Deck 9: Designing Adaptive Organizations
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Deck 9: Designing Adaptive Organizations
1
Jonamser Bank has separate legal, marketing, finance, and human resources divisions. Each of these units has qualified specialists pertaining to the concerned department. Given this information, which of the following organizational structures does Jonamser Bank most likely follow?
A) Functional departmentalization
B) Product departmentalization
C) Customer departmentalization
D) Geographic departmentalization
A) Functional departmentalization
B) Product departmentalization
C) Customer departmentalization
D) Geographic departmentalization
A
2
Ballooshu, a large dairy cooperative, organizes its labor force into different divisions for the manufacture of butter, cheese, cultured dairy, frozen desserts, ice cream, milk, and milk powder. In this scenario, which of the following organizational structures does Ballooshu most likely follow?
A) Functional departmentalization
B) Product departmentalization
C) Customer departmentalization
D) Geographic departmentalization
A) Functional departmentalization
B) Product departmentalization
C) Customer departmentalization
D) Geographic departmentalization
B
3
Larry, a human resources executive at Printopress, caters to the human resources needs of other departments in the company, such as printing, publishing, marketing, accounting, and transportation. In this scenario, which of the following types of organizational structures does Printopress most likely follow?
A) Functional departmentalization
B) Product departmentalization
C) Customer departmentalization
D) Geographic departmentalization
A) Functional departmentalization
B) Product departmentalization
C) Customer departmentalization
D) Geographic departmentalization
A
4
Shmature, a law firm, organizes its staff into various departments depending on the type of clients it deals with. These departments include federally incorporated organizations, sole proprietorships, partnerships, limited liability companies, and corporations. In this scenario, Shmature most likely follows _____.
A) functional departmentalization
B) customer departmentalization
C) product departmentalization
D) geographic departmentalization
A) functional departmentalization
B) customer departmentalization
C) product departmentalization
D) geographic departmentalization
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5
Sharon works in the travel division of Weston Inc., a software company, and is responsible for arranging the travel documents of the employees who travel to other countries for official purposes. The documents are sorted based on the different divisions of the company, such as marketing, sales, training, and production. Given this information, which of the following organizational structures does Weston Inc. most likely follow?
A) Geographic departmentalization
B) Product departmentalization
C) Customer departmentalization
D) Functional departmentalization
A) Geographic departmentalization
B) Product departmentalization
C) Customer departmentalization
D) Functional departmentalization
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6
Which of the following is an advantage of product departmentalization?
A) It allows managers and workers to specialize in one area of expertise.
B) It makes cross-department coordination less problematic.
C) It reduces costs by reducing duplication.
D) It results in slower decision making by managers and workers.
A) It allows managers and workers to specialize in one area of expertise.
B) It makes cross-department coordination less problematic.
C) It reduces costs by reducing duplication.
D) It results in slower decision making by managers and workers.
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7
LifeAura, a lifestyle accessories store, organizes its workforce into different divisions such as home décor, sports, clothing, and electronics. In this scenario, which of the following organizational structures does LifeAura most likely follow?
A) Functional departmentalization
B) Product departmentalization
C) Customer departmentalization
D) Geographic departmentalization
A) Functional departmentalization
B) Product departmentalization
C) Customer departmentalization
D) Geographic departmentalization
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8
Which of the following is a similarity between functional departmentalization and product departmentalization?
A) Both allow managers and workers to specialize in one area of expertise.
B) Both allow managers and workers to develop a broad set of experiences related to an entire product line.
C) Both make it difficult for top managers to assess work-unit performance.
D) Both result in increased costs due to high levels of duplication.
A) Both allow managers and workers to specialize in one area of expertise.
B) Both allow managers and workers to develop a broad set of experiences related to an entire product line.
C) Both make it difficult for top managers to assess work-unit performance.
D) Both result in increased costs due to high levels of duplication.
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9
Bridget's Gifts, a gift store in Janville, has four departments: flowers and soft toys, cards and e-cards, metal collectibles, and photo albums and scrapbooks. These departments are responsible for manufacturing their own commodities. In this scenario, Bridget's Gifts most likely uses _____ to organize its work and employees into separate units.
A) matrix departmentalization
B) functional departmentalization
C) product departmentalization
D) customer departmentalization
A) matrix departmentalization
B) functional departmentalization
C) product departmentalization
D) customer departmentalization
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10
_____ is the vertical and horizontal configuration of departments, authority, and jobs within a company.
A) Organizational index
B) Organizational engineering
C) Organizational orientation
D) Organizational structure
A) Organizational index
B) Organizational engineering
C) Organizational orientation
D) Organizational structure
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11
_____ is a method of subdividing work and workers into separate organizational units that take responsibility for completing particular tasks.
