Question 1

Mason Engineering is run in a very traditional way, with experienced top managers making all the decisions and passing them down to lower levels for implementation. Mason can be described as a(n) ________ organization.

Accepted Answer

A)  integrated 
B)  centralized 
C)  differentiated 
D)  decentralized 
E)  horizontal

Question 2

The operational level of the organization includes

Accepted Answer

A)  The CEO, president, and vice presidents. 
B)  The plant and departmental managers. 
C)  All levels of middle management. 
D)  Frontline managers, supervisors, and employees. 
E)  Stockholders and the board of directors.

Question 3

To cope with high uncertainty and heavy information demands, managers can act to reduce the need for information.

Accepted Answer

A) True 
 B)False

Question 4

The optimal span of control should be wide when which one of the following factors is present?

Accepted Answer

A)  The work is ambiguous. 
B)  Subordinates are untrained and do not have access to much information. 
C)  The manager has just taken over the position. 
D)  Jobs are similar. 
E)  Subordinates prefer close supervisory control.

Question 5

Creating slack resources means that

Accepted Answer

A)  A manager limits the availability of resources to some units. 
B)  Nonperforming employees are assigned to easier tasks. 
C)  More resources are made available to each unit in case they need them in a pinch. 
D)  Each unit is differentiated by functional specialty. 
E)  Time, money, and other resources are tightly budgeted.

Question 6

Which of the following statements about matrix organizations is true?

Accepted Answer

A)  A matrix organization is the same as a functional organization. 
B)  A matrix organization is another name for a product organization. 
C)  A matrix organization is a hybrid of the functional and divisional organizational forms. 
D)  A matrix organization is considered an update to the virtual organization. 
E)  A matrix organization is more easily managed than a product organization.

Question 7

The board of directors selects and assesses the CEO.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Angela is one of three managers at Sensible Cleaning, and she supervises 32 full- and part-time employees who perform cleaning services. She reports to the owner. Sensible Cleaning would be considered a flat organization.

Accepted Answer

A) True 
 B)False

Question 11

Pendant Insurance has strictly defined job responsibilities and lines of communication. In this formal atmosphere, approval for any changes to standing procedures must be obtained by upper management. Here the insurance firm has

Accepted Answer

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

Question 12

Which of the following statements about a matrix organization is true?

Accepted Answer

A)  Information is more easily shared across functions. 
B)  Matrix organizations violate the unity-of-command principle. 
C)  Loyalty can be created for the organization rather than the function or division. 
D)  Stress and conflict are possible due to reporting arrangements. 
E)  All of these statements are true.

Question 13

Delegation occurs at all hierarchical levels.

Accepted Answer

A) True 
 B)False

Question 14

Macy's Group has different divisions for its operations serving particular states or areas of the United States. Macy's therefore uses a customer division.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A)  Reporting order. 
B)  Span of control. 
C)  Delegation control. 
D)  Bureaucratic span. 
E)  Authoritative span.

Question 16

Investing in information systems and creating horizontal relationships most likely results in which of the following?

Accepted Answer

A)  A reduced need for information. 
B)  An increased availability of resources. 
C)  A reduction of need to share information across units. 
D)  The ability of an organization to process more information. 
E)  The creation of slack resources.

Question 17

The presence of rules and regulations governing how people in the organization interact is called

Accepted Answer

A)  Formalization. 
B)  Accountability. 
C)  Responsibility. 
D)  Authority. 
E)  Standardization.

Question 18

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

Accepted Answer

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

Question 19

Clarissa, VP of operations, was looking for a new direction and asked Jack to manage the reorganization of the call center, even though he was less experienced than many of the managers in that department. Jack 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. Clarissa most likely made the mistake of

Accepted Answer

A)  Delegating inappropriate tasks to junior manager. 
B)  Delegating responsibility without also delegating adequate authority to Jack. 
C)  "Passing the buck" for Jack's performance. 
D)  Taking credit for Jack's accomplishments. 
E)  Overestimating Jack's capabilities.

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 8: Organization Structure

Mason Engineering is run in a very traditional way, with experienced top managers making all the decisions and passing them down to lower levels for implementation. Mason can be described as a(n) ________ organization.

The operational level of the organization includes

To cope with high uncertainty and heavy information demands, managers can act to reduce the need for information.

The optimal span of control should be wide when which one of the following factors is present?

Creating slack resources means that

Which of the following statements about matrix organizations is true?

The board of directors selects and assesses the CEO.

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

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

Angela is one of three managers at Sensible Cleaning, and she supervises 32 full- and part-time employees who perform cleaning services. She reports to the owner. Sensible Cleaning would be considered a flat organization.

Pendant Insurance has strictly defined job responsibilities and lines of communication. In this formal atmosphere, approval for any changes to standing procedures must be obtained by upper management. Here the insurance firm has

Which of the following statements about a matrix organization is true?

Delegation occurs at all hierarchical levels.

Macy's Group has different divisions for its operations serving particular states or areas of the United States. Macy's therefore uses a customer division.

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

Investing in information systems and creating horizontal relationships most likely results in which of the following?

The presence of rules and regulations governing how people in the organization interact is called

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

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