Deck 7: Creating a Flexible Organization

Question 1

Boss Queen, Inc.(BQI)
Boss Queen, Inc.(BQI) is a business-clothing store for professional women.The owner of the company has designed the business in such a way that she hardly ever has to be there.There are many departmental managers who hold a lot of responsibility.While they are organized separately by department, each manager knows enough about the other departments to be able to fill in at any time.The department managers also delegate a lot of work further down to their employees as a way to empower them.The owner even delegates store-management responsibilities to a different department manager each month.Even though certain people are delegated certain tasks, everyone pitches in, so it is sometimes hard to tell who is really in charge.
The employees are so comfortable with each other that many go out and participate in activities together on the weekends, even when they are not working.However, the owner realizes that she does not want to participate in these events because she does not want to seem that she is favoring certain people over others.
Refer to Boss Queen, Inc.BQI can best be described as a(n) ____ organization.

A) span of management
B) decentralized
C) ad hoc
D) centralized
E) autocratic

Answer 1

B

Question 2

What are the benefits of job rotation?

Answer 2

Answer not provided.

Question 3

Select a local organization and discuss the basis on which it is organized.

Answer 3

Answer not provided.

Question 4

What is the informal organization? Where is it shown on the organization chart?

Question 5

Define an organization.Relate that definition to a local eating establishment by showing how this organization fits the definition.

Question 6

How is an organization's chain of command established?

Question 7

Describe the bureaucratic management system.How effectively does the bureaucratic system respond to change? How is that response influenced by the structure of a bureaucracy?

Question 8

Why would the decentralization of a firm result from delegation of authority?

Question 9

Dramatic Expressions
Dramatic Expressions is a home decorating company that sells many different household accessories ranging from candles to entertainment centers.Wanda is the CEO of the company.She feels that there is not enough specialization within the company and wants to organize the business in a different way.Wanda thinks that the company would be more effective if it were to switch to a new way of organization.For example, there could be a manager in charge of the candles, a different manager in charge of the entertainment centers, and so on.
Another issue that Wanda wants to resolve is that of delegation.She believes that if she could improve her delegating style, employees would feel more empowered and want to go above and beyond what they are required to do.There are certain reasons that Wanda has a hard time delegating to others, but she is confident that the problem will be overcome if she works on it.
Refer to Dramatic Expressions.What could be a possible reason for Wanda not wanting to delegate work?

A) The employee was unreliable.
B) The employee was not a likable individual.
C) The employee was well-organized.
D) The work involved strict planning.
E) The work took place in an undesirable venue.

Question 10

A firm may be departmentalized by function, product, location, or customer.Explain how each method groups jobs into units.

Question 11

Why is job specialization needed?

Question 12

If you were a manager, how would you use the grapevine?

Question 13

Identify and describe the five major steps of the organizing process.

Question 14

What are the advantages and disadvantages of a matrix structure?

Question 15

How does a line management position differ from a staff management position?

Question 16

Dramatic Expressions
Dramatic Expressions is a home decorating company that sells many different household accessories ranging from candles to entertainment centers.Wanda is the CEO of the company.She feels that there is not enough specialization within the company and wants to organize the business in a different way.Wanda thinks that the company would be more effective if it were to switch to a new way of organization.For example, there could be a manager in charge of the candles, a different manager in charge of the entertainment centers, and so on.
Another issue that Wanda wants to resolve is that of delegation.She believes that if she could improve her delegating style, employees would feel more empowered and want to go above and beyond what they are required to do.There are certain reasons that Wanda has a hard time delegating to others, but she is confident that the problem will be overcome if she works on it.
Refer to Dramatic Expressions.What would be an alternative to specialization if negative consequences were to develop at Dramatic Expressions?

A) organization
B) occupation
C) circulation
D) job rotation
E) generalization

Question 17

Identify and discuss the major steps in the delegation process.

Question 18

What does it mean for a manager to have a wide span of control? Would you expect the span of control to be wide or narrow when subordinates are highly trained professionals? Support your answer.

Question 19

Dramatic Expressions
Dramatic Expressions is a home decorating company that sells many different household accessories ranging from candles to entertainment centers.Wanda is the CEO of the company.She feels that there is not enough specialization within the company and wants to organize the business in a different way.Wanda thinks that the company would be more effective if it were to switch to a new way of organization.For example, there could be a manager in charge of the candles, a different manager in charge of the entertainment centers, and so on.
Another issue that Wanda wants to resolve is that of delegation.She believes that if she could improve her delegating style, employees would feel more empowered and want to go above and beyond what they are required to do.There are certain reasons that Wanda has a hard time delegating to others, but she is confident that the problem will be overcome if she works on it.
Refer to Dramatic Expressions.Wanda should address all of the following when it comes to organizing the business except

A) job design.
B) regulating behavior.
C) establishing a chain of command.
D) departmentalization.
E) delegation.

