Deck 9: Structuring Organizations for Todays Challenges

Question 1

Empowering employees to better serve customers requires front-line employees.

A)less training for
B)fewer
C)more support of
D)uniforms for

Answer 1

C

Question 2

All of the following are advantages of a line organization in a large business except:

A)each worker has only one supervisor.
B)it is very flexible.
C)responsibility and authority are clearly defined.
D)it is easy to understand.

Answer 2

B

Question 3

Chang is a project manager at Paradox Industries.He is able to borrow specialists from the organization on a regular basis to assist in major projects at his high-tech company.After the project ends,the specialists return to their former duties.Paradox Industries utilizes a:

A)bi-functional organization.
B)lateral transfer organization.
C)matrix organization.
D)line organization.

Answer 3

C

Question 4

Bill is a financial manager at Carlyle Bank and Trust who always strives to treat each subordinate with respect and fairness.Bill's treatment of employees is an example of Fayol's principle of:

A)empowerment.
B)priority of assignment.
C)equity.
D)unity of command.

Question 5

Given the current business environment,managing has become a critical managerial function.

A)consumer demand
B)change
C)international markets
D)negative spiritual issue

Question 6

Employees with the formal authority to issue orders,make policy decisions,and enforce discipline are classified as:

A)line personnel.
B)chain of command managers.
C)organizational specialists.
D)staff personnel.

Question 7

Fayol's principle states that each worker should report to one,and only one,boss.

A)comparative advantage
B)division of labour
C)unity of command
D)esprit de corps

Question 8

In a(n)_ organization,there are many layers of management who set rules and regulations that everyone in the organization is expected to follow.

A)inverted
B)bureaucratic
C)matrix
D)ordered

Question 9

The line of authority that moves from the top of a hierarchy to the lowest level is called the:

A)chain of logic.
B)organizational design.
C)delegation of authority.
D)chain of command.

Question 10

In a organization,specialists from different parts of an organization are brought together to work on specific projects,but these specialists still remain part of a traditional line and staff organizational structure.

A)line and staff
B)line
C)centralized
D)matrix

Question 11

Ashley had been frustrated with her new job at Walnut Securities,until she befriended a secretary from another department.Over lunch in the cafeteria,her new friend shared with Ashley the way things really work at Walnut Securities.Ashley has quickly learned that:

A)not all businesses have a formal organization.
B)an unofficial informal organization exists that you can utilize to help you do your job.
C)what she learned in her business classes didn't really help her in the real world.
D)organizational culture can be negative.

Question 12

The organizational structure of the Canadian Army's 1st Infantry Division provides for direct two-way lines of responsibility,authority,and communication running from the top to the bottom.Additionally,each person in the division reports to only one superior.The 1st Infantry Division is clearly an example of a:

A)functional organization.
B)matrix organization.
C)line organization.
D)service organization.

Question 13

Dividing the required work among a group of employees is called:

A)division of labour.
B)separation of control.
C)departmentalization.
D)delegation of responsibility.

Question 14

All of the following are common responses of employees when faced with change except:

A)I've got years of experience.
B)That's the way we've always done things.
C)This should be easy to accept.
D)If it isn't broke,don't fix it.

Question 15

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

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

Question 16

In Weber's views of a bureaucratic organization,the role of top management was to:

A)develop the rules and procedures needed to carry out the plans of bureaucrats.
B)empower workers and enable them to quickly respond to customer wants.
C)directly supervise front-line employees to better control operations.
D)make decisions.

Question 17

XYZ Industries produces a variety of anti-crime and safety products such as burglar alarms,smoke detectors,surveillance cameras,and specialty locks.XYZ sells to households,businesses,and government agencies.They have found that each market group requires a different marketing strategy.XYZ would probably benefit from departmentalization by:

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

Question 18

In a(n)organization,decision-making authority is maintained at the top level of management.

A)decentralized
B)bottom-up
C)centralized
D)inverted

Question 19

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

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

Question 20

Compared to the decentralized management structure,which of the following is a disadvantage of the centralized management structure?

A)Less top management control.
B)Complex distribution system.
C)Potential for interorganizational conflict.
D)Less efficient.

