Deck 8: Organization Structure

Question 1

Employees who function poorly in ambiguous,and sometimes conflict-ridden,circumstances may not thrive in a matrix organization.

Answer 1

True

Question 2

To get a clear idea of the positions in a firm and how they are arranged,it is helpful to make use of a(n)

A)operational map.
B)departmental schematic.
C)situational analysis.
D)organization chart.
E)value chain.

Answer 2

D

Question 3

An aspect of an organization's internal environment created by job specialization and division of labor is

A)integration.
B)coordination.
C)differentiation.
D)concentration.
E)diversification.

Answer 3

C

Question 4

A disadvantage of the functional form of departmentalization is that technical specialists spend too much time on administrative work.

Question 5

The chief executive officer and chief financial officer of the Blue Willow Food Service Corporation must personally certify that the company's financial statements are accurate.This is an example of corporate governance in action.

Question 6

One disadvantage of delegation is that it usually results in the manager losing touch with the status of the work to be accomplished.

Question 7

In a centralized organization,most of the decisions are made at lower levels.

Question 8

If an organization is composed of many separate units that work on different kinds of tasks by using skills and work methods that vary from each other,that organization is characterized by

A)differentiation.
B)integration.
C)standardization.
D)hierarchy.
E)delegation.

Question 9

Wesley works on an automobile assembly line.His job is to complete the final installation of the GPS for each automobile that is on the line.The job is quite defined,and he has been highly trained.Wesley is most likely supervised using a wide span of control.

Question 10

Northwestern Networking Solutions has its global headquarters in Minneapolis,where companywide departments,such as marketing,accounting,and research,are housed.Northwestern is thus a divisional organization.

Question 11

Even though the production department and advertising departments have completely different tasks,they must work together and coordinate their efforts to make sure the marketing campaign is ready for each new product launch.The degree to which they do this is known as

A)differentiation.
B)concentration.
C)span of control.
D)unity of command.
E)integration.

Question 12

Which of the following provides a clear picture of the reporting structure of a firm and the various activities carried out by individuals?

A)matrix organization
B)span of control
C)division of labor
D)organization chart
E)corporate governance

Question 13

Anthony and Roberto are employed at the same company and often work on the same products.However,they are assigned to separate units,and they perform very specific,different jobs that contribute to the larger task.This is an example of

A)concentration.
B)integration.
C)specification.
D)specialization.
E)centralization.

Question 14

An organization chart shows

A)the reporting structure in the organization.
B)the number of people who should be supervised.
C)how decisions are made at the departmental level.
D)which products appeal to particular groups of customers.
E)how the organization will interact with the external environment.

Question 15

The Garden State Manufacturing Company is attempting to coordinate activities by establishing routines and standard operating procedures that remain in place over time.This is an example of coordination by mutual adjustment.

Question 16

The assignment of different tasks to different people or groups in an organization is known as

A)unity of command.
B)integration.
C)division of labor.
D)concentration.
E)centralization.

Question 17

When there are many subunits and many kinds of specialists in an organization,differentiation is high.

Question 18

The numerous tasks that must be carried out in a large organization make ________ a necessity.

A)integration
B)standardization
C)specialization
D)formulization
E)hierarchy

Question 19

Aspen Incorporated has developed a set of procedures to link the various subunits and departments of the corporation in order to carry out the organization's overall mission.The procedures that fulfill this function are referred to as

A)alignment.
B)integration.
C)formalization.
D)standardization.
E)coordination.

Question 20

It is generally accepted that having fewer hierarchical levels creates greater operating efficiency.

Question 21

People who carry themselves with confidence,possess valuable information,or work closely with those in high positions often have considerable ________ authority.

A)formal
B)ascribed
C)delegated
D)informal
E)moral

Question 22

Corporations have boards of directors elected by the

A)employees.
B)franchisees.
C)stockholders.
D)managers.
E)partners.

Question 23

For years,Kathleen served as head of the research and development (R&D)department at Bannerman Pharmaceuticals in Chicago.She enjoyed enormous support from her team,who liked her personally and respected her professionally.Now she has retired,and her place has been taken by Jerome from Bannerman's Cleveland facility.Yet employees continue to sidestep Jerome and come directly to Kathleen for guidance,calling or emailing her at home with questions.What is her best course of action?

