Question 1

A tall organization structure consists of multiple levels of management.

Accepted Answer

A) True 
 B)False

Question 2

Benchmarking requires organizations to compare each organizational function against the best in the world.

Accepted Answer

A) True 
 B)False

Question 3

In a line organization,there are many specialists who serve as advisors and assistants to the managers who make decisions.

Accepted Answer

A) True 
 B)False

Question 4

In today's business environment,the trend is to decrease the span of control.

Accepted Answer

A) True 
 B)False

Question 5

Line organizations often experience the problem of employees reporting to more than one boss.

Accepted Answer

A) True 
 B)False

Question 6

Chang is a project manager at Paradox Industries.He is able to borrow specialists from the organization on a regular basis to assist in major projects.After the project ends,the specialists return to their functional units to await new assignments.Paradox Industries utilizes a:

Accepted Answer

A) line organization model. 
B) bi-functional organization model. 
C) lateral transfer organization model. 
D) matrix organization model. 
A) line organization model. 
B) bi-functional organization model. 
C) lateral transfer organization model. 
D) matrix organization model.

Question 7

Which of the following is an example of a move to reorganize?

Accepted Answer

A) Reducing the labor force within your business 
B) Revising plans by creating contingency plans 
C) Managing by objectives and clearing pathways for success 
D) Developing a way to monitor financial success 
A) Reducing the labor force within your business 
B) Revising plans by creating contingency plans 
C) Managing by objectives and clearing pathways for success 
D) Developing a way to monitor financial success

Question 8

Excite Enterprises,a corporation of amusement parks uses an accounting firm to handle the payroll and tax functions for the company.Using the services of another firm in this manner is an example of:

Accepted Answer

A) outsourcing. 
B) functional reassignment. 
C) core competencies. 
D) benchmarking. 
A) outsourcing. 
B) functional reassignment. 
C) core competencies. 
D) benchmarking.

Question 9

Job descriptions are an important part of Max Weber's organizational theory.

Accepted Answer

A) True 
 B)False

Question 10

In a statement reported in the New York Times,Lars Bjork,CEO of Qliktech,remarked that he appreciates the order that bureaucracy can bring to an organization;however,when adding order to a process,the employees involved need to understand why that order is being implemented.It has to make sense.With this in mind,which of the following statements would be of great concern to this CEO?

Accepted Answer

A) Structure and order,better known as bureaucracy,have no place in an entrepreneurial organization. 
B) Adding structure and order to processes within a company will eventually lead to a larger,more bureaucratically led organization. 
C) When you start to put structure and order in an entrepreneurial organization,you need to be careful not to go overboard. 
D) Rules,structure,and order in any organization need an overhaul every few years,just to make certain that all employees are following the same procedures. 
A) Structure and order,better known as bureaucracy,have no place in an entrepreneurial organization. 
B) Adding structure and order to processes within a company will eventually lead to a larger,more bureaucratically led organization. 
C) When you start to put structure and order in an entrepreneurial organization,you need to be careful not to go overboard. 
D) Rules,structure,and order in any organization need an overhaul every few years,just to make certain that all employees are following the same procedures.

Question 11

Weber was critical of bureaucrats because he felt they undermined the efficiency of the organization.

Accepted Answer

A) True 
 B)False

Question 12

Sam supervised a group of people in a very large organization.The refrigerator in the lunchroom stopped functioning.Although he started the paperwork on the day it died,the refrigerator request went out for bid;two middle managers needed to approve it;and,the purchasing director had final approval.The refrigerator arrived six months later.Max Weber would have approved of the detail and documentation Sam's company accumulated to back-up the purchase.

Accepted Answer

A) True 
 B)False

Question 13

In a line-and-staff organization,staff positions are temporary jobs to train new line managers.

Accepted Answer

A) True 
 B)False

Question 14

Departments are functional units within the business such as sales,accounting,finance,and marketing.

Accepted Answer

A) True 
 B)False

Question 15

Economies of scale:

Accepted Answer

A) are available to small firms but not to large firms due to management inefficiencies. 
B) are achieved when a firm reduces its average cost of production as it produces more. 
C) can be avoided by purchasing supplies and raw materials in large quantities. 
D) help explain the success of small businesses. 
A) are available to small firms but not to large firms due to management inefficiencies. 
B) are achieved when a firm reduces its average cost of production as it produces more. 
C) can be avoided by purchasing supplies and raw materials in large quantities. 
D) help explain the success of small businesses.