Question 21

Novachek,Inc.is a large and bureaucratic firm with many layers of management and formal rules and regulations.The company is losing many of its customers to smaller and more flexible rivals and is currently struggling for survival.Joe has just been hired as Novachek's new CEO,and his most pressing concern is to turn around the struggling company.Joe's best approach to dealing with this type of organization is probably to:

A)eliminate nearly all of the first-line employees.
B)re-engineer the company.
C)establish a committee to investigate the problem.
D)make small,incremental improvements in the production department.

Question 22

Which of the following correctly identifies the rationale behind the unity of command principle of management?

A)All authority should rest with top management,since only top managers carry the responsibility of bad decisions.
B)Workers can become frustrated and confused if they have more than one boss.
C)All workers must share the same goal.
D)Every firm has one strong leader,and everyone should support that individual.

Question 23

The management at Patriot Mills works hard to ensure that no one in its organization has more than one boss and all workers are treated with fairness and respect.Additionally,the firm divides the work into areas of specialization so that everyone knows to whom they should report.The management of Patriot Mills reflects the ideas and principles of:

A)Henri Fayol.
B)Karl Marx.
C)Peter Drucker.
D)John M.Keynes.

Question 24

John has just taken a job in the marketing department with the Shelling Company.After just a few days on the job,John has learned that the company has many layers of management,and seems to have a rule to cover almost every situation.These conditions suggest that the Shelling Company is a(n):

A)decentralized organization.
B)oligopolistic organization.
C)bureaucratic organization.
D)cross-functional organization.

Question 25

The practice of striving for maximum customer satisfaction by ensuring quality from all departments is called _.

A)Total progressive management
B)TQM
C)Strategic analysis
D)Reformation

Question 26

ABC Corporation has experienced rapid growth during their five years of existence.While still relatively small,ABC is now big enough that Jennifer,the firm's CEO,has decided to organize the firm into functional departments.This organizational structure will offer ABC all of the following advantages except:

A)opportunities for employees to develop their skills in depth.
B)good communications among different departments.
C)economies of scale in the performance of functions.
D)good coordination within functions.

Question 27

HairNet,a cosmetology trade publication,utilizes people and resources from other organizations as needed.Business relationships are temporary and flexible.HairNet 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:

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

Question 28

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?

A)Benchmarking
B)Functional sharing
C)Virtual distribution
D)Outsourcing

Question 29

An organization with only a few layers of management is known as a:

A)tall organization.
B)leveraged organization.
C)coordinated organization.
D)flat organization.

Question 30

A organization is characterized by direct two-way lines of responsibility, authority,and communication running from the top to the bottom of the organization,with all people reporting to only one supervisor.

A)cross-functional
B)matrix
C)line and staff
D)line

Question 31

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

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

Question 32

Tamika works for a pharmaceutical company that services hospitals,doctors and consumers.Her company should departmentalize by which of the following ways?

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

Question 33

Which of the following determines the degree of decentralization a firm might use?

A)The degree to which lower level management is empowered to make decisions.
B)The degree of product standardization desired by the marketplace.
C)The chain of command used to follow the flow of authority from the top of the hierarchy to the lowest levels.
D)The geographical area served by the firm's operations.

Question 34

Fayol's principle says that a spirit of pride and loyalty should be created among people within an organization.

A)hierarchy of loyalty
B)equity
C)unity of command
D)esprit de corps

Question 35

The traditional technique used to departmentalize an organization is by:

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

Question 36

Henri Fayol and Max Weber are best known for their contributions to:

A)finance theory.
B)organization theory.
C)marketing theory.
D)production theory.

Question 37

All of the following are advantages of the matrix organizational structure except:

A)it requires cooperation between employees and managers.
B)it gives flexibility to managers in assigning people to projects.
C)it can produce creative solutions to new-product development problems.
D)it provides for more efficient use of organizational resources.

Question 38

Vaughan Studios organizes its operations by activity,such as production,marketing,accounting,and finance.Vaughn utilizes departmentalization in order to maximize their efficiency:

A)product
B)functional
C)standardized
D)customer

Question 39

Excite Enterprises uses an accounting firm to handle the payroll and tax functions for this firm.Using the services of another firm in this manner is an example of:

A)core competencies.
B)outsourcing.
C)benchmarking.
D)functional reassignment.

