Deck 7: Organizing for Success

Question 1

Ten employees work under the supervision of Viv, a manager at a branch of Mental Delights Spa. Viv reports directly to the owner of Mental Delights Spa; therefore, in the context of span of control, Mental Delights Spa is a tall organization.

Answer 1

False

Question 2

In a high-involvement organization, top management determines and dictates the direction in which the business is heading.

Answer 2

False

Question 3

In the vertical structure of a firm, authority is the

A) legitimate right of a manager to make decisions and to tell other people what to do.
B) ability of managers to avoid accountability for their subordinates' actions.
C) unconditional power of managers to discriminate against their subordinates based on race, ethnicity, or gender.
D) power of subordinates to reject the work responsibility delegated to them without any reason.
E) influence a manager has over his or her subordinates' personal life.

Answer 3

A

Question 4

________ is the assignment of different tasks to different people or groups in an organization.

A) Locus of control
B) Standardization
C) Division of labor
D) Value chain
E) Supply chain

Question 5

In the context of a firm's vertical structure, a powerful trend for U.S. businesses over the past few decades has been to

A) reduce the number of hierarchical layers.
B) replace flat organizational structures with tall organizational structures.
C) increase the number of reporting levels.
D) increase formalization.
E) limit decision-making authority to top management.

Question 6

The more highly differentiated a firm is,

A) the greater the need for integration among its units.
B) the lesser the need for integration among its units.
C) there is no need for integration among its units.
D) the more equal the need for integration among its units.
E) the more difference among its units.

Question 7

________ is(are) a characteristic of a mechanistic organization.

A) An informal organizational structure
B) Obedience to authority as an expression of commitment
C) Broad and evolving job responsibilities
D) A high degree of employee interdependence
E) Decentralized decision making

Question 8

In organizing, coordination is

A) the expectation that employees will perform a job and take corrective action when necessary.
B) a process in which different individuals and units perform different tasks.
C) the procedures that link the various parts of an organization to achieve the organization's overall mission.
D) the legitimate right to make decisions and to dictate to other people what to do.
E) a process that separates units based on products, customers, or geographic regions to reduce integration among the units.

Question 9

In a(n) ________ organization, managers encourage employees to work more as teammates than as subordinates who take orders from the boss.

A) organic
B) hierarchical
C) bureaucratic
D) mechanistic
E) formal

Question 10

Coordination by plan deals with establishing common routines and procedures that apply uniformly to everyone.

Question 11

________ is the process in which different individuals and units perform different tasks.

A) Mutual adjustment
B) Formalization
C) Standardization
D) Specialization
E) Span of control

Question 12

In an organization, when there are many subunits and many specialists who think differently, differentiation is said to be high.

Question 13

________ is a structure authority directly related to the three broad levels of the organizational pyramid.

A) Hierarchy
B) Value chain
C) Locus of control
D) Specialization
E) Division of labor

Question 14

Sometimes, competitors create strategic alliances.

Question 15

The organization chart depicts the

A) geographical location of the different branches of a business.
B) positions in the firm and the way they are arranged.
C) office assignments by area of the firm.
D) responsibilities of each job specification.
E) phone numbers for each employee.

Question 16

Lawrence and Lorsch found that

A) the more highly differentiated the firm, the lesser the need for integration among its units.
B) focusing on integration may speed up innovation for a while in an organization.
C) highly differentiated firms were more likely to fail in a complex environment if they failed to integrate their activities adequately.
D) companies with more structural integration were more likely to introduce new products soon after acquisition.
E) a firm's ability to launch new products is independent of its structural integration.

Question 17

Information conveyed by a conventional organization chart includes the

A) work performed by each unit in the organization.
B) products manufactured by the organization.
C) manner in which decisions are made in the organization.
D) geographical location of the organization.
E) method in which the organization will interact with the external environment.

Question 18

In general, coordination methods within an organization include standardization, plans, and mutual adjustment.

Question 19

In the context of the vertical structure of a firm, a wide span of control builds a ________ organization with few reporting levels.

A) flat
B) centralized
C) tall
D) bureaucratic
E) formal

Question 20

In a vertical structure, narrow spans of control build a(n) ________ organization with many reporting levels.

