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Homework answers / question archive / Chapter 7            DESIGNING ORGANIZATIONAL STRUCTURES     TRUE-FALSE QUESTIONS   1)

Chapter 7            DESIGNING ORGANIZATIONAL STRUCTURES     TRUE-FALSE QUESTIONS   1)

Business

Chapter 7            DESIGNING ORGANIZATIONAL STRUCTURES

 

 

TRUE-FALSE QUESTIONS

 

1). When workers in a union elect their officers to represent them, it is an example of division of labor.

a. True

b. False

 

2. The time that an employee spends on a particular job determines his or her specialization of labor.

a. True

b. False

 

3. Organization charts show the formal and informal relationships among people, jobs, and departments.

a. True

b. False

 

4. A company that uses departmentalization groups jobs under the authority of one manager for the purposes of planning, coordination, and control.

a. True

b. False

 

5. Process departmentalization is a grouping of jobs by activity, such as marketing, finance, and production.

a. True

b. False

 

6. The matrix structure is a combination of a line and a staff organization.

a. True

b. False

 

7. The standards used to determine actions acceptable to the group are called norms.

a. True

b. False

 

8. One of the problems with setting up groups is the strong likelihood for the organization to experience decreased productivity.

a. True

b. False

 

9. Cross-functional teams are made up of employees from about the same hierarchical level but different functional areas within the organization.

a. True

b. False

 

10. Managerial hierarchy refers to the number of subordinates overseen by each supervisor.

a. True

b. False

 

11. Since the McDonald's shift manager has eight subordinates reporting to him, his span of control is eight.

a. True

b. False

 

12. The nature of the task and the location of the workers affect the size of a manager's span of control.

a. True

b. False

 

13. The line organization is designed with direct, clear lines of authority and communication flowing from the top managers downward.

a. True

b. False

 

14. An example of a staff position would be the job of district sales manager with twenty people working for him or her.

a. True

b. False

 

15. A company that is centralized has given a great deal of decision-making authority to lower-level managers.

a. True

b. False

 

16. A manager in a centralized organization tends to allow subordinates to assume authority and to make most of the decisions.

a. True

b. False

 

17. A tall organization structure has many managerial levels and a long chain of command.

a. True

b. False

 

18. Though the informal organization may be a force in an organization, it has no real power; so managers don't need to worry much about it.

a. True

b. False

 

19. The informal channels of communication of an organization are often referred to as the grapevine, the rumor mill, or the intelligence network.

a. True

b. False

 

20. The informal organization can help the formal organization to achieve its goals.

a. True

b. False

 

21. An excellent way of putting the informal organization to work for the good of the company is to bring informal leaders into the decision-making process.

a. True

b. False

 

22. An organization that has undergone reengineering has completely redesigned its business structures and processes in order to improve operations.

a. True

b. False

 

23. The primary purpose for any reengineering is to make an organization compliant with changes in its external environment.

a. True

b. False

 

24. The virtual corporation is one way that organizations can transform information technology into a competitive advantage.

a. True

b. False

 

25. The virtual corporation expands the traditional boundaries of an organization.

a. True

b. False

 

26. There is no way to embrace any one of the characteristics of a virtual corporation without embracing them all.

a. True

b. False

 

27. One of the most difficult challenges when merging two global companies is uniting the two company’s organizational culture.

a. True

b. False

 

 

MULTIPLE CHOICE QUESTIONS

 

1. _____ involves coordinating and allocating a firm’s resources so that the firm can carry out its plans and achieve its goals.

A. Organizing

B. Implementing

C. Resource planning

D. Controlling

E. Operational planning

 

2. One of the primary goals of Burberry, a British retailer, is to expand its market.  When the company allocated resources so that it could open two stores in Japan, it was engaged in which management function?

A. organizing

B. implementing

C. resource planning

D. benchmarking

E. operational planning

 

 

3. In 2005, BridgePort Brewing Company expanded sales of its BridgePort India Pale Ale, and BridgePort Black Strap Stout into Alabama, Georgia, Kansas, Minnesota, Missouri, North Carolina, Oklahoma, Tennessee and Texas.  These states will join BridgePort's current distribution markets of Alaska, Arizona, California, Colorado, Idaho, Montana, New Mexico, Oregon, and Washington.  When the brewery allocated resources to increase its production and distribution, it would have relied on which of the following management functions?

