Question 1

Legal services and public affairs are ____ types of jobs, so they do not fit directly into the chain of command.

Accepted Answer

A)  specialized 
B)  top management 
C)  authoritative 
D)  voluntary 
E)  advisory 
A)  specialized 
B)  top management 
C)  authoritative 
D)  voluntary 
E)  advisory

Question 2

Why would the decentralization of a firm result from delegation of authority?

Accepted Answer

The decentralization of a firm often res

Question 3

In an organization with a matrix structure, authority flows both

Accepted Answer

A)  down and across. 
B)  up and down. 
C)  up and across. 
D)  in lines and in circles. 
E)  through groups and individuals. 
A)  down and across. 
B)  up and down. 
C)  up and across. 
D)  in lines and in circles. 
E)  through groups and individuals.

Question 4

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

Accepted Answer

A)  departmentalization. 
B)  decentralization. 
C)  job specialization. 
D)  job rotation. 
E)  an automated assembly line. 
A)  departmentalization. 
B)  decentralization. 
C)  job specialization. 
D)  job rotation. 
E)  an automated assembly line.

Question 5

Delegation consists of giving a subordinate all of the following except

Accepted Answer

A)  responsibility. 
B)  authority. 
C)  accountability. 
D)  a line position. 
E)  both accountability and a line position. 
A)  responsibility. 
B)  authority. 
C)  accountability. 
D)  a line position. 
E)  both accountability and a line position.

Question 6

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'

Accepted Answer

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. 
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.

Question 7

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.
-Refer to Dramatic Expressions. What would be an alternative to specialization if negative consequences were to develop at Dramatic Expressions?

Accepted Answer

A)  Organization 
B)  Occupation 
C)  Circulation 
D)  Rotation 
E)  Generalization 
A)  Organization 
B)  Occupation 
C)  Circulation 
D)  Rotation 
E)  Generalization

Question 8

A firm may be departmentalized by function, product, location, or customer. Explain how each method groups jobs into units.

Accepted Answer

Function departmentalization groups jobs

Question 9

When managers attempt to spread authority widely in the lower levels of an organization, they are attempting to centralize authority.

Accepted Answer

A) True 
 B)False

Question 10

A(n) ____ has been appointed to investigate the pending merger of your company and the Tandy Corporation.

Accepted Answer

A)  standing committee 
B)  task force 
C)  standing force 
D)  ad hoc committee 
E)  grievance committee 
A)  standing committee 
B)  task force 
C)  standing force 
D)  ad hoc committee 
E)  grievance committee

Question 11

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.
-Refer to Dramatic Expressions. Wanda could best improve delegation by

Accepted Answer

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. 
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.

Question 12

What is the informal organization? Where is it shown on the organization chart?

Accepted Answer

An informal organization refers to the n

Question 13

A committee created to investigate a major problem or pending decision is called a(n)

Accepted Answer

A)  ad hoc committee. 
B)  standing committee. 
C)  task force. 
D)  work team. 
E)  venture committee. 
A)  ad hoc committee. 
B)  standing committee. 
C)  task force. 
D)  work team. 
E)  venture committee.

Question 14

The most appropriate, short-term committee to provide a recommendation for a health care benefit plan for a medium size corporation would be a task force.

Accepted Answer

A) True 
 B)False

Question 15

A firm organized on the basis of retail customers and wholesale customers utilizes the concept of departmentalization by

Accepted Answer

A)  location. 
B)  function. 
C)  customer. 
D)  product. 
E)  task. 
A)  location. 
B)  function. 
C)  customer. 
D)  product. 
E)  task.

Question 16

Another term used to refer to a formal organization's network of communication is grapevine.

Accepted Answer

A) True 
 B)False

Question 17

An organization chart reveals

Accepted Answer

A)  staff accountability. 
B)  committee assignments. 
C)  informal authority. 
D)  detailed duties of each manager. 
E)  the company's organizational structure. 
A)  staff accountability. 
B)  committee assignments. 
C)  informal authority. 
D)  detailed duties of each manager. 
E)  the company's organizational structure.

Question 18

A small restaurant with wait staff that reports to staff manager who reports to a floor manager who report to the restaurant manager is a clear example of a ____ organizational structure.

Accepted Answer

A)  matrix 
B)  line 
C)  line-and-staff 
D)  informal 
E)  network 
A)  matrix 
B)  line 
C)  line-and-staff 
D)  informal 
E)  network

Question 19

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

Accepted Answer

A)  rotation. 
B)  enrichment. 
C)  specialization. 
D)  enlargement. 
E)  enhancement. 
A)  rotation. 
B)  enrichment. 
C)  specialization. 
D)  enlargement. 
E)  enhancement.

Question 20

Executives from several departments at Ford Motor Company were brought together more than a decade ago to discuss the advantages and disadvantages of acquiring Jaguar. This type of committee is known as a(n)

Accepted Answer

A)  task force. 
B)  standing committee. 
C)  liaison committee. 
D)  ad hoc committee. 
E)  matrix team. 
A)  task force. 
B)  standing committee. 
C)  liaison committee. 
D)  ad hoc committee. 
E)  matrix team.

Exam 7: Creating a Flexible Organization

Legal services and public affairs are ____ types of jobs, so they do not fit directly into the chain of command.

Why would the decentralization of a firm result from delegation of authority?

In an organization with a matrix structure, authority flows both

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

Delegation consists of giving a subordinate all of the following except

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 firm may be departmentalized by function, product, location, or customer. Explain how each method groups jobs into units.

When managers attempt to spread authority widely in the lower levels of an organization, they are attempting to centralize authority.

A(n) ____ has been appointed to investigate the pending merger of your company and the Tandy Corporation.

What is the informal organization? Where is it shown on the organization chart?

A committee created to investigate a major problem or pending decision is called a(n)

The most appropriate, short-term committee to provide a recommendation for a health care benefit plan for a medium size corporation would be a task force.

A firm organized on the basis of retail customers and wholesale customers utilizes the concept of departmentalization by

Another term used to refer to a formal organization's network of communication is grapevine.

An organization chart reveals

A small restaurant with wait staff that reports to staff manager who reports to a floor manager who report to the restaurant manager is a clear example of a ____ organizational structure.

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

Executives from several departments at Ford Motor Company were brought together more than a decade ago to discuss the advantages and disadvantages of acquiring Jaguar. This type of committee is known as a(n)

Exploring the World of Business and Economics

A: Being Ethical and Socially Responsible

B: Being Ethical and Socially Responsible

A: Exploring Global Business

B: Exploring Global Business

Choosing a Form of Business Ownership

Small Business, Entrepreneurship, and Franchises

Understanding the Management Process

Producing Quality Goods and Services

Attracting and Retaining the Best Employees

Motivating and Satisfying Employees and Teams

Enhancing Union-Management Relations

Building Customer Relationships Through Effective Marketing

A: Creating and Pricing Products That Satisfy Customers

B: Creating and Pricing Products That Satisfy Customers

Wholesaling, Retailing, and Physical Distribution

Developing Integrated Marketing Communications

Social Media, E-Business, and Accounting

Using Management and Accounting Information

Understanding Money, Banking, and Credit

Mastering Financial Management

A: Understanding Personal Finances and Investments

B: Understanding Personal Finances and Investments

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