A) Reengineering
B) Departmentalization
C) Decentralization
D) Class reconstruction
A) Reengineering
B) Departmentalization
C) Decentralization
D) Class reconstruction
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12
The manager of Flogymki, a newly opened continental restaurant, decides to organize the restaurant's labor force into separate divisions for purchases, serving, home delivery, accounting, cooking, etc. Given this information, which of the following organizational structures does the restaurant manager intend to implement at Flogymki?
A) Product departmentalization
B) Functional departmentalization
C) Customer departmentalization
D) Geographic departmentalization
A) Product departmentalization
B) Functional departmentalization
C) Customer departmentalization
D) Geographic departmentalization
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13
The primary disadvantage of customer departmentalization is:
A) that it leads to slower decision making.
B) that it leads to duplication of resources.
C) the tremendous managerial skills required to coordinate between different departments.
D) the loss of control over the quality of work done by different departments.
A) that it leads to slower decision making.
B) that it leads to duplication of resources.
C) the tremendous managerial skills required to coordinate between different departments.
D) the loss of control over the quality of work done by different departments.
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14
In the context of organizational structures, which of the following forms of departmentalization lowers costs by reducing duplication?
A) Functional departmentalization
B) Customer departmentalization
C) Geographic departmentalization
D) Product departmentalization
A) Functional departmentalization
B) Customer departmentalization
C) Geographic departmentalization
D) Product departmentalization
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15
Clanacotta, a designing firm, organizes its workforce into departments based on the service the department provides, such as web designing, magazine designing, and portfolio publishing. In this scenario, Clanacotta most likely follows _____.
A) functional departmentalization
B) customer departmentalization
C) product departmentalization
D) geographic departmentalization
A) functional departmentalization
B) customer departmentalization
C) product departmentalization
D) geographic departmentalization
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16
Calcunick, a travel agency, organizes its labor force into departments based on the category of clients the respective department serves. These departments include individual travel, couple travel, family travel, and group travel. In this scenario, Calcunick most likely follows _____.
A) functional departmentalization
B) product departmentalization
C) customer departmentalization
D) geographic departmentalization
A) functional departmentalization
B) product departmentalization
C) customer departmentalization
D) geographic departmentalization
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17
Aisletton, an electronic gadgets manufacturer, organizes its workforce into various departments based on the service the department provides. These departments include cell phones, gaming consoles, television sets, cameras, and watches. In this scenario, Aisletton most likely follows _____.
A) functional departmentalization
B) geographic departmentalization
C) customer departmentalization
D) product departmentalization
A) functional departmentalization
B) geographic departmentalization
C) customer departmentalization
D) product departmentalization
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18
Which of the following statements is true of functional departmentalization?
A) It allows work to be done by highly qualified specialists.
B) It is likely to lead to faster decision making as companies grow.
C) It causes duplication of resources, which often results in higher costs.
D) It is a hybrid structure in which two or more forms of departmentalization are used together.
A) It allows work to be done by highly qualified specialists.
B) It is likely to lead to faster decision making as companies grow.
C) It causes duplication of resources, which often results in higher costs.
D) It is a hybrid structure in which two or more forms of departmentalization are used together.
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19
Jasemach Inc., a machinery manufacturing company, has organized its labor force into separate divisions for procurement, marketing, accounting, sales, transportation, and production. Given this information, which of the following organizational structures is Jasemach Inc. most likely following?
A) Functional departmentalization
B) Product departmentalization
C) Customer departmentalization
D) Geographic departmentalization
A) Functional departmentalization
B) Product departmentalization
C) Customer departmentalization
D) Geographic departmentalization
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20
Willie is the production manager of the sterile ophthalmic formulations division of Pharmogrep, a pharmaceutical manufacturing company. Other divisions in the company include sterile otic formulations, nonsterile nasal formulations, and nonsterile otic formulations. In this scenario, which of the following organizational structures does Pharmogrep most likely follow?
A) Functional departmentalization
B) Product departmentalization
C) Customer departmentalization
D) Geographic departmentalization
A) Functional departmentalization
B) Product departmentalization
C) Customer departmentalization
D) Geographic departmentalization
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21
Applepom, a multinational restaurant chain, follows different pricing policies and serves different types of cuisine depending on the region it operates in. The company has separate departments for the Middle East, other Asian countries, Russia, other European countries, North America, Latin America, Oceania, and Africa. In this scenario, which of the following organizational structures does Applepom most likely follow?
A) Geographic departmentalization
B) Functional departmentalization
C) Customer departmentalization
D) Product departmentalization
A) Geographic departmentalization
B) Functional departmentalization
C) Customer departmentalization
D) Product departmentalization
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22
An organization's _____ is defined as the vertical line of authority that clarifies who reports to whom throughout the organization.
