Deck 7: Organizing and Authority

Question 1

Identify a true statement about functional structure in an organization.

A) It results when an organization is departmentalized according to the location of the customers served.
B) It is well-suited for dynamic environments where decisions must be made quickly and products or services customized.
C) It is well-suited to centralized decision making and efficiency through economies of scale and specialization.
D) It departmentalizes an organization according to the type of customers served.

Answer 1

C

Question 2

Identify a true statement about a flat organization.

A) This type of organization maintains flexibility in organizational structure by contracting with other organizations to complete projects.
B) It is an organizational structure in which the boundaries between jobs continually shift.
C) It is well-suited to centralized decision by top management.
D) It is more flexible and responsive to customers than a tall organization.

Answer 2

D

Question 3

The positions at the top of an organization chart are those with the

A) highest workload and commitment.
B) least responsibility and experience.
C) most authority and responsibility.
D) least efficiency and productivity.

Answer 3

C

Question 4

In the context of organization charts, organizations with little height are usually called ________ organizations.

A) rigid
B) short
C) small
D) flat

Question 5

Which of the following best describes a functional structure?

A) It is an organizational structure where boundaries between jobs continually shift, and people pitch in wherever their contributions are needed.
B) It is an organizational structure where work and resources are assigned to departments responsible for all the activities related to producing and delivering a particular product.
C) It is an organizational structure where an organization is departmentalized according to the type of customer served.
D) It is an organizational structure where personnel and other resources are grouped according to the types of work they carry out.

Question 6

When does a flat organization offer advantages?

A) When employees can handle responsibilities
B) When customer satisfaction is less important
C) When employees perform dissimilar functions
D) When the organization is highly decentralized

Question 7

Which of the following is a benefit of understanding an organization chart?

A) It enables supervisors to identify the relationships among tasks as well as the amount of time each task will take.
B) It enables supervisors to determine who needs training and what plans to implement.
C) It enables supervisors to see a variety of responsibilities held by others at their level in the organization.
D) It enables supervisors to closely monitor the task performance of employees.

Question 8

A ________ structure results when an organization is departmentalized according to the location of the customers served or the goods or services produced.

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

Question 9

A department is best defined as a

A) unique group of resources that management has assigned to carry out a particular task.
B) group of employees upon whom the decision-making authority resides.
C) group that is formed among employees of an organization who have similar interests.
D) subgroup that is formed when members in formal groups feel uncomfortable with the way they are expected to behave.

Question 10

Which of the following is true of organization charts?

A) Positions at the top of the charts are those with the least authority.
B) Boxes in the charts represent the various positions or departments in an organization.
C) Lines in the charts do not indicate who reports to whom within an organization.
D) The bottom of the charts usually shows the mid-level managers and supervisors.

Question 11

A(n) ________ provides a visual representation of the overall structure of a company.

A) organization chart
B) corporate portfolio
C) Gantt chart
D) PERT network

Question 12

Departmentalization refers to

A) setting up divisions in an organization.
B) categorizing employees based on their qualifications.
C) creating a hierarchy of different levels in an organization.
D) standardizing procedures for all departments.

Question 13

A company with a ________ structure has an organization chart that reflects its grouping of personnel and resources according to the work that it does.

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

Question 14

Which of the following is true of organizations with little height?

A) They are more productive than tall organizations.
B) Only a few people report to each manager.
C) Employees have a lot of decision-making authority.
D) They are not very flexible or responsive to customers.

Question 15

Which of the following best describes a product structure?

A) It is an organizational structure where boundaries between jobs continually shift, and people pitch in wherever their contributions are needed.
B) It is an organizational structure where work and resources are assigned to departments responsible for all the activities related to producing and delivering a particular good or service.
C) It is an organizational structure where an organization is departmentalized according to the type of customer served.
D) It is an organizational structure where personnel and other resources are grouped according to the types of work they carry out.

Question 16

Vite Finance Inc. is an insurance company with its headquarters in Texas. It caters to 17 sales territories in the United States. To improve customer satisfaction, it established a department for each sales territory. Which of the following structures is best exemplified in this scenario?

A) Functional structure
B) Geographic structure
C) Customer structure
D) Product structure

Question 17

The number of levels in an organization from top management down to the operative employees describes the ________ of the organization.

A) efficiency level
B) breadth
C) height
D) scope

Question 18

An organization chart of a company with a product structure reflects its grouping of personnel and resources according to the

A) services it provides.
B) work that it does.
C) type of customer served.
D) location of the customers served.

Question 19

Name the standard way used by businesspeople to draw the structure of an organization.

A) An organization chart
B) A corporate portfolio
C) A Gantt chart
D) An organization network

Question 20

Organizing is best defined as the management function of

A) determining how to achieve set objectives.
B) setting the goals and objectives of a company.
C) setting up a group, allocating resources, and assigning work to achieve goals.
D) influencing people to act or not act in a certain way.

