Exam 6: Organizing the Business

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If a manufacturer divides the organization according to the way goods are created,what type of departmentalization is being utilized?

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The reporting relationships within an organization follow a chain from the highest level to the lowest level in the organization,and is known as chain of command.

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Describe how organizations create and communicate their organizational structure.

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Each organization must develop an appropriate organizational structure,which includes the specification of the jobs to be done and the ways in which those jobs relate to one another.Most organizations change structures almost continuously.Firms prepare organization charts to clarify structure and to show employees where they fit into a firm's operations.Each box represents a job,and solid lines define the chain of command,or reporting relationships.The charts of large firms are complex and include individuals at many levels.Because size prevents them from charting every manager,they may create single organization charts for overall corporate structure and separate charts for divisions.

What does a divisional structure rely on and why does it rely on this feature?

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Geographic departmentalization divides firms according to the areas of the country or the world that they serve.

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Which of the following is an advantage of job specialization?

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When a large organization has departments based on areas of production,what type of departmentalization is being utilized?

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Briefly describe the five basic forms of departmentalization.

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Which of the following is a natural part of organizational growth?

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Which term identifies the grouping of jobs into logical units?

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In tall organizations,which feature describes the span of control?

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What is the difference between responsibility and authority?

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Divisional structure is the relationships between group functions and activities that determine authority.

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Frequently,the informal organization effectively alters a company's formal structure.

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Which of the following begins when a manager assigns responsibility to a subordinate?

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Profit centers can occur based on function,product,process,customer,or geographical areas.

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What are an organization's specialists in law,accounting,and human resource management commonly called?

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Which of the following structures relies on product departmentalization?

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Which form of organization is used by most small to medium-sized firms?

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Firms with production,marketing,human resource,and finance departments have a process form of organization.

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