Deck 7: Organizing and Authority

Question 1

An organization chart of a company with a product structure reflects its grouping of personnel and resources according to the:

A) services they provide.
B) work that they do.
C) type of customer served.
D) location of the customers served.

Answer 1

A
Explanation: The organization chart of a company with a product structure reflects their grouping of personnel and resources according to the products they produce or service they provide. In an organization with a product structure, work and resources are assigned to departments responsible for all the activities related to producing and delivering a particular product (good or service).

Question 2

What is true of the functional structure of an organization?

A) It results when an organization is departmentalized according to the location of the customers served.
B) It is well-suited to decentralized decision making and efficiency through economies of scope.
C) It is not well-suited for dynamic environments where decisions must be made quickly.
D) It departmentalizes an organization according to the type of customers served.

Answer 2

C
Explanation: A functional structure is not well-suited for dynamic environments where decisions must be made quickly and products or services customized. This structure is well-suited to centralized decision making and efficiency through economies of scale and specialization.

Question 3

The positions at the top of an organization chart are those with the:

A) highest workload and commitment.
B) least responsibility and experience.
C) most authority and responsibility.
D) least efficiency and productivity.

Answer 3

C
Explanation: The positions at the top of an organization chart are those with the most authority and responsibility. Logically, the people in these positions are referred to as the top managers.

Question 4

A _____ structure results when an organization is departmentalized according to the location of the customers served or the goods or services produced.

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

Question 5

An insurance company that has a department for each of its 12 sales territories is an example of an organization with a _____ structure.

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

Question 6

Which of the following is true of organizations with little height?

A) They are more productive than tall organizations.
B) Only a few people report to each manager.
C) Employees have a lot of decision-making authority.
D) They are not very flexible or responsive to customers.

Question 7

Departmentalization refers to:

A) setting up divisions in an organization.
B) categorizing employees based on their qualifications.
C) creating a hierarchy of different levels in an organization.
D) standardizing procedures for all departments.

Question 8

Which of the following is true of organization charts?

A) The positions at the top of the charts are those with the least authority.
B) The boxes in the charts represent the various positions or departments in an organization.
C) The lines in the charts do not indicate who reports to whom within an organization.
D) The bottom of the charts usually shows the midlevel managers and supervisors.

Question 9

Which of the following is true of organizations with much height?

A) They are referred to as flat organizations.
B) Many people report to each manager.
C) Employees have complete control over their work.
D) They are not very flexible or responsive to customers.

Question 10

Organizing is best defined as the management function of:

A) determining how to achieve the set objectives.
B) setting the goals and objectives of a company.
C) setting up the group, allocating resources, and assigning work to achieve goals.
D) influencing people to act or not act in a certain way.

Question 11

Understanding organization charts can be beneficial to supervisors because it helps them to:

A) assign tasks and responsibilities to new comers.
B) determine who needs training and what plans to implement.
C) figure out where opportunities for future promotions lie.
D) closely monitor the task performance of employees.

Question 12

A department is best defined as a:

A) unique group of resources that management has assigned to carry out a particular task.
B) group of employees upon whom the decision-making authority resides.
C) group that is formed among employees of an organization who have similar interests.
D) subgroup that is formed when members in formal groups feel uncomfortable with the way they are expected to behave.

Question 13

In the context of organization charts,organizations with little height are usually called _____ organizations.

A) rigid
B) short
C) small
D) flat

Question 14

A(n)_____ provides a visual representation of the overall structure of a company.

A) organization chart
B) corporate portfolio
C) Gantt chart
D) PERT network

Question 15

Which of the following best describes a product structure?

A) It is an organizational structure where boundaries between jobs continually shift and people pitch in wherever their contributions are needed.
B) It is an organizational structure where work and resources are assigned to departments responsible for all the activities related to producing and delivering a particular good or service.
C) It is an organizational structure where an organization is departmentalized according to the type of customer served.
D) It is an organizational structure where personnel and other resources are grouped according to the types of work they carry out.

Question 16

Which of the following best describes a functional structure?

A) It is an organizational structure where boundaries between jobs continually shift and people pitch in wherever their contributions are needed.
B) It is an organizational structure where work and resources are assigned to departments responsible for all the activities related to producing and delivering a particular product.
C) It is an organizational structure where an organization is departmentalized according to the type of customer served.
D) It is an organizational structure where personnel and other resources are grouped according to the types of work they carry out.

Question 17

When does a flat organization offer advantages?

A) When employees can handle responsibilities
B) When customer satisfaction is less important
C) When employees perform dissimilar functions
D) When the organization is highly decentralized

Question 18

The number of levels in an organization from top management down to the operative employees describes the _____ of the organization.