A) staff function
B) chain of command
C) degree of centralization
D) span of control
A) staff function
B) chain of command
C) degree of centralization
D) span of control
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23
Hippotian Inc. renders job consultancy services for a range of applicants. The employees of the company are departmentalized based on the type of applicants they deal with. These departments include disabled applicants, fresher applicants, managerial applicants, internship applicants, and senior citizen applicants. In this scenario, Hippotian Inc. most likely follows _____.
A) functional departmentalization
B) product departmentalization
C) customer departmentalization
D) geographic departmentalization
A) functional departmentalization
B) product departmentalization
C) customer departmentalization
D) geographic departmentalization
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24
Cashvestment, a wealth management firm, renders services to various clients such as salaried employees, entrepreneurs, high-net-worth individuals, and retired employees. The employees of Cashvestment are organized based on the type of clients they are involved with. In this scenario, Cashvestment most likely follows _____.
A) functional departmentalization
B) product departmentalization
C) customer departmentalization
D) geographic departmentalization
A) functional departmentalization
B) product departmentalization
C) customer departmentalization
D) geographic departmentalization
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25
_____ is a management principle which means that workers should report to just one boss.
A) Unity of command
B) Line authority
C) Staff function
D) Task identity
A) Unity of command
B) Line authority
C) Staff function
D) Task identity
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26
Which of the following is a difference between product departmentalization and matrix departmentalization?
A) Unlike organizations with product departmentalization, organizations with matrix departmentalization follow unity of command.
B) Unlike organizations with product departmentalization, organizations with matrix departmentalization use two or more forms of departmentalization together.
C) Unlike product departmentalization, matrix departmentalization allows managers to specialize in one area of expertise.
D) Unlike product departmentalization, matrix departmentalization makes it easier for top managers to assess work-unit performance.
A) Unlike organizations with product departmentalization, organizations with matrix departmentalization follow unity of command.
B) Unlike organizations with product departmentalization, organizations with matrix departmentalization use two or more forms of departmentalization together.
C) Unlike product departmentalization, matrix departmentalization allows managers to specialize in one area of expertise.
D) Unlike product departmentalization, matrix departmentalization makes it easier for top managers to assess work-unit performance.
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27
Gettorx, a multinational personal care company, organized its labor force on the basis of the category of products that it deals with, such as bathing accessories, makeup products, and hair cleansers. All these departments have their own marketing, finance, and sales divisions. In this scenario, which of the following organizational structures does Gettorx most likely follow?
A) Process departmentalization
B) Geographic departmentalization
C) Customer departmentalization
D) Matrix departmentalization
A) Process departmentalization
B) Geographic departmentalization
C) Customer departmentalization
D) Matrix departmentalization
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28
The designers at Fhontrake, a designer tailor shop, are organized into departments such as men's wear, women's wear, children's clothing, or infants' clothing based on the clients for whom they specialize in designing clothes. Given this information, which of the following organizational structures does Fhontrake most likely follow?
A) Customer departmentalization
B) Product departmentalization
C) Functional departmentalization
D) Geographic departmentalization
A) Customer departmentalization
B) Product departmentalization
C) Functional departmentalization
D) Geographic departmentalization
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29
_____ is a hybrid organizational structure in which two or more forms of departmentalization are used together.
A) Customer departmentalization
B) Product departmentalization
C) Functional departmentalization
D) Matrix departmentalization
A) Customer departmentalization
B) Product departmentalization
C) Functional departmentalization
D) Matrix departmentalization
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30
In the context of organizational structure, _____ is defined as the right to give commands, take action, and make decisions to achieve organizational objectives.
A) centralization
B) motivation
C) influence
D) authority
A) centralization
B) motivation
C) influence
D) authority
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31
Keithomp, a company that manufactures and exports candies, sells different flavors of candy depending on the taste preferences of the country that it supplies to. Each country has a dedicated manufacturing facility that functions as a separate department. In this scenario, which of the following organizational structures does Keithomp most likely follow?
A) Functional departmentalization
B) Geographic departmentalization
C) Customer departmentalization
D) Product departmentalization
A) Functional departmentalization
B) Geographic departmentalization
C) Customer departmentalization
D) Product departmentalization
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32
Millishk, a creamery that produces ice cream and yogurt, has a production facility in every country it operates in. The company uses different ingredients for the manufacture of its products based on local preferences. In the company's management structure, each production facility is considered a department. Given this information, Millishk most likely follows _____.
A) functional departmentalization
B) geographic departmentalization
C) customer departmentalization
D) product departmentalization
A) functional departmentalization
B) geographic departmentalization
C) customer departmentalization
D) product departmentalization
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33
Which of the following is an advantage of geographic departmentalization?
A) It eases the achievement of coordination among managers of different departments.
B) It can reduce costs by locating unique organizational resources closer to customers.
C) It allows managers and workers to specialize in one area of expertise.
D) It lowers costs by reducing duplication.
A) It eases the achievement of coordination among managers of different departments.
B) It can reduce costs by locating unique organizational resources closer to customers.
C) It allows managers and workers to specialize in one area of expertise.
D) It lowers costs by reducing duplication.
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34
Bovindar, a wholesale distributor of gym equipment, organizes its salesforce based on the region it caters to. Therefore, the salespeople who work in the north, south, east, and west regions of a country report to their respective department heads. In this scenario, which of the following organizational structures does Bovindar most likely follow?
A) Functional departmentalization
B) Geographic departmentalization
C) Customer departmentalization
D) Product departmentalization
A) Functional departmentalization
B) Geographic departmentalization
C) Customer departmentalization
D) Product departmentalization
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35
A _____ is a form of matrix departmentalization in which managers in different parts of the matrix negotiate conflicts and resources directly.
A) simple matrix
B) complex matrix
C) network matrix
D) parallel matrix
A) simple matrix
B) complex matrix
C) network matrix
D) parallel matrix
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36
In the context of matrix departmentalization, which of the following is a difference between a simple matrix and a complex matrix?
A) A simple matrix involves interactions only related to employees, whereas a complex matrix involves interactions related to all aspects of running an organization.
B) In a simple matrix, managers in different parts of the matrix negotiate conflicts directly, whereas in a complex matrix, managers in different parts of the matrix report to matrix managers who help resolve conflicts.
C) Matrix managers play a primary role in a simple matrix, whereas there are no matrix managers in a complex matrix.
D) A simple matrix combines the product and geographic forms of departmentalization, whereas a complex matrix combines the functional and customer forms of departmentalization.
A) A simple matrix involves interactions only related to employees, whereas a complex matrix involves interactions related to all aspects of running an organization.
B) In a simple matrix, managers in different parts of the matrix negotiate conflicts directly, whereas in a complex matrix, managers in different parts of the matrix report to matrix managers who help resolve conflicts.
C) Matrix managers play a primary role in a simple matrix, whereas there are no matrix managers in a complex matrix.
D) A simple matrix combines the product and geographic forms of departmentalization, whereas a complex matrix combines the functional and customer forms of departmentalization.
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37
Sobaminth, a manufacturer and supplier of home appliances, organizes its labor force based on the core products the employees deal with, such as washing machines, dishwashers, refrigerators, and televisions. Each of these departments also has its own training, servicing, finance, and human resources teams. In this scenario, which of the following organizational structures does Sobaminth most likely follow?
A) Matrix departmentalization
B) Geographic departmentalization
C) Customer departmentalization
D) Process departmentalization
A) Matrix departmentalization
B) Geographic departmentalization
C) Customer departmentalization
D) Process departmentalization
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38
Which of the following is an advantage of matrix departmentalization?
A) It eliminates disagreements about schedules and budgets.
B) It requires low levels of coordination among managers.
C) It allows companies to manage large, complex tasks in an efficient manner.
D) It requires less cross-functional interaction than other forms of departmentalization.
A) It eliminates disagreements about schedules and budgets.
B) It requires low levels of coordination among managers.
C) It allows companies to manage large, complex tasks in an efficient manner.
D) It requires less cross-functional interaction than other forms of departmentalization.
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39
In the context of organizational authority, which of the following is an advantage of unity of command?
A) It prevents the confusion that might arise when an employee receives conflicting commands from two different bosses.
B) It encourages companies to have a co-CEO arrangement that can lead to an improvement in the performance of employees.
C) It gives workers the authority and control to make meaningful decisions about their work.
D) It overcomes the deficiencies in specialized work by increasing the number of tasks.
A) It prevents the confusion that might arise when an employee receives conflicting commands from two different bosses.
B) It encourages companies to have a co-CEO arrangement that can lead to an improvement in the performance of employees.
C) It gives workers the authority and control to make meaningful decisions about their work.
D) It overcomes the deficiencies in specialized work by increasing the number of tasks.
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40
Orampuse, an apparel manufacturer and retailer, has its outlets all over the world. Its management has organized its labor force on the basis of the groups of countries or the continents it caters to. Each of these departments also has its own sales, marketing, finance, legal, human resources, and transportation divisions. In this scenario, which of the following organizational structures does Orampuse most likely follow?
A) Process departmentalization
B) Geographic departmentalization
C) Customer departmentalization
D) Matrix departmentalization
A) Process departmentalization
B) Geographic departmentalization
C) Customer departmentalization
D) Matrix departmentalization
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41
Joan, the editorial head of a daily newspaper, implements a change to the newspaper's outline. He discusses this change with Sylvia, the marketing head of the company, and advises her to improvise the marketing strategy based on the updated outline. In the context of organizational authority, Joan is most likely exercising _____.
A) pseudo-authority
B) centralized authority
C) line authority
D) staff authority
A) pseudo-authority
B) centralized authority
C) line authority
D) staff authority
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42
One transfer that occurs with delegation of authority is:
A) that the manager gives the subordinate full authority over the budget, resources, and personnel needed to do the assigned job.
