. A common characteristic of a centralized organization is
a. democratic decision making. b. decision making by a few top-level managers. c. a flat span of management. d. placing decision making near the workplace. e. authority placed at lower levels. |
| Ans: A
Difficulty: Mod. LO: 4 Page: 197 AACSB: Analytic |
88. Rockwood International needs to make risky decisions on a daily basis. Therefore,
its managers are likely to a. centralize decision making. b. let lower-level managers make important decisions. c. train lower-level managers to make more decisions. d. decentralize authority. e. centralize rare skills. |
| Ans: C
Difficulty: Mod. LO: 4 Page: 197 AACSB: Analytic |
89. Which of the following does not prevent managers from delegating?
a. They are so disorganized that they cannot assign work effectively. b. They want to make sure the work gets done properly. c. They usually have few responsibilities and therefore little to delegate. d. They fear that the subordinate will do excellent work and become a threat to the manager. e. They know that they are still ultimately responsible for the work. |
| Ans: D
Difficulty: Mod. LO: 4 Page: 197 AACSB: Analytic |
90. A biotechnology company is constantly faced with important decisions that are
likely to have severe consequences on the future of the company. The top managers should a. decentralize decision-making authority. b. appoint lawyers to make business decisions. c. train first-line managers to make these decisions. d. exercise centralized decision-making authority. e. consult investors when making important daily decisions. |
The Span of Management
| Ans: D
Difficulty: Mod. LO: 5 Page: 198 AACSB: Analytic |
91. The head of the marketing department at CBS Environmental, Inc. supervises
twelve people in her department. This represents her a. chain of command. b. degree of specialization. c. level of authority. d. span of management. e. nature and degree of departmentalization. |
| Ans: D
Difficulty: Easy LO: 5 Page: 198 AACSB: Analytic |
92. The number of workers who report directly to one manager is called
a. authority. b. accountability. c. responsibility. d. the span of management. e. centralization. |
| Ans: B
Difficulty: Mod. LO: 5 Page: 198 AACSB: Analytic |
93. Determining how many subordinates will report to each manager gives an
organization its a. chain of command. b. span of management. c. degree of centralization. d. nature and degree of departmentalization. e. degree of specialization. |
| Ans: D
Difficulty: Easy LO: 5 Page: 198 AACSB: Analytic |
94. The number of subordinates reporting directly to one manager is called
a. the chain of command. b. a decentralized organization. c. a centralized organization. d. the span of control. e. the management hierarchy. |
| Ans: E
Difficulty: Mod. LO: 5 Page: 199 AACSB: Analytic |
95. Wesley is a manager in an organization where a great deal of interaction is
required between himself and his workers and new problems arise frequently. Wesley is likely to have a. a wide span of control. b. little authority to delegate. c. decentralized power. d. departmentalization by consumer. e. a narrow span of control. |
| Ans: C
Difficulty: Mod. LO: 5 Page: 199 AACSB: Analytic |
96. Many organizations today are moving toward a(n) __________ organization in an
effort to get decisions made more quickly and action plans implemented more rapidly. a. taller b. wider c. flatter d. narrower e. efficient |
| Ans: A
Difficulty: Easy LO: 5 Page: 198 AACSB: Analytic |
97. A manager with few subordinates is said to have a
a. narrow span of control. b. flat organizational structure. c. managerial hierarchy. d. matrix structure. e. wide span of control. |
| Ans: C
Difficulty: Easy LO: 5 Page: 198–199 AACSB: Analytic |
98. A span of control may be wide when
a. managers and workers are located far from one another. b. a great deal of interaction among levels is needed. c. few new problems are expected to arise. d. the manager has a lot of work other than managing. e. new problems arise frequently. |
| Ans: E
Difficulty: Diff. LO: 5 Page: 199 AACSB: Analytic |
99. Mr. Kerr will manage employees throughout the northwestern region of the
United States. His employees will consist of most major nationalities and both males and females. In determining his span of control, you should consider which of the following span factors? a. The percentage of females b. The percentage of minorities c. The percentage with college degrees d. The percentage who do not have college degrees e. Whether the subordinates are physically located far from one another |