A) efficiency level
B) breadth
C) height
D) scope

Question 19

A company with a _____ structure has an organization chart that reflects its grouping of personnel and resources according to the work that they do.

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

Question 20

Name the standard way used by businesspeople to draw the structure of an organization.

A) An organization chart
B) A corporate portfolio
C) A Gantt chart
D) An organization network

Question 21

_____,when clearly defined,allow those within the various organizational departments and positions to know exactly what are an individual's responsibilities.

A) Organizational charts
B) Job descriptions
C) Corporate portfolios
D) Job postings

Question 22

Authority is best defined as the:

A) obligation to steer clear of nepotism.
B) right to perform a task or give orders to someone else.
C) obligation to perform assigned activities.
D) ability to prevent instances of whistle-blowing.

Question 23

_____ is a process in which companies move departments from headquarters to cheaper overseas locations.

A) Offshoring
B) Diversifying
C) Departmentalizing
D) Subsidizing

Question 24

Organizational structure in which the boundaries between jobs continually shift and people pitch in wherever their contributions are needed is known as a(n)_____ structure.

A) functional
B) geographic
C) customer
D) organic

Question 25

Which of the following is least likely to be included in job descriptions?

A) Job title
B) Job objective
C) Job responsibility
D) Job posting

Question 26

At ATA Speakers Inc.,operations are departmentalized under the following sections-home speakers,automobile speakers,and commercial speakers.Tasks and resources are allocated to these departments for producing and delivering their respective type of speakers.In the context of departmentalization,this company is most likely using a(n):

A) organic structure.
B) combination structure.
C) geographic structure.
D) product structure.

Question 27

The management at Pine Inc.reduces the size of the company's workforce in order to become more flexible.For specific projects requirements,it arranges alliances.In this case,Pine Inc.is an example of a(n)_____ organization.

A) centralized
B) bureaucratic
C) network
D) organic

Question 28

According to research,a top challenge of the organic structure is that:

A) employees may become confused about the details of their roles and responsibilities.
B) an inflexible structure is rarely suitable for a very small organization.
C) rigid boundaries between jobs make it difficult for employees to contribute.
D) it is not well-suited for dynamic environments where decisions must be made quickly.

Question 29

Organizations that maintain flexibility by staying small and contracting with other individuals and organizations as needed to complete projects are referred to as _____ organizations.

A) learning
B) bureaucratic
C) network
D) centralized

Question 30

According to the U.S.Small Business Administration (SBA),the process of writing a job description usually begins with:

A) an analysis of the important facts about a job.
B) asking employees to fill questionnaires about their job preferences.
C) determining the job vacancies in an organization.
D) a process known as job enrichment.

Question 31

An organization that does well in creating,acquiring,and transferring knowledge and in modifying behavior to reflect new knowledge is referred to as a _____ organization.

A) virtual
B) centralized
C) network
D) learning

Question 32

According to the U.S.Small Business Administration (SBA),an analysis of the important facts about a job is most likely to include:

A) skills gained by performing the job.
B) personality characteristics of the job holder.
C) employees' attitudes toward the job.
D) qualifications needed for the job.

Question 33

According to the U.S.Small Business Administration (SBA),a job description typically includes a:

A) detailed description of the tools used to perform the job.
B) summary of the general nature and level of the job.
C) list of personality traits suitable for performing the job.
D) list of names of employees responsible for performing the job.

Question 34

A good job description should accurately define the needs of the _____.

A) company
B) employees
C) industry
D) customers

Question 35

Which of the following best describes an organic structure?

A) It is an organizational structure where boundaries between jobs continually shift and people pitch in wherever their contributions are needed.
B) It is an organizational structure where work and resources are assigned to departments responsible for all the activities related to producing and delivering a particular product.
C) It is an organizational structure where an organization is departmentalized according to the type of customer served.
D) It is an organizational structure where the departmentalization is done by combining both product and geographical structures.

Question 36

What involves giving a small team or group within a company the resources to develop new ideas and new ventures without leaving the parent organization?

A) Joint ventures
B) Intrapreneurships
C) Strategic alliances
D) Subsidiaries

Question 37

Which of the following elements of job descriptions is a key to ensuring that each person's part in a company's organizational structure is understood?

A) Summary of the general nature and level of the job
B) Description of the relationships and roles within the company
C) Key functional and relational responsibilities in order of significance
D) Description of the broad function and scope of the position

Question 38

According to the U.S.Small Business Administration (SBA),an analysis of the important facts about a job is least likely to include:

A) the relationship of the job to other jobs.
B) individual tasks involved.
C) employees' attitudes toward the job.
D) qualifications needed for the job.

Question 39

Which of the following is true of a learning organization?

A) It helps managers to make the most of the knowledge and skills of employees.
B) It encourages employees to stick to the conventional methods of problem solving.
C) It primarily contracts with other organizations as needed to complete specific projects.
D) It is not suited for dynamic environments where decisions must be made quickly.

Question 40

A national grocery chain is divided into well-demarcated groups such as the Northeastern division,the Northwestern division,the Southeastern division,and the Southwestern division.These divisions have been set up based on the location of large groups of customers the company serves.In the context of departmentalization,this company is most likely using a(n):

A) geographic structure.
B) customer structure.
C) product structure.
D) organic structure.

Question 41

_____ is the obligation to perform assigned activities.

A) Responsibility
B) Power
C) Authority
D) Control

Question 42

Home Office Company's human resource manager has the authority to ensure that all departments are complying with the laws pertaining to fair employment practices.This authority is most appropriately referred to as:

A) staff authority.
B) autocratic authority.
C) functional authority.
D) centralized authority.

Question 43

Which of the following is true of centralized and decentralized authority?

A) Organizations that share relatively little authority are said to be decentralized, and those that share a lot of authority are said to be centralized.
B) Most organizations either tend to have a completely centralized or a completely decentralized authority depending on the type of organizational structure.
C) Supervisors who know whether their employer has a centralized or decentralized structure understand how much authority they can expect to have.
D) An organization cannot make changes in the degree to which it decentralizes or centralizes authority, depending on its strategic plan and goals.

Question 44

The right to carry out tasks and give orders related to an organization's primary purpose is called:

A) centralized authority.
B) functional authority.
C) staff authority.
D) line authority.

Question 45

The parity principle states that:

A) each employee should have only one boss.
B) personnel must have equal amounts of authority and responsibility.
C) authority should flow from one level of management to the next.
D) power should be concentrated only at the hands of supervisors.

Question 46

Power is best defined as the:

A) obligation to perform assigned activities.
B) duty to advise or assist those with line authority.
C) ability to get others to act in a certain way.
D) duty to advise or assist those with functional authority.

Question 47

Functional authority is best defined as the right given by higher management to:

A) specific middle managers to recruit and dismiss line managers.
B) specific staff personnel to give orders concerning an area in which the staff personnel have expertise.
C) carry out tasks and give orders related to an organization's primary purpose.
D) advise or assist those with line authority.

Question 48

Which of the following is true of accountability?

A) It is the ability to get others to act in a certain way.
B) It is the right to advise or assist those with line authority.
C) It is a way of encouraging people to fulfill their responsibilities.
D) It is a way of delegating broad decision-making authority.

Question 49

Sheena,a supervisor,decides to organize a company softball team to play against other companies in the city.She starts by laying down the purpose of the team.In this list she includes improvement of the team's morale,physical exercise,and most importantly,having fun.Which of the following steps in the organizing process is Sheena concentrating on at present?

A) Grouping activities
B) Defining objectives
C) Assigning duties
D) Determining resources

Question 50

The difference between line authority and staff authority is that staff authority:

A) is the right to advise or assist those with line authority.
B) is the right to advise or assist those with functional authority.
C) gives one the right to fire employees with line authority.
D) gives one the right to fire employees with functional authority.

Question 51

Which of the following is the first step in the process of organizing?

A) Defining the objective
B) Determining the needed resources
C) Grouping activities
D) Assigning duties

Question 52

_____ authority is the right to advise or assist those with line authority.

A) Functional
B) Centralized
C) Decentralized
D) Staff

Question 53

Which of the following is one of the principles of organizing?

A) The exception principle
B) The equity principle
C) The parity principle
D) The uncertainty principle

Question 54

Which of the following is true about decentralized organizations?

A) Management grants much authority to supervisors.
B) Top managers retain all the authority.
C) All decisions are made by the top management.
D) Line authority does not exist.

Question 55

Which of the following is true of the process of organizing?

A) The process of organizing is a seven-step approach that leads to a structure that supports the goals of an organization.
B) To ensure that all the necessary responsibilities are assigned, a supervisor can involve employees in the final step of the organizing process.
C) In the second step of the organizing process, a supervisor groups the necessary activities and assigns work to the appropriate employees.
D) A supervisor or other manager should begin the process of organizing by identifying which resources are needed for the particular areas being organized.

Question 56

The last step of the organizing process typically involves a supervisor:

A) grouping activities and assigning duties to the appropriate employees.
B) defining objectives by reviewing a plan.
C) estimating personnel, equipment, and the money needed.
D) measuring the performance of a group.

Question 57

What is the next step after defining the objectives in the organizing process?

A) Assigning duties
B) Defining the objective
C) Grouping activities
D) Determining the needed resources

Question 58

Employees who accept responsibility may be rewarded for doing a good job,and those who do not may be punished.This practice is called _____.

