Question 1

_______________ means that decision-making authority is delegated to lower-level managers and employees

Accepted Answer

A)  Uniformity of authority 
B)  Decentralized authority 
C)  Specification of authority 
D)  Standardized authority

Question 2

Chang is a project manager at Paradox Industries. He is able to borrow specialists from the organization on a regular basis to assist in major projects. After the project ends, the specialists return to their functional units to await new assignments. Paradox Industries utilizes a:

Accepted Answer

A)  line organization model. 
B)  bi-functional organization model. 
C)  lateral transfer organization model. 
D)  matrix organization model.

Question 3

A matrix organization produces an environment that discourages cooperation and teamwork.

Accepted Answer

A) True 
 B)False

Question 4

Weber believed that large organizations required everyone to follow the established rules and guidelines precisely.

Accepted Answer

A) True 
 B)False

Question 5

Organizations that require consistent production standards to help create a high-quality public image would tend to favor:

Accepted Answer

A)  centralized authority. 
B)  an inverted organization. 
C)  a high level of employee empowerment. 
D)  flat organizational structures.

Question 6

Excite Enterprises, a corporation of amusement parks, uses an accounting firm to handle the payroll and tax functions for the company. Using the services of another firm in this manner is an example of:

Accepted Answer

A)  outsourcing. 
B)  functional reassignment. 
C)  core competencies. 
D)  benchmarking.

Question 7

To better serve customers, many firms are restructuring to empower front-line employees.

Accepted Answer

A) True 
 B)False

Question 8

The more complex the job, the narrower the span of control.

Accepted Answer

A) True 
 B)False

Question 9

Whirlpond, a manufacturer of home appliances, has historically produced the components for their products. However, Whirlpond now contracts with other firms to produce these components. This strategy of __________ is a current trend among U.S. manufacturers

Accepted Answer

A)  outsourcing 
B)  core positioning 
C)  foreign competency 
D)  competitive benchmarking

Question 10

Fayol's _____________ principle states that each worker should report to one, and only one, boss

Accepted Answer

A)  division of labor 
B)  unity of command 
C)  esprit de corps 
D)  comparative advantage

Question 11

Cross-functional teams avoid involving groups outside of the firm to ensure their plans are not leaked to their competitors.

Accepted Answer

A) True 
 B)False

Question 12

International Inns and Conference Centers (IICC), a national chain of professional event centers, utilizes a centralized authority structure. Which of the following provides the most likely explanation for why management at IICC would favor centralized authority?

Accepted Answer

A)  Top management at IICC intends to empower its first-line employees. 
B)  Top management at IICC wants to improve customer service response time. 
C)  Top management desires to maintain a uniform image and high-quality service. 
D)  IICC wants to utilize a cross-functional organization.

Question 13

The grapevine refers to the formal channel used for confidential communications between members of top management.

Accepted Answer

A) True 
 B)False

Question 14

Looking at a traditional organization chart, you will view who reports to whom; you will have a sense of each person's authority and responsibility, and the type of work that they perform for the organization.

Accepted Answer

A) True 
 B)False

Question 15

In order to improve services to customers, Northwest Electric, a regional monopoly, recently rated their company's processes and products against the results achieved by the world's best at similar processes and products. Northwest Electric has adopted a policy of international standardization.

Accepted Answer

A) True 
 B)False

Question 16

Successful managers will find the balance between promoting the informal organization and maintaining a formalized structure, as well.

Accepted Answer

A) True 
 B)False

Question 17

Joe, a production engineer at Freestone Tires, recently joined a team of specialists from other areas, such as marketing and finance. His long-term assignment to this team has produced several new products. Joe enjoys this work environment, in part because Freestone's management has given the team the freedom and flexibility to make decisions. A recent development is the inclusion of outsiders from Freestone's major distributors and suppliers on the team. It appears that Joe's team is a(n):

Accepted Answer

A)  interfunctional matrix organization. 
B)  multidivisional group think-tank. 
C)  multi-modal product development team. 
D)  cross-functional self-managed team.

Question 18

The purpose of a division of labor and specialization is to improve an employee's job performance.

Accepted Answer

A) True 
 B)False

Question 19

Rise 'n Shine Bakeries is a nationwide chain that has plants located throughout the U.S. Top management at Rise 'n Shine believes that customers in different regions have different tastes. It also recognizes that its bakeries face more intense competition in some regions than in others. Therefore, Rise 'n Shine's top management gives local managers the freedom to offer different types of breads and desserts, and to decide on a reasonable pricing strategy for its products. Rise 'n Shine typifies a decentralized organization.

Accepted Answer

A) True 
 B)False

Question 20

The process of rating an organization's practices, processes, and products against the best of the world is known as:

Accepted Answer

A)  webworking. 
B)  outsourcing. 
C)  benchmarking. 
D)  core competencies.

Exam 8: Structuring Organizations for Todays Challenges

_______________ means that decision-making authority is delegated to lower-level managers and employees

Chang is a project manager at Paradox Industries. He is able to borrow specialists from the organization on a regular basis to assist in major projects. After the project ends, the specialists return to their functional units to await new assignments. Paradox Industries utilizes a:

A matrix organization produces an environment that discourages cooperation and teamwork.

Weber believed that large organizations required everyone to follow the established rules and guidelines precisely.

Organizations that require consistent production standards to help create a high-quality public image would tend to favor:

Excite Enterprises, a corporation of amusement parks, uses an accounting firm to handle the payroll and tax functions for the company. Using the services of another firm in this manner is an example of:

To better serve customers, many firms are restructuring to empower front-line employees.

The more complex the job, the narrower the span of control.

Whirlpond, a manufacturer of home appliances, has historically produced the components for their products. However, Whirlpond now contracts with other firms to produce these components. This strategy of __________ is a current trend among U.S. manufacturers

Fayol's _____________ principle states that each worker should report to one, and only one, boss

Cross-functional teams avoid involving groups outside of the firm to ensure their plans are not leaked to their competitors.

International Inns and Conference Centers (IICC) , a national chain of professional event centers, utilizes a centralized authority structure. Which of the following provides the most likely explanation for why management at IICC would favor centralized authority?

The grapevine refers to the formal channel used for confidential communications between members of top management.

Looking at a traditional organization chart, you will view who reports to whom; you will have a sense of each person's authority and responsibility, and the type of work that they perform for the organization.

In order to improve services to customers, Northwest Electric, a regional monopoly, recently rated their company's processes and products against the results achieved by the world's best at similar processes and products. Northwest Electric has adopted a policy of international standardization.

Successful managers will find the balance between promoting the informal organization and maintaining a formalized structure, as well.

The purpose of a division of labor and specialization is to improve an employee's job performance.

The process of rating an organization's practices, processes, and products against the best of the world is known as: