Question 1

Which of the following describes a temporary networked organization made up of replaceable firms that join and leave as needed?

Accepted Answer

A)  online corporation 
B)  benchmark outsourcing system 
C)  network system 
D)  virtual corporation 
A)  online corporation 
B)  benchmark outsourcing system 
C)  network system 
D)  virtual corporation

Question 2

The purpose of a division of labor and specialization is to improve an employee's job performance.

Accepted Answer

A) True 
 B)False

Question 3

The more complex the job, the narrower the span of control.

Accepted Answer

A) True 
 B)False

Question 4

Bureaucratic organizations establish rules and regulations that everyone is expected to follow.

Accepted Answer

A) True 
 B)False

Question 5

International Inns and Conference Centers (IICC), a national chain of professional event centers, utilizes a centralized authority structure. Which of the following provides the most likely explanation for why management at IICC would favor centralized authority?

Accepted Answer

A)  Top management at IICC intends to empower its first-line employees. 
B)  Top management at IICC wants to improve customer service response time. 
C)  Top management desires to maintain a uniform image and high-quality service. 
D)  IICC wants to utilize a cross-functional organization. 
A)  Top management at IICC intends to empower its first-line employees. 
B)  Top management at IICC wants to improve customer service response time. 
C)  Top management desires to maintain a uniform image and high-quality service. 
D)  IICC wants to utilize a cross-functional organization.

Question 6

The informal organization of a business can help generate creative solutions and inspire teamwork and camaraderie.

Accepted Answer

A) True 
 B)False

Question 7

Realizing that it was time to invest in an updated information system, the CEO made an announcement in his weekly email to his team: "We are going to shake things up around here. We need to break apart our information system, and start over." Unfortunately, the message translated poorly in the minds of employees. A total shake-up such as this could impact employee morale. Progressive companies today incorporate strategies that continuously embrace

Accepted Answer

A)  formal, symbolic walls that prevent one person from driving change to the detriment of others. 
B)  a stay the course environment. It is always best to play your game than try to embark on someone else's game. 
C)  a change-oriented culture. 
D)  a formal and information organization that assists with change. 
A)  formal, symbolic walls that prevent one person from driving change to the detriment of others. 
B)  a stay the course environment. It is always best to play your game than try to embark on someone else's game. 
C)  a change-oriented culture. 
D)  a formal and information organization that assists with change.

Question 8

If companies follow the theories of Fayol and Weber, which of the following scenarios is likely to result?

Accepted Answer

A)  Organization design will benefit by the emergence of quick decision making. 
B)  Organization design will eliminate systems of hierarchy and chains of command due to their hindrance of esprit de corps. 
C)  Organizations that grow will develop several layers of management and the time that it takes to make and carry out a decision will increase. 
D)  There will be a significant reduction of workforce due to specialization and departmentalization. 
A)  Organization design will benefit by the emergence of quick decision making. 
B)  Organization design will eliminate systems of hierarchy and chains of command due to their hindrance of esprit de corps. 
C)  Organizations that grow will develop several layers of management and the time that it takes to make and carry out a decision will increase. 
D)  There will be a significant reduction of workforce due to specialization and departmentalization.

Question 9

Southeastern Bank organizes its loan operations based on the market served-consumer, small business, or nonprofit organizations. Departmentalization based on ________ allows Southeastern to better serve borrowers with different needs.

Accepted Answer

A)  function 
B)  geography 
C)  process 
D)  customer group 
A)  function 
B)  geography 
C)  process 
D)  customer group

Question 10

Economies of scale can be achieved through departmentalization.

Accepted Answer

A) True 
 B)False

Question 11

Weber promoted the idea of the pyramid-shaped organization structure for large businesses.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following was created as a solution to the temporary nature of the matrix structure?

Accepted Answer

A)  line organizations 
B)  cross-functional self-managed teams 
C)  line-and-staff organizations 
D)  network organizations 
A)  line organizations 
B)  cross-functional self-managed teams 
C)  line-and-staff organizations 
D)  network organizations

Question 13

An advantage of a line-and-staff organization is that it provides people that advise and assist line managers as they perform their jobs.

Accepted Answer

A) True 
 B)False

Question 14

Milo was confident that baseball fans would fill the seats in his brewhouse if they just knew about the place. After all, he offered convenience, easy walking distance to the local MLB stadium, great local talent for entertainment and several fresh premium craft beers. He uses Twitter and Facebook to connect with potential customers, and offers free wifi for customers. These are worthy strategies for reaching digital natives.

Accepted Answer

A) True 
 B)False

Question 15

The concept of ________ suggests that as a firm produces more, the average cost of goods produced goes down.

Accepted Answer

A)  natural growth 
B)  survival of the fittest 
C)  cost enhancement 
D)  economies of scale 
A)  natural growth 
B)  survival of the fittest 
C)  cost enhancement 
D)  economies of scale

Question 16

Staff personnel perform functions such as production and sales that contribute directly to the primary goals of the organization.

Accepted Answer

A) True 
 B)False

Question 17

As Elisa gets ready to open her new business, she has identified the tasks that need to be accomplished and has assigned employees to each task. This illustrates

Accepted Answer

A)  management departmentalization. 
B)  division of labor. 
C)  specialization of priorities. 
D)  mass production economies. 
A)  management departmentalization. 
B)  division of labor. 
C)  specialization of priorities. 
D)  mass production economies.

Question 18

Max Weber believed that promotion should be based solely on seniority.

Accepted Answer

A) True 
 B)False

Question 19

Employees who perform functions that advise and assist line personnel are known as

Accepted Answer

A)  middle managers. 
B)  empowered workers. 
C)  secondary employees. 
D)  staff personnel. 
A)  middle managers. 
B)  empowered workers. 
C)  secondary employees. 
D)  staff personnel.

Question 20

Matrix organizations give managers flexibility in assigning people to projects.

Accepted Answer

A) True 
 B)False

Exam 8: Structuring Organizations for Todays Challenges

Which of the following describes a temporary networked organization made up of replaceable firms that join and leave as needed?

The purpose of a division of labor and specialization is to improve an employee's job performance.

The more complex the job, the narrower the span of control.

Bureaucratic organizations establish rules and regulations that everyone is expected to follow.

International Inns and Conference Centers (IICC), a national chain of professional event centers, utilizes a centralized authority structure. Which of the following provides the most likely explanation for why management at IICC would favor centralized authority?

The informal organization of a business can help generate creative solutions and inspire teamwork and camaraderie.

If companies follow the theories of Fayol and Weber, which of the following scenarios is likely to result?

Southeastern Bank organizes its loan operations based on the market served-consumer, small business, or nonprofit organizations. Departmentalization based on ________ allows Southeastern to better serve borrowers with different needs.

Economies of scale can be achieved through departmentalization.

Weber promoted the idea of the pyramid-shaped organization structure for large businesses.

Which of the following was created as a solution to the temporary nature of the matrix structure?

An advantage of a line-and-staff organization is that it provides people that advise and assist line managers as they perform their jobs.

The concept of ________ suggests that as a firm produces more, the average cost of goods produced goes down.

Staff personnel perform functions such as production and sales that contribute directly to the primary goals of the organization.

As Elisa gets ready to open her new business, she has identified the tasks that need to be accomplished and has assigned employees to each task. This illustrates

Max Weber believed that promotion should be based solely on seniority.

Employees who perform functions that advise and assist line personnel are known as

Matrix organizations give managers flexibility in assigning people to projects.

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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