A) controllability
B) accountability
C) empowerment
D) reinforcement

Question 59

The basic type of authority in organizations is _____ authority.

A) functional
B) centralized
C) line
D) staff

Question 60

Which of the following is a defining characteristic of centralized organizations?

A) Management grants absolute authority to middle managers.
B) Managers at the top retain a great deal of authority.
C) Employees at all levels are involved in strategic decision making.
D) Employees at all levels are granted much authority.

Question 61

Giving someone else the authority and responsibility to carry out a task is known as _____.

A) controlling
B) delegating
C) strategizing
D) manipulating

Question 62

Delegation of broad decision-making authority and responsibility is known as:

A) power.
B) authority.
C) empowerment.
D) unity of command.

Question 63

A manager's span of control is most likely to be greater when:

A) employees perform similar functions.
B) subordinates are physically farther apart.
C) subordinates perform complex functions.
D) standards for performance are unclear.

Question 64

Which of the following principles states that authority flows from one level of management to the next,from the top of an organization to the bottom?

A) Chain of command
B) Span of control
C) Unity of command
D) Parity principle

Question 65

A manager's span of control is most likely to be lesser when:

A) employees perform similar functions.
B) subordinates are physically closer.
C) subordinates perform complex functions.
D) standards for performance are clear.

Question 66

Which of the following is true about span of control?

A) The more different the functions performed by employees, the greater the span of control can be.
B) The more complex the functions performed by subordinates, the greater the span of control can be.
C) The less time a manager needs to spend on planning, the greater the span of control can be.
D) The further apart the subordinates are physically, the greater the span of control can be.

Question 67

In the context of principles of organizing,_____ helps to clarify issues like who should be giving direction in an organization and who should be taking it.

A) the parity principle
B) chain of command
C) level of control
D) the equity principle

Question 68

Today,spans of control have:

A) decreased as organizations spend more money by including more management positions.
B) increased as organizations empower employees to make more decisions.
C) decreased as mass production complicates manufacturing processes.
D) increased as standards for performance are more subjective and vague.

Question 69

Delegation is best defined as the:

A) act of giving another person the authority and responsibility to carry out a task.
B) right given by higher management to specific middle managers to recruit and dismiss line managers.
C) management function of correcting defects in the goods or services or improving them in some way.
D) management function of setting the goals and objectives of a company.

Question 70

Which of the following is true of unity of command?

A) It holds that every employee should report to more than one supervisor.
B) It strictly holds that all decision-making authority should rest with the supervisor.
C) It allows supervisors to be more flexible as they command different teams at regular intervals.
D) It helps to eliminate factors within organization structure like complexity and confusion in the workplace.

Question 71

Which of the following principles states that each employee should have only one supervisor?

A) Chain of command
B) Parity principle
C) Span of control
D) Unity of command

Question 72

Which of the following is true of delegating?

A) It gives employees a chance to develop their skills and their value to an organization.
B) It is a random assignment of jobs followed by waiting for them to be completed.
C) It is a general and arbitrary process that seldom includes following up.
D) It prevents supervisors from being held accountable for tasks they have delegated.

Question 73

Which of the following is an advantage closely associated with delegating?

A) It frees supervisors to do tasks they do best.
B) It leads to high employee turnover.
C) It protects the whistle-blowers.
D) It encourages the formation of informal groups.

Question 74

According to the _____ principle,when someone accepts a responsibility,he or she also needs enough authority to be able to carry out that responsibility.

A) uniformity
B) parity
C) equity
D) reactivity

Question 75

What is empowerment?

A) It is the encouragement of a behavior by associating it with a reward.
B) It is the obligation to perform assigned activities.
C) It is the delegation of broad decision-making authority and responsibility.
D) It is the act of preventing behavior that may lead to undesirable results.

Question 76

In the context of principles of organizing,_____ helps to eliminate factors within organization structure like complexity and confusion in the workplace.

A) the exception principle
B) unity of command
C) level of control
D) the association principle

Question 77

A benefit of delegating is that:

A) it allows an organization to centralize authority.
B) it allows supervisors to give up their responsibilities.
C) it reduces the work load of nonmanagement employees.
D) it is an important tool for time management.

Question 78

Lilly is a freelance writer who has undertaken a project where two different editors tell her what to do.Sometimes they tell her to make conflicting changes.This scenario exemplifies the violation of the _____ principle of organizing.

A) parity
B) chain of command
C) unity of command
D) span of control

Question 79

Span of control is the:

A) number of people a manager supervises.
B) principle that personnel must have equal amounts of authority and responsibility.
C) ability to get others to act in a certain way.
D) authority that flows from one level of management to the next.

Question 80

According to the principle of _____,employees who receive orders from several people tend to get confused and aggravated.

A) unity of command
B) span of control
C) chain of command
D) level of control