| Ans: D
Difficulty: Diff. LO: 5 Page: 199 AACSB: Analytic |
100. George Brown is a regional sales manager for Unisys, a large manufacturer of
computer systems. As such, George is responsible for salespeople throughout the region, and he must interact with them frequently to solve problems. Which of the following descriptions is most characteristic of Unisys and its sales managers? a. Wide span of management control and flat organizational height b. Narrow span of management control and flat organizational height c. Wide span of management control and tall organizational height d. Narrow span of management control and tall organizational height e. Low administrative costs and clear communication |
| Ans: B
Difficulty: Mod. LO: 5 Page: 199 AACSB: Analytic |
101. All of the following are reasons for a narrow span of management except
a. workers are located far from one another. b. few new problems are expected. c. the manager must do a lot of work other than managing. d. a great deal of interaction between management and workers is needed. e. new problems arise frequently. |
| Ans: E
Difficulty: Diff. LO: 5 Page: 198 AACSB: Analytic |
102. A consulting manager at SAP America has a very wide span of control. This is
probably because the a. firm has a very loose, informal organizational structure. b. consulting manager has a low level of accountability. c. consulting manager is expected to delegate authority. d. manager’s subordinates aren’t given much responsibility. e. manager and his or her subordinates are very competent. |
| Ans: D
Difficulty: Mod. LO: 5 Page: 198 AACSB: Analytic |
103. A manager with many subordinates is said to have a
a. tall organizational structure. b. narrow span of control. c. managerial hierarchy. d. wide span of control. e. matrix structure. |
| Ans: B
Difficulty: Mod. LO: 5 Page: 199 AACSB: Analytic |
104. The number of layers in the organizational structure of Dayton Hudson
Corporation indicates the company’s a. chain of command. b. organizational height. c. line authority. d. organizational structure. e. management hierarchy. |
| Ans: C
Difficulty: Mod. LO: 5 Page: 198–199 AACSB: Analytic |
105. In an organization with a __________, a manager is most likely to spend
considerable time supervising and working with employees. a. flat organizational control and wide height span b. narrow span of control and tall organizational height c. flat organizational height and a wide span of control d. wide span of control and a tall organizational height e. narrow span of control and flat organizational height |
| Ans: A
Difficulty: Mod. LO: 5 Page: 199 AACSB: Analytic |
106. In which of the following types of organizations would managers have the
greatest opportunity for advancement? a. One with a tall organizational height b. One that is small and located regionally c. One that typically offers managers a wide span of control d. One with a flat organizational height e. One that is departmentalized by function |
| Ans: D
Difficulty: Easy LO: 5 Page: 199 AACSB: Analytic |
107. The number of layers, or levels, in a firm is referred to as the firm’s
a. organizational structure. b. managerial hierarchy. c. cluster structure. d. organizational height. e. bureaucratic structure. |
| Ans: A
Difficulty: Mod. LO: 5 Page: 198–199 AACSB: Analytic |
108. Generally speaking, a narrow span of management implies that the height of the
organization will be __________; a wide span of management implies that the height of the organization will be __________. a. tall; flat b. tall; sloped c. flat; tall d. short; tall e. long; short |
Chain of Command: Line and Staff Management
| Ans: B
Difficulty: Mod. LO: 6 Page: 199 AACSB: Analytic |
109. Brandon holds a staff management position with General Mills. His position can
best be described as a. part of the chain of command and supporting top management. b. not part of the chain of command but having authority over his subordinates. c. not part of the chain of command and not having authority over any other employees. d. in the chain of command and having authority over his department. e. having advisory authority and line authority within the organization. |
| Ans: E
Difficulty: Easy LO: 6 Page: 199 AACSB: Analytic |
110. Thomas is a public affairs director for 3M. He holds a(n) __________ position in
the company. a. technical b. line c. operational d. sales e. staff |
| Ans: C
Difficulty: Easy LO: 6 Page: 199 AACSB: Analytic |
111. __________ managers can make decisions that relate to the organization’s goals.