A) flat
B) wide
C) tall
D) decentralized
E) informal

Question 21

Pete, a human resource intern, was given an assignment by his manager that meant he must obtain information from other departments to complete it, but some departments refused to share information with an intern. Pete was frustrated because he did not have the power to get the information he needed. In the context of this situation, Pete's manager made the mistake of

A) delegating inappropriate tasks to an intern.
B) assigning responsibility without delegating adequate authority.
C) "passing the buck" for Pete's performance.
D) becoming accountable for Pete's work.
E) overestimating Pete's capabilities.

Question 22

In the context of delegation, a problem faced by a subordinate in carrying out a delegated task is

A) having the power to take corrective action.
B) being given more responsibility than authority.
C) depending on autonomy rather than close supervisory control.
D) eliminating any opportunity for creativity.
E) having to report to the manager about the status and quality of performance.

Question 23

In ________, new or additional responsibilities to a subordinate are assigned.

A) mutual adjustment
B) centralization
C) delegation
D) span of control
E) job specialization

Question 24

The first step in the delegation process, defining the goal, requires a manager to

A) identify the employee he or she favors the most.
B) understand the nature of each employee.
C) recognize the most responsible employee.
D) clearly understand the outcome he or she wants.
E) identify a tedious assignment that can be delegated.

Question 25

Which of the following statements about delegation of responsibility and authority is true?

A) It does not require a subordinate to report back to his or her boss.
B) Managers should use delegation to escape their own responsibilities.
C) It can occur between any two individuals in any type of structure with regard to any task.
D) All managers are comfortable fully delegating assignments to their subordinates.
E) It does not require a subordinate to take accountability for achieving results.

Question 26

David does not want a management position. He is highly respected by clients, competitors, and co-workers, due to his expertise, experience, and personal qualities. When a major business decision is required, even the division manager above David in the hierarchy asks David's opinion. Even though David has no formal management authority, he has ________ authority.

A) divisional
B) unity-of-command
C) centralized
D) decentralized
E) informal

Question 27

Sometimes organizations change their degree of centralization. During tough times, ________ often take charge. During times of rapid growth, ________ are often pushed farther down the chain of command.

A) mid-level managers; decisions
B) project managers; policies
C) senior managers; policies
D) project managers;, decisions
E) senior managers; decisions

Question 28

In a centralized organization, ________ make all the decisions and pass them down to lower levels for ________.

A) project managers, review
B) top managers, implementation
C) project managers, implementation
D) top managers, review
E) top managers, consideration

Question 29

An advantage of delegation is that it

A) allows managers to exercise close supervisory control.
B) helps managers to escape their own responsibilities.
C) conserves managers' most valuable asset-their time.
D) increases managers' influence over their subordinates.
E) makes subordinates less responsible and accountable.

Question 30

Pamela recently accepted a job with a reputed bank as an internal auditor. Her new company had strictly defined job responsibilities and lines of communication. For every decision she needed to make, approval had to be obtained from upper management. Overall, she found the atmosphere to be quite formal. Pamela's organization has a

A) wide span of control.
B) high degree of centralization.
C) flat organizational structure.
D) matrix organizational design.
E) narrow locus of control.

Question 31

In ________ organizations, more decisions are made at lower levels of management.

A) tall
B) formal
C) mechanistic
D) decentralized
E) narrow

Question 32

The span of control should be wide when

A) tasks are not clearly defined and instructions are ambiguous.
B) subordinates are poorly trained.
C) employees' access to information is restricted.
D) jobs are similar, and performance measures are comparable.
E) subordinates prefer close supervisory control to autonomy.

Question 33

In a(n) ________ organization, important decisions usually are made at the top.

A) informal
B) centralized
C) flat
D) organic
E) decentralized

Question 34

Which of the following is true of effective delegation?

A) Once a task has been delegated, the manager need not be available.
B) Tasks such as disciplining subordinates and conducting performance reviews are best delegated.
C) A manager can withhold resources for completion of the delegated task.
D) The ideas of the subordinate should not be taken into consideration during delegation.
E) Throughout the delegation process, the manager and the subordinate must work together.

