Deck 7: Creating a Flexible Organization

Question 1

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

Answer 1

True

Question 2

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

Answer 2

False

Question 3

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

Answer 3

True

Question 4

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

Question 5

Informal groups are never powerful within an organization.

Question 6

The matrix organizational structure facilitates greater communication between employees.

Question 7

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

Question 8

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

Question 9

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

Question 10

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

Question 11

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

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

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.

Question 14

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

Question 15

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

Question 16

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

Question 17

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 18

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 19

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

Question 20

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

Question 21

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

Question 22

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

Question 23

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

Question 24

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

Question 25

Target 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 Target is tall.

Question 26

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

Question 27

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

Question 28

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

Question 29

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

Question 30

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 31

A supervisor may delegate all accountability to subordinates.

Question 32

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 33

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

Question 34

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

Question 35

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 36

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

Question 37

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

Question 38

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

Question 39

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

Question 40

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

Question 41

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

Question 42

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

Question 43

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

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

Question 44

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

Question 45

When you encounter an organization where employees are quite intense, focused, and determined to win, you have encountered an organization with a(n) ___ culture.

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

Question 46

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

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

Question 47

A group of managers from various departments is in charge of evaluating the performance of the staff employees every year. This is a(n)

A)ad hoc committee.
B)permanent committee.
C)task force.
D)standing committee.
E)organizational review committee.

Question 48

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

Question 49

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 50

Through informal talks with employees, managers realized employees thought their plant would close, resulting in massive layoffs. A few were already seeking other employment. The managers responded promptly and aggressively to this rumor, assuring employees of the health of the corporation and the reasonable security of their jobs. Your managerial know-how tells you that these managers are attempting to

A)ignore inaccurate information because they know the truth eventually will become known.
B)respond to inaccurate grapevine information to minimize the damage such misinformation might cause.
C)eliminate the grapevine.
D)use the grapevine as a managerial tool.
E)reduce the credibility of information from the grapevine.

Question 51

Carl Smith overheard that Joe Dunn was blowing the whistle on managers at XYZ Company and that a full story would appear in Sunday's paper. Carl quickly alerted the managers, who were able to stop the newspaper from printing the article. This is an example of managers'

A)ignoring the grapevine.
B)involving the grapevine as a useless communication network.
C)trying to eliminate the grapevine.
D)using the grapevine as a managerial tool.
E)reducing the credibility of information from the grapevine.

Question 52

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

Question 53

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 54

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

Question 55

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 56

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

Question 57

Angered by the informal discussions among employees, a supervisor has posted rules against rumors, gossip, and discussions about the company's financial situation as well as other company matters. Your managerial know-how tells you that this supervisor is

A)trying to support employees' First Amendment rights.
B)trying to eliminate inaccurate information.
C)making a big mistake by trying to eliminate the grapevine.
D)recognizing the need for a grapevine.
E)attempting to use the grapevine as a managerial tool.

Question 58

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

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

Question 59

A relatively permanent committee charged with performing some recurring task is called a(n)

A)cluster structure.
B)ad hoc committee.
C)informal group.
D)task force.
E)standing committee.

Question 60

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

Question 61

Boss Queen, Inc. (BQI)
Boss Queen, Inc. (BQI) is a business-clothing store for professional women. The owner of the company has designed the business so that she hardly ever has to be ther
Refer to Boss Queen, Inc. The group of employees that participate in outside activities on the weekend would be considered a(n) ____ group.

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

Question 62

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

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

Question 63

The degree of centralization of an organization is based on the

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

Question 64

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

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

Question 65

Determining how many subordinates will report to each manager gives an organization its

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

Question 66

Which of the following is not one of the four basic forms of organizational structure?

A)Informal
B)Network
C)Line
D)Line-and-staff
E)Matrix

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

A corporate culture is generally defined as the

A)manner in which employees interact with each other and with management.
B)incorporation of company policies and procedures into employee activities.
C)inner rites, rituals, heroes, and values of a firm.
D)management philosophy pertaining to customer service.
E)informal interaction of employees outside work during nonbusiness hours.

Question 69

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 70

The number of subordinates reporting directly to one manager is called

A)the chain of command.
B)a decentralized organization.
C)a centralized organization.
D)the span of control.
E)the management hierarchy.

Question 71

A committee was organized at Xerox to study the company's hiring, promotion, and compensation policies. The group will review corporate procedures in these areas for the next six months and disband thereafter. This type of committee is referred to as a(n)

A)standing committee.
B)task force.
C)ad hoc committee.
D)integrative team.
E)liaison committee.

Question 72

Authority and ____ are synonymous terms.

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

Question 73

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 74

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

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

Question 75

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

A)Executive manager
B)President
C)Manager
D)Vice president, operations
E)Organization leader

Question 76

A span of control may be wide when

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

Question 77

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 78

When line managers in an organization encounter issues that a staff member with specialized expertise can assist with, the staff member they consult with has ___ authority.

A)advisory
B)centralized
C)functional
D)line
E)decentralized

Question 79

Boss Queen, Inc. (BQI)
Boss Queen, Inc. (BQI) is a business-clothing store for professional women. The owner of the company has designed the business so that she hardly ever has to be ther
Refer to Boss Queen, Inc. BQI can best be described as a(n) ____ organization.

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

Question 80

An organization with a(n) ___ culture is characterized by employees not becoming friends and having a high degree of autonomy and flexibility.

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