Question 1

Employee complaints that there are too many layers of management and too many rules and regulations suggest that Mucho Dinero is a(n)

Accepted Answer

A)  flat organization. 
B)  bureaucratic organization. 
C)  inverted organization. 
D)  wide organization. 
A)  flat organization. 
B)  bureaucratic organization. 
C)  inverted organization. 
D)  wide organization.

Question 2

A chain of command is a line of authority that moves from the lowest level of the hierarchy to the top.

Accepted Answer

A) True 
 B)False

Question 3

Departmentalization by function allows employees opportunity to further develop their skills.

Accepted Answer

A) True 
 B)False

Question 4

A bureaucracy empowers employees to quickly respond to customers' wants and desires.

Accepted Answer

A) True 
 B)False

Question 5

Centralized authority provides for the delegation of authority to employees who are then better able to respond to customers' needs.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following factors help determine a manager's span of control?

Accepted Answer

A)  the number of global competitors 
B)  the level of standardization of the work to be done 
C)  method of accounting for production 
D)  form of business ownership 
A)  the number of global competitors 
B)  the level of standardization of the work to be done 
C)  method of accounting for production 
D)  form of business ownership

Question 7

Line organizations follow Fayol's traditional management rules.

Accepted Answer

A) True 
 B)False

Question 8

The trend today is for large organizations to improve their efficiency in communication and decision making by

Accepted Answer

A)  creating specific rules for everyone to follow. 
B)  eliminating several layers of management. 
C)  restructuring into a bureaucratic organization. 
D)  reducing the span of control for managers. 
A)  creating specific rules for everyone to follow. 
B)  eliminating several layers of management. 
C)  restructuring into a bureaucratic organization. 
D)  reducing the span of control for managers.

Question 9

OnTrend, a cosmetology trade publication, utilizes the resources of other organizations as needed and business relationships are temporary as well as flexible. OnTrend is a networked organization made up of replaceable firms that join the network and leave it as needed. This unique organization is an example of

Accepted Answer

A)  competitive benchmarking. 
B)  a virtual corporation. 
C)  core competency ranking. 
D)  real-time transparency. 
A)  competitive benchmarking. 
B)  a virtual corporation. 
C)  core competency ranking. 
D)  real-time transparency.

Question 10

Traditional organizational models such as a line model or a line-and-staff model provide the flexibility demanded in a changing business environment.

Accepted Answer

A) True 
 B)False

Question 11

Corinne, part of the human resources department at a multinational corporation, works with several hundred employees. Her main function is to advise and assist managers in other departments, such as marketing and production, when they make staffing decisions. Corinne's position would be classified as a(n) ________ position.

Accepted Answer

A)  staff 
B)  line 
C)  first-line 
D)  secondary 
A)  staff 
B)  line 
C)  first-line 
D)  secondary

Question 12

Erin is an attorney working for Food Innovations, Incorporated. She provides legal advice and assistance to Food Innovations managers. Erin's job would be classified as a staff position.

Accepted Answer

A) True 
 B)False

Question 13

A bureaucracy is an organization with many layers of managers who set rules and regulations and oversee all decisions.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is considered to be a disadvantage of functional departmentalization?

Accepted Answer

A)  There may be a lack of communication among the different departments. 
B)  Employees must develop skills in depth. 
C)  The company must achieve economies of scale. 
D)  Top management has to direct and control department activities. 
A)  There may be a lack of communication among the different departments. 
B)  Employees must develop skills in depth. 
C)  The company must achieve economies of scale. 
D)  Top management has to direct and control department activities.

Question 15

The traditional technique used to departmentalize an organization is by

Accepted Answer

A)  function. 
B)  customer group. 
C)  geographic area. 
D)  production process. 
A)  function. 
B)  customer group. 
C)  geographic area. 
D)  production process.

Question 16

Departmentalization by function groups employees based on similar skills, expertise, or resource use.

Accepted Answer

A) True 
 B)False

Question 17

A bureaucracy is designed to be customer focused.

Accepted Answer

A) True 
 B)False

Question 18

While most organizations have a formal organization structure, only poorly managed firms also have an informal organization.

Accepted Answer

A) True 
 B)False

Question 19

Watchful Eyes Industries manufactures a multitude of safety products like burglar alarms, smoke detectors, surveillance cameras, and specialty locks. Watchful Eyes doesn't just stick to households, they outfit businesses and government agencies as well. They have found that each market requires a different marketing strategy. Watchful Eyes would probably benefit from departmentalization by

Accepted Answer

A)  function. 
B)  process. 
C)  customer type. 
D)  market opportunities. 
A)  function. 
B)  process. 
C)  customer type. 
D)  market opportunities.

Question 20

As a new employee in a bureaucratic organization, Madison can expect a great deal of independence and authority.

Accepted Answer

A) True 
 B)False

Exam 8: Structuring Organizations for Todays Challenges

Employee complaints that there are too many layers of management and too many rules and regulations suggest that Mucho Dinero is a(n)

A chain of command is a line of authority that moves from the lowest level of the hierarchy to the top.

Departmentalization by function allows employees opportunity to further develop their skills.

A bureaucracy empowers employees to quickly respond to customers' wants and desires.

Centralized authority provides for the delegation of authority to employees who are then better able to respond to customers' needs.

Which of the following factors help determine a manager's span of control?

Line organizations follow Fayol's traditional management rules.

The trend today is for large organizations to improve their efficiency in communication and decision making by

Traditional organizational models such as a line model or a line-and-staff model provide the flexibility demanded in a changing business environment.

Erin is an attorney working for Food Innovations, Incorporated. She provides legal advice and assistance to Food Innovations managers. Erin's job would be classified as a staff position.

A bureaucracy is an organization with many layers of managers who set rules and regulations and oversee all decisions.

Which of the following is considered to be a disadvantage of functional departmentalization?

The traditional technique used to departmentalize an organization is by

Departmentalization by function groups employees based on similar skills, expertise, or resource use.

A bureaucracy is designed to be customer focused.

While most organizations have a formal organization structure, only poorly managed firms also have an informal organization.

As a new employee in a bureaucratic organization, Madison can expect a great deal of independence and authority.

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 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

Appendix: Working Within the Legal Environment

Appendix: Using Technology to Manage Information

Appendix: Managing Risk

Appendix: Managing Personal Finances

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