A)to let employees know that she wishes she were still in charge,but Jerome is their boss now,and there is nothing anyone can do about that fact
B)to continually direct her former subordinates to Jerome while emphasizing the fact that,as the new director of R&D,he has authority over,and responsibility for,the team
C)to call Jerome and offer some advice regarding the techniques she has developed over the years for winning and keeping employees' loyalty
D)to let team members know that failure to respect Jerome will be regarded as a breach of protocol,and that they should no longer contact her
E)to willingly offering guidance to her former subordinates,as well as her replacement,and encouraging them to involve her in settling any disputes

Question 24

Thunderbolt Gaming Systems of San Jose,California,operates in a number of related fields,including computer gaming,virtual reality,simulation platforms,and other high-tech applications.In all likelihood,Thunderbolt Gaming Systems is an organization

A)with a high degree of differentiation.
B)in an industry whose paradigms change little.
C)in a relatively stable environment.
D)with the potential for standardization problems.
E)that employs strict rules of formalization.

Question 25

Coordination refers to the

A)division of labor within an organization.
B)performance of specific tasks by specific people.
C)procedures that link the various parts of the organization.
D)need for specific tasks in the functional fields.
E)authority levels in the organizational pyramid.

Question 26

In the organizational pyramid,the ________ structure is the glue that holds the vertical levels together.

A)hierarchical
B)managerial
C)divisional
D)authority
E)accountability

Question 27

The legitimate right to make decisions and to tell other people what to do is referred to as

A)hierarchy.
B)delegation.
C)specialization.
D)legitimacy.
E)authority.

Question 28

Several top executives at Cogswell Integrated Systems are part of the corporation's board and are called ________ directors.

A)operational
B)surrogate
C)cooperating
D)authoritative
E)inside

Question 29

The oversight of a firm by its executive staff and board of directors is called corporate

A)control.
B)maintenance.
C)power.
D)governance.
E)strategy.

Question 30

Who selects the chief executive officer of a corporation?

A)the board of directors
B)stockholders
C)operational managers
D)employees
E)middle managers

Question 31

Authority typically is associated with a particular

A)person rather than a particular department.
B)department rather than a particular team.
C)position rather than a particular person.
D)department rather than a particular person.
E)person rather than a particular position.

Question 32

Lawrence and Lorsch found that highly differentiated firms were successful if they had ________ levels of integration.

A)minimal
B)varied
C)high
D)moderate
E)increasing

Question 33

Stockholders are individuals or other entities who

A)run the company because they are owners.
B)have no stake in the company.
C)receive timely information about the company.
D)are rarely directly involved in managing the company.
E)have no say over the company's governance.

Question 34

Reporting relationships between bosses and subordinates are tied with the ________ dimension of a firm's structure.

A)horizontal
B)vertical
C)circular
D)external
E)flexible

Question 35

The procedures that link the various parts of the organization for the purpose of achieving the organization's overall mission are known as

A)specialization.
B)diversification.
C)coordination.
D)concentration.
E)delegation.

Question 36

Corporate boards hire ________ directors to provide different information and perspectives and to prevent big mistakes.

A)outside
B)dual
C)cooperating
D)authoritative
E)affiliative

Question 37

Corporate governance is a term describing the oversight of a firm by its

A)executive staff and board of directors.
B)stockholders and board of directors.
C)stakeholders and board of directors.
D)executive staff and stockholders.
E)executive staff and stakeholders.

Question 38

Division of labor is closely related to the concept of

A)integration.
B)specialization.
C)centralization.
D)coordination.
E)formalization.

Question 39

The organizational pyramid composed of authority levels is commonly called the

A)framework.
B)hierarchy.
C)system.
D)matrix.
E)objective.

Question 40

To understand such issues as reporting relationships,authority,responsibility,and related ideas,we need to begin with the ________ of an organization's structure.

A)vertical dimension
B)vertical integration
C)horizontal dimension
D)horizontal integration
E)vertical hierarchy

Question 41

The number of subordinates who report directly to an executive or supervisor is called the

A)reporting order.
B)span of control.
C)delegation control.
D)bureaucratic span.
E)authoritative span.

Question 42

The assignment of authority and responsibility to a subordinate at a lower level is known as

A)delegation.
B)appropriation.
C)centralization.
D)hierarchy.
E)initiative.

Question 43

A narrow span of control is appropriate when

A)jobs are similar.
B)performance measures are comparable.
C)the organization is flat.
D)many reporting levels exist.
E)the manager can easily control many subordinates.

Question 44

The first step in effective delegation is to

A)select the person to delegate to.
B)define the goal of the task to be delegated.
C)provide the resources to do the task.
D)check on the status of the work.
E)explain the means of achieving the goal.

Question 45

Bella is one of three managers at On-Time Electrical,where she supervises 32 repair technicians.She reports to the owner.On-Time Electrical would be considered a ________ organization.

A)flat
B)narrow
C)centralized
D)departmentalized
E)specialized

Question 46

Delegation

A)can be used only in organizations with flat structures.
B)promotes subordinates to higher positions.
C)helps develop effective subordinates.
D)can be done only at top level of management.
E)often sharply reduces what a manager can achieve.

