Deck 7: Flexibility Within the Organisation

Question 1

Dramatic Expressions
Dramatic Expressions is a home decorating company that sells many different household accessories ranging from candles to entertainment centres.Wanda is the CEO of the company.She feels that there is not enough specialisation within the company and wants to organise the business in a different way.Wanda thinks that the company would be more effective if it were to switch to a new way of organisation.For example, there could be a manager in charge of the candles, a different manager in charge of the entertainment centres, and so on.
Another issue that Wanda wants to resolve is that of delegation.She believes that if she could improve her delegating, employees would feel more empowered and want to go above and beyond what they are required to do.There are certain reasons that Wanda has a hard time delegating to others, but she is confident that the problem will be overcome if she works on it.
Refer to Dramatic Expressions.What type of departmentalisation does Wanda want to switch to?

A) By function
B) By product
C) By location
D) By customer
E) By responsibility

Answer 1

B

Question 2

Vice president, marketing-Regional sales manager-District manager-Sales supervisor represents a(n)

A) organisation chart.
B) command hierarchy.
C) corporate organisation.
D) chain of command.
E) departmentalisation.

Answer 2

chain of command.

Question 3

The separation of all organisational activities into distinct tasks and the assignment of different tasks to different people is called job

A) rotation.
B) specialisation.
C) enlargement.
D) enrichment.
E) organisation.

Answer 3

B

Question 4

Joel Green has been working at The Bicycle Superstore for about two weeks.This morning he noticed that the store's inventory on bicycle tire repair kits is out, but he is unsure of whom he should report to for approval to place an order for more kits.Joel is unclear about the

A) chain of command.
B) degree of specialisation.
C) level of authority.
D) span of management.
E) nature and degree of departmentalisation.

Question 5

Upon beginning her career at Davidson Inc., a small consulting firm, Stephanie Benjamin receives a copy of the firm's organisation chart, which will

A) demonstrate the firm's informal network of communication.
B) clarify positions and reporting relationships within the firm.
C) not be very useful because small firms don't usually adhere to a formal structure.
D) probably be outdated because small firms are always changing.
E) indicate the short-, medium-, and long-term goals of the company.

Question 6

Dramatic Expressions
Dramatic Expressions is a home decorating company that sells many different household accessories ranging from candles to entertainment centres.Wanda is the CEO of the company.She feels that there is not enough specialisation within the company and wants to organise the business in a different way.Wanda thinks that the company would be more effective if it were to switch to a new way of organisation.For example, there could be a manager in charge of the candles, a different manager in charge of the entertainment centres, and so on.
Another issue that Wanda wants to resolve is that of delegation.She believes that if she could improve her delegating, employees would feel more empowered and want to go above and beyond what they are required to do.There are certain reasons that Wanda has a hard time delegating to others, but she is confident that the problem will be overcome if she works on it.
Refer to Dramatic Expressions.What would be an alternative to specialisation if negative consequences were to develop at Dramatic Expressions?

A) Organisation
B) Occupation
C) Circulation
D) Rotation
E) Generalisation

Question 7

An organisation chart reveals

A) staff accountability.
B) committee assignments.
C) informal authority.
D) detailed duties of each manager.
E) the company's organisational structure.

Question 8

Distinguishing between positions with direct authority and those that are support positions establishes an organisation's

A) chain of command.
B) span of management.
C) degree of centralisation or decentralisation.
D) nature and degree of departmentalisation.
E) degree of specialisation.

Question 9

Boss Queen, Inc.(BQI)
Boss Queen, Inc.(BQI) is a business-clothing store for professional women.The owner of the company has designed the business so that she hardly ever has to be there.There are many departmental managers who hold a lot of responsibility.While they are organised separately by department, each manager knows enough about the other departments to be able to fill in at any time.The department managers also delegate a lot of work further down to their employees as a way to empower them.The owner even delegates store-management responsibilities to a different department manager each month.Even though certain people are delegated certain tasks, everyone pitches in, so it is sometimes hard to tell who is really in charge.
The employees are so comfortable with each other that many go out and participate in activities together on the weekends, even when they are not working.However, the owner realises that she does not want to participate in these events because she does not want to seem that she is favouring certain people over others.
Refer to Boss Queen, Inc.It seems that BQI managers could be considered all of the following except

A) line managers.
B) department managers.
C) staff managers.
D) functional managers.
E) owners.

Question 10

The legal affairs attorney working for Intel would most likely occupy a(n)

A) vice president position.
B) high position in the chain of command.
C) staff position.
D) nonessential position.
E) authoritarian position.

Question 11

The various tasks in IBM's manufacturing plant are arranged so that one worker draws the wiring, another strengthens the wires, a third cuts them, a fourth inserts them, and a fifth seals them together.This is an example of job

A) rotation.
B) redesign.
C) specialisation.
D) enrichment.
E) enlargement.

Question 12

Legal services and public affairs are ____ types of jobs, so they do not fit directly into the chain of command.