A. organizing

B. implementing

C. resource planning

D. benchmarking

E. operational planning

 

4. The management activity of organizing.

A. determines, groups, and assigns work activities

B. plans and monitors strategy implementation

C. determines goals, strategies, and tactics

D. results in a more productive workforce due to increased levels of compensation

E. compares expected performances with actual performances

 

5. _____ is the process of dividing the work and assigning tasks to workers.

A. Division of labor

B. Grouping of workers

C. Task division

D. Functional division

E. Worker breakdown

 

6. At your neighborhood Burger King, some employees take and fill orders, others prepare food, a few clean and maintain equipment, and some supervise.  This process of dividing work into separate jobs and assigning tasks to workers is called:

A. functional design

B. division of labor

C. task division

D. group division

E. worker cooperation

 

7. _____ is the degree to which tasks are subdivided into smaller jobs.

A. Task subdivision

B. Functional divisionalization

C. Specialization

D. Task-objective division

E. Task breakdown

 

8. On an automotive assembly line, Naif Marrot checks to make sure that recently painted car bodies are free of paint bubbles.  Other people are assigned the task of seeing that other parts of the car are built to specifications.  The task of building an automobile has been subdivided into a series of subtasks.  The concepts of _____ have been employed in this situation.

A. specialization and division of labor

B. product design and structured manufacturing

C. centralization and product departmentalization

D. decentralization and unity of command

E. functionalism and specialization

 

9. Division of labor refers to:

A. how the unity of command is assigned

B. the width of the managerial hierarchy

C. the degree to which tasks are subdivided into smaller groups

D. the process to dividing work into separate jobs

E. the size of the span of management

 

10. Specialization refers to the:

A. depth of the organization chart

B. width of the managerial hierarchy

C. degree to which tasks are subdivided into smaller groups

D. process to dividing work into separate jobs

E. size of the span of management

 

11. _____ is the process of grouping jobs together so that similar or associated tasks and activities can be coordinated.

A. Standardization

B. Centralization

C. Specialization

D. Departmentalization

E. Functionalism

 

12. A supervisor engaged in ______ is grouping people, tasks, and resources into organizational units to facilitate the planning, leading, and control processes.

A. task design

B. job enrichment

C. functionalization

D. task integration

E. departmentalization

 

13. A(n) _____ is a picture of the relationships among tasks and those employees given authority to do those tasks.

A. informal chart

B. organization chart

C. formal picture

D. relationship chart

E. functional chart

 

14. Which of the following is NOT a commonly used method for departmentalizing a firm?

A. by customer

B. by product

C. by function

D. by managerial level

E. by geography

 

15. An advertising agency that has separate departments for artwork, creative design, print advertising, radio advertising, television advertising, and specialty advertising is using _____ departmentalization.

A. customer

B. functional

C. size

D. geographic

E. hierarchical

 

 

16. Kohber is a Swiss-company that makes medical equipment.  It recently purchased a company, which manufactures packaging for high-value drugs.  Since it will run the packaging company as a separate division, it would seem that Kohber is departmentalized by:

A. customer

B. function

C. size

D. geography

E. product

 

17. The Cooke family has worked for various General Motors's divisions for over four decades.  Bennett Cooke works at the Cadillac division.  Rondella Cooke works at the Buick division.  Their son Tyrone works at the Corvette plant, and their daughter Niome works at the Saturn plant.  The Cooke family could tell you that GM is departmentalized by:

A. customer

B. size

C. geography

D. product

E. process

 

18. Gambrinus is a large company that owns and operates the breweries that produce Moosehead Lager, Bridgeport Ale, Pete's Wicked Ale, Corona beer, Trumer Pilsner, and Shiner Bock.  Each brewery is run as an independent division and each produces a malt liquor that appeals to a different market.  This is an example of departmentalization by:

A. customer

B. size

C. geography

D. product

E. process

 

19. As part of her marketing project, Lily Unruh is studying how Marriott operates.  Since she thought it was simply a hotel chain, she was amazed to learn that its food divisions provide food for school cafeterias, airlines, hotels, and fast-food restaurants.  Marriott’s food divisions are departmentalized by:

A. product

B. function

C. geography

D. customer

E. process

 

20. Coca-Cola Enterprises (CCE) is the largest bottler and distributor of Coke products in the world.  It is organized around its North America division and its European division.  This departmentalization by _____ allows CCE to respond to the demands of different markets.