Question 47

Among the positions of the top managerial level is that of

A)chief financial officer.
B)frontline manager.
C)operational supervisor.
D)division supervisor.
E)first-line manager.

Question 48

Narrow spans of control build ________ organizations.

A)flat
B)delegated
C)tall
D)decentralized
E)informal

Question 49

A ________ span of control creates a flat organization.

A)wide
B)tall
C)centralized
D)formal
E)narrow

Question 50

Jose delegates an important project to Andrea,but he tells her that he expects regular reports and that he will take over the work if she falls behind or does not produce quality results.This is an example of

A)hierarchy.
B)authority.
C)subordination.
D)differentiation.
E)accountability.

Question 51

Span of control refers to

A)how many people are on a company's board of directors.
B)the legitimate right to make decisions and to tell other people what to do.
C)the top management team,which typically includes the CEO and president.
D)the role of the executive staff in ensuring that firm activities meet stakeholders' goals.
E)the number of individuals reporting directly to a manager or supervisor.

Question 52

One advantage of delegation is the fact that it

A)helps subordinates develop new skills.
B)absolves the delegating manager of responsibility.
C)reduces accountability for the job.
D)formalizes power in the company.
E)reduces the subordinate's workload.

Question 53

According to Napoleon Bonaparte,the optimal number of direct reports is

A)three.
B)five.
C)seven.
D)eight.
E)nine.

Question 54

In some corporations,one person holds all three positions of CEO,chair of the board of directors,and president,but it is more common for the CEO to

A)alternate between the roles of board chair and president.
B)serve also as either chair of the board or president.
C)delegate responsibility to the chair of the board.
D)appoint someone to serve as president.
E)consult with both the board chair and president.

Question 55

A wide span of control is optimal when subordinates have jobs that are

A)ambiguous.
B)unskilled.
C)unrelated.
D)similar.
E)supervised.

Question 56

Sondra wants to open a dessert shop and plans to employ a staff of about 10 people,including wait staff and bakers.Sondra is planning to create a ________ organization.

A)flat
B)narrow
C)centralized
D)departmentalized
E)specialized

Question 57

Bernadette calls Cynthia into her office and says,"We need to change how we're handling orders for raw materials in the plant.Right now we're consistently running at least 25 percent over budget,supplies are coming in behind schedule,and there have been issues with quality control as well.I'd like you to take this over.Talk to the line managers,evaluate options,get some competitive bids,and then give me a report with your recommendations by next Tuesday." This is an example of

A)concentration.
B)centralization.
C)delegation.
D)brokering.
E)standardization.

Question 58

When a manager has an expectation that an employee will perform a particular job,as well as the right to take corrective action if the employee does not do so,________ exists.

A)delegation
B)accountability
C)responsibility
D)coordination
E)authority

Question 59

Stockholders of the Dearborn Automotive Group are voting on five new candidates to take an empty seat on the company's board of directors.The board of directors is currently made up of the company founder's two sons,one of the company's former marketing vice presidents,and a chief operating officer who has been with the company since its inception.Based on twenty-first century research and trends,the best person to fill the seat is

A)a retired former president and CEO of Dearborn Automotive.
B)Dearborn's vice president of product development.
C)the creator of the most successful advertising campaign in Deaborn's history.
D)the granddaughter of Dearborn Automotive's founder.
E)the vice president of product development for a software company.

Question 60

Dante,an operations manager at Therma-Pro Insulation,has been put on a big project with a tight deadline.He distributes half the work to two other supervisors,taking care of the bigger aspects of the project himself.This is an example of

A)unity of command.
B)delegation.
C)specialization.
D)span of control.
E)differentiation.

Question 61

Departmentalization that groups units around products,customers,or geographic regions is a defining characteristic of a ________ organization.

A)divisional
B)centralized
C)conglomerate
D)functional
E)virtual

Question 62

Ideally,the people making the decisions at a company should be those who

A)have the greatest authority.
B)control daily operations.
C)have been delegated that responsibility.
D)supervise the most employees.
E)are most affected by the issue.

Question 63

Generally speaking,________ organizations are decentralized.

A)staff
B)flat
C)diverse
D)vertical
E)line

Question 64

Shield Life & Casualty has strictly defined job responsibilities and lines of communication.In this formal atmosphere,approval for any changes to standing procedures must be made by upper management.The firm has a

A)wide span of control.
B)high degree of centralization.
C)moderately decentralized structure.
D)matrix design.
E)flat structure.