B) that the manager transfers full responsibility for an assignment to the subordinate.
C) that the subordinate is held accountable for getting the assigned job done according to the given instructions.
D) that the manager delegates his or her managerial authority to the subordinate in exchange for results.
A) that the manager gives the subordinate full authority over the budget, resources, and personnel needed to do the assigned job.
B) that the manager transfers full responsibility for an assignment to the subordinate.
C) that the subordinate is held accountable for getting the assigned job done according to the given instructions.
D) that the manager delegates his or her managerial authority to the subordinate in exchange for results.
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43
Stewart, the station manager of Reflect FM, a radio station, has the power to assign duties to the station's radio program controllers who report to him. In the context of organizational authority, Stewart most likely has _____.
A) horizontal authority
B) pseudo-authority
C) line authority
D) staff authority
A) horizontal authority
B) pseudo-authority
C) line authority
D) staff authority
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44
Fred is a floor worker in a tool manufacturing company. He operates and monitors machines; measures, shapes, and trims different parts used for production; and plays a significant role in the manufacturing process. In the context of organizational authority, which of the following functions does Fred most likely perform?
A) A support function
B) A staff function
C) A line function
D) An advisory function
A) A support function
B) A staff function
C) A line function
D) An advisory function
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45
Judith, the public relations officer of a music production company, advises her peers on how they can contribute to managing the company's external communication. In the context of organizational authority, Judith is most likely exercising _____.
A) pseudo-authority
B) centralized authority
C) line authority
D) staff authority
A) pseudo-authority
B) centralized authority
C) line authority
D) staff authority
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46
As the chief innovation officer of an apparel manufacturing company, Kathleen has the right to issue orders to the costume designers of various divisions of the company. These costume designers, in turn, have the right to issue orders to the cutting room workers of the company. In the context of organizational authority, which of the following features of a traditional organizational structure does this scenario best illustrate?
A) Horizontal authority
B) Pseudo-authority
C) Line authority
D) Staff authority
A) Horizontal authority
B) Pseudo-authority
C) Line authority
D) Staff authority
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47
Which of the following best defines delegation of authority?
A) It is the assignment of direct responsibility to a subordinate to complete tasks for which the manager is normally responsible.
B) It is the right to give commands, take action, and make decisions to achieve organizational objectives.
C) It is the right to advise but not command others who are not subordinates in the chain of command.
D) It is the activity that takes place within an organization to transform inputs into outputs that customers value.
A) It is the assignment of direct responsibility to a subordinate to complete tasks for which the manager is normally responsible.
B) It is the right to give commands, take action, and make decisions to achieve organizational objectives.
C) It is the right to advise but not command others who are not subordinates in the chain of command.
D) It is the activity that takes place within an organization to transform inputs into outputs that customers value.
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48
Lee operates injection molding machines on a regular basis. He is responsible for observing meters to verify press-cycle times, pressures, and specified temperatures and getting the final product ready. In the context of organizational authority, which of the following functions does Lee most likely perform?
A) A line function
B) A staff function
C) A support function
D) An advisory function
A) A line function
B) A staff function
C) A support function
D) An advisory function
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49
Cheryl is a senior legal secretary of a large software company. Her job duties include handling legal secretarial duties, managing the legal support team, and advising managers on the legal aspects of their teams. In the context of organizational authority, which of the following functions does Cheryl most likely perform?
A) A line function
B) A staff function
C) A marketing function
D) A core function
A) A line function
B) A staff function
C) A marketing function
D) A core function
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50
Nicole works as a financial analyst in an automobile manufacturing company. Her job responsibilities include analyzing cash flows, mergers, and acquisitions of companies. In the context of organizational authority, which of the following functions does Nicole most likely perform?
A) A line function
B) A staff function
C) A marketing function
D) A core function
A) A line function
B) A staff function
C) A marketing function
D) A core function
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51
In the context of organizational authority, which of the following best defines staff authority?
A) It is the right to command immediate subordinates in the chain of command.
B) It is the right to advise but not command others who are not subordinates in the chain of command.
C) It is an activity that contributes directly to creating or selling a company's products.
D) It is an activity that does not contribute directly to creating or selling a company's products but instead supports line activities.
A) It is the right to command immediate subordinates in the chain of command.
B) It is the right to advise but not command others who are not subordinates in the chain of command.
C) It is an activity that contributes directly to creating or selling a company's products.
D) It is an activity that does not contribute directly to creating or selling a company's products but instead supports line activities.
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52
Denzel, the production manager in a paper manufacturing company, advises the editorial manager of the company to increase the number of units of paper produced per week. In the context of organizational authority, Denzel is most likely exercising _____.
