Deck 6: Organizing the Business

Question 1

The reporting relationships within an organization follow a chain from the highest level to the lowest level in the organization, known as chain of command.

Answer 1

True
Explanation:The chain of command refers to reporting relationships within the company. In theory, such reporting relationships follow a chain from the highest level in the organization to the lowest.

Question 2

Which term refers to the specification of jobs to be done within an organization and the ways in which those jobs relate to one another?

A) Delegation
B) A mission statement
C) Job specialization
D) Role responsibility
E) Organizational structure

Answer 2

E
Explanation:E)Organizational structure refers to the jobs undertaken within an organization and how these jobs are related to one another.

Question 3

The chain of command is depicted by solid lines on an organization chart.

Answer 3

True
Explanation:These lines represent reporting relationships.

Question 4

Which factor plays a key role in determining an organization's structure?

A) Competition and technology
B) Location and life-cycle stage
C) Profitability and leverage
D) Research and development
E) Mission and strategy

Question 5

Organization charts are graphical representations of employee salary information.

Question 6

What is dividing a store into a men's department, a women's department, and a luggage department an example of?

A) Product departmentalization
B) Customer departmentalization
C) Process departmentalization
D) Geographic departmentalization
E) International departmentalization

Question 7

Which of the following is an advantage of job specialization?

A) Workers can develop expertise in their jobs.
B) Workers will not need to be trained.
C) Jobs become more interesting.
D) Workers derive more satisfaction from their jobs.
E) Jobs do not need to be redefined.

Question 8

When a large organization has departments based on areas of production, what type of departmentalization is being utilized?

A) Customer departmentalization
B) Process departmentalization
C) Geographic departmentalization
D) Functional departmentalization
E) Product departmentalization

Question 9

Which of the following is a natural part of organizational growth?

A) Retrenchment
B) Entrepreneurship
C) Job specialization
D) Outsourcing
E) Team consolidation

Question 10

If a manufacturer divides the organization according to the way goods are created, what type of departmentalization is being utilized?

A) Functional departmentalization
B) Process departmentalization
C) Customer departmentalization
D) Geographic departmentalization
E) Brand departmentalization

Question 11

Describe how organizations create and communicate their organizational structure.

Question 12

What do managers do when the "job" of a firm is broken down into smaller jobs?

A) Fragment the task
B) Specialize the job
C) Respond to the job
D) Assign the task
E) Control the job

Question 13

Determining how people performing certain tasks can best be grouped together is called what?

A) Departmentalization
B) Specialization
C) Controlling
D) Leadership
E) Directing

Question 14

Reporting relationships within a company are indicated on an organization chart and represent

A) organizational structure.
B) mission and strategy responsibility.
C) areas of specialization.
D) chain of command.
E) decision making responsibility.

Question 15

What is the advantage of an organizational structure that is unstructured and informal?

A) Decisions can be made by consensus.
B) There is less effect on the organization in a rapidly changing market.
C) Managers do not become overwhelmed with decision making.
D) It can become a more complex structure quickly and efficiently.
E) The structure is more adaptable to the environment.

Question 16

What do the solid lines on an organization chart show in reporting relationships within a company?

A) Mission statement
B) Chain of command
C) Job specialization
D) Grapevine activity
E) Market share

Question 17

Job specialization is the process of eliminating unnecessary or undesirable jobs.

Question 18

What is the advantage of using product departmentalization?

A) Managers can focus on specific product lines.
B) Products are organized based on the production process.
C) Products are better targets to specific customer groups.
D) Customer groups are easily identifiable.
E) Products are closer to where consumers are served.

Question 19

Organizational structure is a function of the organization's mission and strategy.

Question 20

Which of the following clarifies structure and shows employees where they fit into a firm's operations?

A) Delegation
B) Departmentalization
C) Organization charts
D) Mission statement
E) Job descriptions

Question 21

What is the process of designing specific jobs that need to be done and identifying the people who will perform them called?

A) Departmentalization
B) Job specialization
C) Group tasks
D) Segmentation
E) Team cohesion

Question 22

As organizations grow and become larger, jobs tend to become less specialized.

Question 23

Geographic departmentalization divides firms according to the areas of the country or the world that they serve.

