Question 1

In firms with centralized authority, each business unit is treated as if it is a completely separate and independent organization.

Accepted Answer

A) True 
 B)False

Question 2

Managers near the top of an organization have the broadest span of control.

Accepted Answer

A) True 
 B)False

Question 3

Departmentalization by function typically increases the cost of doing business.

Accepted Answer

A) True 
 B)False

Question 4

When management structures the organization, it makes decisions about which products and services it will offer and how it is going to finance the company.

Accepted Answer

A) True 
 B)False

Question 5

A line organization in a large business often suffers from excessively slow lines of communication.

Accepted Answer

A) True 
 B)False

Question 6

A bureaucratic style of organization is slow when responding to change.

Accepted Answer

A) True 
 B)False

Question 7

Fayol's principles suggest that the goals of the firm are less important than the goals of individual workers.

Accepted Answer

A) True 
 B)False

Question 8

At Green Acres Fencing Company, eight employees perform various aspects of the company's work. One person does sales; four perform installation; one purchases materials; one does billing; one performs after-sales inspections. This type of organization reflects Fayol's principle of:

Accepted Answer

A)  division of labor. 
B)  equity. 
C)  unity of command. 
D)  hierarchy of authority.

Question 9

Departments are functional units within the business such as sales, accounting, finance, and marketing.

Accepted Answer

A) True 
 B)False

Question 10

A flat organizational structure is designed to be more responsive to the needs of management.

Accepted Answer

A) True 
 B)False

Question 11

In today's business environment, the trend is to decrease the span of control.

Accepted Answer

A) True 
 B)False

Question 12

The organizational structure of the U.S. Army's 1st Infantry Division provides for direct two-way lines of responsibility, authority, and communication running from the top to the bottom. Additionally, each person in the division reports to only one superior. The 1st Infantry Division is clearly an example of a(n):

Accepted Answer

A)  matrix organization. 
B)  functional organization. 
C)  line organization. 
D)  service organization.

Question 13

Job descriptions are an important part of Max Weber's organizational theory.

Accepted Answer

A) True 
 B)False

Question 14

A(n) __________ is used by an organization to show who is accountable for the completion of specific work and who reports to whom

Accepted Answer

A)  balance sheet 
B)  Venn diagram 
C)  stakeholder outline 
D)  organization chart

Question 15

Organizations with positive images for performing exceptional service to customers are usually friendly places to work, as well.

Accepted Answer

A) True 
 B)False

Question 16

Division of labor is difficult to achieve in small businesses.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is considered to be an advantage of functional departmentalization?

Accepted Answer

A)  Employees begin to identify with their department and its goals rather than with the goals of the entire organization. 
B)  People in the same department tend to think very differently. 
C)  Departments are isolated from one another. 
D)  Employee skills can be developed in depth.

Question 18

In the Making Ethical Decisions box titled "Would You Sacrifice Safety for Profit?" which of the following statements best expresses the theme of the discussion?

Accepted Answer

A)  In the beginning, company procedures that require value judgments are often too costly. As the business grows, the owner can add ethical procedures to each job. 
B)  The principles of organization state that the only company objective is to gain profits for the owner(s) or stockholders. If your competitors are cutting corners with safety regulations, you should consider the same. 
C)  The only way to be profitable is to avoid risk. If new safety equipment becomes available that is applicable to your business, even if it slows productivity, you should adopt it. 
D)  The corporate culture you create as you begin your service will last a long time. Your workers will adopt your values.

Question 19

As a response to a rapidly changing marketplace, Idea Electronics found it necessary to reorganize, including a significant downsize of its middle management. This action will likely result in ___________

Accepted Answer

A)  acquiring additional firms 
B)  flattening the organization and empowering employees, allowing them to get closer to the customer 
C)  increasing the size of its traditional departments to handle 24/7 operations 
D)  centralizing its decision making to better control its total quality management program

Question 20

In a line organization, there are many specialists who serve as advisors and assistants to the managers who make decisions.

Accepted Answer

A) True 
 B)False

Exam 8: Structuring Organizations for Todays Challenges

In firms with centralized authority, each business unit is treated as if it is a completely separate and independent organization.

Managers near the top of an organization have the broadest span of control.

Departmentalization by function typically increases the cost of doing business.

When management structures the organization, it makes decisions about which products and services it will offer and how it is going to finance the company.

A line organization in a large business often suffers from excessively slow lines of communication.

A bureaucratic style of organization is slow when responding to change.

Fayol's principles suggest that the goals of the firm are less important than the goals of individual workers.

At Green Acres Fencing Company, eight employees perform various aspects of the company's work. One person does sales; four perform installation; one purchases materials; one does billing; one performs after-sales inspections. This type of organization reflects Fayol's principle of:

Departments are functional units within the business such as sales, accounting, finance, and marketing.

A flat organizational structure is designed to be more responsive to the needs of management.

In today's business environment, the trend is to decrease the span of control.

Job descriptions are an important part of Max Weber's organizational theory.

A(n) __________ is used by an organization to show who is accountable for the completion of specific work and who reports to whom

Organizations with positive images for performing exceptional service to customers are usually friendly places to work, as well.

Division of labor is difficult to achieve in small businesses.

Which of the following is considered to be an advantage of functional departmentalization?

In the Making Ethical Decisions box titled "Would You Sacrifice Safety for Profit?" which of the following statements best expresses the theme of the discussion?

As a response to a rapidly changing marketplace, Idea Electronics found it necessary to reorganize, including a significant downsize of its middle management. This action will likely result in ___________

In a line organization, there are many specialists who serve as advisors and assistants to the managers who make decisions.