a. Ad hoc b. Staff c. Line d. Advisory e. Administrative |
| Ans: E
Difficulty: Med. LO: 6 Page: 199 AACSB: Analytic |
112. A position that is part of the chain of command and shares in the direct
responsibility for achieving organizational goals is a(n) a. management hierarchy. b. staff management position. c. ad hoc committee. d. bureaucratic structure. e. line management position. |
| Ans: E
Difficulty: Mod. LO: 6 Page: 199 AACSB: Analytic |
113. The part of the organization that aids the line organization by providing support,
advice, and expertise is known as a(n) a. ad hoc committee. b. task force. c. informal group. d. matrix structure. e. staff management position. |
| Ans: D
Difficulty: Mod. LO: 6 Page: 199 AACSB: Analytic |
114. Hsia Wang is an accountant with Bed Bath & Beyond. In this company, she
holds a(n) __________ position. a. line b. administrative c. technical d. staff e. secretarial |
| Ans: D
Difficulty: Mod. LO: 6 Page: 199 AACSB: Analytic |
115. Which of the following would most likely be a staff management position?
a. Marketing director b. President c. Production department head d. Legal advisor e. Field sales manager |
| Ans: A
Difficulty: Mod. LO: 6 Page: 199 AACSB: Analytic |
116. A manager who can make decisions and issue directions that relate to the
organization’s goals has __________ authority. a. line b. staff c. advisory d. delegation e. functional |
| Ans: A
Difficulty: Diff. LO: 6 Page: 199 AACSB: Analytic |
117. Norman Fisher is a product manager at Procter & Gamble. Cindy Allen is the
senior attorney on the company’s legal staff. Mr. Fisher is considered a(n) __________ manager, whereas Ms. Allen is a(n) __________ manager. a. line; staff b. line; general c. general; assistant d. staff; line e. advisory; functional |
| Ans: B
Difficulty: Mod. LO: 6 Page: 199 AACSB: Analytic |
118. Design engineers at IBM provide suggestions about what materials to use in
making a product and how the product is to be manufactured. This exhibits the use of __________ authority. a. line b. staff c. group d. informal e. organizational |
| Ans: C
Difficulty: Easy LO: 6 Page: 199 AACSB: Analytic |
119. Conflict between line and staff managers is
a. rare. b. infrequent. c. fairly common. d. stable. e. easy to solve. |
| Ans: A
Difficulty: Diff. LO: 6 Page: 200 AACSB: Analytic |
120. You observe that a production engineer and a production manager are having a
second confrontation about recommendations for the new production system at Cole Manufacturing Company. One way to minimize such conflict is to a. integrate line and staff managers into one team. b. ensure that the responsibilities of line and staff managers are clearly defined. c. make line rather than staff managers accountable for results. d. make staff rather than line managers accountable for results. e. add another layer of managers to solve disputes between staff and line managers. |
| Ans: E
Difficulty: Diff. LO: 6 Page: 200 AACSB: Analytic |
121. One effective way of minimizing conflict between line and staff workers is to
a. make only the line workers accountable for the results of the decisions staff workers make; this way, they will work together better to get the tasks done right. b. keep the two types of workers completely separate from each other to make their jobs easier. c. create some overlap in their job functions so that line and staff workers must work together as a team to get the job done. d. offer formal education to line workers so that they will be on a more level playing field with staff workers. e. ensure that the areas of responsibility of line and staff managers are clearly defined. |
Forms of Organizational Structure
| Ans: C
Difficulty: Easy LO: 7 Page: 201 AACSB: Analytic |
122. Which of the following is not one of the four basic forms of organizational
structure? a. Cluster b. Network c. Line d. Bureaucratic e. Matrix |
| Ans: B
Difficulty: Mod. LO: 7 Page: 201 AACSB: Analytic |
123. A food products company has many layers of management and narrow spans of
control. It is divided into operations, marketing, research and development, and finance divisions. Centralized top management makes most of the company’s important decisions. This food products company most resembles a __________ organizational structure. a. matrix b. bureaucratic c. line d. cluster e. network |
| Ans: C
Difficulty: Diff. LO: 7 Page: 201 AACSB: Analytic |
124. A factory worker in an electronics plant has an idea that can significantly
increase factory productivity and tells it to his supervisor. His supervisor recognizes the merit of the employee’s idea and submits it as a formal report to the plant manager. After giving his contingent approval, the plant manager sends the proposal to the district manager and then to the vice president of operations. After three months, the CEO approves the proposal, and the change is implemented, saving the company $100,000 a month. This electronics company has a __________ structure. a. network b. line c. bureaucratic d. cluster e. matrix |
| Ans: E
Difficulty: Mod. LO: 7 Page: 201 AACSB: Analytic |
125. The military has a very rigid chain of command and every member’s uniform