Question 35

When Courtney, a front-line manager, asked her subordinate, Jordan, to invite a client to a function, Jordan forgot. When the company president asked Courtney why the client was not there, Courtney explained why. In this scenario, who holds responsibility for the error?

A) Courtney holds responsibility for not evaluating Jordan's actions soon enough.
B) Courtney is ultimately responsible because she is the manager.
C) Neither Courtney nor Jordan, but the president is responsible for hiring Courtney.
D) Courtney is not responsible for Jordan's failures, and she can now move on to other responsibilities.
E) Jordan solely is responsible for his failures.

Question 36

Identify the one true statement below about delegation.

A) A manager can delegate to a subordinate enough authority to get the work done.
B) A subordinate must not be allowed to take credit for the results of the assignment.
C) A subordinate need not report to his or her boss about the status of the assignment.
D) A manager should use delegation to escape his or her own responsibilities.
E) A subordinate's accountability reduces when a manager delegates work to him or her.

Question 37

An employee who has ________ is supposed to carry out specified tasks.

A) responsibility
B) authority
C) coordination
D) unity-of-command
E) span of control

Question 38

________ is the expectation that employees will perform a job, take corrective action when necessary, and report upward on the status and quality of their performance.

A) Unity-of-command
B) Accountability
C) Job specialization
D) Mutual adjustment
E) Span of control

Question 39

The ________, led by the chairperson, makes major decisions, subject to corporate charter and bylaw provisions.

A) stockholders
B) board of directors
C) employees
D) tax payers
E) middle managers

Question 40

When delegating work responsibilities to a subordinate, a manager delegates any ________ to the subordinate.

A) authority
B) evaluation
C) employees
D) responsibility
E) project deliverables

Question 41

Matrix management

A) creates an environment in which the unity-of-command principle is strictly followed.
B) is a collection of independent, mostly single-function firms that collaborate to produce a good or service.
C) is composed of dual reporting relationships in which some employees report to two superiors.
D) involves holding employees together by contracts that stipulate results expected, rather than by hierarchy and authority.
E) results in a centralized decision-making system.

Question 42

To be effective, the ________ approach to departmentalization requires proper management of all the issues surrounding decentralization and delegation.

A) functional
B) product
C) network
D) bureaucratic
E) mechanistic

Question 43

A ________ is composed of temporary arrangements among members that can be assembled and reassembled to meet a changing competitive environment.

A) modular network
B) mechanistic organization
C) divisional organization
D) functional organization
E) hierarchical network

Question 44

In a horizontal structure, ________ deal directly with the organization's primary goods or services; they make things, sell things, or provide customer service.

A) public relation divisions
B) accounting divisions
C) staff departments
D) organic structures
E) line departments

Question 45

A disadvantage of a matrix organization is that

A) managers who share subordinates may jockey for power.
B) people may care more about their own function than about the company as a whole.
C) higher management levels are overloaded with operational decisions.
D) resource utilization becomes inefficient because resources are not shared.
E) employees may fail to focus on overall product quality and customer satisfaction.

Question 46

Trident Sports Inc. manufactures and distributes athletic wear, sporting equipment, and protective sports gear worldwide. They are departmentalized based on products sold to professional athletes, products sold to people who pursue sports only for leisure, and products sold to sports teams. Which approach to departmentalization does the company follow?

A) geographic
B) functional
C) matrix
D) customer
E) product

Question 47

A(n) ________ is a person who assembles and coordinates participants in a network.

A) entrepreneur
B) broker
C) innovator
D) chairperson
E) intrapreneur

Question 48

In a ________ organization, jobs (and departments) are specialized and grouped as production, marketing, human resources, research and development, finance, accounting, and so forth based on the skills they require.

A) divisional
B) network
C) matrix
D) functional
E) projectized

Question 49

Xtreme Xcellence, a worldwide leader in athletic apparel products, operates divisions in North America, South America, Europe, and Asia-Pacific. Each division is managed independently and has its own line and staff departments to better align with

A) geographies.
B) functions.
C) matrix lines.
D) customer.
E) product.

