Deck 8: Organization Structure

Question 1

Even though the production department and advertising departments have completely different tasks, they must work together and coordinate their efforts to make sure the marketing campaign is ready for each new product launch. The degree to which they do this is known as

A)differentiation.
B)concentration.
C)span of control.
D)unity of command.
E)integration.

Answer 1

E

Question 2

Employees who function poorly in ambiguous, and sometimes conflict-ridden, circumstances may not thrive in a matrix organization.

Answer 2

True

Question 3

An organization chart shows

A)the reporting structure in the organization.
B)the number of people who should be supervised.
C)how decisions are made at the departmental level.
D)which products appeal to particular groups of customers.
E)how the organization will interact with the external environment.

Answer 3

A

Question 4

Anthony and Roberto are employed at the same company and often work on the same products. However, they are assigned to separate units, and they perform very specific, different jobs that contribute to the larger task. This is an example of

A)concentration.
B)integration.
C)specification.
D)specialization.
E)centralization.

Question 5

One disadvantage of delegation is that it usually results in the manager losing touch with the status of the work to be accomplished.

Question 6

Coordination refers to the

A)division of labor within an organization.
B)performance of specific tasks by specific people.
C)procedures that link the various parts of the organization.
D)need for specific tasks in the functional fields.
E)authority levels in the organizational pyramid.

Question 7

Northwestern Networking Solutions has its global headquarters in Minneapolis, where companywide departments, such as marketing, accounting, and research, are housed. Northwestern is thus a divisional organization.

Question 8

The procedures that link the various parts of the organization for the purpose of achieving the organization's overall mission are known as

A)specialization.
B)diversification.
C)coordination.
D)concentration.
E)delegation.

Question 9

Aspen Incorporated has developed a set of procedures to link the various subunits and departments of the corporation in order to carry out the organization's overall mission. The procedures that fulfill this function are referred to as

A)alignment.
B)integration.
C)formalization.
D)standardization.
E)coordination.

Question 10

The numerous tasks that must be carried out in a large organization make ________ a necessity.

A)integration
B)standardization
C)specialization
D)formulization
E)hierarchy

Question 11

A disadvantage of the functional form of departmentalization is that technical specialists spend too much time on administrative work.

Question 12

Thunderbolt Gaming Systems of San Jose, California, operates in a number of related fields, including computer gaming, virtual reality, simulation platforms, and other high-tech applications. In all likelihood, Thunderbolt Gaming Systems is an organization

A)with a high degree of differentiation.
B)in an industry whose paradigms change little.
C)in a relatively stable environment.
D)with the potential for standardization problems.
E)that employs strict rules of formalization.

Question 13

An aspect of an organization's internal environment created by job specialization and division of labor is

A)integration.
B)coordination.
C)differentiation.
D)concentration.
E)diversification.

Question 14

For years, Kathleen served as head of the research and development (R&D)department at Bannerman Pharmaceuticals in Chicago. She enjoyed enormous support from her team, who liked her personally and respected her professionally. Now she has retired, and her place has been taken by Jerome from Bannerman's Cleveland facility. Yet employees continue to sidestep Jerome and come directly to Kathleen for guidance, calling or emailing her at home with questions. What is her best course of action?

A)to let employees know that she wishes she were still in charge, but Jerome is their boss now, and there is nothing anyone can do about that fact
B)to continually direct her former subordinates to Jerome while emphasizing the fact that, as the new director of R&D, he has authority over, and responsibility for, the team
C)to call Jerome and offer some advice regarding the techniques she has developed over the years for winning and keeping employees' loyalty
D)to let team members know that failure to respect Jerome will be regarded as a breach of protocol, and that they should no longer contact her
E)to willingly offering guidance to her former subordinates, as well as her replacement, and encouraging them to involve her in settling any disputes

Question 15

The chief executive officer and chief financial officer of the Blue Willow Food Service Corporation must personally certify that the company's financial statements are accurate. This is an example of corporate governance in action.