Question 40

The of a business firm is the structure that details lines of authority,responsibility,and position.

A)normative design
B)formal organization
C)matrix reloaded structure
D)informal organization

Question 41

The optimum number of subordinates a manager can supervise is referred to as the:

A)manager-subordinate ratio.
B)employee quota.
C)chain of command.
D)span of control.

Question 42

The ________ an organization's structure,the the span of control.

A)taller;wider
B)taller;flatter
C)flatter;narrower
D)flatter;wider

Question 43

At the Montell Company,functions are divided into areas of specialization such as production,marketing,accounting,and finance.This type of organization reflects Fayol's principle of:

A)unity of command.
B)division of labour.
C)hierarchy of authority.
D)equity.

Question 44

In a bureaucratic organization:

A)customer satisfaction is the number one priority.
B)employees follow strict rules and regulations.
C)departments communicate with each other on a regular basis.
D)the first-line workers are empowered to respond to the needs of customers.

Question 45

Fayol's principle says that functions should be divided into areas of specialization.

A)centralization
B)departmentalization
C)division of labour
D)comparative advantage

Question 46

Which of the following is considered to be an advantage of departmentalization?

A)Employee skills can be developed in depth.
B)Departments are isolated from one another.
C)Employees become narrow specialists.
D)People in the same department tend to think alike.

Question 47

Whirlpond,a manufacturer of home appliances,has historically produced the components for their products.However,Whirlpond now contracts with other firms to produce these components.This strategy of appears to be a trend among Canadian manufacturers.

A)outsourcing
B)competitive benchmarking
C)core positioning
D)foreign competency

Question 48

The span of control for a manager:

A)is no longer a relevant issue in this day of computerized offices.
B)varies somewhat from manager to manager,but most managers operate best with a span of control of about 9 employees.
C)depends on a number of factors,and can vary from one manager to another.
D)should never exceed 7 subordinates.

Question 49

The process of setting up individual departments to do specialized tasks is called:

A)departmentalization.
B)job specialization.
C)a division of labour.
D)delegation of authority.

Question 50

Organizing a business begins with:

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

Question 51

One advantage of a bureaucratic organization is that:

A)employees know what is expected of them.
B)it encourages cooperation among different departments within the organization.
C)it is very responsive to the wants and needs of customers.
D)there are very few layers of management.

Question 52

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

A)Radical reorganizing
B)Extroverted organization
C)Reengineering
D)Restructuring

Question 53

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

A)Benchmark outsourcing system
B)Virtual corporation
C)Network system
D)Web-based corporation

Question 54

Bull's-eye,a regional discount retailer,watches carefully the operations of their best rivals.Bull's-eye rates and compares their operations to the best in the market.This firm is involved in:

A)outsourcing.
B)competitive benchmarking.
C)functional positioning.
D)core competency ranking.

Question 55

Which of the following describes a group of employees from different departments working together on a long-term basis?

A)Intrapreneurial teams
B)Focus group
C)Self-managed teams
D)Mixed function groups

Question 56

In an inverted organization,the job of management is to:

A)make all of the basic decisions.
B)closely monitor employee performance.
C)establish rules and regulations to guide worker behaviour.
D)assist and support front-line people.

Question 57

To be successful in today's highly competitive market a business needs to:

A)produce products that utilized the highest possible capacity of the production facilities.
B)focus on customers and give them what they want.
C)ensure they are using their production facilities as efficiently as possible.
D)empower their employees.

Question 58

Springfield National Bank organizes its loan operations based on the market served,such as consumer,small business,and non-profit organizations.Departmentalization based on ________ allows Springfield to better serve borrowers with different needs.

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

Question 59

The is the nerve system of the informal organization.

A)spider web
B)company newsletter
C)grapevine
D)organizational database

Question 60

involves radical redesign and dramatic improvements.