A. process

B. customer

C. geography

D. function

E. product

 

21. American Express is organized into four divisions that cater to businesses, consumers, travelers, and investors.  American Express uses _____ departmentalization.

A. process

B. customer

C. geographic

D. functional

E. product

 

22. _____ is a permanent organization structure that combines functional and product departmentalization.

A. A functional organization

B. Subordinated management

C. A cartel

D. A matrix structure

E. A committee structure

 

23. Which of the following is NOT an advantage associated with matrix structures?

A. The company can tackle more complex tasks through teamwork.

B. Managers can build large, permanent teams of specialists.

C. Employees are more productive when they work on a special project.

D. Special projects give employees opportunities for personal and professional development.

E. The group can be disbanded if it is no longer needed.

 

24. Another name for the matrix structure is the:

A. quality management approach

B. line-and-staff structure

C. project management approach

D. networking approach

E. committee structure

 

25. One of the advantages of the matrix structure is:

A. the ability to balance conflicting objectives

B. higher performance

C. flexibility

D. teamwork

E. all of these

 

26. One of the disadvantages of the matrix structure is:

A. inflexibility

B. inability to use teamwork

C. reduce performance

D. lack of cohesiveness

E. all of the above

 

27. Pharmacie & Upjohn, a pharmaceutical company, uses a functional structure (research, development, manufacturing, and marketing) within each of its three largest major product divisions.  This company is an example of a:

A. functional organization

B. product organization

C. committee structure

D. networked organization

E. matrix structure

 

28. A structure in which authority and responsibility are held by a group of workers rather than a single manager is called a _____ structure.

A. matrix

B. committee

C. functional

D. subordinated

E. cluster

 

29. Which of the following statements about the committee structure is true?

A. Committees limit the range of possible solutions to a problem.

B. Committees can be slow to reach a decision.

C. Committee structures are not dominated by any single individual.

D. Committee meetings are typically short and reach solutions quickly.

E. All of the above statements about the committee structure are true.

 

30. A network of Bennetton retail sales agents select the Bennetton designs that they feel will appeal to Bennetton retail customers.  The responsibility for picking the next “hot style” is in the hands of this group.  This is an example of a _____ structure.

A. matrix

B. committee

C. functional

D. subordinated

E. cluster

 

31. Both Kennedy and LaGuardia Airports have established airport management committees.  These structures are advantageous because it:

A. makes the coordination of activities much easier

B. the decision-making process faster

C. does not require employees to waste time in meetings

D. encourages individual accountability

E. reduces dependence on group norms

 

32. _____ is the degree to which group members want to stay in the group and tend to resist outside influences.

A. Team synergy

B. Group cohesiveness

C. Organizational culture

D. Group norming

E. Group resistance

 

33. _____ could be used to explain why members of the night shift at a textile mill refuse to fill openings on the day shift even though most of the people who work at the plant feel day work is preferable to night work.

A. Team synergy

B. Group cohesiveness

C. Organizational philosophy

D. Group custom

E. Group resistance

 

34. Work group cohesiveness can benefit the organization by doing all of the following EXCEPT:

A. increased productivity

B. enhanced worker self-image because of group success

C. decreased resistance to change

D. reduced employee turnover

E. reduced employee absenteeism

 

35. The standards used to determine whether a group member's actions are acceptable are called group:

A. deviations

B. controls

C. mores

D. norms

E. means

 

36. Hugh Larrimore, Wilson Knight, and Frieda Perez have worked together for twelve years.  They always clock in and clock out together.  If one of the threesome happens to be late, the others will wait for him or her.  This commonly accepted behavior for this informal group is called a(n):

A. group norm

B. organizational policy

C. work procedure

D. self-mandated regulation

E. company policy

 

37. One of the advantages of work group cohesiveness is:

A. the absence of conflict with other work groups

B. formalized group norms

C. reduced employee turnover

D. the absence of resistance to change

E. groupthink

 

38. The disadvantages of group cohesiveness include:

A. increased absenteeism

B. decreased productivity

C. conflict with other work groups in the organization

D. increased employee turnover

E. increased willingness to accept change

 

39. _____ are groups of employees who share resources and coordinate efforts so as to help members better perform their individual duties and responsibilities.  The performance of this group can be evaluated by adding up the contributions of the individual group members.

