Deck 12: People and Organization

Question 1

The organization chart is a visual representation of the formal organization of a business.

Answer 1

True

Question 2

Staff personnel are extremely helpful in improving the effectiveness of line personnel.

Answer 2

True

Question 3

Organizing consists of grouping people and assigning activities so that job tasks and the mission of a business can be properly carried out.

Answer 3

True

Question 4

Management principles apply to for-profit organizations but not to not-for-profit organizations.

Question 5

Abiding by the scalar principle will result in more effective decision making and communication at various levels in the organization.

Question 6

The second step of the controlling process deals with the setting of standards, which let employees know what to expect in terms of time, quality, quantity, and so forth.

Question 7

Principles represent guidelines that managers can use in making decisions; they are not laws etched in stone.

Question 8

The executive level of management is the group that works directly with the people who produce and sell the goods and/or the services of a business; they implement the plans of middle management.

Question 9

Managing a crisis requires more centralized decision making.

Question 10

Leading and motivating both work together in the controlling function.

Question 11

The informal organization fills the gaps that are created by the formal organization.

Question 12

Formal authority encompasses the allocation of an organization's resources to achieve its objectives.

Question 13

Practicing autocratic leadership can be problematic if there is a wide range of opinions among the employees and no clear path for making an equitable, final decision.

Question 14

Establishing a management hierarchy is the foundation for carrying out the organizing function.

Question 15

Middle managers devote most of their time to developing the mission, long-range plans, and strategy of a business.

Question 16

Management skill is the ability to carry out the process of reaching organizational goals by working with and through people and other organizational resources.

Question 17

An effective manager is the manager who is able to master four basic types of skills: technical, conceptual, interpersonal, and decision making.

Question 18

The fourth basic management skill, decision making, involves the ability to identify a problem or an opportunity, creatively develop alternative solutions, select an alternative, delegate authority to implement a solution, and evaluate the solution.

Question 19

The span of control typically becomes smaller as a person moves up the management hierarchy.

Question 20

Violating the unity of command will undermine authority, divide loyalty, and create a situation in which responsibilities can be evaded and work efforts will be duplicated and overlapping.

Question 21

Which of the following forms of leadership occurs when a leader makes decisions without involving others?

A) Delegative leadership
B) Free-reign leadership
C) Laissez-faire leadership
D) Democratic leadership
E) Autocratic leadership

Question 22

If a business is hiring someone with a disability and has fifteen or more employees, it is required by the ADA (enacted in 1990) to make reasonable workplace accommodations for employees with disabilities.

Question 23

Which of the following defines directing?

A) It consists of grouping people and assigning activities so that job tasks and the mission can be properly carried out.
B) It is the process of anticipating future events and conditions and determining courses of action for achieving organizational objectives.
C) It involves selecting, placing, training, developing, compensating, and evaluating employees.
D) It is the process of evaluating and regulating ongoing activities to ensure that goals are achieved.
E) It involves managerial functions like issuing directives, assignments, and instructions that initiates action.

Question 24

Which of the following defines organizing?

A) It consists of grouping people and assigning activities so that job tasks and the mission can be properly carried out.
B) It involves selecting, placing, training, developing, compensating, and evaluating employees.
C) It is the process of anticipating future events and conditions and determining courses of action for achieving organizational objectives.
D) It involves managerial functions like issuing directives, assignments, and instructions that initiates action.
E) It is the process of evaluating and regulating ongoing activities to ensure that goals are achieved.

Question 25

Functions such as issuing assignments and instructions; building an effective group of subordinates who are motivated to do what must be done; explaining procedures; issuing orders; and making sure that mistakes are corrected are associated with:

A) planning.
B) organizing.
C) staffing.
D) directing.
E) controlling.

Question 26

The autocratic leadership style works well when:

A) there is no need for central coordination.
B) there is little time to make a decision.
C) employees are self-motivated and competent in making their own decisions.
D) it presumes full trust and confidence in the people below the leader in the hierarchy.
E) the leader has only part of the information and the employees have the other part.