immediately communicates his or her level of authority in the organization, resulting in a __________ structure. a. line b. network c. cluster d. matrix e. bureaucratic |
| Ans: D
Difficulty: Mod. LO: 7 Page: 201 AACSB: Analytic |
126. Which of the following is a characteristic of the bureaucratic structure of an
organization? a. Departmentalization by product, location, or customer b. A high degree of decentralization c. Wide spans of management, resulting in a flat organization d. A high degree of specialization e. Less clearly defined line and staff positions, with less formal relationships between the two |
| Ans: C
Difficulty: Easy LO: 7 Page: 201 AACSB: Analytic |
127. Princeton University has very rigid and formal entrance and registration
procedures. This enables the administration to process the large number of students in a uniform and equitable manner. This type of management system is indicative of a(n) __________ structure. a. matrix b. authoritarian c. bureaucratic d. organic e. democratic |
| Ans: C
Difficulty: Mod. LO: 7 Page: 201 AACSB: Analytic |
128. A form of organizational structure based on a formal framework of authority that
is carefully outlined and precisely followed is a __________ structure. a. cluster b. matrix c. bureaucratic d. mature matrix e. network |
| Ans: B
Difficulty: Mod. LO: 7 Page: 201 AACSB: Analytic |
129. Which of the following is characteristic of the bureaucratic structure of
management? a. A low level of job specialization b. A tall organization with narrow spans of management c. Departmentalization by product, location, or customer d. Informal patterns of delegation e. A high degree of decentralization |
| Ans: E
Difficulty: Mod. LO: 7 Page: 201 AACSB: Analytic |
130. Regulations and standard operating procedures pretty much guarantee uniformity
and support the __________ organizational structure. a. cluster b. matrix c. formal d. informal e. bureaucratic |
| Ans: A
Difficulty: Mod. LO: 7 Page: 202 AACSB: Analytic |
131. In an organization with a matrix structure, authority flows both
a. down and across. b. up and down. c. up and across. d. in lines and in circles. e. through groups and individuals. |
| Ans: D
Difficulty: Mod. LO: 7 Page: 202 AACSB: Analytic |
132. Sherry, a sales representative, is placed in a group with an engineer from
operations, a human resource specialist, and a financial manager to develop new uses for one of the company’s existing products in order to increase sales. This group is a a. standing committee. b. task force. c. bureaucracy. d. cross-functional team. e. multifaceted work group. |
| Ans: C
Difficulty: Mod. LO: 7 Page: 202 AACSB: Analytic |
133. Airo Corporation has a traditional structure. It wants to change to a project
structure that will allow more interaction among functional groups. Which structure would you suggest? a. Bureaucratic b. Formal c. Matrix d. Informal e. Cluster |
| Ans: D
Difficulty: Mod. LO: 7 Page: 202 AACSB: Analytic |
134. When a functional structure is combined with a project structure, the resulting
structure is called a(n) __________ structure. a. bureaucratic b. cluster c. integrated d. matrix e. hybrid |
| Ans: B
Difficulty: Diff. LO: 7 Page: 202 AACSB: Analytic |
135. An analyst in the corporate finance department at Chase Manhattan Bank has
been assigned to an interdepartmental project involving a major client. He must report to two different supervisors—the project manager and the manager of his department. This sort of organizational structure is called a __________ structure. a. cluster b. matrix c. bureaucratic d. functional e. hybrid |
| Ans: A
Difficulty: Diff. LO: 7 Page: 203 AACSB: Analytic |
136. Probably the most obvious advantage of a matrix structure over the bureaucratic
structure is that of a. added flexibility. b. improved motivation. c. improved communication within the organization. d. more personal growth and development of employees. e. lower salary expenses; because people are doing more work, the organization does not need to hire as many people. |
| Ans: E
Difficulty: Diff. LO: 7 Page: 203 AACSB: Analytic |
137. A disadvantage of the matrix structure is that
a. people have more work to do because they are assigned to special projects in addition to their regular tasks. b. the quality of work decreases due to project teams’ lack of attention to regular job duties. c. employees’ supervisors change, which can cause confusion. d. teams may be too decentralized and incapable of making a decision. e. employees have to report to more than one supervisor, which can cause confusion about who is in charge of certain situations. |
| Ans: E
Difficulty: Mod. LO: 7 Page: 203 AACSB: Analytic |
138. A marketing consulting firm has teams that work on projects together. The teams
are reassembled or left together based on the needs of each client. This company has a __________ organizational structure. a. matrix b. line c. network d. bureaucratic e. cluster |
| Ans: E
Difficulty: Mod. LO: 7 Page: 203 AACSB: Analytic |
139. Probably the primary advantage of the cluster structure is its
a. formality. b. low stress environment for employees. c. checks and balances. d. increased job security. e. flexibility. |
