Question 1

What is the grapevine?

Accepted Answer

The grapevine is the informal communication network that runs through an organization.

Question 2

Which of the following best describes accountability?

Accepted Answer

A) The assignment of a task,responsibility,or authority by a manager to a subordinate 
B) The number of people supervised by one manager 
C) The duty to perform an assigned task 
D) The liability of subordinates for accomplishing tasks assigned by managers 
E) The power to make the decisions necessary to complete a task 
A) The assignment of a task,responsibility,or authority by a manager to a subordinate 
B) The number of people supervised by one manager 
C) The duty to perform an assigned task 
D) The liability of subordinates for accomplishing tasks assigned by managers 
E) The power to make the decisions necessary to complete a task D

Question 3

How should a manager react when he or she discovers the existence of an informal organization and grapevine within the context of the formal organization?

Accepted Answer

The manager should first accept the fact that the informal organization and its grapevine are extremely important to employees.Since attempts to eliminate the informal organization and the grapevine are fruitless,the manager should not react negatively and try to stamp out these features of the organization.Rather,the manager should maintain open channels of communication and respond vigorously to inaccurate information because this will minimize the damage the grapevine can cause.In fact,the grapevine can be an asset.By getting to know the key people who are part of the grapevine,the manager can partially control the information that is disseminated and can use the grapevine to determine employee reactions to new ideas (e.g. ,a change in human resource policies or benefit packages).The manager should try to use the informal organization to his/her advantage rather than trying to suppress it.

Question 4

List five bases of departmentalization.

Accepted Answer

Customer,product,pro

Question 5

Which of the following is correct with respect to organizational structure?

Accepted Answer

A) Once an organizational structure is in place,it tends not to change much until the next major change is made. 
B) Because of the busy environment that defines most organizations,structure can sometimes develop without much planning. 
C) The organization's purpose,mission,and strategy are not particularly important factors in the structure an organization adopts;rather,the most important factor is executive preferences. 
D) An organization's structure is largely the result of rational planning,and the preferences of managers do not generally influence the decision of which structure to adopt. 
E) All of these are correct. 
A) Once an organizational structure is in place,it tends not to change much until the next major change is made. 
B) Because of the busy environment that defines most organizations,structure can sometimes develop without much planning. 
C) The organization's purpose,mission,and strategy are not particularly important factors in the structure an organization adopts;rather,the most important factor is executive preferences. 
D) An organization's structure is largely the result of rational planning,and the preferences of managers do not generally influence the decision of which structure to adopt. 
E) All of these are correct.

Question 6

Compare and contrast the three forms of authority: line,staff,and committee and team authority.

Accepted Answer

- Line authority is based on chain of co

Question 7

What is the purpose of developing an organization chart? How are these charts used?

Accepted Answer

- To illustrate to employees h

Question 8

Which of the following uses teams of specialists to complete specific projects?

Accepted Answer

A) Project organization 
B) Functional structure 
C) Product structure 
D) Process organization 
E) Divisional structure 
A) Project organization 
B) Functional structure 
C) Product structure 
D) Process organization 
E) Divisional structure

Question 9

What organizational structure issues must Canadian firms address when they decide to "go global"?

Accepted Answer

They must address three organizational s

Question 10

Organizations use decentralization to maintain standardization.

Accepted Answer

A) True 
 B)False

Question 11

Which statement about organizational structure is true?

Accepted Answer

A) Decentralized firms tend to have many layers of management. 
B) As a company gets larger,it tends to adopt a decentralized structure. 
C) The purpose of centralization is to make a company more responsive to a changing,complex environment. 
D) In a centralized organization,most decision-making authority is held by lower-level managers. 
E) Decentralized companies must change to centralized structures in response to unpredictable environments. 
A) Decentralized firms tend to have many layers of management. 
B) As a company gets larger,it tends to adopt a decentralized structure. 
C) The purpose of centralization is to make a company more responsive to a changing,complex environment. 
D) In a centralized organization,most decision-making authority is held by lower-level managers. 
E) Decentralized companies must change to centralized structures in response to unpredictable environments.