Question 27

Workforce planning is the "process of placing the right number of people with the right skills, experiences, and competencies in the right jobs at the right time."

Question 28

All US employers must complete and retain Form I-9 for each individual, whether a citizen or a noncitizen, hired for employment in the United States.

Question 29

Salaries are payments based on an hourly pay rate or the amount of output, whereas wages are typically calculated weekly, biweekly, or monthly.

Question 30

In corporations, it is to transfer ownership by selling stock.

Question 31

The process of influencing people to work toward a common goal is known as:

A) planning.
B) leading.
C) organizing.
D) staffing.
E) controlling.

Question 32

Which of the following defines planning?

A) It consists of grouping people and assigning activities so that job tasks and the mission can be properly carried out.
B) It involves selecting, placing, training, developing, compensating, and evaluating employees.
C) It is the process of anticipating future events and conditions and determining courses of action for achieving organizational objectives.
D) It involves managerial functions like issuing directives, assignments, and instructions that initiates action.
E) It is the process of evaluating and regulating ongoing activities to ensure that goals are achieved.

Question 33

LLC members can agree to share profits and losses disproportionately.

Question 34

The process of providing reasons for people to work in the best interests of an organization is known as:

A) planning.
B) controlling.
C) organizing.
D) staffing.
E) motivating.

Question 35

The off-limit topics in most employment interviews include national origin, marital status, parental status, criminal records, financial, and credit history.

Question 36

In the general partnership, all the partners have unlimited liability, and each partner can enter into contracts on behalf of the other partners.

Question 37

A limited liability company is dissolved at death, withdrawal, resignation, expulsion, or bankruptcy of one member unless there is a vote to continue.

Question 38

A small business is enabled to sell off its accounts receivable and invoices to a financing company when it outsources its accounts receivable.

Question 39

Which of the following defines staffing?

A) It consists of grouping people and assigning activities so that job tasks and the mission can be properly carried out.
B) It is the process of anticipating future events and conditions and determining courses of action for achieving organizational objectives.
C) It involves managerial functions like issuing directives, assignments, and instructions that initiates action.
D) It involves selecting, placing, training, developing, compensating, and evaluating employees.
E) It is the process of evaluating and regulating ongoing activities to ensure that goals are achieved.

Question 40

Which of the following defines controlling?

A) It consists of grouping people and assigning activities so that job tasks and the mission can be properly carried out.
B) It is the process of evaluating and regulating ongoing activities to ensure that goals are achieved.
C) It is the process of anticipating future events and conditions and determining courses of action for achieving organizational objectives.
D) It involves selecting, placing, training, developing, compensating, and evaluating employees.
E) It involves managerial functions like issuing directives, assignments, and instructions that initiates action.

Question 41

The details of the roles and responsibilities of all employees is known as:

A) marginal organization.
B) grapevine organization.
C) formal organization.
D) central organization.
E) informal organization.

Question 42

The middle management level includes such positions as:

A) president or CEO.
B) chief financial officer, chief marketing officer, and executive vice presidents.
C) supervisor, section chief, and office manager.
D) regional manager, plant manager, branch manager, and marketing manager.
E) foreman and team leader.

Question 43

The functional structure suggests:

A) there is no "one best" structure appropriate for every organization; this approach contends the "best" structure for an organization fits its needs for the situation at the time.
B) administration is the primary function performed; other functions-such as marketing, engineering, production, and finance-are outsourced to other organizations or individuals.
C) organizing a business according to job or purpose and is most easily recognized by departments that focus on a single task or goal.
D) basing functions on product, geographic area or territory, or customer.
E) combining elements of the functional and the divisional structures, to bring specialists from different areas of a business to work together on different projects on a short-term basis.

Question 44

A manager's ability to see the organization as a unified whole and to understand how each part of the overall organization interacts with other parts is determined by the manager's:

A) technical skills.
B) interpersonal skills.
C) financial skills.
D) conceptual skills.
E) decision-making skills.