Question 16

To get a clear idea of the positions in a firm and how they are arranged, it is helpful to make use of a(n)

A)operational map.
B)departmental schematic.
C)situational analysis.
D)organization chart.
E)value chain.

Question 17

Lawrence and Lorsch found that highly differentiated firms were successful if they had ________ levels of integration.

A)minimal
B)varied
C)high
D)moderate
E)increasing

Question 18

Division of labor is closely related to the concept of

A)integration.
B)specialization.
C)centralization.
D)coordination.
E)formalization.

Question 19

To understand such issues as reporting relationships, authority, responsibility, and related ideas, we need to begin with the ________ of an organization's structure.

A)vertical dimension
B)vertical integration
C)horizontal dimension
D)horizontal integration
E)vertical hierarchy

Question 20

The assignment of different tasks to different people or groups in an organization is known as

A)unity of command.
B)integration.
C)division of labor.
D)concentration.
E)centralization.

Question 21

A ________ span of control creates a flat organization.

A)wide
B)tall
C)centralized
D)formal
E)narrow

Question 22

Corporate boards hire ________ directors to provide different information and perspectives and to prevent big mistakes.

A)outside
B)dual
C)cooperating
D)authoritative
E)affiliative

Question 23

Authority typically is associated with a particular

A)person rather than a particular department.
B)department rather than a particular team.
C)position rather than a particular person.
D)department rather than a particular person.
E)person rather than a particular position.

Question 24

Sondra wants to open a dessert shop and plans to employ a staff of about ten people, including wait staff and bakers. Sondra is planning to create a ______ organization.

A)flat
B)narrow
C)centralized
D)departmentalized
E)specialized

Question 25

Bella is one of three managers at On-Time Electrical, where she supervises 32 repair technicians. She reports to the owner. On-Time Electrical would be considered a ________ organization.

A)flat
B)narrow
C)centralized
D)departmentalized
E)specialized

Question 26

Corporate governance is a term describing the oversight of a firm by its

A)executive staff and board of directors.
B)stockholders and board of directors.
C)stakeholders and board of directors.
D)executive staff and stockholders.
E)executive staff and stakeholders.

Question 27

Among the positions of the top managerial level is that of

A)chief financial officer.
B)frontline manager.
C)operational supervisor.
D)division supervisor.
E)first-line manager.

Question 28

A narrow span of control is appropriate when

A)jobs are similar.
B)performance measures are comparable.
C)the organization is flat.
D)many reporting levels exist.
E)the manager can easily control many subordinates.

Question 29

Narrow spans of control build ________ organizations.

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

Question 30

A wide span of control is optimal when subordinates have jobs that are

A)ambiguous.
B)unskilled.
C)unrelated.
D)similar.
E)supervised.

Question 31

Stockholders are individuals or other entities who

A)run the company because they are owners.
B)have no stake in the company.
C)receive timely information about the company.
D)are rarely directly involved in managing the company.
E)have no say over the company's governance.

Question 32

In some corporations, one person holds all three positions of CEO, chair of the board of directors, and president, but it is more common for the CEO to

A)alternate between the roles of board chair and president.
B)serve also as either chair of the board or president.
C)delegate responsibility to the chair of the board.
D)appoint someone to serve as president.
E)consult with both the board chair and president.

Question 33

Stockholders of the Dearborn Automotive Group are voting on five new candidates to take an empty seat on the company's board of directors. The board of directors is currently made up of the company founder's two sons, one of the company's former marketing vice presidents, and a chief operating officer who has been with the company since its inception. Based on twenty-first century research and trends, the best person to fill the seat is

A)a retired former president and CEO of Dearborn Automotive.
B)Dearborn's vice president of product development.
C)the creator of the most successful advertising campaign in Deaborn's history.
D)the granddaughter of Dearborn Automotive's founder.
E)the vice president of product development for a software company.

Question 34

Several top executives at Cogswell Integrated Systems are part of the corporation's board and are called ________ directors.

