Deck 7: Organizing for Success

Question 1

Robin works in the human resources department of a retirement community. Therefore, he works for a staff department rather than a line department.

Answer 1

True

Question 2

The first step in effective delegation is selecting the person to whom one will delegate the work.

Answer 2

False

Question 3

In an organization, when there are many subunits and many specialists who think differently, differentiation is said to be high.

Answer 3

True

Question 4

In decentralized organizations, more decisions are made at lower levels.

Question 5

The board of directors, led by the chairperson, makes major decisions affecting the organization, subject to corporate charter and bylaw provisions.

Question 6

Mallory, the manager of a branch of Simply Sweet Bakery, leads a group of ten people. She reports directly to the owner of Simply Sweet. Thus, in the context of span of control, Simply Sweet is a tall organization.

Question 7

When delegating responsibilities, the manager should not delegate to the subordinate any authority in order to get the job done.

Question 8

The functional structure of an organization is most appropriate in complex and changing environments.

Question 9

In the context of the vertical structure of a firm, all the stockholders are directly involved in managing the firm.

Question 10

An advantage of the product approach to departmentalization is that task responsibilities are clear, and managers are more independent and accountable.

Question 11

Organizations with an organic structure are much less rigid than mechanistic organizations.

Question 12

If a manager delegates responsibility to a subordinate, he or she is relieved of accountability for the actions of his or her subordinate.

Question 13

The organization chart depicts the locations of the board offices in corporate headquarters.

Question 14

A broker is a person who assembles and coordinates participants in a network.

Question 15

In the context of the vertical structure of a firm, traditionally authority resides in people and not in positions.

Question 16

Cambridge Computer Installations Inc. has separate company-wide marketing, production, design, and research departments. Thus, it is a divisional organization.

Question 17

Differentiation refers to a manager's legitimate right to make decisions and to tell other people what to do.

Question 18

One of the strengths of a matrix organization is that decision making is decentralized to a level where information is processed properly and relevant knowledge is applied.

Question 19

In general, coordination methods include standardization, plans, and mutual adjustment.

Question 20

The unity-of-command principle states that a person should have multiple managers who give subordinates a unified message.

Question 21

To be successful, partners in a strategic alliance must pay attention to human relationships.

Question 22

A process in which different individuals and units perform different tasks is known as:

A) mutual adjustment.
B) formalization.
C) standardization.
D) specialization.
E) span of control.

Question 23

Learning organizations share ideas throughout the organization via reports, information systems, informal discussions, site visits, education, and training.

Question 24

Computer-integrated manufacturing supports the production of high-variety and high-volume products at the same time.

Question 25

In the context of organizational agility, as large companies try to regain the responsiveness of small companies, they often consider downsizing, the planned elimination of positions.

Question 26

In a large batch organization, structure tends to be organic, with few rules and formal procedures.

Question 27

Total quality management reorients managers toward involving people across departments in improving all aspects of the business.

Question 28

In the context of the fundamentals of organizing, which of the following depicts the positions in a firm and the way they are arranged?

A) Formalization
B) Mutual adjustment
C) Strategic alliance
D) Organization chart
E) Value chain

Question 29

Just-in-time is a companywide philosophy oriented toward eliminating waste and improving materials through-out all operations.

Question 30

Large organizations are typically less organic and more bureaucratic than small ones.

Question 31

The ISO 9001 standards apply to management systems at any organization and address eight principles.

Question 32

In the context of integration, which of the following is true of the findings of Lawrence and Lorsch?

A) The more highly differentiated the firm, the lesser the need for integration among its units.
B) Focusing on integration may speed up innovation for a while in an organization.
C) Highly differentiated firms were more likely to fail in a complex environment if they failed to integrate their activities adequately.
D) Companies with more structural integration were more likely to introduce new products soon after acquisition.
E) Highly differentiated firms were successful if they had low levels of integration.