Question 45

Abilities, such as engineering, accounting, and computer programming, which are related to working with processes or physical objects can be termed as:

A) technical skills.
B) conceptual skills.
C) interpersonal skills.
D) financial skills.
E) decision-making skills.

Question 46

The final step in the controlling process involves:

A) setting of performance standards.
B) measuring performance.
C) comparing performance.
D) taking corrective action.
E) setting competitive standards.

Question 47

Which of the following is a limitation of organizational charts?

A) They do not communicate organizational, employee, and enterprise information.
B) They cannot cope with changing boundaries of firms due to outsourcing, information technology, strategic alliances, and the network economy.
C) They do not allow managers to make decisions about resources, provide a framework for managing change.
D) They are unclear and unpredictable about what should happen in a business.
E) They do not give a clear picture about who is in charge of what and who reports to whom.

Question 48

The top management level includes such positions as:

A) chief financial officer, chief marketing officer, and executive vice presidents.
B) regional manager, plant manager, and branch manager.
C) division head, project director, and marketing manager.
D) supervisor, section chief, and office manager.
E) foreman and team leader.

Question 49

The democratic leadership style works well when:

A) the leader has only part of the information.
B) there is little time to make a decision.
C) the decision would not change as a result of the participation of others.
D) the leader alone tells the employees what is to be done and how it should be accomplished.
E) the motivation of the people who will carry out subsequent actions would not be affected by whether they are involved in the decision or not.

Question 50

The first-line management level includes such positions as:

A) president or CEO.
B) division head and project director.
C) chief financial officer, chief marketing officer, and executive vice presidents.
D) regional manager, plant manager, branch manager, and marketing manager.
E) supervisor, section chief, office manager, foreman, and team leader.

Question 51

The contingency approach to organization structure suggests:

A) there is no "one best" structure appropriate for every organization; this approach contends the "best" structure for an organization fits its needs for the situation at the time.
B) administration is the primary function performed; other functions-such as marketing, engineering, production, and finance-are outsourced to other organizations or individuals.
C) organizing a business according to job or purpose and is most easily recognized by departments that focus on a single function or goal.
D) basing functions on product, geographic area or territory, or customer.
E) combining elements of the functional and the divisional structures, to bring specialists from different areas of a business to work together on different projects on a short-term basis.

Question 52

Which of the following maintains that authority and responsibility should flow in a clear, unbroken line from the highest to the lowest manager?

A) Authority delegation
B) Span of control
C) Scalar principle
D) Unity of command
E) Division of labor

Question 53

Which of the following refers to the number of people or subordinates that a manager supervises?

A) Authority delegation
B) Span of control
C) Scalar principle
D) Unity of command
E) Division of labor

Question 54

There is no responsibility for revenue generation in:

A) formal authority.
B) central authority.
C) line authority.
D) marginal authority.
E) staff authority.

Question 55

Which of the following is a benefit offered by organizational charts?

A) They never go out of date even as organizations change and go through growth phases.
B) They aid in understanding what actually happens within the informal organization.
C) They reflect the real chaos that takes place within organizations.
D) They can cope with changing boundaries of firms due to outsourcing, information technology, strategic alliances, and the network economy.
E) They tell everyone in the organization who is in charge of what and who reports to whom.

Question 56

The right to give orders and set policy is known as:

A) formal authority.
B) central authority.
C) line authority.
D) marginal authority.
E) staff authority.

Question 57

The president, the vice president of operations, and the marketing manager are examples of positions with:

A) formal authority.
B) central authority.
C) line authority.
D) marginal authority.
E) staff authority.

Question 58

The laissez-faire leadership style works best when:

A) there is little time to make a decision.
B) the decision would not change as a result of the participation of others.
C) there is no need for central coordination.
D) the leader alone tells the employees what is to be done and how it should be accomplished.
E) the motivation of the people who will carry out subsequent actions would not be affected by whether they are involved in the decision or not.