A)operational
B)surrogate
C)cooperating
D)authoritative
E)inside

Question 35

Jose delegates an important project to Andrea, but he tells her that he expects regular reports and that he will take over the work if she falls behind or does not produce quality results. This is an example of

A)hierarchy.
B)authority.
C)subordination.
D)differentiation.
E)accountability.

Question 36

Reporting relationships between bosses and subordinates are tied with the ________ dimension of a firm's structure.

A)horizontal
B)vertical
C)circular
D)external
E)flexible

Question 37

Corporations have boards of directors elected by the

A)employees.
B)franchisees.
C)stockholders.
D)managers.
E)partners.

Question 38

The number of subordinates who report directly to an executive or supervisor is called the

A)reporting order.
B)span of control.
C)delegation control.
D)bureaucratic span.
E)authoritative span.

Question 39

Who selects the chief executive officer of a corporation?

A)the board of directors
B)stockholders
C)operational managers
D)employees
E)middle managers

Question 40

Span of control refers to

A)how many people are on a company's board of directors.
B)the legitimate right to make decisions and to tell other people what to do.
C)the top management team, which typically includes the CEO and president.
D)the role of the executive staff in ensuring that firm activities meet stakeholders' goals.
E)the number of individuals reporting directly to a manager or supervisor.

Question 41

Shield Life & Casualty has strictly defined job responsibilities and lines of communication. In this formal atmosphere, approval for any changes to standing procedures must be made by upper management. The firm has a

A)wide span of control.
B)high degree of centralization.
C)moderately decentralized structure.
D)matrix design.
E)flat structure.

Question 42

In a decentralized organization, more of the decisions are made by the

A)board of directors and stockholders.
B)department heads and regional managers.
C)lower levels of the organization.
D)upper levels of the organization.
E)chief executive officer and president.

Question 43

An organization in which lower-level managers make important decisions is a(n)________ organization.

A)decentralized
B)horizontal
C)vertical
D)informal
E)centralized

Question 44

Bernadette calls Cynthia into her office and says, "We need to change how we're handling orders for raw materials in the plant. Right now we're consistently running at least 25 percent over budget, supplies are coming in behind schedule, and there have been issues with quality control as well. I'd like you to take this over. Talk to the line managers, evaluate options, get some competitive bids, and then give me a report with your recommendations by next Tuesday." This is an example of

A)concentration.
B)centralization.
C)delegation.
D)brokering.
E)standardization.

Question 45

Kiera's boss observed, "Kiera, you have 16 direct reports-a rather high number for a span of control-yet your team is functioning well, and you are managing effectively. Your success in managing with such a wide span of control tells me that

A)your subordinates' work is ambiguous and not well defined."
B)your subordinates' jobs are dissimilar, and performance measures are not comparable."
C)the organization is large."
D)your subordinates prefer close supervision and dependence upon management."
E)your subordinates are highly trained and have access to the information they need."

Question 46

Mia, vice president of operations, was looking to make her company more efficient and asked Cesar to manage the reorganization of the order fulfillment center, even though he was less experienced than many of the managers in that department. Cesar found that the other managers were not cooperative in giving him access to their current procedures or ideas about new ones, and he felt powerless to compel them. Mia most likely made the mistake of

A)assigning inappropriate tasks to a junior manager.
B)delegating responsibility without adequate authority to Cesar.
C)"passing the buck" by blaming Cesar's performance.
D)taking credit for Cesar's accomplishments.
E)underestimating Cesar's capabilities.

Question 47

When a manager has an expectation that an employee will perform a particular job, as well as the right to take corrective action if the employee does not do so, ________ exists.

A)delegation
B)accountability
C)responsibility
D)coordination
E)authority

Question 48

Dante, an operations manager at Therma-Pro Insulation, has been put on a big project with a tight deadline. He distributes half the work to two other supervisors, taking care of the bigger aspects of the project himself. This is an example of

A)unity of command.
B)delegation.
C)specialization.
D)span of control.
E)differentiation.

Question 49

The first step in effective delegation is to

A)select the person to delegate to.
B)define the goal of the task to be delegated.
C)provide the resources to do the task.
D)check on the status of the work.
E)explain the means of achieving the goal.

