Question 1

Max Weber used the term ________ to describe middle managers whose job was to implement the orders of top management.

Accepted Answer

A)  management 
B)  autocrats 
C)  staff personnel 
D)  bureaucrats 
A)  management 
B)  autocrats 
C)  staff personnel 
D)  bureaucrats

Question 2

Clear communication among workers and keeping order in materials and people are included in Fayol's principles.

Accepted Answer

A) True 
 B)False

Question 3

Weber put great trust in the creativity, skills, and pride of employees and believed that managers should act more as coaches than as bosses.

Accepted Answer

A) True 
 B)False

Question 4

A hierarchy requires many top managers, but only a few middle managers.

Accepted Answer

A) True 
 B)False

Question 5

Including customers and suppliers on cross-functional teams violates the interests of stockholders.

Accepted Answer

A) True 
 B)False

Question 6

Division of labor refers to deciding how many jobs must be accomplished and then dividing them up amongst the labor force.

Accepted Answer

A) True 
 B)False

Question 7

Organization theorists emerged during the era of mass production, meaning

Accepted Answer

A)  the development of ways to produce a large quantity of product efficiently. 
B)  the development of ways to purchase raw materials in bulk. 
C)  the decline in the cost of production due to an increase in the cottage industry. 
D)  the era when most companies adopted very similar methods of producing goods and services, which led to standardization of organizational design. 
A)  the development of ways to produce a large quantity of product efficiently. 
B)  the development of ways to purchase raw materials in bulk. 
C)  the decline in the cost of production due to an increase in the cottage industry. 
D)  the era when most companies adopted very similar methods of producing goods and services, which led to standardization of organizational design.

Question 8

One disadvantage of the matrix style of organization is that it is more difficult to keep development projects on schedule. The model slows down the time from design to production, and then to market.

Accepted Answer

A) True 
 B)False

Question 9

Improvements in information technology have permitted companies to increase their span of control.

Accepted Answer

A) True 
 B)False

Question 10

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 11

A(n) ________ is a visual device that shows relationships among people and divides the organization's work.

Accepted Answer

A)  organization chart 
B)  Venn diagram 
C)  corporate tree 
D)  Gantt chart 
A)  organization chart 
B)  Venn diagram 
C)  corporate tree 
D)  Gantt chart

Question 12

School Days Centers specialize in helping students with difficulties. With locations around the country, each center consists of a manager and several tutors and counselors. The counselors and tutors have a great deal of flexibility to design programs specifically for individual students. In fact, these first-line employees are considered to be the key people in the organization, and the manager's main function is to assist these employees in matters such as scheduling and securing necessary materials. This type of arrangement suggests that School Days is an inverted organization.

Accepted Answer

A) True 
 B)False

Question 13

Organizing a business begins with

Accepted Answer

A)  acquiring the necessary resources. 
B)  choosing the best qualified employees. 
C)  developing an efficient plan of action. 
D)  determining the work to be done. 
A)  acquiring the necessary resources. 
B)  choosing the best qualified employees. 
C)  developing an efficient plan of action. 
D)  determining the work to be done.

Question 14

Which of the following describes the redesigning of an organization so that it can more effectively and efficiently serve its customers?

Accepted Answer

A)  reinventing 
B)  restructuring 
C)  radical reorganizing 
D)  extroverted reorganizing 
A)  reinventing 
B)  restructuring 
C)  radical reorganizing 
D)  extroverted reorganizing

Question 15

Rapid Response Security Firm, a company that provides on-site security services for malls and other retail environments, needs to review current procedures used by its professional officers to make certain they are in compliance with new laws. On crucial issues such as this, it is more important to gather information through the informal organization, as opposed to the formal organization.

Accepted Answer

A) True 
 B)False

Question 16

Small businesses often use a line organization model.

Accepted Answer

A) True 
 B)False

Question 17

Matrix organization structures provide for more efficient use of organizational resources.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following describes the activity of a firm that assigns specific functions, such as accounting or legal work, to other organizations rather than performing these functions themselves?

Accepted Answer

A)  functional sharing 
B)  outsourcing 
C)  benchmarking 
D)  virtual distribution 
A)  functional sharing 
B)  outsourcing 
C)  benchmarking 
D)  virtual distribution

Question 19

Fayol believed that decision-making authority should remain in the hands of top management

Accepted Answer

A)  in small organizations, but should be delegated to middle and first-line managers in large organizations. 
B)  in large organizations, but could be delegated to middle and first-line managers in small organizations. 
C)  in all types and sizes of organizations. 
D)  only in organizations subjected to significant government regulation. 
A)  in small organizations, but should be delegated to middle and first-line managers in large organizations. 
B)  in large organizations, but could be delegated to middle and first-line managers in small organizations. 
C)  in all types and sizes of organizations. 
D)  only in organizations subjected to significant government regulation.

Question 20

The marketing department manager at Creative Counselors International made a strong push to hire professionals with superior performance records in prior jobs. It didn't take long for these enthusiastic marketers to recognize the many talents within their department. They admired at how alike they were and how they seemed to agree with each other's work styles and ideas. After a while, it became difficult for others in the organization to present to this group. If the idea did not originate within the marketing team, marketers did not give it much credence. This phenomenon is called

Accepted Answer

A)  departmentalization clique. 
B)  interoffice competition. 
C)  forward thinking friction. 
D)  groupthink. 
A)  departmentalization clique. 
B)  interoffice competition. 
C)  forward thinking friction. 
D)  groupthink.

Exam 8: Structuring Organizations for Todays Challenges

Max Weber used the term ________ to describe middle managers whose job was to implement the orders of top management.

Clear communication among workers and keeping order in materials and people are included in Fayol's principles.

Weber put great trust in the creativity, skills, and pride of employees and believed that managers should act more as coaches than as bosses.

A hierarchy requires many top managers, but only a few middle managers.

Including customers and suppliers on cross-functional teams violates the interests of stockholders.

Division of labor refers to deciding how many jobs must be accomplished and then dividing them up amongst the labor force.

Organization theorists emerged during the era of mass production, meaning

One disadvantage of the matrix style of organization is that it is more difficult to keep development projects on schedule. The model slows down the time from design to production, and then to market.

Improvements in information technology have permitted companies to increase their span of control.

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

A(n) ________ is a visual device that shows relationships among people and divides the organization's work.

Organizing a business begins with

Which of the following describes the redesigning of an organization so that it can more effectively and efficiently serve its customers?

Small businesses often use a line organization model.

Matrix organization structures provide for more efficient use of organizational resources.

Which of the following describes the activity of a firm that assigns specific functions, such as accounting or legal work, to other organizations rather than performing these functions themselves?

Fayol believed that decision-making authority should remain in the hands of top management

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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