A. Autonomous teams

B. Functional groups

C. Work groups

D. Project committees

E. Work teams

 

40. The typical problem-solving team:

A. makes final decisions

B. allocates resources

C. is comprised of employees from several different functional areas

D. meets on a regular basis to share information and discuss ways to improve processes

E. is accurately described by all of the above

 

 

 

41. Which of the following statements describes one the strengths of group decision making?

A. Group decision making results in a higher-quality decision then individual decision making.

B. Groups typically take much less time to reach a solution than an individual.

C. In a group, no one person or group will ever dominate the decision making process.

D. Conformity is not important when it comes to making a group decision.

E. When making decisions, groups have greater accountability than individuals.

 

42. Which of the following statements describes one the weaknesses of group decision making?

A. Groups bring less information and knowledge to the decision process.

B. Groups tend to generate significantly fewer alternatives than an individual.

C. The participation of group members decreases the likelihood that a decision will be accepted by the employees.

D. Group members may pressure others to conform to decrease the possibility of disagreement.

E. All of the above statements describe weaknesses of group decision making.

.

 

43. Self-managed work teams:

A. are highly autonomous teams

B. work without any formal supervision

C. take responsibility for setting their own goals

D. plan and schedule their own work activities

E. are accurately described by all of the above

 

44. Many organizations that experienced success using problem-solving teams expanded the team concept to allow team members to have greater responsibility in making decisions, implementing solutions, and monitoring outcomes.  These highly autonomous groups are called:

A. independent groups

B. functional groups

C. work groups

D. project committees

E. self-managed work teams

 

45. A team made up of employees from about the same hierarchical level, but different functional areas of an organization is called a:

A. cross-functional team

B. horizontally-organized team

C. vertically-organized team

D. problem-resolution team

E. project committee

 

 

46. A large furniture and appliance rental business is considering sponsorship options.  It has brought together vice-presidents from the various functional areas of the company to determine which sponsorships will most effectively reach the rental company's prospective customers.  The rental company has established a:

A. cross-functional team

B. horizontally-organized team

C. vertically-organized team

D. problem-resolution team

E. project committee

 

47. To be a high-performance team, a team:

A. needs to practice good communication

B. needs to give appropriate feedback to each other

C. should contain members with a variety of skills

D. must have a great leader

E. is accurately described by all of these

 

48. The managerial hierarchy is also called the:

A. managerial continuum

B. management pyramid

C. control continuum

D. management matrix

E. span of management

 

49. The three basic levels of the managerial hierarchy are:

A. functional, process, and product

B. strategic, tactical, and functional

C. top, middle, and supervisory

D. planning, coordinating, and controlling

E. none of the above

 

50. The ______ refers to the levels of management within the organization.  These levels usually conform to the shape of a pyramid.

A. functional group

B. managerial hierarchy

C. subordinated unit

D. authoritative span

E. control matrix

 

51. Which of the following statements about the managerial hierarchy is true?

A. The lower a manager, the more power he or she has.

B. The amount of power decreases as you move up the managerial hierarchy.

C. The number of employees being managed decreases as you move down the managerial hierarchy.

D. The managerial hierarchy is also called the management pyramid.

E. All of the above statements about the managerial hierarchy are true.

 

52. Which of the following statements about the management pyramid is true?

A. All companies use the management pyramid structure.

B. The span of management is clearly defined in the management pyramid.

C. The person with the most formal authority is at the top of the pyramid.

D. The management pyramid typically eliminates the need for a clear chain of command.

E. The management pyramid typically eliminates the need for unity of command.

 

53. The _____ defines the relationships of authority from one level of organization to the next, from top to bottom.

A. chain of command

B. functional chain

C. chain of accountability

D. chain of order

E. structural chain

 

54. When a person at a lower level skips a level in the organization chart and consults his or her boss's boss, that person is said to be violating the:

A. chain of command

B. functional chain

C. chain of accountability

D. chain of order

E. structural chain

 

55. _____ guarantees that each employee will have only one direct supervisor.