Question 20

Dramatic Expressions
Dramatic Expressions is a home decorating company that sells many different household accessories ranging from candles to entertainment centers.Wanda is the CEO of the company.She feels that there is not enough specialization within the company and wants to organize the business in a different way.Wanda thinks that the company would be more effective if it were to switch to a new way of organization.For example, there could be a manager in charge of the candles, a different manager in charge of the entertainment centers, and so on.
Another issue that Wanda wants to resolve is that of delegation.She believes that if she could improve her delegating style, employees would feel more empowered and want to go above and beyond what they are required to do.There are certain reasons that Wanda has a hard time delegating to others, but she is confident that the problem will be overcome if she works on it.
Refer to Dramatic Expressions.What type of departmentalization does Wanda want to switch to?

A) by function
B) by product
C) by location
D) by customer
E) by responsibility

Question 21

A locally owned and operated bakery is likely to have

A) a short chain of command.
B) a complex chain of command.
C) an extensive advisory staff.
D) a highly departmentalized structure.
E) no organization chart.

Question 22

The various tasks in IBM's manufacturing plant are arranged so that one worker draws the wiring, another strengthens the wires, a third cuts them, a fourth inserts them, and a fifth seals them together.This is an example of job _____.

A) rotation
B) redesign
C) specialization
D) enrichment
E) enlargement

Question 23

During her company's reorganization, Linda was in charge of grouping the various positions in the firm into manageable units.This is known as _____.

A) reorganization
B) job redesign
C) classification
D) activity division
E) departmentalization

Question 24

Stella Williams is designing the formal organization of her legal clinic.She has divided the work to be done; now she should

A) group the various positions into manageable units or departments.
B) distribute responsibility and authority within the organization.
C) determine how many subordinates will report to each manager.
D) determine the degree of centralization.
E) determine the span of management.

Question 25

Boss Queen, Inc.(BQI)
Boss Queen, Inc.(BQI) is a business-clothing store for professional women.The owner of the company has designed the business in such a way that she hardly ever has to be there.There are many departmental managers who hold a lot of responsibility.While they are organized separately by department, each manager knows enough about the other departments to be able to fill in at any time.The department managers also delegate a lot of work further down to their employees as a way to empower them.The owner even delegates store-management responsibilities to a different department manager each month.Even though certain people are delegated certain tasks, everyone pitches in, so it is sometimes hard to tell who is really in charge.
The employees are so comfortable with each other that many go out and participate in activities together on the weekends, even when they are not working.However, the owner realizes that she does not want to participate in these events because she does not want to seem that she is favoring certain people over others.
Refer to Boss Queen, Inc.The group of employees that participate in outside activities on the weekend would be considered a(n) ____ group.

A) informal
B) inspirational
C) affirmative
D) business
E) departmental

Question 26

The legal affairs attorney working for Intel would most likely occupy a(n) _____.

A) vice president position
B) high position in the chain of command
C) staff position
D) nonessential position
E) authoritarian position

Question 27

Cory is at the top of her company's organization chart.Which of the following is most likely to be her job title?

A) executive manager
B) president
C) manager
D) vice president, operations
E) organization leader

Question 28

Where does establishing the organization chart fit into the process of organizing a business?

A) The organization chart should be the starting point for organizing the business.
B) This step should be taken immediately after job design is complete.
C) This should be done after the various positions are grouped in departments.
D) The chart should be established as the last step of organizing the business.
E) This should be done just before the firm creates the span of management.

Question 29

The book, The Wealth of Nations, published in the eighteenth century, emphasizes the power of _____.

A) job rotation
B) technical job training
C) job specialization
D) job design
E) assembly-line production

Question 30

Vice president, marketing-Regional sales manager-District manager-Sales supervisor represents a(n) _____.

A) organization chart
B) command hierarchy
C) corporate organization
D) chain of command
E) departmentalization

Question 31

Jacob has divided the work to be done by his plumbing supplies company into parts and assigned those parts to positions within his company.What is this step of organizing a business known as?