Question 33

In the context of the fundamentals of organizing, coordination refers to:

A) the expectation that employees will perform a job and take corrective action when necessary.
B) a process in which different individuals and units perform different tasks.
C) the procedures that link the various parts of the organization to achieve the organization's overall mission.
D) the legitimate right to make decisions and to tell other people what to do.
E) departmentalization that groups units around products, customers, or geographic regions.

Question 34

Coordination by plan deals with exact rules and procedures that spell out what needs to be done and how.

Question 35

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

A) strategic plan.
B) degree of formality.
C) division of labor.
D) value chain.
E) decentralization.

Question 36

Which of the following types of information is conveyed by a traditional organization chart?

A) The work performed by each unit in the organization.
B) The products manufactured by the organization.
C) The way in which decisions are made in the organization.
D) The location of the organization.
E) The way in which the organization will interact with the external environment.

Question 37

In the context of the vertical structure of a firm, the number of subordinates who report directly to an executive or supervisor is known as the:

A) formalization.
B) span of control.
C) authority.
D) division of labor.
E) specialization.

Question 38

Authority is directly related to the three broad levels of the organizational pyramid, commonly known as _____.

A) hierarchy
B) value chain
C) coordination
D) specialization
E) division of labor

Question 39

In the context of the vertical structure of a firm, authority refers to:

A) the legitimate right to make decisions and to tell other people what to do.
B) the procedures that link the various parts of the organization.
C) the assignment of new or additional responsibilities to a subordinate.
D) the expectation that staff will take corrective action when necessary.
E) the reporting structure and division of labor in an organization.

Question 40

In the context of a firm's vertical structure, a powerful trend for U.S. businesses over the past few decades has been to:

A) reduce the number of hierarchical layers.
B) reduce standardization.
C) do away with middle management.
D) increase formalization.
E) limit decision-making authority to top management.

Question 41

The expectation that employees perform a job, managers take corrective action when necessary, and employees report upward on the status and quality of their performance is known as:

A) responsibility.
B) accountability.
C) authority.
D) coordination.
E) span of control.

Question 42

Sharon, an accounting intern, was given an assignment by her manager. She needed to obtain information from other departments to complete her assignment. But, some departments refused to share information with an intern. She was frustrated because she did not have the influence to get the information she needed. In the context of this situation, Sharon's manager made the mistake of:

A) delegating inappropriate tasks to an intern.
B) delegating responsibility without adequate authority.
C) "passing the buck" for Sharon's performance.
D) taking credit for Sharon's accomplishments.
E) overestimating Sharon's capabilities.

Question 43

Which of the following is true of effective delegation?

A) Once the task has been delegated, the manager need not be available.
B) The manager should select a person who is most devoted to him or her.
C) The manager should give as little time as possible for completion of the task.
D) The ideas of the subordinate should not be taken into consideration.
E) Throughout the delegation process, the manager and the subordinate must work together.

Question 44

Gabriella recently accepted a job with a large insurance company as an internal auditor. She found that her job was quite different from the internship she had done. Her company had strictly defined job responsibilities and lines of communication. For every decision she needed to make, approval had to be obtained from upper management. Overall, she found the atmosphere to be quite formal. Gabriella's organization has a(n):

A) wide span of control.
B) high degree of centralization.
C) decentralized authority.
D) matrix design.
E) ineffective staff.

Question 45

Which of the following is an advantage of delegation?

A) It helps managers develop skills and knowledge.
B) It reduces accountability of the manager.
C) It conserves managers' most valuable asset: time.
D) It increases managers' influence over their subordinates.
E) It improves the ethical climate of organizations.

Question 46

The assignment of new or additional responsibilities to a subordinate is referred to as:

A) responsibility.
B) centralization.
C) delegation.
D) span of control.
E) accountability.

Question 47

The first step in the delegation process, defining the goal, requires a manager to:

A) identify the employee he or she favors the most.
B) understand the nature of each employee.
C) recognize the most responsible employee.
D) clearly understand the outcome he or she wants.
E) identify a tedious assignment that can be given.