A. Divisional unity

B. Accountability

C. Functional unity

D. Unity of command

E. Unity of direction

 

56. A research employee at the European Metabolic Diseases Group would have a boss at the company’s European Research department and a boss at the company’s European Metabolic Diseases product group.  This would be in violation of:

A. unity of supervision

B. unity of command

C. unity of structure

D. functionalization

E. accountability

 

57. Richard Sands is the CEO of Constellation Brands, the world's largest wine producer.  He has the legitimate power and right to make decisions about how the division is run and to influence others to carry out these decisions. He has:

A. authority

B. empowerment

C. a span of power

D. functional power

E. empathy

 

58. As the CEO of Constellation Brands, the world's largest wine producer, Richard Sands would:

A. be at the bottom level of the managerial hierarchy

B. not be a part of the managerial hierarchy

C. be at the very top of the managerial pyramid

D. have the narrowest span of management

E. be in a staff position

 

59. ______ is the sharing of job duties and authority with subordinates.

A. Responsibility sharing

B. Functionalization

C. Delegation of authority

D. Job enrichment

E. Networking

 

60. Tameika Johnson’s supervisor is in charge of the arrangements for the annual company party.  He has given Johnson the responsibility for finding a caterer for the event, arranging the entertainment, and selecting the door prizes.  Johnson’s supervisor used _____ to make her accountable for most of the success or failure of the picnic.

A. substitution

B. delegation of authority

C. transposition

D. job-sharing

E. deputing

 

61. When the Chili restaurant chain was in financial trouble, its CEO delegated the managers of each of the chain’s restaurant to trim costs without sacrificing customer satisfaction.  The CEO used _____ to make restaurant managers accountable for cost-cutting measures.

A. substitution

B. delegation of authority

C. transposition

D. job-sharing

E. deputing

 

62. When the Chili restaurant chain was in financial trouble, its CEO delegated the managers of each of the chain’s restaurant to trim costs without sacrificing customer satisfaction.  In other words, the individual restaurant managers were:

A. made accountable

B. given hierarchical authority

C. given job security

D. given task leniency

E. made pseudo-authority figures

 

63. Antony Johnson works in the human resources department of a small wholesale company.  His boss has delegated to Johnson the job of finding a replacement for the company’s shipping dock supervisor who has recently retired.  Johnson will have total responsibility for filling this position.  Johnson will be:

A. made accountable

B. given hierarchical authority

C. given job security

D. given task leniency

E. made a pseudo-authority figure

 

64. ______ is the legitimate power granted by the organization and acknowledged by the employees.

A. Functionalization

B. Coordination

C. Cooperation

D. Centralization

E. Authority

 

65. Cristos Hatzienmmanuil worked to make the Olympics in Athens a success.  As a manager of the Olympic venues, he had 20 people who reported directly to him.  His _____ is twenty.

A. span of control

B. controllability

C. accountability

D. span of attention

E. depth of authority

 

66. The number of people or subordinates that a manager effectively controls and directs is called the manager’s span of:

A. tasks

B. responsibility

C. control

D. accountability

E. delegation

 

67. One of the advantages of a wide span of control is:

A. a high degree of control

B. a lack of synchronization

C. an absence of managerial support

D. close supervision of employees

E. greater organizational flexibility

 

68. One of the advantages of a narrow span of control is:

A. more levels of management

B. a high degree of control

C. greater organizational flexibility

D. increased employee autonomy

E. top management isolation

 

69. Which of the following factors has NO effect on the size of a manager's span of control?

A. age of the subordinates

B. nature of the task

C. level of skill and motivation of the workers

D. location of the workers

E. ability of the manager to delegate responsibility

 

70. Which of the following factors has an effect on the size of a manager's span of control?

A. age of the subordinates

B. multiculturalism of the subordinates

C. competence of other supervisors

D. size of managerial hierarchy

E. ability of the manager to delegate responsibility

 

71. A _____ organization is a design with direct, clear lines of authority and communication flowing from the top managers downward.