Question 21

According to research, a top challenge of the organic structure is that

A) employees may become confused about the details of their roles and responsibilities.
B) an inflexible structure is rarely suitable for a very small organization.
C) rigid boundaries between jobs make it difficult for employees to contribute.
D) it is not well-suited for dynamic environments where decisions must be made quickly.

Question 22

An organizational structure in which the boundaries between jobs continually shift and people pitch in wherever their contributions are needed is known as a(n) ________ structure.

A) functional
B) geographic
C) customer
D) organic

Question 23

Authority is best defined as the

A) obligation to steer clear of nepotism.
B) right to perform a task or give orders to someone else.
C) obligation to perform assigned activities.
D) ability to prevent instances of whistle-blowing.

Question 24

According to the U.S. Small Business Administration (SBA), an analysis of the important facts about a job is least likely to include

A) the relationship of the job to other jobs.
B) individual tasks involved.
C) employees' attitudes toward the job.
D) qualifications needed for the job.

Question 25

A good job description should accurately define the needs of the ________.

A) company
B) employees
C) industry
D) customers

Question 26

A national grocery chain is divided into well-demarcated groups such as the Northeastern division, the Northwestern division, the Southeastern division, and the Southwestern division. These divisions have been set up based on the location of large groups of customers the company serves. In the context of departmentalization, this company is most likely using a(n)

A) geographic structure.
B) customer structure.
C) product structure.
D) organic structure.

Question 27

Which of the following best describes an organic structure?

A) It is an organizational structure where boundaries between jobs continually shift and people pitch in wherever their contributions are needed.
B) It is an organizational structure where work and resources are assigned to departments responsible for all the activities related to producing and delivering a particular product.
C) It is an organizational structure where an organization is departmentalized according to the type of customer served.
D) It is an organizational structure where the departmentalization is done by combining both product and geographical structures.

Question 28

According to the U.S. Small Business Administration (SBA), a job description typically includes a

A) detailed description of the tools used to perform the job.
B) summary of the general nature and level of the job.
C) list of personality traits suitable for performing the job.
D) list of names of employees responsible for performing the job.

Question 29

________ is a process in which companies move departments from headquarters to cheaper overseas locations.

A) Offshoring
B) Diversifying
C) Departmentalizing
D) Subsidizing

Question 30

Which of the following is least likely to be included in job descriptions?

A) Job title
B) Job objective
C) Job responsibility
D) Job posting

Question 31

Which of the following elements of job descriptions is key to ensuring that each person's part in a company's organizational structure is understood?

A) Summary of the general nature and level of the job
B) Description of the relationships and roles within the company
C) Key functional and relational responsibilities in order of significance
D) Description of the broad function and scope of the position

Question 32

What involves giving a small team or group within a company the resources to develop new ideas and new ventures without leaving the parent organization?

A) Joint ventures
B) Intrapreneurships
C) Strategic alliances
D) Subsidiaries

Question 33

According to the U.S. Small Business Administration (SBA), the process of writing a job description usually begins with

A) an analysis of the important facts about a job.
B) asking employees to fill questionnaires about their job preferences.
C) determining the job vacancies in an organization.
D) a process known as job enrichment.

Question 34

Identify a true statement about a learning organization.

A) It signals that employees are expected to share ideas, solve problems together, and learn from their experience.
B) It encourages employees to stick to the conventional methods of problem solving.
C) It enables supervisors to figure out where they fit in the organization and where opportunities for future promotions might lie.
D) It allows everyone within a company to know exactly who is responsible for what in an organization.

Question 35

An organization that does well in creating, acquiring, and transferring knowledge and in modifying behavior to reflect new knowledge is referred to as a ________ organization.

A) virtual
B) centralized
C) network
D) learning

Question 36

The management at Pine Inc. reduces the size of the company's workforce in order to become more flexible. For specific project requirements, it arranges alliances. In this case, Pine Inc. is an example of a(n) ________ organization.

A) centralized
B) bureaucratic
C) network
D) organic

Question 37

According to the U.S. Small Business Administration (SBA), an analysis of the important facts about a job is most likely to include

A) skills gained by performing the job.
B) personality characteristics of the job holder.
C) employees' attitudes toward the job.
D) qualifications needed for the job.

Question 38

At ATA Speakers Inc., operations are departmentalized under the following sections-home speakers, automobile speakers, and commercial speakers. Tasks and resources are allocated to these departments for producing and delivering their respective type of speakers. In the context of departmentalization, this company is most likely using a(n)

A) organic structure.
B) combination structure.
C) geographic structure.
D) product structure.

Question 39

Organizations that maintain flexibility by staying small and contracting with other individuals and organizations as needed to complete projects are referred to as ________ organizations.