| Ans: D
Difficulty: Mod. LO: 7 Page: 203 AACSB: Analytic |
140. Which organizational structure is also called a virtual organization?
a. Matrix b. Cluster c. Bureaucratic d. Network e. Line |
| Ans: C
Difficulty: Mod. LO: 7 Page: 203 AACSB: Analytic |
141. Galvin Corporation provides institutional food facilities with bread and other
baked goods. The company does not actually produce or market the bread, and it has very few employees, most of whom are top executives or clerical workers. Galvin Corporation has a __________ organizational structure. a. matrix b. bureaucratic c. network d. cluster e. line |
Additional Factors That Influence an Organization
| Ans: C
Difficulty: Easy LO: 8 Page: 203 AACSB: Analytic |
142. A corporate culture is generally defined as the
a. manner in which employees interact with each other and with management. b. incorporation of company policies and procedures into employee activities. c. inner rites, rituals, heroes, and values of a firm. d. management philosophy pertaining to customer service. e. informal interaction of employees outside work during nonbusiness hours. |
| Ans: C
Difficulty: Mod. LO: 8 Page: 204 AACSB: Analytic |
143. Many online companies strive to have a corporate culture based on trust and
friendship among employees, a strong commitment to the company, and a relaxed and informal atmosphere. This is a __________ culture. a. communal b. fragmented c. networked d. family e. mercenary |
| Ans: E
Difficulty: Mod. LO: 8 Page: 204 AACSB: Analytic |
144. The two types of corporate culture that have low levels of sociability among
employees are a. networked and communal. b. fragmented and networked. c. family and communal. d. mercenary and networked. e. fragmented and mercenary. |
| Ans: E
Difficulty: Mod. LO: 8 Page: 206 AACSB: Analytic |
145. A person who takes responsibility for pushing an innovative idea, product, or
process through the organization is called an a. entrepreneur. b. innovator. c. initiator. d. inventor. e. intrapreneur. |
| Ans: E
Difficulty: Mod. LO: 8 Page: 206 AACSB: Analytic |
146. Arthur Fry, an employee at 3M, combined an innovative idea and the 3M
facilities at his disposal to develop Post-It Notes. Fry is an example of an a. entrepreneur. b. innovator. c. initiator. d. inventor. e. intrapreneur. |
| Ans: C
Difficulty: Mod. LO: 8 Page: 206 AACSB: Analytic |
147. A committee created for a specific short-term purpose is called a(n)
a. task force. b. standing committee. c. ad hoc committee. d. informal group. e. organic structure. |
| Ans: C
Difficulty: Mod. LO: 8 Page: 206 AACSB: Analytic |
148. A committee was organized at Xerox to study the company’s hiring, promotion,
and compensation policies. The group will review corporate procedures in these areas for the next six months and disband thereafter. This type of committee is referred to as a(n) a. standing committee. b. task force. c. ad hoc committee. d. integrative team. e. liaison committee. |
| Ans: E
Difficulty: Mod. LO: 8 Page: 206 AACSB: Analytic |
149. A relatively permanent committee charged with performing some recurring task
is called a(n) a. cluster structure. b. ad hoc committee. c. informal group. d. task force. e. standing committee. |
| Ans: D
Difficulty: Mod. LO: 8 Page: 206 AACSB: Analytic |
150. A group of managers from various departments is in charge of evaluating the
performance of the staff employees every year. This is a(n) a. ad hoc committee. b. permanent committee. c. task force. d. standing committee. e. organizational review committee. |
| Ans: C
Difficulty: Mod. LO: 8 Page: 207 AACSB: Analytic |
151. A committee created to investigate a major problem or pending decision is called
a(n) a. ad hoc committee. b. standing committee. c. task force. d. work team. e. venture committee. |
| Ans: C
Difficulty: Mod. LO: 8 Page: 207 AACSB: Analytic |
152. An automatic window motor manufacturer is negotiating a complicated contract
