Deck 7: Creating a Flexible Organization

Question 1

Identify and briefly describe the decisions involved that management must make in organizing a business.

Answer 1

Answer not provided.

Question 2

What are the benefits of job rotation?

Answer 2

Answer not provided.

Question 3

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, 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) Rotation
E) Generalization

Answer 3

D

Question 4

What are the advantages and disadvantages of a matrix structure?

Question 5

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

Question 6

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 7

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

Question 8

Identify and discuss the major steps in the delegation process.

Question 9

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

Question 10

Why is job specialization needed?

Question 11

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

Question 12

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

Question 13

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

Question 14

Describe each of the three primary types of committees that exist in business firms. Offer one specific example of each.

Question 15

Discuss several advantages and disadvantages of committees over individuals. Offer examples that you have been a part of or are aware of to emphasize your point.

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, 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 17

Describe informal groups in a typical organization. How do they impact the organization? Provide examples--either from experience or imagined.

Question 18

Why is it important that owners and managers pay close attention to corporate culture when merging two organizations?

Question 19

What are some of the primary advantages of a network structure? Compare and contrast a network structure to a line structure.

Question 20

What are some of the primary differences between a line structure and a line-and-staff structure?

Question 21

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 22

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 23

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 24

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 so 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 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 so 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 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 27

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, 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 28

In a furniture factory, one worker cuts the wood according to the design, another glues the furniture together, and another stains and finishes the furniture. This is an example of

A) departmentalization.
B) decentralization.
C) job specialization.
D) job rotation.
E) an automated assembly line.

Question 29

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 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

Distinguishing between positions with direct authority and those that are support positions establishes an organization's

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

Question 32

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 33

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 so 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

Question 34

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, 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 could best improve delegation by

A) increasing specialization.
B) explaining the purpose of each task.
C) investing the capital necessary for success.
D) changing each job station.
E) decreasing job specialization.

Question 35

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 36

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, 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 37

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 38

The separation of all organizational activities into distinct tasks and the assignment of different tasks to different people is called job

A) rotation.
B) specialization.
C) enlargement.
D) enrichment.
E) organization.

Question 39

Human resources is a(n) ____ type of job, so it does not fit directly into the chain of command.

A) line
B) staff
C) advisory
D) top management
E) authoritative

Question 40

A locally owned and operated bakery with just one location 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 41

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 42

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 43

Grouping jobs into manageable units according to some reasonable scheme is known as

A) job description.
B) departmentalization.
C) centralized organization.
D) bureaucratic structuring.
E) informal organizing.

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

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 may be to design specialized equipment for those doing it.
D) the more specialized the job, the easier it is to train new employees when an employee quits or is absent.
E) the job of most organizations is simply too large for one person to handle. Several people carrying out different functions are needed.

Question 46

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 47

When a worker has to learn only a specific, highly specialized task, that individual should be able to learn to do it very efficiently. However, 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 48

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 49

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 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

The president of Digital Equipment Corporation discovered that his company was having a problem with counterproductive product groups that 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 52

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 53

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 54

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 55

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 56

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 57

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 58

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 59

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 60

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 61

Authority and ____ are synonymous terms.

A) power
B) responsibility
C) duty
D) delegation
E) accountability

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

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

Question 64

Delegation consists of giving a subordinate all of the following except

A) responsibility.
B) authority.
C) accountability.
D) a line position.
E) both accountability and a line position.

Question 65

As a new manager for Walmart, 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 66

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.

Question 67

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 is properly done.
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 68

Jason assigns responsibility to a subordinate for preparing a sales presentation for an important potential client and authorizes the necessary expenditures of money and human resources, but he still requires a dress rehearsal to be presented to him before the actual presentation. Jason realizes that accountability cannot be

A) created.
B) delegated.
C) assigned.
D) expected.
E) accepted.

Question 69

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 70

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 71

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 72

Amy, an administrative assistant in the business division of a university, is assigned the responsibility of serving the needs of the division's professors. However, Amy often reads books and looks at catalogs during working hours because she has plenty of free time. It appears that the professors in the division have failed to

A) delegate.
B) work hard.
C) teach class.
D) prioritize.
E) be held accountable.

Question 73

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 74

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 75

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

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

Question 76

Although departmentalization may be determined within an organization on the basis of one criterion, such as location, most organizations find ____ to be a more efficient means of conducting business.

A) decentralization
B) more than one basis for departmentalization
C) delegation of authority
D) centralization
E) managerial decision making

Question 77

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 78

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 79

The more complex and uncertain a company's environment, the more likely it is that the company will

A) decentralize the organization.
B) have a split between decentralized and centralized decision making.
C) centralize the organization.
D) increase the span of control, thus increasing the number of employees on board.
E) decrease the span of control, thus decreasing the workforce.

Question 80

Mark left his position as a manager of a Target store 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.