Question 50

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

A)seek significant energy and talent from Preston 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 Preston.

Question 51

Generally speaking, ________ organizations are decentralized.

A)staff
B)flat
C)diverse
D)vertical
E)line

Question 52

According to Napoleon Bonaparte, the optimal number of direct reports is

A)three.
B)five.
C)seven.
D)eight.
E)nine.

Question 53

Delegation

A)can be used only in organizations with flat structures.
B)promotes subordinates to higher positions.
C)helps develop effective subordinates.
D)can be done only at top level of management.
E)often sharply reduces what a manager can achieve.

Question 54

Sylvia has been promoted to a managerial position in SweeTime Bakery. One of her jobs is to determine the leave schedules of employees. However, the owner of the company overrides her decisions. Consequently, Sylvia's subordinates do not respect her position as a manager. Sylvia has identified the problem, and it is that the

A)company has a wide span of control.
B)owner has not delegated enough authority to enable her to do her work.
C)employees prefer to be guided by another manager.
D)owner wants to follow the unity-of-command principle.
E)company follows a decentralized decision-making process.

Question 55

Blake is a recently promoted manager at Budget Foods, winning the position over his former peers. His peers do not view Blake as their supervisor; they continue to think of him and treat him as a peer. As a result, Blake is having to rely more on ________ to delegate work and to manage his staff.

A)centralized decision making
B)external locus of control
C)authority
D)informal influence tactics
E)standardization

Question 56

Prior to going on vacation for two weeks, Dirk Rothstein, Division Manager, assembled his management team and said, "In my absence, Marianne will serve as acting Division Manager. I know that all of you department managers will give Marianne your full support." Afterwards, in a one-on-one meeting with Marianne, Dirk told her that he was giving her all that she needed to manage in his absence, except for

A)authority to chair the next managers' meeting.
B)time to do the job.
C)budget to do the job.
D)authority to discipline another department head.
E)authority to oversee production.

Question 57

Ideally, the people making the decisions at a company should be those who

A)have the greatest authority.
B)control daily operations.
C)have been delegated that responsibility.
D)supervise the most employees.
E)are most affected by the issue.

Question 58

When Sally, a frontline manager, asked her subordinate, Justin, to invite a client to a charity function, Justin forgot to do so. When the company president asked Sally why the client was not present at the charity function, Sally explained why. In this scenario, who is responsible for the failure?

A)The client is responsible.
B)Sally is responsible because, as manager, she delegated the task to Justin.
C)The president is responsible because he hired Sally.
D)Sally is not responsible for Justin's failure, and she can now confidently move on to other responsibilities.
E)Justin is solely responsible for his failure.

Question 59

One advantage of delegation is the fact that it

A)helps subordinates develop new skills.
B)absolves the delegating manager of responsibility.
C)reduces accountability for the job.
D)formalizes power in the company.
E)reduces the subordinate's workload.

Question 60

At Mountain View Optical Systems, important decisions are usually made at the top. Mountain View Optical has a ________ organization.

A)flat
B)wide
C)narrow
D)centralized
E)decentralized

Question 61

An advantage of functional departmentalization is the fact that

A)it is well-suited to a complex environment.
B)employees are able to focus exclusively on creating customer satisfaction.
C)it encourages managers to become generalists.
D)decision making and lines of communication are simple and clearly understood.
E)it is the most flexible organization form.

Question 62

Subdividing an organization into smaller subunits is known as

A)departmentalization.
B)delegation.
C)centralization.
D)standardization.
E)diversification.

Question 63

Get in the Game Footwear, Inc., makes athletic shoes. Its departments are structured around products sold to professional athletes, novice athletes, and nonathletes. Get in the Game Footwear uses ________ departmentalization.

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

Question 64

In a ________ organization, jobs are specialized and grouped according to the role they perform and the skills they require, such as marketing, finance, operations, accounting, and human resources.