Question 59

Which of the following requires attention and effort to be focused on discrete portions of a task?

A) Authority delegation
B) Span of control
C) Scalar principle
D) Unity of command
E) Division of labor

Question 60

Which of the following means that no subordinate has more than one boss?

A) Chain of command
B) Span of control
C) Scalar principle
D) Unity of command
E) Division of labor

Question 61

A good _____ describes the major areas of an employee's job or position: the duties to be performed, who the employee will report to, the working conditions, responsibilities, and the tools and equipment that must be used on the job.

Question 62

The _____ management is the group that coordinates and supervises the activities of operating employees, spending most of their time working with and motivating their employees, answering questions, and solving day-to-day problems.

Question 63

_____ organization consists of all the connections and relationships that relate to how people throughout the organization actually network to get a job done.

Question 64

Which of the following legal forms of business ownership is doubly taxed?
a. Sole proprietorship
b. Partnership
c. Corporation
d. Limited Liability Company
e. S-corporation

Question 65

_____ provides feedback for future planning activities and aims to modify behavior and performance when deviations from plans are discovered.

Question 66

Power struggles between the first-line and the project managers is a disadvantage of the:

A) matrix structure.
B) virtual organizations.
C) financial structure.
D) network organizations.
E) divisional structure.

Question 67

_____ is a continual process of providing employees with skills and knowledge they need to perform at a high level.

Question 68

_____ can be defined as "the application of planning, organizing, staffing, directing, and controlling functions in the most efficient manner possible to accomplish meaningful organizational objectives."

Question 69

Health and disability insurance, sick leave, vacation time, child and elder care, and retirement plans paid entirely or in part by the company that represent a large component of each employee's compensation are known as _____.

Question 70

Which of the following organizational structures is a decentralized version of the functional structure, which focuses on individual geographic regions, customers, or products?

A) Matrix structure
B) Virtual organization
C) Financial structure
D) Network organization
E) Divisional structure

Question 71

Kurt Lewin, in a very influential research study, established three major _____ styles: autocratic, democratic, and laissez-faire.

Question 72

A _____ work situation would favor decentralized decision making and encourages employee empowerment and delegated authority.

Question 73

_____ skills are of greatest importance to top management because it is this level that must develop long-range plans for the future direction of a business.

Question 74

_____ is a performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of investments.

Question 75

The virtual or network organization suggests:

A) there is no "one best" structure appropriate for every organization; this approach contends the "best" structure for an organization fits its needs for the situation at the time.
B) administration is the primary function performed; other functions-such as marketing, engineering, production, and finance-are outsourced to other organizations or individuals.
C) organizing a business according to job or purpose and is most easily recognized by departments that focus on a single function or goal.
D) combining elements of the functional and the divisional structures, to bring specialists from different areas of a business to work together on different projects on a short-term basis.
E) basing functions on product, geographic area or territory, or customer.

Question 76

_____ is a step in the controlling process where the actual performance is compared to the standard.

Question 77

_____ is an indicator of how profitable a company is relative to its assets and indicates how efficient management is at using its assets to generate earnings.

Question 78

The _____ is the informal communications network within an organization, completely separate from-and sometimes much faster than-the organization's formal channels of communication.

Question 79

The matrix structure suggests:

A) there is no "one best" structure appropriate for every organization; this approach contends the "best" structure for an organization fits its needs for the situation at the time.
B) administration is the primary function performed; other functions-such as marketing, engineering, production, and finance-are outsourced to other organizations or individuals.
C) organizing a business according to job or purpose and is most easily recognized by departments that focus on a single function or goal.
D) combining elements of the functional and the divisional structures, to bring specialists from different areas of a business to work together on different projects on a short-term basis.
E) basing functions on product, geographic area or territory, or customer.

Question 80

A _____ "is an artificial person created by law, with most of the legal rights of a real person."