with Daimler Chrysler. The motor manufacturer appoints Richard to coordinate the activities for this process. Richard’s role is a(n) a. mediator. b. arbitrator. c. liaison. d. intrapreneur. e. task enforcer. |
| Ans: B
Difficulty: Mod. LO: 8 Page: 207 AACSB: Analytic |
153. A(n) __________ has been appointed to investigate the pending merger of your
company and the Tandy Corporation. a. standing committee b. task force c. standing force d. ad hoc committee e. grievance committee |
| Ans: A
Difficulty: Mod. LO: 8 Page: 207 AACSB: Analytic |
154. Executives from several departments at Ford Motor Company were brought
together recently to discuss the advantages and disadvantages of acquiring Jaguar. This type of committee is known as a(n) a. task force. b. standing committee. c. liaison committee. d. ad hoc committee. e. matrix team. |
| Ans: C
Difficulty: Mod. LO: 8 Page: 207 AACSB: Analytic |
155. An arrangement that provides increasing authority at higher levels of
management is known as a. a task force concept. b. an ad hoc committee. c. managerial hierarchy. d. a standing committee. e. intrapreneurship. |
| Ans: B
Difficulty: Diff. LO: 8 Page: 207 AACSB: Analytic |
156. Committees and task forces represent __________ groups within an
organization, whereas employee bowling teams and gatherings represent __________ groups. a. staff; line b. formal; informal c. staff; staff d. informal; formal e. line; staff |
| Ans: C
Difficulty: Easy LO: 8 Page: 207 AACSB: Analytic |
157. Personal rather than formal relationships among employees are known as the
a. span of management. b. chain of command. c. informal organization. d. bureaucratic structure. e. grapevine. |
| Ans: D
Difficulty: Easy LO: 8 Page: 207 AACSB: Analytic |
158. An informal communications network is known as a
a. memo. b. company newspaper. c. chain of command. d. grapevine. e. bulletin board. |
| Ans: D
Difficulty: Mod. LO: 8 Page: 208 AACSB: Analytic |
159. Carl Smith overheard that Joe Dunn was blowing the whistle on managers at
XYZ Company and that a full story would appear in Sunday’s paper. Carl quickly alerted the managers, who were able to stop the newspaper from printing the article. This is an example of managers’ a. ignoring the grapevine. b. involving the grapevine as a useless communication network. c. trying to eliminate the grapevine. d. using the grapevine as a managerial tool. e. reducing the credibility of information from the grapevine. |
| Ans: C
Difficulty: Mod. LO: 8 Page: 208 AACSB: Analytic |
160. Angered by the informal discussions among employees, a supervisor has posted
rules against rumors, gossip, and discussions about the company’s financial situation as well as other company matters. Your managerial know-how tells you that this supervisor is a. trying to support employees’ First Amendment rights. b. trying to eliminate inaccurate information. c. making a big mistake by trying to eliminate the grapevine. d. recognizing the need for a grapevine. e. attempting to use the grapevine as a managerial tool. |
| Ans: B
Difficulty: Diff. LO: 8 Page: 208 AACSB: Analytic |
161. Through informal talks with employees, managers realized employees thought
their plant would close, resulting in massive layoffs. A few were already seeking other employment. The managers responded promptly and aggressively to this rumor, assuring employees of the health of the corporation and the reasonable security of their jobs. Your managerial know-how tells you that these managers are attempting to a. ignore inaccurate information because they know the truth eventually will become known. b. respond to inaccurate grapevine information to minimize the damage such misinformation might cause. c. eliminate the grapevine. d. use the grapevine as a managerial tool. e. reduce the credibility of information from the grapevine. |
What Is an Organization?