Question 24

What is the main organizational characteristic of decentralized firms?

A) Flat
B) Tall
C) Diverse
D) Multi-layered
E) Matrix

Question 25

A separate company unit responsible for its own cost and revenue is referred to as which of the following?

A) Centralized organization
B) Decentralized organization
C) Department
D) Job specialty
E) Profit center

Question 26

If specific jobs are grouped into logical units based on location, what type of departmentalization is being utilized?

A) Functional
B) Product
C) Process
D) Customer
E) Geographic

Question 27

Firms with production, marketing, human resource, and finance departments have a process form of organization.

Question 28

What type of departmentalization would be most effective for a small or new organization?

A) Geographic
B) Functional
C) Customer
D) Product
E) Process

Question 29

A snack food firm has one division for the United States, one for Europe, and another for Asia. How is this firm departmentalized?

A) By customer
B) By process
C) By geography
D) By function
E) By productivity

Question 30

The building blocks of all organizations are specialization and centralization.

Question 31

Firms typically use the same form of departmentalization at upper and lower levels.

Question 32

Briefly describe the five basic forms of departmentalization.

Question 33

Divisional structure is the relationships between group functions and activities that determine authority.

Question 34

Which term identifies the grouping of jobs into logical units?

A) Specialization
B) Accountability
C) Authorization
D) Departmentalization
E) Process management

Question 35

What process is used to assign work to subordinates?

A) Authority
B) Decentralization
C) Delegation
D) Staffing
E) Matrix

Question 36

What kind of departmentalization happens when an organization is divided into operations related to different products?

A) Functional departmentalization
B) Process departmentalization
C) Customer departmentalization
D) Geographic departmentalization
E) Regional departmentalization

Question 37

Departmentalization refers to the process of grouping jobs into logical units.

Question 38

Profit centers can occur based on function, product, process, customer, or geographical areas.

Question 39

Explain geographic departmentalization and discuss how and why an organization might use this structure.

Question 40

Granting the authority or power to make decisions is done through the process of

A) line authority.
B) committee.
C) delegation.
D) functional structure.
E) department authority.

Question 41

Which feature characterizes the organization of centralized firms?

A) Flat
B) Tall
C) Very large
D) Responsive to change
E) Well capitalized

Question 42

Which of the following BEST describes authority?

A) The power to make the decisions necessary to complete a task
B) The liability of subordinates for accomplishing tasks assigned by managers
C) The number of people supervised by one manager
D) The ability to take on new responsibility
E) The duty to perform an assigned task

Question 43

What is authority that flows up and down the chain of command called?

A) Staff authority
B) Departmental authority
C) Delegated authority
D) Divisional authority
E) Line authority

Question 44

In what type of organization is decision-making authority delegated to levels of management at various points below the top?

A) Centralized
B) Decentralized
C) Point-of-sale
D) Geographic
E) Autocratic

Question 45

What is authority given to a decision making body with power beyond that possessed by any one person?

A) Risk aversion
B) Committee and team
C) Line
D) Matrix
E) Product and labor

Question 46

What type of management is exemplified by the idea that managers should delegate to subordinates and allow those subordinates to be responsible for decisions?

A) Authentic management
B) Linear management
C) Centralized management
D) Group management
E) Decentralized management

Question 47

In tall organizations, which feature describes the span of control?

A) Short
B) Tall
C) Wide
D) Narrow
E) Vertical

Question 48

Which of the following begins when a manager assigns responsibility to a subordinate?

A) Centralization
B) Delegation
C) Liability
D) Authority
E) Training

Question 49

Companies with centralized authority systems typically require multiple layers of management. What type of organizational structures are these companies utilizing?

A) Tall
B) Short
C) Flat
D) Broad
E) Compressed

Question 50

What is the power to make the decisions necessary to complete a task called?

A) Delegation
B) Specification
C) Authority
D) Responsibility
E) Accountability

Question 51

In what type of organization do most lower level decisions need to be approved by upper management before they can be implemented?

A) Line
B) Staff
C) Decentralized
D) Centralized
E) Learning

Question 52

Which of the following BEST describes accountability?

