Question 1

Discuss the three steps involved in Management by Objectives.

Accepted Answer

Step 1 is to specify goals and objectives, step 2 is for managers and subordinates to jointly determine goals, and step 3 is to periodically review progress towards these goals.

Question 2

Which is not associated with a bureaucracy?

Accepted Answer

A)   Required behaviors
B)   Independent decision making
C)   Accountability
D)   Agreed-upon rules and procedures. B

Question 3

Clearly defined roles and accountability are advantages of ________ structure.

Accepted Answer

A)   an organic
B)   a flat
C)   a bureaucratic
D)   a bloated C

Question 4

Standardization:

Accepted Answer

A)   causes a manager to reduce his or her span of control.
B)   increases the number of managers needed.
C)   enables a manager to increase his or her span of control.
D)   can be used only in a centralized hierarchy.

Question 5

Most large companies have a maximum of ________ hierarchical levels.

Accepted Answer

A)   ten
B)   seven
C)   twelve
D)   eight

Question 6

Parkinson's Law states that it is a natural human tendency to try and reduce bureaucratic costs.

Accepted Answer

A) True 
 B)False

Question 7

Weber said that an organizational structure should be based on:

Accepted Answer

A)   the use of rules and standard operating procedures.
B)   loosely defined roles.
C)   a small span of control.
D)   decentralization.

Question 8

What is the principle of "minimum chain of command?"

Accepted Answer

The answer of What is the principle of "minimum chain...

Question 9

A nuclear power plant has a very tall managerial hierarchy for all the following reasons except:

Accepted Answer

A)   to empower employees to make decisions.
B)   to cross-check the work of lower managers.
C)   to ensure that rules are followed.
D)   to maintain effective supervision of activities.

Question 10

Sales has a relatively ________ hierarchy because it uses ________.

Accepted Answer

A)   flat/mutual adjustment
B)   tall/mutual adjustment
C)   tall/standardization
D)   flat/standardization

Question 11

Bob and Amy are simply instructed to attract new clients, but are not given specific guidelines to use to accomplish this goal. Because they work for a conservative company, they are afraid to take risks. This situation is an example of ________.

Accepted Answer

A)   mutual adjustment
B)   role conflict
C)   bureaucracy
D)   role ambiguity

Question 12

Increasing horizontal differentiation increases vertical differentiation.

Accepted Answer

A) True 
 B)False

Question 13

The Walt Disney organization eliminated an unnecessary layer in the hierarchy, but this resulted in a span of control that was too wide, hindering decision making.

Accepted Answer

A) True 
 B)False

Question 14

At Company ABC, fast decision making is a prerequisite for success, so the company has five hierarchical levels because many levels ________.

Accepted Answer

A)   speed decision making
B)   clarify information
C)   hinder communication
D)   improve communication

Question 15

Which of the following is one of Weber's bureaucratic principles?

Accepted Answer

A)   Work expands to fill the time.
B)   Authority should be based on tradition.
C)   Employees should be hired based on their competence.
D)   Horizontal tasks are loosely defined because vertical roles are clearly defined.

Question 16

According to Weber, rational-legal authority emerges due to qualities that the leaders possess, such as charisma.

Accepted Answer

A) True 
 B)False

Question 17

________ occurs when two or more people have different views of what another person should do, and as a result, make conflicting demands on the person.

Accepted Answer

A)   Integration
B)   Technical competence
C)   Differentiation
D)   Role conflict

Question 18

Tall hierarchies are associated with all of the following problems except:

Accepted Answer

A)   motivation problems.
B)   communication problems.
C)   a wide span of control.
D)   high bureaucratic costs.

Question 19

Which of the following is a potential disadvantage of a bureaucratic structure?

Accepted Answer

A)   Excessive bending of the rules
B)   Separation of the position from the person
C)   Increased operating costs
D)   Role ambiguity

Question 20

Managers in a flat organization are generally more motivated than managers in a tall organization.

Accepted Answer

A) True 
 B)False

Exam 5: Designing Organizational Structure: Authority and Control

Discuss the three steps involved in Management by Objectives.

Which is not associated with a bureaucracy?

Clearly defined roles and accountability are advantages of ________ structure.

Standardization:

Most large companies have a maximum of ________ hierarchical levels.

Parkinson's Law states that it is a natural human tendency to try and reduce bureaucratic costs.

Weber said that an organizational structure should be based on:

What is the principle of "minimum chain of command?"

A nuclear power plant has a very tall managerial hierarchy for all the following reasons except:

Sales has a relatively hierarchy because it uses .

Bob and Amy are simply instructed to attract new clients, but are not given specific guidelines to use to accomplish this goal. Because they work for a conservative company, they are afraid to take risks. This situation is an example of ________.

Increasing horizontal differentiation increases vertical differentiation.

The Walt Disney organization eliminated an unnecessary layer in the hierarchy, but this resulted in a span of control that was too wide, hindering decision making.

At Company ABC, fast decision making is a prerequisite for success, so the company has five hierarchical levels because many levels ________.

Which of the following is one of Weber's bureaucratic principles?

According to Weber, rational-legal authority emerges due to qualities that the leaders possess, such as charisma.

________ occurs when two or more people have different views of what another person should do, and as a result, make conflicting demands on the person.

Tall hierarchies are associated with all of the following problems except:

Which of the following is a potential disadvantage of a bureaucratic structure?

Managers in a flat organization are generally more motivated than managers in a tall organization.