A) learning
B) bureaucratic
C) network
D) centralized

Question 40

________, when clearly defined, allow those within the various organizational departments and positions to know exactly what are an individual's responsibilities.

A) Organizational charts
B) Job descriptions
C) Corporate portfolios
D) Job postings

Question 41

Which of the following is one of the principles of organizing?

A) The exception principle
B) The equity principle
C) The parity principle
D) The uncertainty principle

Question 42

Functional authority is best defined as the right given by higher management to

A) specific middle managers to recruit and dismiss line managers.
B) specific staff personnel to give orders concerning an area in which the staff personnel have expertise.
C) carry out tasks and give orders related to an organization's primary purpose.
D) advise or assist those with line authority.

Question 43

Mathew, a supervisor with Home Security Systems, supervises the installation of security systems for residential buildings. He assigns the duty of installing surveillance cameras for Downhill Residential Society to his juniors in the company. This transferring of responsibility is called

A) job sharing.
B) controlling.
C) delegating.
D) cross-training.

Question 44

Which of the following is the first step in the process of organizing?

A) Defining the objective
B) Determining the needed resources
C) Grouping activities
D) Assigning duties

Question 45

________ is the obligation to perform assigned activities.

A) Responsibility
B) Power
C) Authority
D) Control

Question 46

________ authority is the right to advise or assist those with line authority.

A) Functional
B) Centralized
C) Decentralized
D) Staff

Question 47

Which of the following is true of decentralized organizations?

A) Management grants much authority to supervisors.
B) Top managers retain all the authority.
C) All decisions are made by the top management.
D) Line authority does not exist.

Question 48

Power is best defined as the

A) obligation to perform assigned activities.
B) duty to advise or assist those with line authority.
C) ability to get others to act in a certain way.
D) duty to advise or assist those with functional authority.

Question 49

What is the next step after defining the objectives in the organizing process?

A) Assigning duties
B) Defining the objective
C) Grouping activities
D) Determining the needed resources

Question 50

Peter is the human resource manager of Voir Power Company, which manufactures rotors for alternators. He has the authority to ensure that all departments in the company adhere to the United States labor laws and ensure fair employment practices. Identify the authority that Peter has in this scenario.

A) Decentralized authority
B) Line authority
C) Functional authority
D) Centralized authority

Question 51

The right to carry out tasks and give orders related to an organization's primary purpose is called

A) centralized authority.
B) functional authority.
C) staff authority.
D) line authority.

Question 52

Which of the following is true of the process of organizing?

A) The process of organizing is a seven-step approach that leads to a structure that supports the goals of an organization.
B) To ensure that all the necessary responsibilities are assigned, a supervisor can involve employees in the final step of the organizing process.
C) In the second step of the organizing process, a supervisor groups the necessary activities and assigns work to the appropriate employees.
D) A supervisor or other manager should begin the process of organizing by identifying which resources are needed for the particular areas being organized.

Question 53

The basic type of authority in organizations is ________ authority.

A) functional
B) centralized
C) line
D) staff

Question 54

Sheena, a supervisor, decides to organize a company softball team to play against other companies in the city. She starts by laying down the purpose of the team. In this list, she includes improvement of the team's morale, physical exercise, and most importantly, having fun. Which of the following steps in the organizing process is Sheena concentrating on at present?

A) Grouping activities
B) Defining objectives
C) Assigning duties
D) Determining resources

Question 55

Which of the following is a defining characteristic of centralized organizations?

A) Management grants absolute authority to middle managers.
B) Managers at the top retain a great deal of authority.
C) Employees at all levels are involved in strategic decision making.
D) Employees at all levels are granted much authority.

Question 56

The last step of the organizing process typically involves a supervisor

A) grouping activities and assigning work to the appropriate employees.
B) defining objectives by reviewing a plan.
C) estimating personnel, equipment, and the money needed.
D) measuring the performance of a group.

Question 57

The difference between line authority and staff authority is that staff authority

A) is the right to advise or assist those with line authority.
B) is the right to advise or assist those with functional authority.
C) gives one the right to fire employees with line authority.
D) gives one the right to fire employees with functional authority.

Question 58

Employees who accept responsibility may be rewarded for doing a good job, and those who do not may be punished. This practice is called ________.

A) controllability
B) accountability
C) empowerment
D) reinforcement

Question 59

Which of the following is true of centralized and decentralized authority?

A) Organizations that share relatively little authority are said to be decentralized, and those that share a lot of authority are said to be centralized.
B) Most organizations either tend to have a completely centralized or a completely decentralized authority depending on the type of organizational structure.
C) Supervisors who know whether their employer has a centralized or decentralized structure understand how much authority they can expect to have.
D) An organization cannot make changes in the degree to which it decentralizes or centralizes authority depending on its strategic plan and goals.