A) departmentalization
B) delegation
C) span of management
D) job design
E) division of labor

Question 32

Joel Green has been working at The Bicycle Superstore for about two weeks.This morning he noticed that the store's inventory on bicycle tire repair kits is out, but he is unsure of whom he should report to for approval to place an order for more kits.Joel is unclear about the

A) chain of command.
B) degree of specialization.
C) level of authority.
D) span of management.
E) nature and degree of departmentalization.

Question 33

An organization chart reveals

A) staff accountability.
B) committee assignments.
C) informal authority.
D) detailed duties of each manager.
E) the company's organizational structure.

Question 34

The first step in the organizing process is to

A) group the positions into manageable units.
B) determine how many subordinates will report to each manager.
C) distinguish between direct authority and support positions.
D) distribute responsibility and authority within the organization.
E) divide the work to be done into parts and assign the parts to positions within the organization.

Question 35

Legal services and public affairs are ____ types of jobs, so they do not fit directly into the chain of command.

A) specialized
B) top management
C) authoritative
D) voluntary
E) advisory

Question 36

Brian Smith is in the process of designing the formal organization of his auto-parts store.He has grouped the various positions he employs into manageable units.His next step is to

A) divide the work to be done and assign the parts to positions within the organization.
B) determine how many subordinates will report to each manager.
C) distribute responsibility and authority within the organization.
D) determine the nature and degree of departmentalization.
E) determine the span of management.

Question 37

The step of distributing responsibility and authority within the organization is called

A) the chain of command.
B) the span of management.
C) delegation.
D) departmentalization.
E) the degree of specialization.

Question 38

Boss Queen, Inc.(BQI)
Boss Queen, Inc.(BQI) is a business-clothing store for professional women.The owner of the company has designed the business in such a way that she hardly ever has to be there.There are many departmental managers who hold a lot of responsibility.While they are organized separately by department, each manager knows enough about the other departments to be able to fill in at any time.The department managers also delegate a lot of work further down to their employees as a way to empower them.The owner even delegates store-management responsibilities to a different department manager each month.Even though certain people are delegated certain tasks, everyone pitches in, so it is sometimes hard to tell who is really in charge.
The employees are so comfortable with each other that many go out and participate in activities together on the weekends, even when they are not working.However, the owner realizes that she does not want to participate in these events because she does not want to seem that she is favoring certain people over others.
Refer to Boss Queen, Inc.It seems that BQI managers could be considered all of the following except ______.

A) line managers
B) department managers
C) staff managers
D) functional managers
E) owners

Question 39

Boss Queen, Inc.(BQI)
Boss Queen, Inc.(BQI) is a business-clothing store for professional women.The owner of the company has designed the business in such a way that she hardly ever has to be there.There are many departmental managers who hold a lot of responsibility.While they are organized separately by department, each manager knows enough about the other departments to be able to fill in at any time.The department managers also delegate a lot of work further down to their employees as a way to empower them.The owner even delegates store-management responsibilities to a different department manager each month.Even though certain people are delegated certain tasks, everyone pitches in, so it is sometimes hard to tell who is really in charge.
The employees are so comfortable with each other that many go out and participate in activities together on the weekends, even when they are not working.However, the owner realizes that she does not want to participate in these events because she does not want to seem that she is favoring certain people over others.
Refer to Boss Queen, Inc.Which of these options would most likely describe the type of corporate culture at Boss Queen, Inc.?

A) networked
B) mercenary
C) fragmented
D) communal
E) extrapreneurship

Question 40

Upon beginning her career at Davidson Inc., a small consulting firm, Stephanie Benjamin receives a copy of the firm's organization chart, which will

A) demonstrate the firm's informal network of communication.
B) clarify positions and reporting relationships within the firm.
C) not be very useful because small firms don't usually adhere to a formal structure.
D) probably be outdated because small firms are always changing.
E) indicate the short-, medium-, and long-term goals of the company.

Question 41

Workers at the U.S.Nissan subsidiary plants are less likely to become bored or dissatisfied with their jobs because Nissan practices job _____.

A) enlargement
B) rotation
C) enrichment
D) generalization
E) substitution

Question 42

The Morgan Company, a small furniture manufacturer, divides its organization into marketing, human resources, accounting, and production departments.This is an example of departmentalization by _____.

A) location
B) specialty
C) product
D) taste
E) function

Question 43

A benefit of job specialization is that it

A) is more difficult to design equipment.
B) is easier to train new employees.
C) is more time-consuming to change from one operation to another.
D) eliminates boredom.
E) enriches the job.