| Ans: True
Difficulty: Easy LO: 1 Page: 191 AACSB: Analytic |
162. An organization is a group of two or more people working together to achieve
common goals. |
| Ans: False
Difficulty: Mod. LO: 1 Page: 191 AACSB: Analytic |
163. Each rectangle in an organization chart represents a relationship within the
organization. |
| Ans: False
Difficulty: Mod. LO: 1 Page: 191 AACSB: Analytic |
164. All large firms maintain complete and detailed organization charts because it is
important to maintain a clear line of authority. |
| Ans: False
Difficulty: Mod. LO: 1 Page: 195 AACSB: Analytic |
165. When an organization is organized based on a particular good or service, it is
using departmentalization by customer. |
| Ans: False
Difficulty: Mod. LO: 3 Page: 195 AACSB: Analytic |
166. When organizations are departmentalized by function, supervision becomes more
complex. |
| Ans: False
Difficulty: Easy LO: 1 Page: 191 AACSB: Analytic |
167. There are six steps involved in the task of organizing a firm’s structure. |
Job Design
| Ans: True
Difficulty: Mod. LO: 2 Page: 192 AACSB: Analytic |
168. Job specialization is the separation of all organizational activities into distinct
tasks and the assignment of different tasks to different people. |
| Ans: True
Difficulty: Mod. LO: 2 Page: 192 AACSB: Analytic |
169. The employees at the Ford production facility in Michigan work on an assembly
line where each employee performs a specific task. This method of assembly-line production is a good example of job specialization. |
| Ans: True
Difficulty: Mod. LO: 2 Page: 194 AACSB: Analytic |
170. The human resource manager of one of Hershey Foods’ production facilities has
been noticing an increase in absenteeism among assembly-line workers in the chocolate bar plant. Switching to a job rotation system would probably significantly decrease the amount of absenteeism. |
| Ans: True
Difficulty: Easy LO: 2 Page: 194 AACSB: Analytic |
171. Job rotation is the systematic shifting of employees from one job to another. |
Departmentalization
| Ans: True
Difficulty: Easy LO: 3 Page: 194 AACSB: Analytic |
172. The most common bases for departmentalization are function, product, location,
and customer. |
| Ans: False
Difficulty: Easy LO: 3 Page: 195 AACSB: Analytic |
173. Older, larger firms producing and selling various products base
departmentalization on function. |
| Ans: False
Difficulty: Mod. LO: 3 Page: 195 AACSB: Analytic |
174. Green Sports Incorporated is a small start-up company that manufactures and
markets sports equipment made from recycled materials. Green Sports is best suited to base its departmentalization on product. |
| Ans: True
Difficulty: Mod. LO: 3 Page: 195 AACSB: Analytic |
175. Ford Motor Company’s marketing department has recently been restructured to
implement a brand management strategy. This is an example of departmentalization by product. |
| Ans: True
Difficulty: Mod. LO: 3 Page: 195 AACSB: Analytic |
176. Departmentalization by location allows an organization to readily respond to the
unique demands of each geographic area. |
| Ans: True
Difficulty: Easy LO: 3 Page: 195 AACSB: Analytic |
177. Using more than one basis for departmentalization is the rule rather than the
exception for larger firms. |
| Ans: False
Difficulty: Easy LO: 3 Page: 195 AACSB: Analytic |
178. It is important that every company use only one departmentalization basis. |
Delegation, Decentralization, and Centralization
| Ans: True
Difficulty: Easy LO: 4 Page: 195 AACSB: Analytic |
179. Delegation is the act of distributing work and power to subordinates. |
| Ans: False
Difficulty: Mod. LO: 4 Page: 196 AACSB: Analytic |
180. Accountability is the power within an organization to accomplish an assigned job
or task. |
| Ans: False
Difficulty: Easy LO: 4 Page: 197 AACSB: Analytic |
181. A supervisor may delegate all accountability to subordinates. |
| Ans: False
Difficulty: Mod. LO: 4 Page: 197 AACSB: Analytic |
182. An organization in which management consciously attempts to spread authority
to the lower organizational levels is said to be centralized. |
| Ans: False
Difficulty: Mod. LO: 4 Page: 197 AACSB: Analytic |
183. When managers attempt to spread authority widely in the lower levels of an
organization, they are attempting to centralize authority. |
| Ans: True
Difficulty: Mod. LO: 4 Page: 197 AACSB: Analytic |
184. A manager’s reluctance to delegate may stem from his or her belief that the
subordinate will do the work too well. |
| Ans: False
Difficulty: Easy LO: 4 Page: 197 AACSB: Analytic |
185. When authority is concentrated at the top level of management, the organization