Question 60

The parity principle states that

A) each employee should have only one boss.
B) personnel must have equal amounts of authority and responsibility.
C) authority should flow from one level of management to the next.
D) power should be concentrated only at the hands of supervisors.

Question 61

According to the ________ principle, when someone accepts a responsibility, he or she also needs enough authority to be able to carry out that responsibility.

A) uniformity
B) parity
C) equity
D) reactivity

Question 62

Delegation is best defined as the

A) act of giving another person the authority and responsibility to carry out a task.
B) right given by higher management to specific middle managers to recruit and dismiss line managers.
C) management function of correcting defects in goods or services or improving them in some way.
D) management function of setting the goals and objectives of a company.

Question 63

A manager's span of control is most likely to be lesser when

A) employees perform similar and familiar functions.
B) subordinates are physically closer.
C) subordinates perform more complex functions.
D) standards for performance are clear.

Question 64

Giving someone else the authority and responsibility to carry out a task is known as ________.

A) controlling
B) delegating
C) strategizing
D) manipulating

Question 65

Which of the following is true of unity of command?

A) It holds that every employee should report to more than one supervisor.
B) It strictly holds that all decision-making authority should rest with the supervisor.
C) It allows supervisors to be more flexible as they command different teams at regular intervals.
D) It helps to eliminate factors within organization structure like complexity and confusion in the workplace.

Question 66

Which of the following is an advantage of empowering employees?

A) It allows decision-making power to be concentrated at the hands of supervisors.
B) Employees' empowerment further reduces a manager's span of control.
C) Employees provides more insight and expertise than managers can provide alone.
D) It is an important tool for time management in organizations.

Question 67

In the context of principles of organizing, ________ helps to eliminate factors within organization structure like complexity and confusion in the workplace.

A) the exception principle
B) unity of command
C) level of control
D) the association principle

Question 68

In the context of principles of organizing, ________ helps to clarify issues like who should be giving direction in an organization and who should be taking it.

A) the parity principle
B) chain of command
C) level of control
D) the equity principle

Question 69

Identify a true statement about delegating responsibilities in organizations.

A) A supervisor who delegates gets enough time for supervisory jobs like planning and counseling.
B) It is a random assignment of jobs followed by waiting for them to be completed.
C) Additional responsibilities for employees adversely affect the morale of lower-level management.
D) It enables a supervisor to improve change management initiatives in the organization.

Question 70

Which of the following principles states that authority flows from one level of management to the next, from the top of an organization to the bottom?

A) Chain of command
B) Span of control
C) Unity of command
D) Parity principle

Question 71

John is an AutoCAD designer with MotoCorp Ltd. He reports to the research and development manager as well as the operations manager of his company. He often receives conflicting directions from both these departments, which severely impact his productivity as he must redo machine designs every time. Which of the following is violated in this scenario?

A) Parity principle
B) Chain of command
C) Unity of command
D) Controlling principle

Question 72

A benefit of delegating is that

A) it allows an organization to centralize authority.
B) it allows supervisors to give up their responsibilities.
C) it reduces the work load of nonmanagement employees.
D) it is an important tool for time management.

Question 73

Span of control is the

A) number of people a manager supervises.
B) principle that personnel must have equal amounts of authority and responsibility.
C) ability to get others to act in a certain way.
D) authority that flows from one level of management to the next.

Question 74

Which of the following is true according to the principle of unity of command in an organization?

A) A supervisor's manager should direct the employees who report to the supervisor.
B) A supervisor should take action only when variance is meaningful.
C) Power should be concentrated only at the hands of supervisors.
D) Each employee should have only one supervisor.

Question 75

A manager's span of control is most likely to be greater when

A) employees perform similar functions.
B) subordinates are physically farther apart.
C) subordinates perform complex functions.
D) standards for performance are unclear.

Question 76

According to the principle of ________, employees who receive orders from several people tend to get confused and aggravated.

A) unity of command
B) span of control
C) chain of command
D) level of control

Question 77

Identify a true statement about span of control.

A) The lesser time managers spend on coordination, the lesser the span of control.
B) The more complex the functions performed by subordinates, the greater the span of control.
C) The more people the manager supervises, the greater the span of control.
D) The closer subordinates are physically, the lesser the span of control.

Question 78

Delegation of broad decision-making authority and responsibility is known as

A) power
B) authority.
C) empowerment.
D) unity of command.

Question 79

Today, spans of control have

A) decreased as organizations spend more money by including more management positions.
B) increased as organizations empower employees to make more decisions.
C) decreased as mass production complicates manufacturing processes.
D) increased as standards for performance are more subjective and vague.

Question 80

Which of the following is an advantage closely associated with delegating?

A) It frees supervisors to do tasks they do best.
B) It leads to high employee turnover.
C) It protects whistle-blowers.
D) It encourages the formation of informal groups.