A) pseudo-authority
B) staff authority
C) line authority
D) centralized authority
A) pseudo-authority
B) staff authority
C) line authority
D) centralized authority
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53
Brian, a newly appointed finance manager of a tire manufacturing company, has the power to command his subordinates irrespective of the number of years they have been in the organization. In this scenario, Brian most likely has _____.
A) horizontal authority
B) pseudo-authority
C) line authority
D) staff authority
A) horizontal authority
B) pseudo-authority
C) line authority
D) staff authority
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54
In the context of the chain of command in an organization, which of the following is a difference between line authority and staff authority?
A) Line authority is the right to advise but not command immediate subordinates, whereas staff authority is the right to command immediate subordinates.
B) Line authority is the right to advise people who are not subordinates, whereas staff authority is the right to command people who are not subordinates.
C) Line authority is the right to command immediate subordinates, whereas staff authority is the right to advise but not command people who are not subordinates.
D) Line authority is the right of top managers to advise first-line managers, whereas staff authority is the right of first-line managers to command middle managers.
A) Line authority is the right to advise but not command immediate subordinates, whereas staff authority is the right to command immediate subordinates.
B) Line authority is the right to advise people who are not subordinates, whereas staff authority is the right to command people who are not subordinates.
C) Line authority is the right to command immediate subordinates, whereas staff authority is the right to advise but not command people who are not subordinates.
D) Line authority is the right of top managers to advise first-line managers, whereas staff authority is the right of first-line managers to command middle managers.
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55
In the context of organizational authority, which of the following statements best defines a staff function?
A) It is the right to command immediate subordinates in the chain of command.
B) It is the right to advise but not command others who are not subordinates in the chain of command.
C) It is an activity that contributes directly to creating or selling a company's products.
D) It is an activity that does not contribute directly to creating or selling a company's products but instead supports line activities.
A) It is the right to command immediate subordinates in the chain of command.
B) It is the right to advise but not command others who are not subordinates in the chain of command.
C) It is an activity that contributes directly to creating or selling a company's products.
D) It is an activity that does not contribute directly to creating or selling a company's products but instead supports line activities.
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56
Timothy, a laboratory manager at a multinational photography company, manages a team of seven designers. All of them report to him, and he has the power to command them and assign duties to them. In this scenario, Timothy most likely has _____.
A) horizontal authority
B) line authority
C) pseudo-authority
D) staff authority
A) horizontal authority
B) line authority
C) pseudo-authority
D) staff authority
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Unlock for access to all 115 flashcards in this deck.
Unlock Deck
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57
Brenda, the finance manager of a fast-moving consumer goods company, advises Ben, the marketing manager of the company, on good financial practices that could be followed when implementing various marketing strategies. In this scenario, Brenda most likely has _____ over Ben.
A) pseudo-authority
B) centralized authority
C) line authority
D) staff authority
A) pseudo-authority
B) centralized authority
C) line authority
D) staff authority
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Unlock for access to all 115 flashcards in this deck.
Unlock Deck
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58
Mildred, the marketing manager of an automobile manufacturing company, is responsible for pricing products, conducting market research, and designing advertising campaigns and promotional activities for the company. In the context of organizational authority, which of the following functions does Mildred most likely perform?
A) A line function
B) A staff function
C) A support function
D) An advisory function
A) A line function
B) A staff function
C) A support function
D) An advisory function
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Unlock Deck
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59
As the art director of a film production company, Arthur carries out the duties that are assigned to him by his manager. At the same time, Arthur issues orders to the assistant art directors who work under him. In the context of organizational authority, which of the following features of a traditional organizational structure does this scenario best illustrate?
A) Line authority
B) Pseudo-authority
C) Horizontal authority
D) Staff authority
A) Line authority
B) Pseudo-authority
C) Horizontal authority
D) Staff authority
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Unlock for access to all 115 flashcards in this deck.
Unlock Deck
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60
In the context of organizational authority, which of the following is a difference between a line function and a staff function?
A) A line function does not contribute directly to creating a company's products, whereas a staff function contributes directly to creating a company's products.
B) A line function includes accounting, human resources, or legal services, whereas a staff function includes activities that take place within the manufacturing and marketing departments.
C) A line function can only be exercised by employees at the lower levels of the chain of command, whereas a staff function empowers employees at every level.
D) A line function contributes directly to selling a company's products, whereas a staff function does not contribute directly to selling a company's products but instead supports line activities.
A) A line function does not contribute directly to creating a company's products, whereas a staff function contributes directly to creating a company's products.
B) A line function includes accounting, human resources, or legal services, whereas a staff function includes activities that take place within the manufacturing and marketing departments.
C) A line function can only be exercised by employees at the lower levels of the chain of command, whereas a staff function empowers employees at every level.
D) A line function contributes directly to selling a company's products, whereas a staff function does not contribute directly to selling a company's products but instead supports line activities.