Question 48

In the context of delegation, a problem faced by a subordinate in carrying out a delegated task is:

A) being restrained by frequent checks.
B) being given more responsibility than authority.
C) having too many details spelled out.
D) eliminating any opportunity for creativity.
E) having to report to the manager frequently.

Question 49

In the context of the vertical structure of a firm, a wide span of control builds a _____ organization with fewer reporting levels.

A) flat
B) narrow
C) tall
D) bureaucratic
E) formal

Question 50

In the context of horizontal structure of a firm, _____ are those that have responsibility for the principal activities of the firm.

A) staff departments
B) product divisions
C) geographic divisions
D) line departments
E) customer divisions

Question 51

In an organization, _____ may be valuable when departments have different priorities or conflicting goals, which need to be mediated by top management.

A) decentralization
B) informality
C) delegation
D) specialization
E) centralization

Question 52

In _____ organizations, more decisions are made at lower levels.

A) centralized
B) formal
C) mechanistic
D) decentralized
E) narrow

Question 53

In the context of the vertical structure of a firm, narrow spans of control build a _____ organization with many reporting levels.

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

Question 54

Which of the following statements about delegation is true?

A) It is the assignment of a task that an employee is supposed to carry out.
B) It involves getting the maximum amount of work out of a subordinate.
C) It can occur between any two individuals in any type of structure with regard to any task.
D) All managers are comfortable fully delegating an assignment to subordinates.
E) Delegation does not require a subordinate to take accountability for achieving results.

Question 55

In a(n) _____ organization, important decisions usually are made at the top.

A) informal
B) centralized
C) flat
D) organic
E) decentralized

Question 56

The assignment of a task that an employee is supposed to carry out is known as:

A) responsibility.
B) authority.
C) coordination.
D) accountability.
E) span of control.

Question 57

In a(n) _____ organization, top managers make all the decisions and pass them down to lower levels for implementation.

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

Question 58

In the presence of which of the following factors should the optimal span of control be wide?

A) The work is not clearly defined and instructions are ambiguous.
B) Subordinates are poorly trained and have limited access to information.
C) The manager has recently taken up his post.
D) Jobs are similar, and performance measures are comparable.
E) Subordinates prefer close supervisory control to autonomy.

Question 59

Which of the following is true of delegation?

A) The manager should delegate to the subordinate enough authority to get the work done.
B) The subordinate must not be allowed to take credit for the results of the assignment.
C) The subordinate need not report to his or her boss about the status of the assignment.
D) The subordinate should be allowed to work unencumbered by frequent checks.
E) The manager should use delegation as a means of developing skills and knowledge.

Question 60

In the context of horizontal structure of a firm, _____ deal directly with the organization's primary goods or services; they make things, sell things, or provide customer service.

A) geographical divisions
B) customer divisions
C) staff departments
D) organic structures
E) line departments

Question 61

An approach that involves feedback and discussions to jointly figure out how to approach problems and devise solutions that are agreeable to everyone is known as:

A) coordination by mutual adjustment.
B) management by objectives.
C) coordination by plan.
D) collaborative standardization.
E) hierarchical decision making.

Question 62

Which of the following approaches to departmentalization requires proper management of all the issues surrounding decentralization and delegation for it to be effective?

A) Functional
B) Product
C) Customer
D) Geographic
E) Mechanistic

Question 63

Hot Tamales Inc. manufactures and distributes sauces, pickles, and spices. The company has separate divisions responsible for developing and marketing each item. Thus, the company has a _____ approach to departmentalization.

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

Question 64

In the context of organizational agility, which of the following is true of learning organizations?

A) They hold lower-level employees accountable for delivering a good service.
B) They make decisions based on gut feelings.
C) They avoid benchmarking in order to keep up internal performance standards.
D) They ensure that there is a consensus about the direction in which the business is heading.
E) They are skilled at experimenting with new approaches.

Question 65

A type of organization in which top management ensures that there is consensus about the direction in which the business is heading is known as a:

A) learning organization.
B) high-involvement organization.
C) mechanistic organization.
D) network organization.
E) matrix organization.