Question 65

The three basic approaches to departmentalization are

A)line,staff,and matrix.
B)functional,divisional,and matrix.
C)line,staff,and functional.
D)divisional,staff,and matrix.
E)line,staff,and divisional.

Question 66

An example of a line department is

A)public relations.
B)human resources.
C)product design.
D)accounting.
E)legal.

Question 67

Subdividing an organization into smaller subunits is known as

A)departmentalization.
B)delegation.
C)centralization.
D)standardization.
E)diversification.

Question 68

An advantage of functional departmentalization is the fact that

A)it is well-suited to a complex environment.
B)employees are able to focus exclusively on creating customer satisfaction.
C)it encourages managers to become generalists.
D)decision making and lines of communication are simple and clearly understood.
E)it is the most flexible organization form.

Question 69

At Mountain View Optical Systems,important decisions are usually made at the top.Mountain View Optical has a ________ organization.

A)flat
B)wide
C)narrow
D)centralized
E)decentralized

Question 70

In a ________ organization,jobs are specialized and grouped according to the role they perform and the skills they require,such as marketing,finance,operations,accounting,and human resources.

A)divisional
B)geographical
C)helix
D)functional
E)matrix

Question 71

Line departments

A)provide specialized skills to support staff departments.
B)deal directly with the organization's primary goods and services.
C)include research,legal,accounting,and human resources departments.
D)focus on safeguarding the company from risks.
E)focus more on requirements and procedures rather than products and customers.

Question 72

Global Beverage Corporation is planning a worldwide celebration on a particular day in July that marks the centennial of the company's founding.However,this has caused a problem in one of its overseas markets,where that day happens to coincide with a solemn national holiday.How should Global Beverage handle the situation?

A)by arranging a visit to the country by its chief executive officer so that she can meet with local leaders and arrange an alternative celebration
B)by issuing a statement from headquarters,directed to the nation's leadership,apologizing for failing to consult with them before planning the celebration
C)by allowing its local management team,in consultation with national leaders and other local personnel,to develop plans for an alternative celebration
D)by directing its local management team to develop plans for an alternative celebration in accordance with overall company guidelines
E)by calling for a coordinated effort by Global Beverage headquarters and the local management team with the aim of developing a cooperative strategy

Question 73

Mia,vice president of operations,was looking to make her company more efficient and asked Cesar to manage the reorganization of the order fulfillment center,even though he was less experienced than many of the managers in that department.Cesar found that the other managers were not cooperative in giving him access to their current procedures or ideas about new ones,and he felt powerless to compel them.Mia most likely made the mistake of

A)assigning inappropriate tasks to a junior manager.
B)delegating responsibility without adequate authority to Cesar.
C)"passing the buck" by blaming Cesar's performance.
D)taking credit for Cesar's accomplishments.
E)underestimating Cesar's capabilities.

Question 74

In a decentralized organization,more of the decisions are made by the

A)board of directors and stockholders.
B)department heads and regional managers.
C)lower levels of the organization.
D)upper levels of the organization.
E)chief executive officer and president.

Question 75

Research,accounting,and human resources are considered ________ departments.

A)staff
B)line
C)functional
D)matrix
E)service

Question 76

As director of operations for Little Napoli Pizzerias,Bernard has set a goal of opening fourteen new stores on the West Coast in the next three years.He has chosen Angelina,a highly capable manager who has worked with the company for the better part of a decade,to take on this task.He meets with her,gets her suggestions and feedback,and sets about to ensure that she has the resources she needs to complete the assignment.A year later,the project seems to be on track,with four stores already opened and another four ready to go.However,at the time of their next meeting,with just six months left before the targeted completion date,the project is in disarray.What is the most likely cause for this failure?

A)Angelina failed to get Bernard to clearly outline her responsibilities.
B)Bernard did not establish clear goals for Angelina.
C)Angelina simply lacked the qualifications to get the job done.
D)Bernard did not meet with Angelina at regular and appropriate intervals.
E)Angela did not make it clear to Bernard what resources she needed.

Question 77

The three basic approaches to departmentalization are

A)simple,stable
B)simple,changing
C)complex,integrated
D)complex,stable
E)complex,changing

Question 78

Andre is a new product designer for a restaurant supply company.Andre therefore works in a ________ department.

A)staff
B)line
C)functional
D)matrix
E)service

Question 79

An organization in which lower-level managers make important decisions is a(n)________ organization.

A)decentralized
B)horizontal
C)vertical
D)informal
E)centralized

Question 80

Under the product structure of divisional organization,

A)duplicating functions is inexpensive.
B)decision making is decentralized.
C)Coordination across product lines is easy.
D)companies suited to stable environments function best.
E)task responsibilities may be ambiguous.