A) specialised
B) top management
C) authoritative
D) voluntary
E) advisory

Question 13

A locally owned and operated bakery with just one location is likely to have

A) a short chain of command.
B) a complex chain of command.
C) an extensive advisory staff.
D) a highly departmentalised structure.
E) no organisation chart.

Question 14

Cory is at the top of her company's organisation chart.Which of the following is most likely to be her job title?

A) Executive manager
B) President
C) Manager
D) Vice president, operations
E) Organisation leader

Question 15

Human resources is a(n) ____ type of job, so it does not fit directly into the chain of command.

A) line
B) staff
C) advisory
D) top management
E) authoritative

Question 16

Dramatic Expressions
Dramatic Expressions is a home decorating company that sells many different household accessories ranging from candles to entertainment centres.Wanda is the CEO of the company.She feels that there is not enough specialisation within the company and wants to organise the business in a different way.Wanda thinks that the company would be more effective if it were to switch to a new way of organisation.For example, there could be a manager in charge of the candles, a different manager in charge of the entertainment centres, and so on.
Another issue that Wanda wants to resolve is that of delegation.She believes that if she could improve her delegating, employees would feel more empowered and want to go above and beyond what they are required to do.There are certain reasons that Wanda has a hard time delegating to others, but she is confident that the problem will be overcome if she works on it.
Refer to Dramatic Expressions.Wanda could best improve delegation by

A) increasing specialisation.
B) explaining the purpose of each task.
C) investing the capital necessary for success.
D) changing each job station.
E) decreasing job specialisation.

Question 17

Dramatic Expressions
Dramatic Expressions is a home decorating company that sells many different household accessories ranging from candles to entertainment centres.Wanda is the CEO of the company.She feels that there is not enough specialisation within the company and wants to organise the business in a different way.Wanda thinks that the company would be more effective if it were to switch to a new way of organisation.For example, there could be a manager in charge of the candles, a different manager in charge of the entertainment centres, and so on.
Another issue that Wanda wants to resolve is that of delegation.She believes that if she could improve her delegating, employees would feel more empowered and want to go above and beyond what they are required to do.There are certain reasons that Wanda has a hard time delegating to others, but she is confident that the problem will be overcome if she works on it.
Refer to Dramatic Expressions.What could be a possible reason for Wanda not wanting to delegate work?

A) The employee was unreliable.
B) The employee was not a likable individual.
C) The employee was well-organised.
D) The work involved strict planning.
E) The work took place in an undesirable venue.

Question 18

Dramatic Expressions
Dramatic Expressions is a home decorating company that sells many different household accessories ranging from candles to entertainment centres.Wanda is the CEO of the company.She feels that there is not enough specialisation within the company and wants to organise the business in a different way.Wanda thinks that the company would be more effective if it were to switch to a new way of organisation.For example, there could be a manager in charge of the candles, a different manager in charge of the entertainment centres, and so on.
Another issue that Wanda wants to resolve is that of delegation.She believes that if she could improve her delegating, employees would feel more empowered and want to go above and beyond what they are required to do.There are certain reasons that Wanda has a hard time delegating to others, but she is confident that the problem will be overcome if she works on it.
Refer to Dramatic Expressions.Wanda should address all of the following when it comes to organising the business except

A) job design.
B) regulating behaviour.
C) establishing a chain of command.
D) departmentalisation.
E) delegation.

Question 19

Boss Queen, Inc.(BQI)
Boss Queen, Inc.(BQI) is a business-clothing store for professional women.The owner of the company has designed the business so that she hardly ever has to be there.There are many departmental managers who hold a lot of responsibility.While they are organised separately by department, each manager knows enough about the other departments to be able to fill in at any time.The department managers also delegate a lot of work further down to their employees as a way to empower them.The owner even delegates store-management responsibilities to a different department manager each month.Even though certain people are delegated certain tasks, everyone pitches in, so it is sometimes hard to tell who is really in charge.
The employees are so comfortable with each other that many go out and participate in activities together on the weekends, even when they are not working.However, the owner realises that she does not want to participate in these events because she does not want to seem that she is favouring certain people over others.
Refer to Boss Queen, Inc.BQI can best be described as a(n) ____ organisation.

A) span of management
B) decentralised
C) ad hoc
D) centralised
E) autocratic

Question 20

Boss Queen, Inc.(BQI)
Boss Queen, Inc.(BQI) is a business-clothing store for professional women.The owner of the company has designed the business so that she hardly ever has to be there.There are many departmental managers who hold a lot of responsibility.While they are organised separately by department, each manager knows enough about the other departments to be able to fill in at any time.The department managers also delegate a lot of work further down to their employees as a way to empower them.The owner even delegates store-management responsibilities to a different department manager each month.Even though certain people are delegated certain tasks, everyone pitches in, so it is sometimes hard to tell who is really in charge.
The employees are so comfortable with each other that many go out and participate in activities together on the weekends, even when they are not working.However, the owner realises that she does not want to participate in these events because she does not want to seem that she is favouring certain people over others.
Refer to Boss Queen, Inc.The group of employees that participate in outside activities on the weekend would be considered a(n) ____ group.