is said to be decentralized. |
| Ans: False
Difficulty: Mod. LO: 4 Page: 197 AACSB: Analytic |
186. A highly centralized organization usually means that lower-level employees have
the opportunity to make decisions regarding the best way to accomplish their assigned tasks. |
The Span of Management
| Ans: False
Difficulty: Mod. LO: 5 Page: 198 AACSB: Analytic |
187. After years of research, theorists have decided that the optimal span of
management is one manager per twenty employees. |
| Ans: True
Difficulty: Easy LO: 5 Page: 198 AACSB: Analytic |
188. The span of control is the number of subordinates who report directly to one
manager. |
| Ans: True
Difficulty: Easy LO: 5 Page: 198 AACSB: Analytic |
189. When a manager has few subordinates, a narrow span of management exists. |
| Ans: False
Difficulty: Easy LO: 5 Page: 199 AACSB: Analytic |
190. In a flat organization, administrative costs are higher because more managers are
needed. |
| Ans: True
Difficulty: Easy LO: 5 Page: 199 AACSB: Analytic |
191. The span of management plays a direct role in determining the organization’s
height. |
| Ans: True
Difficulty: Mod. LO: 5 Page: 199 AACSB: Analytic |
192. Target has several layers of management in between the entry-level management
position and CEO. This implies that the span of management for each manager is relatively narrow and the organizational height of Target is tall. |
Chain of Command: Line and Staff Management
| Ans: False
Difficulty: Mod. LO: 6 Page: 199 AACSB: Analytic |
193. A line management position is created to provide support, advice, and expertise
to someone who is in the chain of command. |
| Ans: False
Difficulty: Mod. LO: 6 Page: 199 AACSB: Analytic |
194. Bob McKinsey, a plant supervisor at a Saturn production facility, is responsible
for making sure that his plant produces a specific number of automobiles per day, thus ensuring that the company reaches its production quota. Bob’s position is an example of a staff management position. |
| Ans: True
Difficulty: Mod. LO: 6 Page: 200 AACSB: Analytic |
195. The human resources department of Baxter International distributes an employee
manual that includes a thorough description of the responsibilities of each position within the firm. This helps to decrease line-staff conflicts. |
Forms of Organizational Structure
| Ans: True
Difficulty: Mod. LO: 7 Page: 201 AACSB: Analytic |
196. A bureaucratic structure is a management system based on a formal framework
of authority that is carefully outlined and precisely followed. |
| Ans: False
Difficulty: Easy LO: 7 Page: 202 AACSB: Analytic |
197. Cross-functional teams are not very effective structures to use when developing a
new product or service. |
| Ans: True
Difficulty: Easy LO: 7 Page: 202 AACSB: Analytic |
198. The matrix organizational structure facilitates greater communication between
employees. |
| Ans: True
Difficulty: Easy LO: 7 Page: 202 AACSB: Analytic |
199. When the matrix structure is used, employees report to more than one supervisor. |
Additional Factors That Influence an Organization
| Ans: True
Difficulty: Mod. LO: 8 Page: 203 AACSB: Analytic |
200. The inner rites, rituals, heroes, and values of a firm make up its corporate culture. |
| Ans: False
Difficulty: Mod. LO: 8 Page: 204 AACSB: Analytic |
201. Companies like Southwest Airlines and Saturn attribute a great deal of their
success to their strong corporate cultures, which is inaccurate. In reality, research has determined that, over time, corporate culture has only a marginal influence on firm performance. |
| Ans: False
Difficulty: Mod. LO: 8 Page: 204 AACSB: Analytic |
202. Corporate culture has little real influence on the performance of a firm. |
| Ans: True
Difficulty: Mod. LO: 8 Page: 206 AACSB: Analytic |
203. The intrapreneur is an employee who takes responsibility for pushing an
innovative idea, product, or process through an organization. |
| Ans: True
Difficulty: Mod. LO: 8 Page: 206–207 AACSB: Analytic |
204. Among an ad hoc committee, a standing committee, and a task force, only a
standing committee is relatively permanent. |
| Ans: True
Difficulty: Easy LO: 8 Page: 207 AACSB: Analytic |
205. A task force is a committee responsible for investigating a major problem or
pending decision. |
| Ans: False
Difficulty: Easy LO: 8 Page: 207 AACSB: Analytic |
206. An informal organization can be shown on a formal organization chart. |
| Ans: False
Difficulty: Easy LO: 8 Page: 207 AACSB: Analytic |
207. Another term used to refer to a formal organization’s network of communication
is grapevine. |
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