A)Re-engineering
B)Re-structuring
C)Line personnel
D)Line organization

Question 61

Heather works as a sales representative for the Westerly Company.She really enjoys working for Westerly,because the company treats her and other sales representatives as highly valued employees.Sales reps at Westerly are given freedom and flexibility in their relationships with customers.While there are only a few layers of management at Westerly,Heather has found that these managers try their best to support and assist her efforts.Based on Heather's experience,it appears that Westerly is a(n):

A)inverted organization.
B)tall organization.
C)casual organization.
D)bureaucratic organization.

Question 62

HipHop Music Company assigns workers to departments based on similar skills and has created a marketing department,a production department,a finance department,and a personnel department.This suggests that HipHop departmentalizes by:

A)function.
B)process.
C)user group.
D)tradition.

Question 63

Which of the following was created as an answer to the temporary nature of the matrix structure?

A)Line organizations
B)Network organizations
C)Line and staff organizations
D)Self-managed teams

Question 64

An organization that has contact people at the top and the chief executive officer at the bottom is known as a(n):

A)improvised organization.
B)bureaucracy.
C)inverted organization.
D)oligarchy.

Question 65

involves an organization comparing each of their business functions against the best in the world.

A)Networking
B)Virtual competition
C)Benchmarking
D)Outsourcing

Question 66

Carlos is the person to see in the welding department if you are a new employee.While he is not a manager,he is the person that most of the others in the department look to for advice and assistance.Carlos is an important member of the firm's:

A)participatory control.
B)supervisory management.
C)informal organization.
D)closet cabinet.

Question 67

The consists of the relationships that develop spontaneously as employees meet and form power centres.

A)bureaucratic structure
B)formal organization
C)secondary organization
D)informal organization

Question 68

Managing change can include:

A)decentralized authority
B)centralized authority
C)redesigning the whole organizational structure
D)costing analysis

Question 69

The concept of suggests that as a firm produces more,the more efficient it becomes.

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

Question 70

Which of the following follow all of Fayol's traditional management rules?

A)Line and staff organizations
B)Line organizations
C)Decentralized management structures
D)Staff personnel

Question 71

Campbell is a middle manager for a bureaucratic organization.According to Max Weber's views on bureaucratic organizations,Campbell's function within the organization is to:

A)make key operating decisions.
B)ensure the organization achieves esprit de corps.
C)develop the rules and procedures needed to implement the decisions of top management.
D)evaluate the daily performance of first-line employees.

Question 72

Compared to the centralized management structure,which of the following is a disadvantage of the decentralized management structure?

A)Weakened corporate image.
B)Less responsive to customers.
C)Less empowerment.
D)Lower morale away from corporate headquarters.

Question 73

refers to the process of dividing organizational functions into separate units.

A)Departmentalization
B)Coordination
C)A chain of command
D)Empowerment

Question 74

Sarah has been working for a small sheet metal shop for a few weeks.Tom and Bill are the two foremen that supervise activities in the shop.Both Tom and Bill give Sarah orders from time to time,and the two sometimes give her conflicting instructions about what she should do.Sarah doesn't want to make either Tom or Bill mad,but she is confused and frustrated by these conflicting assignments.This type of situation represents a violation of Fayol's principle.

A)clarity of objective
B)unity of command
C)division of labour
D)priority of assignment

Question 75

In recent years,large organizations have tried to improve their efficiency in communication and decision making by:

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

Question 76

Mo was just hired by a firm that utilizes a bureaucratic organization.Mo is likely to encounter all of the following conditions except:

A)many rules and regulations that employees are expected to follow.
B)many layers of management.
C)departmentalization by function.
D)empowerment of first line employees to better serve customers.

Question 77

An organization that consists of many layers of management is referred to as a ____________ organization.

A)wide
B)deep
C)flat
D)tall

Question 78

Which of the following describes an environment in which data is instantly available via the Internet to organizational partners?

A)Virtual business
B)E-commerce
C)Networking
D)Real time

Question 79

The term mass production refers to:

A)producing large specialized items.
B)efficiently producing large quantities of goods.
C)two or more firms combined to better meet the needs of customers.
D)the production of religious icons.

Question 80

The business operations of the XYZ Corporation are complex,requiring a great deal of planning and coordination.The span of control for the managers of the XYZ Corporation is likely to be:

A)decentralized.
B)narrow.
C)unrelated to these variables.
D)wide.