A) The power to make the decisions necessary to complete a task
B) The obligation employees have to their manager for the successful completion of an assigned task
C) The decision to communicate clear expectations related to assigned tasks
D) The number of people supervised by one manager
E) The duty to perform a financial task

Question 53

What type of departments are linked to the production and sales of specific products?

A) Staff departments
B) Matrix departments
C) Line departments
D) Organizational departments
E) Entrepreneurial departments

Question 54

Which of the following BEST describes responsibility?

A) The power to make the decisions necessary to complete a task
B) The liability of subordinates for accomplishing tasks assigned by managers
C) The number of people supervised by one manager
D) The duty to perform an assigned task
E) The need to prove satisfactory work performance

Question 55

What is the preferred span of control when jobs are more diversified or prone to change?

A) Wide
B) Narrow
C) Tall
D) Deep
E) Authoritative

Question 56

What authority is based on special expertise and usually involves counseling and advising?

A) Line authority
B) Matrix authority
C) Delegated authority
D) Staff authority
E) Divisional authority

Question 57

What is an employee's duty to perform an assigned task?

A) Delegation
B) Authority
C) Responsibility
D) Accountability
E) Specialization

Question 58

After responsibility for a task is assigned, which of the following comes next to ensure the successful completion of the task?

A) The centralization of the task is identified.
B) The liability of the task is determined.
C) The span of control is decided.
D) The work team is created.
E) Authority is granted.

Question 59

What kind of organization becomes more responsive to its environment by breaking the company into more manageable units?

A) Centralized
B) Decentralized
C) Geographic
D) Process-oriented
E) Customer departmentalized

Question 60

What type of structure represents one with relatively few layers of managers?

A) Tall organizational structure
B) Short organizational structure
C) Flat organizational structure
D) Elliptical organizational structure
E) Triangular organizational structure

Question 61

Flat organizational structures are usually associated with centralized decision making.

Question 62

Briefly summarize the steps in the delegation process.

Question 63

In a centralized structure, most decision-making authority is delegated to levels of management at various points below the top.

Question 64

Which term describes groups of operating employees who are empowered to plan and organize their tasks and to perform those tasks with a minimum of supervision?

A) Task forces
B) Standing committees
C) Work teams
D) Division committees
E) Board members

Question 65

What is delegation? Identify four reasons that managers have trouble delegating.

Question 66

What are departments called that resemble separate businesses in that they produce and market their own products?

A) Regions
B) Divisions
C) Function centers
D) Cost centers
E) Work hubs

Question 67

Firms with what structure are organized around departments for each basic business action?

A) Divisional structure
B) Matrix structure
C) Functional structure
D) International structure
E) Regional structure

Question 68

When several employees perform the same simple task, a narrow span of control is most appropriate.

Question 69

List and describe the three forms of authority.

Question 70

What structure does an organization with little or no formal structure and with only a handful of permanent employees use?

A) Team structure
B) Virtual structure
C) Learning structure
D) Flexible structure
E) Balanced structure

Question 71

Accountability refers to the liability of subordinates for accomplishing tasks assigned by managers.

Question 72

Employees' abilities and the supervisor's managerial skills help determine whether span of control is wide or narrow.

Question 73

What type of organization seeks to integrate continuous improvements with continuous employee development?

A) Team
B) Virtual
C) Learning
D) Flexible
E) Evolving

Question 74

Identify and discuss three factors that may affect a manager's span of control.

Question 75

What are an organization's specialists in law, accounting, and human resource management commonly called?

A) Profit centers
B) Cost centers
C) Staff members
D) Line members
E) Unit managers

Question 76

What style of organization relies almost entirely on employees working on a common project with little or no underlying functional hierarchy?

A) Team
B) Virtual
C) Learning
D) Flexible
E) Stratified

Question 77

Which of the following structures relies on product departmentalization?

A) Matrix
B) Functional
C) Divisional
D) International
E) Regional

Question 78

What is the difference between responsibility and authority?

Question 79

Which form of organization is used by most small to medium-sized firms?

A) Divisional
B) Functional
C) Matrix
D) International
E) Stratified

Question 80

Line departments are linked directly to the production and sales of a specific product.