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61
Tammy, the executive producer of a television channel, directed a creative associate to work on a proposal for an upcoming interview. Tammy was originally responsible for this, but he reassigned it because he was held up in a meeting. In the context of organizational authority, which of the following is best illustrated in this scenario?
A) Delegation of authority
B) Centralization of authority
C) Staff authority
D) Concentrated authority
A) Delegation of authority
B) Centralization of authority
C) Staff authority
D) Concentrated authority
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Unlock for access to all 115 flashcards in this deck.
Unlock Deck
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62
The store managers of Chimbake, a chain of bakeries, are allowed to come up with new dessert flavors of their choice as long as they do not fall short of the company's quality standards. They are also allowed to come up with effective marketing strategies based on their respective market requirements. In the context of organizational authority, which of the following is best illustrated in this scenario?
A) Centralization of authority
B) Decentralization of authority
C) Staff authority
D) Concentrated authority
A) Centralization of authority
B) Decentralization of authority
C) Staff authority
D) Concentrated authority
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Unlock for access to all 115 flashcards in this deck.
Unlock Deck
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63
Jason is an employee at Manisch Burger and Meals. He is assigned the task of serving soft drinks to customers who order meals consisting of potato fries, a burger, and a roll. Which of the following best exemplifies Jason's job design?
A) Job enrichment
B) Job enlargement
C) Job specialization
D) Job rotation
A) Job enrichment
B) Job enlargement
C) Job specialization
D) Job rotation
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Unlock for access to all 115 flashcards in this deck.
Unlock Deck
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64
Elaine works as a history professor. The skills required for her job are limited and easy to acquire, and the job tends to get monotonous. She is unsatisfied with her job and often feels the need to switch jobs. In the context of job design, this scenario best illustrates _____.
A) job specialization
B) job rotation
C) job enlargement
D) job enrichment
A) job specialization
B) job rotation
C) job enlargement
D) job enrichment
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65
_____ is the location of most authority at the upper levels of an organization.
A) Dispersion of authority
B) Mechanization of authority
C) Centralization of authority
D) Delegation of authority
A) Dispersion of authority
B) Mechanization of authority
C) Centralization of authority
D) Delegation of authority
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Unlock Deck
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66
In the context of job design, _____ allows companies to retain the economic benefits of specialized work because employees simply switch from one specialized job to another.
A) job enrichment
B) job enlargement
C) job empowerment
D) job rotation
A) job enrichment
B) job enlargement
C) job empowerment
D) job rotation
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Unlock for access to all 115 flashcards in this deck.
Unlock Deck
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67
Louise, a project manager of a software services company, is in charge of scheduling projects for his team. Instead of completing the task himself, he assigns it to his subordinates. In the context of organizational authority, which of the following is best illustrated in this scenario?
A) Delegation of authority
B) Centralization of authority
C) Staff authority
D) Concentrated authority
A) Delegation of authority
B) Centralization of authority
C) Staff authority
D) Concentrated authority
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Unlock for access to all 115 flashcards in this deck.
Unlock Deck
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68
Travis, the advertising manager of a photo imaging company, is responsible for compiling a list of the company's potential advertising sources for the upcoming year. However, he assigns this task to his immediate subordinates so that he can focus on project scheduling. In the context of organizational authority, which of the following is best illustrated in this scenario?
A) Staff authority
B) Centralization of authority
C) Delegation of authority
D) Concentrated authority
A) Staff authority
B) Centralization of authority
C) Delegation of authority
D) Concentrated authority
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Unlock for access to all 115 flashcards in this deck.
Unlock Deck
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69
Nathan, the marketing manager of a footwear manufacturing company, is in charge of performing a market research task. However, he is busy with an audit preparation and assigns the task to an intern. In the context of organizational authority, which of the following is best illustrated in this scenario?
A) Delegation of authority
B) Centralization of authority
C) Staff authority
D) Concentrated authority
A) Delegation of authority
B) Centralization of authority
C) Staff authority
D) Concentrated authority
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Unlock Deck
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70
In the context of organizational authority, which of the following is an advantage of decentralization?
A) It prevents the confusion that might arise when an employee receives conflicting commands from two different bosses.
B) It helps a company respond to the demands of different markets, especially when the company sells in different countries.
C) It develops employee capabilities throughout a company and leads to faster decision making and more satisfied customers and employees.
D) It attempts to overcome the disadvantages of job specialization by periodically moving workers from one specialized job to another to give them more variety and the opportunity to use different skills.
A) It prevents the confusion that might arise when an employee receives conflicting commands from two different bosses.
B) It helps a company respond to the demands of different markets, especially when the company sells in different countries.
C) It develops employee capabilities throughout a company and leads to faster decision making and more satisfied customers and employees.
D) It attempts to overcome the disadvantages of job specialization by periodically moving workers from one specialized job to another to give them more variety and the opportunity to use different skills.
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71
In the context of organizational authority, _____ is solving problems by consistently applying the same rules, procedures, and processes.