Question 12

Interstate Insurance is looking to upgrade the company's information technology;the company needs to prioritize its needs and find out in what areas the company needs to improve. Many at Interstate feel that the information systems at the company are not sufficiently tailor-made to each of the functions of the different departments.Which of the following issues is most relevant to deciding whether this should be a priority?

Accepted Answer

A) The degree to which the various departments differ in their work functions 
B) The last time that employees' hardware at their workstations was updated 
C) The extent to which customers are satisfied with their online experience with the company 
D) Whether the marketing department uses data mining to get information on customers 
E) Whether the company's executives are confident about the direction the company is taking 
A) The degree to which the various departments differ in their work functions 
B) The last time that employees' hardware at their workstations was updated 
C) The extent to which customers are satisfied with their online experience with the company 
D) Whether the marketing department uses data mining to get information on customers 
E) Whether the company's executives are confident about the direction the company is taking

Question 13

Scott has reviewed the organizational structure of his company and found that there is a lot of specialization within each area,employees seem to have clearly defined career paths,and that there is little duplication of activities.He is most likely working in a company with a(n)________ structure.

Accepted Answer

A) international 
B) divisional 
C) functional 
D) conglomerate 
E) matrix 
A) international 
B) divisional 
C) functional 
D) conglomerate 
E) matrix

Question 14

Tarnopol Learning Services (TLS)offers tutoring to high school students,college students,and adults returning to school.TLS also bids on government-sponsored contracts.TLS's major product offerings include academic tutoring,standardized test preparation,and admissions consulting.Its operations spread over many geographic regions.Currently,the company is deciding whether it should change from its current approach of organizing by geographical area.A senior manager has predicted that if TLS is not profitable this year and fails to develop any new products,the company will switch to either a functional approach or a product approach. Which of the following,if true,would most strongly suggest that TLS should change its organizational structure to a functional-based approach?

Accepted Answer

A) TLS currently maintains separate human resource departments in each of its regions. 
B) Research suggests that product development failures happened because the product developers were isolated from customers. 
C) TLS earns large streams of revenue from services it offers to schools. 
D) In the current regional structure,managers complain about having a limited view of organizational goals. 
E) Sales techniques that work in one region are often much less effective in other regions. 
A) TLS currently maintains separate human resource departments in each of its regions. 
B) Research suggests that product development failures happened because the product developers were isolated from customers. 
C) TLS earns large streams of revenue from services it offers to schools. 
D) In the current regional structure,managers complain about having a limited view of organizational goals. 
E) Sales techniques that work in one region are often much less effective in other regions.

Question 15

An organization's structure should ideally be determined by a rational process,but for many organizations,structure may often develop without much planning.

Accepted Answer

A) True 
 B)False

Question 16

Why should a manager maintain equilibrium between authority and responsibility?

Accepted Answer

- With authority comes respons

Question 17

In a centralized organization,most of the decision-making authority is held by upper-level managers.

Accepted Answer

A) True 
 B)False

Question 18

Attempts to separate the work force into departments that are based on anything other than customers have been largely unsuccessful.

Accepted Answer

A) True 
 B)False

Question 19

Why are centralization and decentralization,delegation,and authority the key ingredients in establishing the decision-making hierarchy?

Accepted Answer

After jobs have been specialized and dep

Question 20

Which of the following is a disadvantage of informal communications?