A. staff

B. line

C. functional

D. matrix

E. networked

 

72. Larry Gomez is a warehouse manager for a company that markets electric generators.  In this small entrepreneurial firm, there are direct lines of communication and authority flowing from the company’s CEO down to Gomez and through her to the workers in the warehouse.  Gomez works in a _____ organization.

A. matrix

B. staff

C. line

D. functional

E. centralized

 

73. The quality control engineer at a petrochemical refinery is in a _____ position.

A. line

B. staff

C. matrix

D. centralized

E. indirect power

 

74. _____ personnel have direct authority about product decisions; ______ personnel give expert advice in specialized areas.

A. Top; lower

B. Staff; functional

C. Functional; staff

D. Line; staff

E. Staff; line

 

75. Rosa Llewelyn works in the human resources department of a company that manufactures packaging machines.  She handles payroll and insurance.  Llewelyn is in a(n) _____ position.

A. line

B. matrix

C. functional

D. staff

E. advisory

 

76. Reginald Harvey works in the public relations office of a company that manufactures pharmaceuticals.  Harvey does not produce, sell, or distribute the products his company makes.  He is in a _____ position.

A. functional

B. staff

C. line

D. centralized

E. decentralized

 

77. Typical staff positions are found in _____ departments.

A. production and legal

B. legal and human resources

C. human resources and marketing

D. production and marketing

E. public relations and production

 

78. Typical line positions are found in _____ departments.

A. production and marketing

B. human resources and legal

C. legal and marketing

D. public relations and marketing

E. human resources and public relations

 

79. _____ is the practice of giving only limited authority and decision-making to lower-level managers.

A. Centralization

B. Functionalization

C. Decentralization

D. Accountability

E. Subordinated

 

80. Kirk McCoy is district sales manager for the Jimmy Dean division of Sara Lee Corp.  He has six sales managers that report to him.  McCoy makes most of the decisions for his people and demands that they check with him on any changes in pricing, sales scheduling and routing, and sales presentation material.  McCoy operates a ______ department.

A. centralized

B. hierarchical

C. decentralized

D. subordinated

E. functional

 

 

 

81. ______ is the practice of giving a great deal of authority and decision-making freedom to lower-level managers.

A. Centralization

B. Decentralization

C. Autonomy

D. Functionalization

E. Subordination

 

82. In a _____ organization, lower-level personnel are not given a chance to develop their decision-making and leadership skills.

A. centralized

B. functionally organized

C. decentralized

D. hierarchical

E. subordinated

 

83. Leonora Whatley is the head of the marketing research department for a cosmetics manufacturer.  Whatley delegates as much authority as possible to her fourteen subordinates although she still retains ultimate responsibility.  Whatley manages a _____ department.

A. centralized

B. functionally organized

C. decentralized

D. hierarchical

E. subordinated

 

84. Decentralization is usually desirable in a company when:

A. the firm is very large

B. the firm is operating in a dynamic environment

C. employees are willing to take responsibility

D. the firm is geographically dispersed

E. any or all of the above conditions occur

 

85. Decentralization is usually desirable in a company when:

A. the company is operating in a pure competition

B. the company is geographically concentrated

C. the organization has fewer than 30 employees

D. the firm is operating in a dynamic environment

E. employees refuse to accept any accountability

 

86. A(n) _____ organization is characterized by a relatively high degree of job specialization, rigid departmentalization, many layers of management, narrow spans of control, centralized decision making, and a long chain of command.

A. mechanistic

B. hierarchical

C. line

D. organic

E. staff

 

87. A(n) _____ organization is characterized by a relatively low degree of job specialization, loose departmentalization, few levels of management, wide spans of control, decentralized decision making, and a short chain of command.

A. mechanistic

B. hierarchical

C. line

D. organic

E. staff

 

88. A company with few managerial levels and a short chain of command usually has a wide span of control.  This is called a _____ organizational structure.

A. matrix

B. tall

C. flat

D. narrow

E. mechanistic

 

89. A company with a narrow span of control, which tends to have many managerial levels and a long chain of command, is said to have a ______ organizational structure.

