Deck 7: Creating a Flexible Organization

Question 1

All large firms maintain complete and detailed organization charts because it is important to maintain a clear line of authority.

Answer 1

False

Question 2

The employees at the Ford production facility in Michigan work on an assembly line where each employee performs a specific task.This method of assembly-line production is a good example of job specialization.

Answer 2

True

Question 3

Older,larger firms producing and selling various products base departmentalization on function.

Answer 3

False

Question 4

Job specialization is the separation of all organizational activities into distinct tasks and the assignment of different tasks to different people.

Question 5

It is important that every company use only one departmentalization basis.

Question 6

Green Sports Incorporated is a small start-up company that manufactures and markets sports equipment made from recycled materials.Green Sports is best suited to base its departmentalization on product.

Question 7

An organization in which management consciously attempts to spread authority to the lower organizational levels is said to be centralized.

Question 8

Each rectangle in an organization chart represents a relationship within the organization.

Question 9

Accountability is the power within an organization to accomplish an assigned job or task.

Question 10

Job rotation is the systematic shifting of employees from one job to another.

Question 11

The human resource manager of one of Hershey Foods' production facilities has been noticing an increase in absenteeism among assembly-line workers in the chocolate bar plant.Switching to a job rotation system would probably significantly decrease the amount of absenteeism.

Question 12

Ford Motor Company's marketing department has recently been restructured to implement a brand management strategy.This is an example of departmentalization by product.

Question 13

Using more than one basis for departmentalization is the rule rather than the exception for larger firms.

Question 14

Adam Smith,author of The Wealth of Nations,is widely credited with being the first person to emphasize the power of specialization.

Question 15

An organization is a group of two or more people working together to achieve common goals.

Question 16

When managers attempt to spread authority widely in the lower levels of an organization,they are attempting to centralize authority.

Question 17

Departmentalization by location allows an organization to readily respond to the unique demands of each geographic area.

Question 18

Delegation is the act of distributing work and power to subordinates.

Question 19

A supervisor may delegate all accountability to subordinates.

Question 20

The most common bases for departmentalization are by function,by product,by location,and by customer.

Question 21

After years of research,theorists have decided that the optimal span of management is one manager per twenty employees.

Question 22

Companies like Southwest Airlines and Saturn attribute a great deal of their success to their strong corporate cultures,which is inaccurate.In reality,research has determined that,over time,corporate culture has only a marginal influence on firm performance.

Question 23

Functional authority allows line managers to make decisions and issue directive relating to the goals of the organization.

Question 24

When authority is concentrated at the top level of management,the organization is said to be decentralized.

Question 25

The span of management plays a direct role in determining the organization's height.

Question 26

When a manager has few subordinates,a narrow span of management exists.

Question 27

Managers within a line structure are typically known as staff managers.

Question 28

Walmart has several layers of management in between the entry-level management position and CEO.This implies that the span of management for each manager is relatively narrow and the organizational height of Walmart is tall.

Question 29

Among an ad hoc committee,a standing committee,and a task force,only a standing committee is relatively permanent.

Question 30

Staff managers are part of the chain of command of an organization.

Question 31

A highly centralized organization usually means that lower-level employees have the opportunity to make decisions regarding the best way to accomplish their assigned tasks.

Question 32

When the matrix structure is used,employees report to more than one supervisor.

Question 33

Corporate culture has little real influence on the performance of a firm.

Question 34

A task force is a committee responsible for investigating a major problem or pending decision.

Question 35

The span of control is the number of subordinates who report directly to one manager.

Question 36

The matrix organizational structure facilitates greater communication between employees.

Question 37

The inner rites,rituals,heroes,and values of a firm make up its corporate culture.

Question 38

A manager's reluctance to delegate may stem from his or her belief that the subordinate will do the work too well.

Question 39

In a flat organization,administrative costs are higher because more managers are needed.

Question 40

Cross-functional teams are not very effective structures to use when developing a new product or service.

Question 41

Informal groups are never powerful within an organization.

Question 42

Charlie 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 43

Committees are necessary in an organization but do not offer any advantages over individual decisions and actions.

Question 44

Exquisite Expressions is a home decorating company that sells many different household accessories ranging from candles to entertainment centers.Dora 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.Dora 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 Dora 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 Dora has a hard time delegating to others,but she is confident that the problem will be overcome if she works on it.
Refer to Exquisite Expressions.What would be an alternative to specialization if negative consequences were to develop at Exquisite Expressions?

A) Organization
B) Occupation
C) Circulation
D) Rotation
E) Generalization

Question 45

Exquisite Expressions is a home decorating company that sells many different household accessories ranging from candles to entertainment centers.Dora 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.Dora 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 Dora 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 Dora has a hard time delegating to others,but she is confident that the problem will be overcome if she works on it.
Refer to Exquisite Expressions.What type of departmentalization does Dora want to switch to?

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

Question 46

The most appropriate,short-term committee to provide a recommendation for a health care benefit plan for a medium size corporation would be a task force.

Question 47

An informal organization can be shown on a formal organization chart.

Question 48

An advantage of decision-making by a committee in lieu of an individual is that committee deliberations are always faster than individual decisions.

Question 49

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 report 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 50

Victor 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.Victor 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 51

Top Queen,Inc.(TQI)
Top Queen,Inc.(TQI)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 Top 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 52

Exquisite Expressions is a home decorating company that sells many different household accessories ranging from candles to entertainment centers.Dora 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.Dora 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 Dora 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 Dora has a hard time delegating to others,but she is confident that the problem will be overcome if she works on it.
Refer to Exquisite Expressions.Dora 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 53

It is important for managers to be aware of the informal groups that exist in an organization.

Question 54

Top Queen,Inc.(TQI)
Top Queen,Inc.(TQI)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 Top Queen,Inc.It seems that TQI managers could be considered all of the following except

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

Question 55

Exquisite Expressions is a home decorating company that sells many different household accessories ranging from candles to entertainment centers.Dora 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.Dora 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 Dora 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 Dora has a hard time delegating to others,but she is confident that the problem will be overcome if she works on it.
Refer to Exquisite Expressions.Dora 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 56

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 57

Another term used to refer to a formal organization's network of communication is grapevine.

Question 58

An informal group in an organization is formed by the line managers of that organization.

Question 59

Exquisite Expressions is a home decorating company that sells many different household accessories ranging from candles to entertainment centers.Dora 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.Dora 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 Dora 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 Dora has a hard time delegating to others,but she is confident that the problem will be overcome if she works on it.
Refer to Exquisite Expressions.What could be a possible reason for Dora 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 60

Top Queen,Inc.(TQI)
Top Queen,Inc.(TQI)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 Top Queen,Inc.TQI can best be described as a(n)____ organization.

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

Question 61

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 62

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 63

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 64

Workers at the pharmaceutical company,Eli Lilly are less likely to become bored or dissatisfied with their jobs because Eli Lilly practices job

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

Question 65

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 66

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 67

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 68

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 69

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 70

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 71

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

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

Question 72

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 73

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 74

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 75

The Thomas 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 76

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 77

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 78

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 79

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 80

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.