Question 44

Which of the following is a disadvantage of departmentalization by function?

A) Supervision is very difficult because workers are involved in different types of activities.
B) This method tends to emphasize the department rather than the organization as a whole.
C) It causes duplication of the same specialized activities throughout the organization.
D) This method requires an extremely large administrative staff.
E) Coordination is very complex because of the way job duties are distributed.

Question 45

General Motors has separate divisions for Chevrolet, Pontiac, Oldsmobile, Buick, and Cadillac.This is an example of departmentalization by _____.

A) function
B) location
C) customer
D) product
E) model

Question 46

If a new company desires to departmentalize in a way that will simplify supervision and facilitate coordination, it will most likely departmentalize by _____.

A) product
B) location
C) worker skill level
D) customer
E) function

Question 47

A computer manufacturer is first divided into the following groups: Home Office/Personal Use, Small Business, Large Business, and Educational Institutions.Within each of these divisions, management is organized into finance, operations, marketing, and human resources.This company is organized first by ____, then by ____.

A) function; customer
B) customer; function
C) product; function
D) product; customer
E) customer; location

Question 48

A firm organized on the basis of retail customers and wholesale customers utilizes the concept of departmentalization by _____.

A) location
B) function
C) customer
D) product
E) task

Question 49

Location, product, function, and customer are common bases for a firm's _____.

A) span of management
B) job design
C) job specialization
D) chain of command
E) departmentalization

Question 50

Most large organizations use

A) departmentalization by product.
B) departmentalization by location.
C) departmentalization by customer.
D) a combination of departmentalization bases.
E) no departmentalization.

Question 51

Ford and Xerox are two companies that have begun moving away from strict job specialization to alleviate employee motivation problems.Each company has adopted a job design alternative that involves workers in a wider variety of tasks.The method they have employed is known as job _____.

A) enlargement
B) enrichment
C) generalization
D) rotation
E) substitution

Question 52

Citibank has one group of loan officers who handle consumer loans and another group who work in the commercial loan area.Grouping work units this way is known as departmentalization by _____.

A) function
B) customer
C) product
D) specialty
E) location

Question 53

Ted Landry finds he has less and less energy to go to work each day.On average he misses two days a week.Ted may be suffering from boredom, which is one negative side effect of job _____.

A) rotation
B) enrichment
C) specialization
D) enlargement
E) enhancement

Question 54

Grouping the United States into the Northeast Region, the Northwest Region, the Southeast Region, and the Southwest Region would be departmentalization by _____.

A) location
B) customer
C) function
D) product
E) task

Question 55

Mark Stanford is the vice president of the northwest division of his company.Mark's company is departmentalized by _____.

A) area
B) product
C) function
D) location
E) customer

Question 56

The president of Digital Equipment Corporation discovered that his company was having a problem with counterproductive product groups who were working selfishly rather than cooperating with one another.To solve the problem, he combined the company's twelve U.S.product groups into three regional management centers.This solution is referred to as departmentalization by _____.

A) location
B) function
C) product
D) customer
E) objective

Question 57

Grouping various positions into manageable units determines the ____ of the organization.

A) chain of command
B) span of management
C) degree of centralization
D) nature and degree of departmentalization
E) degree of specialization

Question 58

In a recent task force meeting, the human resources manager gave many reasons why the organization needed some specialization.In so doing, she stated that

A) a worker who learns only a specific, highly specialized task becomes inefficient at that task.
B) a worker who does the same job over and over loses time changing from one operation to another.
C) the more specialized the job, the harder it is to train new employees when an employee quits or is absent.
D) the more specialized the job, the easier it is to design specialized equipment.
E) the job of most organizations is simply too large for one person to handle.Several people carrying out different functions are needed.

Question 59

Employees at a chemical factory are systematically moved every two weeks among three different departments in the organization.This is called _____.

A) job trading
B) specialization
C) departmentalization by function
D) job enlargement
E) job rotation

Question 60

When a worker does only a specific, highly specialized task very efficiently, this efficiency could eventually become inhibited by job monotony and boredom.This situation could be alleviated through _____.

A) job rotation
B) technical job training
C) job specialization
D) job design
E) assembly-line production

Question 61

Which of the following does not prevent managers from delegating?

A) They are so disorganized that they cannot assign work effectively.
B) They want to make sure the work gets done properly.
C) They usually have few responsibilities and therefore little to delegate.
D) They fear that the subordinate will do excellent work and become a threat to the manager.
E) They know that they are still ultimately responsible for the work.