Question 50

In the context of horizontal structure of a firm, ________ are those that have responsibility for the principal activities of the firm.

A) staff departments
B) public relation divisions
C) geographic divisions
D) line departments
E) human resource divisions

Question 51

A ________ organization has departmentalization that groups units around products, customers, or geographic regions.

A) divisional
B) centralized
C) network
D) functional
E) virtual

Question 52

A characteristic feature of matrix organizations is that

A) resource utilization is inefficient.
B) higher management levels are overloaded with operational decisions.
C) the principle of unity-of-command is followed.
D) the decision-making process is highly centralized.
E) more career options become available.

Question 53

Peyton wanted to delegate an important task to a subordinate, and he had several candidates in mind. He decided to delegate the task to Von, who was not only capable but who would also

A) seek significant energy and talent from Peyton in executing the task.
B) benefit from developing skills through assuming the additional responsibility associated with the task.
C) lose a sense of importance and commitment.
D) not engage in more innovation.
E) require close and time-consuming supervision by Peyton.

Question 54

Susan Lane, CEO of VersaForm, decides to reorganize her firm into a(n) ________ organization. In this approach, VersaForm will collaborate with other independent, mostly single-function firms to provide a desired good or service.

A) matrix
B) network
C) divisional
D) functional
E) organic

Question 55

An advantage of functional departmentalization is that

A) managers care more about the company as a whole than just their departments.
B) employees are able to focus exclusively on customer satisfaction.
C) it encourages managers to become generalists.
D) economies of scale can be realized.
E) there is increased coordination between different functions.

Question 56

Acme Farm Equipment operates worldwide and is organized into a(n) ________ structure. Within this structure, each of the four division presidents and their respective employees are committed to the tractor, planter, combine, and silo businesses, respectively. Within these four divisions, task responsibilities are clear, and managers are more independent and accountable.

A) organic
B) functional
C) product
D) matrix
E) customer

Question 57

In decentralized organizations, decision making occurs at the level of the people who are most directly_______________ and have the most ________ about the problem.

A) harmed; serious misgivings
B) affected; intimate knowledge
C) affected; ignorance
D) affected; serious fears
E) harmed; intimate knowledge

Question 58

In the ________ approach to organization structure, decision making is decentralized to a level where information is processed properly and relevant knowledge is applied.

A) matrix
B) organic
C) functional
D) product
E) hierarchical

Question 59

Subdividing an organization into smaller units in a horizontal structure is

A) departmentalization.
B) positioning.
C) decentralization.
D) delegating.
E) standardization.

Question 60

The unity-of-command principle states that a person should have

A) multiple managers.
B) only one boss.
C) no boss.
D) only two bosses.
E) several bosses.

Question 61

________, in organizational integration, means establishing common routines and operating procedures that apply uniformly to everyone.

A) Specialization
B) Unity-of-command
C) Mutual adjustment
D) Authorization
E) Standardization

Question 62

________ is one of the strategies that managers can use to cope with high uncertainty and heavy information demand's in today's environments.

A) Limiting horizontal relationships
B) Reducing the need for information
C) Avoiding dependence on the experience of the organization's human needs
D) Cutting spending on information systems
E) Eliminating slack resources

Question 63

________ use(s) statistical tools to analyze the causes of product defects.

A) Six sigma quality
B) The quality adjustment method
C) Mass inspection
D) Mutual adjustment
E) Just-in-time operations

Question 64

The approach to ________ involves feedback and discussions to jointly figure out how to approach problems and devise solutions agreeable to everyone.

A) coordination by mutual adjustment
B) unity-of-command
C) coordination by specialization
D) coordination by formalization
E) authoritative decision making

Question 65

Quantum Inc. and Cosmic Corp often compete with one another in the marketplace. A new business area is emerging that appeals to both firms. However, organizations that will successfully compete in the new business area will need to have a robust laboratory capability as well as an established construction capability. Quantum has the former, and Cosmic has the latter. Although unusual for two competitors, they negotiate and create a(n) ________. Under the terms of this agreement, Quantum and Cosmic formally and jointly pursue their mutual goals.