A. networked

B. tall

C. flat

D. wide

E. matrix

 

90. A mechanistic organization has:

A. low job specialization

B. few levels of management

C. centralized decision making

D. a short chain of command

E. a relatively low degree of job specialization

 

91. An organic organization has:

A. a relatively high degree of job specialization

B. centralized decision making

C. narrow spans of control

D. a long chain of command

E. loose departmentalization

 

 

 

 

 

 

 

92. A company with a wide span of control and short chain of command is a _____ organization.  A company with a narrow span of control and long chain of command is a _____ organization.

A. networked; flat

B. matrix; narrow

C. networked; tall

D. flat; tall

E. matrix; tall

 

93. Military organizations, like the Pentagon, typically have a(n) _____ organization.

A. staff

B. matrix

C. mechanistic

D. line

E. organic

 

94. Small colleges, like Shorter College and Berry College in Rome, Georgia, typically have a(n) _____ organization, which is also referred to as a flat organizational structure.

A. staff

B. matrix

C. mechanistic

D. line

E. organic

 

95. The day-to-day relationships that develop in an organization but are not listed on an organization chart are called the firm’s _____ organization.

A. casual

B. grapevine

C. latent

D. hierarchical

E. informal

 

96. A(n) _____ organization is a network of connections and channels of communication based on the informal relationships of individuals inside an organization.

A. casual

B. grapevine

C. latent

D. hierarchical

E. informal

 

 

 

97. The informal organization does NOT:

A. help orient new employees

B. offer friendship opportunities and social contact to new employees

C. improve job performances

D. improve salary levels

E. transmit information

 

98. The informal organization:

A. offers friendship opportunities and social contact

B. gives employees more control over their work environment

C. provides status and recognition

D. orients new employees about the workings of the company

E. does all of the above

 

99.  Another name for the informal channel of communication used by the informal organization is:

A. the grapevine

B. the talk ring

C. the talk network

D. the norm network

E. leapfrogging

 

100. Which of the following statements about the informal organization is true?

A. Informal organizations provide a source of friendship for organization members.

B. Informal organizations can provide status and recognition that the formal organization cannot provide its employees.

C. The informal organization learns information about the formal organization through the grapevine.

D. The informal organization can create problems for the formal organization if it is not managed well.

E. All of the above statements about the informal organization are true.

 

101. Which of the following statements about the informal organization is true?

A. Informal organizations never provide members with status and recognition; that is the function of the formal organization.

B. Management should not be concerned about the informal organizations ever conflicting with the goals of the formal organization.

C. The group norms of the informal organization are developed and implemented by the formal organization.

D. The informal organization learns information about the formal organization through the grapevine.

E. All of the above statements about the informal organization are true.

 

102. The purpose of reengineering is to:

A. identify and abandon the outdated rules and fundamental assumptions that guide current business operations

B. implement the latest technology in all functional divisions of the business

C. adopt a product management approach to doing business

D. identify and establish international markets

E. make sure that the company is operating at the postconventional ethical level

 

103. Korber is the world’s largest producer of cigarette manufacturing equipment.  As growth in the world tobacco consumption declines, it is obvious that Korber will face a bleak future unless it is able to divest itself of its connection to the cigarette industry and start anew.  In other words, Korber needs to engage in:

A. operations research

B. reengineering

C. quality improvement

D. operational control

E. management by objectives

.

 

104. The goal of ______ is to redesign business processes to achieve improvements in cost control, product quality, and customer service.

A. redesigning

B. reprocessing

C. reengineering

D. downsizing

E. process restructuring

 

105. GTE modified its telephone operations by creating "customer care centers."  The purpose of this change was to identify and abandon outdated rules and fundamental assumptions and act as if it were creating a new company more in line with the needs of today’s customers.  GTE was using a new concept in business called:

A. operations research

B. reengineering

C. quality improvement

D. operational control

E. management by objectives

 

106. The _____ corporation is a network of independent companies linked by information technology to share skills, costs, and access to one another's markets.