Question 66

A(n) _____ is composed of temporary arrangements among members that can be assembled and reassembled to meet a changing competitive environment.

A) modular network
B) matrix organization
C) divisional organization
D) functional organization
E) enterprise network

Question 67

Which of the following is a characteristic of a high-involvement organization?

A) Employees work with and are mentored by more experienced employees.
B) The organization has a flat, decentralized structure built around a service.
C) They identify and implement the best practices of other organizations.
D) They discourage employees who try to expand their skills beyond their job profile.
E) Much of the work is done independently by experts.

Question 68

In the context of horizontal structure of a firm, subdividing an organization into smaller units is known as:

A) departmentalization.
B) just-in-time.
C) decentralization.
D) span of control.
E) lean manufacturing.

Question 69

In the context of organizational integration, _____ refers to a situation when interdependent units are required to meet deadlines and objectives that contribute to a common goal.

A) coordination by plan
B) communication
C) standardization
D) formalization
E) collaboration

Question 70

Which of the following statements about matrix organization is true?

A) Communication and coordination fall off between functions.
B) Higher management levels are overloaded with operational decisions.
C) The principle of unity-of-command is followed.
D) Decision making is centralized.
E) Dual career ladders are elaborated.

Question 71

In a _____ organization, jobs (and departments) are specialized and grouped according to business functions and the skills they require.

A) product
B) geographical
C) matrix
D) functional
E) customer

Question 72

Sports International manufactures and distributes clothing, sporting equipment, and protective sports gear worldwide. They are departmentalized by products sold to serious athletes, products sold to "weekend" athletes and products sold to sports teams. Which approach to departmentalization does the company follow?

A) Geographic
B) Functional
C) Matrix
D) Customer
E) Product

Question 73

Two companies, Healthy Nutrition Inc. and the Simple Solutions Software Inc., have joined forces to produce a meal planning program for use at home. The two organizations have decided to work together on the project since they cannot develop the project only with individual resources. Both organizations will own the resulting program. This effort is known as a:

A) network organization.
B) strategic alliance.
C) cluster organization.
D) classical conglomerate.
E) high-involvement organization.

Question 74

An organization skilled at creating, acquiring, and transferring knowledge as well as at modifying its behavior to reflect new knowledge and insights is known as a:

A) learning organization.
B) high-involvement organization.
C) mechanistic organization.
D) network organization.
E) matrix organization.

Question 75

In the context of organizational integration, the presence of rules and regulations governing how people in the organization interact is known as:

A) formalization.
B) accountability.
C) responsibility.
D) authority.
E) standardization.

Question 76

Which of the following is a disadvantage of the matrix organization?

A) Managers who share subordinates may jockey for power.
B) People may care more about their own function than about the company as a whole.
C) Managers lack knowledge of different areas of the business.
D) Conflicts arise between functions, and communication falls off.
E) The focus on overall product quality and customer satisfaction may reduce.

Question 77

Which of the following is an advantage of functional departmentalization?

A) Managers care more about their respective functions.
B) Employees are able to focus exclusively on customer satisfaction.
C) It encourages managers to become generalists.
D) Economies of scale can be realized.
E) There is increased coordination between different functions.

Question 78

In the context of organizational integration, establishing common routines and standard operating procedures that apply uniformly to everyone is known as:

A) formalization.
B) accountability.
C) responsibility.
D) authority.
E) standardization.

Question 79

An organization with departmentalization that groups units around products, customers, or geographic regions is known as a:

A) divisional organization.
B) centralized organization.
C) matrix organization.
D) functional organization.
E) virtual organization.

Question 80

Which of the following statements about matrix organization is true?

A) It is a structure in which each worker reports to one boss, who in turn reports to one boss.
B) It is a collection of independent, mostly single-function firms that collaborate to produce a good or service.
C) It is composed of dual reporting relationships in which some managers report to two superiors.
D) It is composed of temporary arrangements among members that can be assembled and reassembled.
E) It refers to establishing common routines and procedures that apply uniformly to everyone.