A) merger
B) strategic alliance
C) acquisition
D) vertical integration
E) related diversification

Question 66

A ________ organization is one in which top management ensures that there is consensus about the direction in which the business is heading.

A) centralized
B) high-involvement
C) mechanistic
D) tall
E) bureaucratic

Question 67

A characteristic of a high-involvement organization is that ________

A) employee participation in decision making is limited.
B) the organization has a flat, decentralized structure built around a customer, good, or service.
C) the employees at lower levels of management are not held accountable for delivering a good or service.
D) people who try to expand their skills beyond their job profile are discouraged.
E) much of the work is done independently by experts in the top management.

Question 68

In the context of technology configurations, which of the following is true of large batch technologies?

A) Goods or services are provided in low volumes.
B) Organizational structure tends to be organic.
C) Decision making tends to be decentralized.
D) Communication is highly informal.
E) Hierarchical authority is more prominent.

Question 69

Sydney owns and manages a custom woodworking business. She and her staff of four craftspeople work informally together, and each worker tends to make decisions in an independent (decentralized) manner. Sydney's business is a ________ operation.

A) small batch
B) functional
C) continuous
D) network
E) just-in-time

Question 70

In the context of organizational integration, ________ refers to a situation when interdependent units create deadlines and objectives that contribute to a common goal.

A) coordination by plan
B) unity-of-command
C) standardization
D) span of control
E) centralization

Question 71

One of W. Edwards Deming's "14 points" of quality is to

A) strive for short-term improvement rather than long-term profit.
B) ensure compliance by inducing fear among those who deviate from process.
C) allow autonomy and spontaneity.
D) use numerical quotas regularly.
E) rely on mass inspection to ensure quality.

Question 72

In the context of organizational agility, learning organizations

A) base their decisions on guesswork and assumptions.
B) avoid learning from other organizations.
C) avoid benchmarking in order to keep up internal performance standards.
D) are primarily concerned about finding quick fixes to current problems.
E) are skilled at experimenting with new approaches.

Question 73

________ is a way of managing in which everyone is committed to continuous improvement of his or her part of the operation.

A) Mass customization
B) Mutual adjustment
C) Unity-of-command
D) Micromanagement
E) Total quality management

Question 74

In the context of technology configurations, which of the following is true of continuous process technologies?

A) They tend to require more supervision than other technologies.
B) People are removed from the work itself.
C) They provide a variety of low-volume, customized services.
D) Communication tends to be highly formal.
E) They are characterized by a large number of rules and formal procedures.

Question 75

In the horizontal structure of a firm, line departments

A) depend on being an expert in a particular function for their growth.
B) provide specialized or professional skills that support other departments.
C) make things, sell things, or provide customer service.
D) depend on the staff departments to make major operating decisions.
E) cannot be held accountable for the "bottom-line" results of their decisions.

Question 76

A ________ is an organization skilled at creating, acquiring, and transferring knowledge as well as at modifying its behavior to reflect new knowledge and insights.

A) learning organization
B) conglomerate
C) mechanistic organization
D) formal organization
E) closed system

Question 77

________ strives to achieve the highest possible productivity and total quality, cost-effectively, by eliminating unnecessary steps in the production process and continually striving for improvement.

A) Lean manufacturing
B) Continuous processing
C) Mass customization
D) Large batch technology
E) Crowdsourcing

Question 78

A disadvantage of the traditional functional approach to departmentalization is that

A) employees may care more about the company as a whole than their respective departments.
B) the approach makes managers generalists, not specialists.
C) people may pay more attention to customer satisfaction than to functional tasks.
D) communication between functions may fall off due to conflicts.
E) the structure limits functional differentiation.

Question 79

________ is the production of both high-volume and high-variety products at the same time.

A) Lean manufacturing
B) Mass customization
C) Just-in-time production
D) Large batch technology
E) Continuous process technology

Question 80

Which of the following is true of a network organization?

A) A network organization limits the amount of information shared between its members.
B) In a network organization, the technical specialization of the functional structure is absent.
C) A network organization lacks the market responsiveness of the product structure.
D) In a network organization, managers within the organization interact closely with members outside it.
E) A network organization is a single firm in which jobs are specialized and grouped according to business functions.