A. hierarchical

B. virtual

C. opportunistic

D. autonomous

E. network

 

 

 

 

107. Which of the following is a key attribute of the virtual corporation?

A. They are less permanent, less formal, and more opportunistic than traditional partnerships.

B. With information technology, geographically dispersed companies can easily work together.

C. The structure expands the traditional boundaries of an organization.

D. Each partner brings its core competency to the alliance.

E. All of the above are key attributes of the virtual corporation.

 

108. Which of the following is NOT a key attribute of the virtual corporation?

A. Vertical integration is easy with this form of organization.

B. The virtual corporation creates trust among its members.

C. The structure expands the traditional boundaries of an organization.

D. Virtual corporations are less formal than traditional partnerships.

E. Geographically dispersed companies can easily participate in a virtual corporation.

 

109. Which of the following management terms is NOT associated with the ideal virtual corporation?

A. vertical integration

B. core competency

C. organization chart

D. managerial hierarchy

E. centralized decision making

 

110. Virtual teams have been made an effective management tool through:

A. the use of narrow spans of management

B. a new motivational technique that is results-based

C. technology

D. a trend toward greater employee empowerment

E. the elimination of mechanistic structures from international companies

 

111. Why do companies engage in outsourcing?

A. to create a competitive advantage that cannot be replicated by their competitors

B. to eliminate redundant managerial levels

C. to cut costs and to satisfy labor needs

D. to avoid government regulations

E. to create broader spans of management

 

112. Syntel is a software development company that originated in Michigan.  The company once employed 6,500 workers in the U.S.  In August of 2006, it reduced its U.S. workforce to 500 who are primarily in the marketing department and hired an Indian company to take charge of its production area.  Syntel engaged in:

A. reengineering

B. outsourcing

C. sole sourcing

D. service licensing

E. international marketing

 

 

FILL-IN-THE-BLANK QUESTIONS

 

1. An organization chart shows the _____ relationships among people, jobs, and departments.

 

2. _____ is the process of dividing the work and assigning tasks to workers.

 

3. The _____ is a picture of the relationships among tasks and those given authority to do those tasks.

 

4. _____ is the grouping of jobs under the authority of one manager for the purposes of planning, coordination, and control.

 

5. A _____ is also called the project management approach and is sometimes used in conjunction with the traditional line-and-staff structure in an organization.

 

6. _____ are the standards used to determine whether a group member's actions are acceptable.

 

7. _____ is the degree to which group members want to stay in the group and resist outside influences.

 

8. _____ are teams of employees who are from about the same level of the organizational hierarchy but from different functional areas.

 

9. A manager’s _____ is the number of subordinates that a manager can effectively supervise.

 

10. The _____ organization is a design with direct, clear lines of authority and communication.

 

11. The ______ personnel provide advice and specialized support services to line managers.

 

12. _____ is the practice of giving only limited authority to lower-level managers.

 

13. Sandra Metzger shares decision making and authority with her subordinates.  Edge’s department is _____ because she believes the people she supervises can make good decisions on their own.

 

14. A _____ organization is characterized by a relatively high degree of job specialization, rigid departmentalization, many layers of management, narrow spans of control, centralized decision making, and a long chain of command.

 

15. An _____ organization has a flat organizational structure.

 

16. A salesperson and a co-worker who happens to be an accountant have developed a relationship that did not formally exist on the organization chart but has improved their working relationship. Their friendship illustrates an ______ relationship.

 

17. _____ is the complete redesign of business structures and processes in order to improve operations.

 

18. A _____ is a network of independent companies linked by information technology to share skills, costs, and access to one another’s markets.

 

 

SHORT ANSWER QUESTIONS

 

1. Briefly discuss the relationship between division of labor and specialization.

 

2. What are the five basic types of departmentalization?

 

3. What are group norms?

 

4. List the three basic types of work teams.

 

5. What is the management pyramid?

 

6. What kind of power gives a supervisor the authority to make decisions?

 

7. Briefly define accountability.

 

8. What is the difference between span of control and span of management?

 

9. What type of organizational structure is well suited to small, entrepreneurial firms?

 

10. Mia Little is a safety engineer for a company that makes petrochemicals.  What kind of a position does she have in the company since she is not directly involved in the process of making any chemicals?

 

11. What term best describes the type of organizational structure commonly found in the military?

 

12. Briefly describe the span of control in an organic organization.

 

13. What is the best type of organizational structure?

 

14. At its simplest level, an organization engaged in reengineering is doing what?

 

15. What type of organizational structure has no central office, no organization chart, no managerial hierarchy, and no vertical integration?

 

 

 

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