Question 16

The process of creating individual departments to do specialized tasks is called departmentalization.

Accepted Answer

A) True 
 B)False

Question 17

Max Weber's principles of organization were similar to those of Henri Fayol.

Accepted Answer

A) True 
 B)False

Question 18

Julio is the owner of Celebration,Inc.a small party supply company.The company provides tents,tables,chairs,and related paraphernalia for wedding,Bar Mitzvah,Bot Mitzvah,graduation,birthday,and other celebratory events.As sales have increased,the organization has hired more personnel and departmentalized to more efficiently handle purchasing,sales,service,and accounting.Everyone is still responsible for achieving company goals.Upon seeing Celebration's organization chart,you agree it uses a _______________.

Accepted Answer

A) line organization model 
B) line and staff organization model 
C) matrix organization model 
D) cross-functional team organization model 
A) line organization model 
B) line and staff organization model 
C) matrix organization model 
D) cross-functional team organization model

Question 19

The Social Media in Business box titled,"When Twitter and Facebook Are Old School," speculates that as social media incrementally changes,we will see changes in_________________.

Accepted Answer

A) The way businesses organize,with the possibility that more employees will work remotely. 
B) Which social media company captures the most audience. 
C) The way companies handle the planning function because it will be easier to omit steps in the planning process. 
D) The amount of direction leadership provides.Hands-on direction will increase. 
A) The way businesses organize,with the possibility that more employees will work remotely. 
B) Which social media company captures the most audience. 
C) The way companies handle the planning function because it will be easier to omit steps in the planning process. 
D) The amount of direction leadership provides.Hands-on direction will increase.

Question 20

Max Weber's organizational theories require an educated work force to operate efficiently.

Accepted Answer

A) True 
 B)False

Exam 8: Structuring Organizations for Todays Challenges

A tall organization structure consists of multiple levels of management.

Benchmarking requires organizations to compare each organizational function against the best in the world.

In a line organization,there are many specialists who serve as advisors and assistants to the managers who make decisions.

In today's business environment,the trend is to decrease the span of control.

Line organizations often experience the problem of employees reporting to more than one boss.

Chang is a project manager at Paradox Industries.He is able to borrow specialists from the organization on a regular basis to assist in major projects.After the project ends,the specialists return to their functional units to await new assignments.Paradox Industries utilizes a:

Which of the following is an example of a move to reorganize?

Excite Enterprises,a corporation of amusement parks uses an accounting firm to handle the payroll and tax functions for the company.Using the services of another firm in this manner is an example of:

Job descriptions are an important part of Max Weber's organizational theory.

Weber was critical of bureaucrats because he felt they undermined the efficiency of the organization.

In a line-and-staff organization,staff positions are temporary jobs to train new line managers.

Departments are functional units within the business such as sales,accounting,finance,and marketing.

Economies of scale:

The process of creating individual departments to do specialized tasks is called departmentalization.

Max Weber's principles of organization were similar to those of Henri Fayol.

The Social Media in Business box titled,"When Twitter and Facebook Are Old School," speculates that as social media incrementally changes,we will see changes in_________________.

Max Weber's organizational theories require an educated work force to operate efficiently.

Taking Risks and Making Profits Within the Dynamic Business Environment

Understanding Economics and How It Affects Business

Doing Business in Global Markets

Demanding Ethical and Socially Responsible Behavior

How to Form a Business

Entrepreneurship and Starting a Small Business

Management and Leadership

Production and Operations Management

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Union and Employeemanagement Issues

Marketing: Helping Buyers Buy

Developing and Pricing Goods and Services

Distributing Products

Using Effective Promotions

Understanding Accounting and Financial Information

Financial Management

Using Securities Markets for Financing and Investing Opportunities

Money,financial Institutions,and the Federal Reserve

test Planning Table for Bonus Chapter A

Using Technology to Manage Information

Managing Risk

Managing Personal Finances

Filters