Question 62

Which of the following statements about accountability is false?

A) Managers create accountability.
B) Managers delegate accountability.
C) Accountability is the obligation of the worker.
D) Creating accountability is a step in the delegation process.
E) Managers are accountable for tasks they assign.

Question 63

The head of the marketing department at CBS Environmental, Inc.supervises twelve people in her department.This represents her

A) chain of command.
B) degree of specialization.
C) level of authority.
D) span of management.
E) nature and degree of departmentalization.

Question 64

A manager with few subordinates is said to have a

A) narrow span of control.
B) flat organizational structure.
C) managerial hierarchy.
D) matrix structure.
E) wide span of control.

Question 65

Wesley is a manager in an organization where a great deal of interaction is required between himself and his workers and new problems arise frequently.Wesley is likely to have

A) a wide span of control.
B) little authority to delegate.
C) decentralized power.
D) departmentalization by consumer.
E) a narrow span of control.

Question 66

Mark left his position as a manager for JCPenney after two years.He complained of being burned out from having to fulfill too many roles and tasks for one position.Mark probably never learned to use the tool of _____.

A) segmentation
B) decentralization
C) control
D) delegation
E) centralization

Question 67

If First National Bank were to assign one of its bank tellers to business merchants and two others to individual accounts, it would be departmentalizing on the basis of _____.

A) location
B) population
C) customer
D) function
E) service

Question 68

Dana is assigned to create a training program for newly hired mortgage loan officers.She has the ____ to complete this assignment.

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

Question 69

A common characteristic of a centralized organization is

A) democratic decision making.
B) decision making by a few top-level managers.
C) a flat span of management.
D) placing decision making near the workplace.
E) authority placed at lower levels.

Question 70

One's duty to do a job or perform a task is called _____.

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

Question 71

The assignment of part of a manager's work and authority to a worker is called _____.

A) delegation
B) responsibility
C) authorization
D) accountability
E) relegation

Question 72

Since Sears operates in a complex and dynamic environment, its store managers are given significant freedom to run their stores.This indicates that top leaders at Sears

A) centralize the decision making.
B) deemphasize lower-level management training.
C) control their managers tightly.
D) deemphasize lower-level management accountability.
E) decentralize the authority.

Question 73

As a new manager for Sears, Peter is unwilling to delegate work.He realizes that, although he can delegate assignments to others, he cannot delegate his

A) power to carry them out.
B) authority.
C) obligation to see that tasks are completed.
D) responsibility to carry out assignments.
E) function to complete tasks.

Question 74

A span of control may be wide when

A) managers and workers are located far from one another.
B) a great deal of interaction among levels is needed.
C) few new problems are expected to arise.
D) the manager has a lot of work other than managing.
E) new problems arise frequently.

Question 75

Ann delegated work to an employee who mismanaged public funds.Ann, rather than the employee, was reprimanded for this mismanagement.Ann is now reluctant to delegate because she

A) does not care whether the work done properly.
B) knows the person who delegates remains accountable for the work.
C) does not trust any of her subordinates.
D) fears a subordinate will do the work so well that he or she will attract the approval of top management.
E) is so disorganized that she simply cannot plan and assign work effectively.

Question 76

The degree of centralization of an organization is based on the

A) degree of departmentalization.
B) level of bureaucracy.
C) organization chart.
D) delegation of authority.
E) degree of job specialization.

Question 77

Janet is a runner for a large law firm.Her duties include purchasing supplies for the copy room.Janet was given permission by the office manager to sign credit-card receipts when making purchases.Janet has been given ____ to use the firm's credit card.

A) responsibility
B) obligation
C) authority
D) staff centrality
E) accountability

Question 78

Susan was given the responsibility for chairing a campus committee.To complete the delegation process, she should be given the ____ to carry out this responsibility.

A) duty
B) subordinates
C) authority
D) skills
E) salary

Question 79

A biotechnology company is constantly faced with important decisions that are likely to have severe consequences on the future of the company.The top managers should

A) decentralize decision-making authority.
B) appoint lawyers to make business decisions.
C) train first-line managers to make these decisions.
D) exercise centralized decision-making authority.
E) consult investors when making important daily decisions.

Question 80

Rockwood International needs to make risky decisions on a daily basis.Therefore, its managers are likely to

A) centralize decision making.
B) let lower-level managers make important decisions.
C) train lower-level managers to make more decisions.
D) decentralize authority.
E) centralize rare skills.