Accepted Answer

A) Managers can easily interrupt the flow of information which the employees may believe to be important. 
B) Good news may spread very rapidly through the informal channel. 
C) It flows through the chain of command. 
D) Rumours and distorted or inaccurate information may be flowing through the grapevine at a fast rate. 
E) Studies have shown that the rumours and gossip on the grapevine are almost always accurate. 
A) Managers can easily interrupt the flow of information which the employees may believe to be important. 
B) Good news may spread very rapidly through the informal channel. 
C) It flows through the chain of command. 
D) Rumours and distorted or inaccurate information may be flowing through the grapevine at a fast rate. 
E) Studies have shown that the rumours and gossip on the grapevine are almost always accurate.

What is the grapevine?

Which of the following best describes accountability?

How should a manager react when he or she discovers the existence of an informal organization and grapevine within the context of the formal organization?

List five bases of departmentalization.

Which of the following is correct with respect to organizational structure?

Compare and contrast the three forms of authority: line,staff,and committee and team authority.

What is the purpose of developing an organization chart? How are these charts used?

Which of the following uses teams of specialists to complete specific projects?

What organizational structure issues must Canadian firms address when they decide to "go global"?

Organizations use decentralization to maintain standardization.

Which statement about organizational structure is true?

Scott has reviewed the organizational structure of his company and found that there is a lot of specialization within each area,employees seem to have clearly defined career paths,and that there is little duplication of activities.He is most likely working in a company with a(n)________ structure.

An organization's structure should ideally be determined by a rational process,but for many organizations,structure may often develop without much planning.

Why should a manager maintain equilibrium between authority and responsibility?

In a centralized organization,most of the decision-making authority is held by upper-level managers.

Attempts to separate the work force into departments that are based on anything other than customers have been largely unsuccessful.

Why are centralization and decentralization,delegation,and authority the key ingredients in establishing the decision-making hierarchy?

Which of the following is a disadvantage of informal communications?

Understanding the Canadian Business System

The Environment of Business

Conducting Business Ethically and Responsibly

Entrepreneurship,small Business,and New Venture Creation

The Global Context of Business

Managing the Business Enterprise

Managing Human Resources and Labour Relations

Motivating,satisfying,and Leading Employees

Operations Management,productivity,and Quality

Understanding Accounting

Understanding Marketing Principles and Developing Products

Pricing,promoting,and Distributing Products

Money and Banking

Financial Decisions and Risk Management

Filters

Exam 7: Organizing the Business Enterprise

What is the grapevine?

Which of the following best describes accountability?

How should a manager react when he or she discovers the existence of an informal organization and grapevine within the context of the formal organization?

List five bases of departmentalization.

Which of the following is correct with respect to organizational structure?

Compare and contrast the three forms of authority: line,staff,and committee and team authority.

What is the purpose of developing an organization chart? How are these charts used?

Which of the following uses teams of specialists to complete specific projects?

What organizational structure issues must Canadian firms address when they decide to "go global"?

Organizations use decentralization to maintain standardization.

Which statement about organizational structure is true?

Scott has reviewed the organizational structure of his company and found that there is a lot of specialization within each area,employees seem to have clearly defined career paths,and that there is little duplication of activities.He is most likely working in a company with a(n)________ structure.

An organization's structure should ideally be determined by a rational process,but for many organizations,structure may often develop without much planning.

Why should a manager maintain equilibrium between authority and responsibility?

In a centralized organization,most of the decision-making authority is held by upper-level managers.

Attempts to separate the work force into departments that are based on anything other than customers have been largely unsuccessful.

Why are centralization and decentralization,delegation,and authority the key ingredients in establishing the decision-making hierarchy?

Which of the following is a disadvantage of informal communications?

Understanding the Canadian Business System

The Environment of Business

Conducting Business Ethically and Responsibly

Entrepreneurship,small Business,and New Venture Creation

The Global Context of Business

Managing the Business Enterprise

Managing Human Resources and Labour Relations

Motivating,satisfying,and Leading Employees

Operations Management,productivity,and Quality

Understanding Accounting

Understanding Marketing Principles and Developing Products

Pricing,promoting,and Distributing Products

Money and Banking

Financial Decisions and Risk Management

Filters