A) standardization
B) decentralization
C) specialization
D) departmentalization
A) standardization
B) decentralization
C) specialization
D) departmentalization
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72
At Afterbadge, a chain of stores that sells computer accessories, all the marketing activities are planned at the company headquarters. These plans are required to be carried out by the employees without any deviation. In the context of organizational authority, which of the following is best illustrated in this scenario?
A) Delegation of authority
B) Centralization of authority
C) Staff authority
D) Distributed authority
A) Delegation of authority
B) Centralization of authority
C) Staff authority
D) Distributed authority
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73
In the context of job design, which of the following is true of job specialization?
A) It occurs when a job is composed of a small part of a larger task or process.
B) It is an approach to job redesign that seeks to formulate jobs in ways that motivate workers and lead to positive work outcomes.
C) It involves giving workers the authority and control to make meaningful decisions about their work.
D) It occurs when the number of different tasks that a worker performs within one particular job is increased.
A) It occurs when a job is composed of a small part of a larger task or process.
B) It is an approach to job redesign that seeks to formulate jobs in ways that motivate workers and lead to positive work outcomes.
C) It involves giving workers the authority and control to make meaningful decisions about their work.
D) It occurs when the number of different tasks that a worker performs within one particular job is increased.
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74
Sannomsy, a confectionary company, uses similar conveyor belts with several interchangeable parts and the same procedure for the manufacture of all the toffees in its product line. This gives the company an advantage over its competitors in terms of consistency in quality, efficient processes, and price leadership. In the context of organizational authority, Sannomsy is most likely using _____.
A) customization
B) decentralization
C) standardization
D) adaptation
A) customization
B) decentralization
C) standardization
D) adaptation
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75
In the context of organizational authority, which of the following is a difference between centralization and decentralization?
A) Centralization is the location of most authority in the lower levels of an organization, whereas decentralization is the location of most authority in the upper levels of an organization.
B) Centralization should occur where standardization is important, whereas decentralization should occur where standardization is unimportant.
C) In a centralized organization, most decisions should be made by first-line managers, whereas in a decentralized organization, most decisions should be made by top managers.
D) An organization is centralized if it has a high degree of delegation at all levels, whereas an organization is decentralized if it has a low degree of delegation at all levels.
A) Centralization is the location of most authority in the lower levels of an organization, whereas decentralization is the location of most authority in the upper levels of an organization.
B) Centralization should occur where standardization is important, whereas decentralization should occur where standardization is unimportant.
C) In a centralized organization, most decisions should be made by first-line managers, whereas in a decentralized organization, most decisions should be made by top managers.
D) An organization is centralized if it has a high degree of delegation at all levels, whereas an organization is decentralized if it has a low degree of delegation at all levels.
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76
Marjoriesse, a multinational chain of gold jewelry stores, allows each of its stores to run advertising campaigns of its choice. Depending on the market conditions, demographic factors, and geographical factors, the store managers of Marjoriesse can choose between print, radio, and television media to advertise. In the context of organizational authority, which of the following is best illustrated in this scenario?
A) Decentralization of authority
B) Centralization of authority
C) Staff authority
D) Concentrated authority
A) Decentralization of authority
B) Centralization of authority
C) Staff authority
D) Concentrated authority
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77
Stephan joined as a clerk in Violetcoast Corp. Over a period of one year, Stephan was moved from one department to another, and he got the opportunity to do a variety of jobs, such as data entry and preparing financial statements, along with his daily work. This is an example of _____.
A) job enrichment
B) job enlargement
C) job specialization
D) job rotation
A) job enrichment
B) job enlargement
C) job specialization
D) job rotation
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78
Edithprod Inc., a computer manufacturing company, sources its interchangeable spare parts in bulk and produces computer chassis in a high precision assembly line. It follows the same manufacturing process for a variety of its products, and this helps it reduce costs and improve quality. In the context of organizational authority, Edithprod Inc. is most likely using _____.
A) customization
B) standardization
C) decentralization
D) adaptation
A) customization
B) standardization
C) decentralization
D) adaptation
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79
At Auternli, a cosmetics manufacturing company, all major decisions, such as decisions related to production, marketing, and finances, are made only by the top management. The middle and lower level managers are responsible for implementing these strategies without modifying any of the procedures. In the context of organizational authority, which of the following is best illustrated in this scenario?
A) Delegation of authority
B) Staff authority
C) Centralization of authority
D) Distributed authority
A) Delegation of authority
B) Staff authority
C) Centralization of authority
D) Distributed authority
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80
Billy works as a book editor in a publishing company. The chief supervisor of the company makes Billy work with a different department every month. In the context of job design, this is an example of _____.
A) job embeddedness
B) job enlargement
C) job specialization
D) job rotation
A) job embeddedness
B) job enlargement
C) job specialization
D) job rotation
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