A)divisional
B)geographical
C)helix
D)functional
E)matrix

Question 65

In a four-year time period, Isaiah's organization has grown from a one-man motorcycle repair shop to a custom bike manufacturing/assembly and rebuild business employing 24 mechanics and technicians. Due to Isaiah's difficulty in delegating responsibility, he makes almost all important business and design/technical decisions. As a result, he is working 80 hours per week, and the business has stopped expanding. The business is suffering an employee turnover problem. Isaiah's business is a(n)________ organization.

A)centralized
B)decentralized
C)organic
D)matrix
E)learning

Question 66

Terri Blackstone, CEO of Xlnt Products, decides to reorganize her firm into a(n)________ organization. In this approach, Xlnt Products will flexibly and collaboratively work 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 67

Under the product structure of divisional organization,

A)duplicating functions is inexpensive.
B)decision making is decentralized.
C)coordination across product lines is easy.
D)companies suited to stable environments function best.
E)task responsibilities may be ambiguous.

Question 68

Andre is a new product designer for a restaurant supply company. Andre therefore works in a ________ department.

A)staff
B)line
C)functional
D)matrix
E)service

Question 69

Global Beverage Corporation is planning a worldwide celebration on a particular day in July that marks the centennial of the company's founding. However, this has caused a problem in one of its overseas markets, where that day happens to coincide with a solemn national holiday. How should Global Beverage handle the situation?

A)by arranging a visit to the country by its chief executive officer so that she can meet with local leaders and arrange an alternative celebration
B)by issuing a statement from headquarters, directed to the nation's leadership, apologizing for failing to consult with them before planning the celebration
C)by allowing its local management team, in consultation with national leaders and other local personnel, to develop plans for an alternative celebration
D)by directing its local management team to develop plans for an alternative celebration in accordance with overall company guidelines
E)by calling for a coordinated effort by Global Beverage headquarters and the local management team with the aim of developing a cooperative strategy

Question 70

Line departments

A)provide specialized skills to support staff departments.
B)deal directly with the organization's primary goods and services.
C)include research, legal, accounting, and human resources departments.
D)focus on safeguarding the company from risks.
E)focus more on requirements and procedures rather than products and customers.

Question 71

Rihanna Carpenter, CEO of BlueTone Corporation, announced the new corporate structure, naming Fujio Nakamura VP of the Far East Division, Basri Nassar VP of the Middle East Division, Lena Bauer VP of the European Division, and Pete Jackson VP of the Americas Division. Bluetone Corporation's new structure follows the ________ approach to departmentalization.

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

Question 72

An example of a line department is

A)public relations.
B)human resources.
C)product design.
D)accounting.
E)legal.

Question 73

Bill meets with his supervisor, Nick, and says, "Nick, I have conflicting direction from several managers. Dave wants me in the field next week across town. Claire wants me in the field next week out of state. And I know that you would like me to work next week in the office." Nick says, "Bill, we will solve this problem through communications and prioritization. We work for a ________ organization and having dual or even more lines of command can be confusing."

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

Question 74

Global AgSystems 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 75

Departmentalization that groups units around products, customers, or geographic regions is a defining characteristic of a ________ organization.

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

Question 76

Stylish Fitness, 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 77

As vice president of human resources at Premier Products Corporation, Pietro enjoys working alongside his peer vice presidents, largely because they all have different skills and all manage different parts of the organization, including research, engineering, production, construction, procurement, and finance. Premier Products Corporation is a(n)________ organization.

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

Question 78

The three basic approaches to departmentalization are

A)line, staff, and matrix.
B)functional, divisional, and matrix.
C)line, staff, and functional.
D)divisional, staff, and matrix.
E)line, staff, and divisional.

Question 79

Research, accounting, and human resources are considered ________ departments.

A)staff
B)line
C)functional
D)matrix
E)service

Question 80

Sun Dynasty Foods was voted producer of the best egg rolls nationwide. It soon expanded and now manufactures and distributes a whole line of frozen foods, kitchen equipment, and specialty sauces, with a separate department for each. Sun Dynasty is characterized by the ________ approach to departmentalization.

A)conglomerate
B)horizontal
C)geographic
D)customer
E)product