A) informal
B) inspirational
C) affirmative
D) business
E) departmental

Question 21

Employees at a chemical factory are systematically moved every two weeks among three different departments in the organisation.This is called

A) job trading.
B) specialisation.
C) departmentalisation by function.
D) job enlargement.
E) job rotation.

Question 22

Which of the following is a disadvantage of departmentalisation by function?

A) Supervision is very difficult because workers are involved in different types of activities.
B) This method tends to emphasise the department rather than the organisation as a whole.
C) It causes duplication of the same specialised activities throughout the organisation.
D) This method requires an extremely large administrative staff.
E) Coordination is very complex because of the way job duties are distributed.

Question 23

The book The Wealth of Nations, published in the eighteenth century, emphasises the power of

A) job rotation.
B) technical job training.
C) job specialisation.
D) job design.
E) assembly-line production.

Question 24

Workers at the Nissan subsidiary plants are less likely to become bored or dissatisfied with their jobs because Nissan practices job

A) enlargement.
B) rotation.
C) enrichment.
D) generalisation.
E) substitution.

Question 25

In a furniture factory, one worker cuts the wood according to the design, another glues the furniture together, and another stains and finishes the furniture.This is an example of

A) Departmentalisation.
B) decentralisation.
C) job specialisation.
D) job rotation.
E) an automated assembly line.

Question 26

General Motors has separate divisions for Chevrolet, Pontiac, Oldsmobile, Buick, and Cadillac.This is an example of departmentalisation by

A) function.
B) location.
C) customer.
D) product.
E) model.

Question 27

In a recent task force meeting, the human resources manager gave many reasons why the organisation needed some specialisation.In so doing, she stated that

A) a worker who learns only a specific, highly specialised task becomes inefficient at that task.
B) a worker who does the same job over and over loses time changing from one operation to another.
C) the more specialised the job, the harder it may be to design specialised equipment for those doing it.
D) the more specialised the job, the easier it is to train new employees when an employee quits or is absent.
E) the job of most organisations is simply too large for one person to handle.Several people carrying out different functions are needed.

Question 28

Ford and Xerox are two companies that have begun moving away from strict job specialisation to alleviate employee motivation problems.Each company has adopted a job design alternative that involves workers in a wider variety of tasks.The method they have employed is known as job

A) enlargement.
B) enrichment.
C) generalisation.
D) rotation.
E) substitution.

Question 29

The Morgan Company, a small furniture manufacturer, divides its organisation into marketing, human resources, accounting, and production departments.This is an example of departmentalisation by

A) location.
B) specialty.
C) product.
D) taste.
E) function.

Question 30

Ted Landry finds he has less and less energy to go to work each day.On average he misses two days a week.Ted may be suffering from boredom, which is one negative side effect of job

A) rotation.
B) enrichment.
C) specialisation.
D) enlargement.
E) enhancement.

Question 31

Citibank has one group of loan officers who handle consumer loans and another group who work in the commercial loan area.Grouping work units this way is known as departmentalisation by

A) function.
B) customer.
C) product.
D) specialty.
E) location.

Question 32

Grouping the UK into the Northeast Region, the Northwest Region, the Southeast Region, and the Southwest Region would be departmentalisation by

A) location.
B) customer.
C) function.
D) product.
E) task.

Question 33

If a new company desires to departmentalise in a way that will simplify supervision and facilitate coordination, it will most likely departmentalise by

A) product.
B) location.
C) worker skill level.
D) customer.
E) function.

Question 34

A computer manufacturer is first divided into the following groups: Home Office/Personal Use, Small Business, Large Business, and Educational Institutions.Within each of these divisions, management is organised into finance, operations, marketing, and human resources.This company is organised first by ____, then by ____.

A) function; customer
B) customer; function
C) product; function
D) product; customer
E) customer; location

Question 35

A benefit of job specialisation is that it

A) is more difficult to design equipment.
B) is easier to train new employees.
C) is more time-consuming to change from one operation to another.
D) eliminates boredom.
E) enriches the job.

Question 36

When a worker has to learn only a specific, highly specialised task, that individual should be able to learn to do it very efficiently.However, this efficiency could eventually become inhibited by job monotony and boredom.This situation could be alleviated through

A) job rotation.
B) technical job training.
C) job specialisation.
D) job design.
E) assembly-line production.

Question 37

Most large organisations use

A) departmentalisation by product.
B) departmentalisation by location.
C) departmentalisation by customer.
D) a combination of departmentalisation bases.
E) no departmentalisation.

Question 38

Grouping jobs into manageable units according to some reasonable scheme is known as

A) job description.
B) departmentalisation.
C) centralised organisation.
D) bureaucratic structuring.
E) informal organising.

Question 39

The president of Digital Equipment Corporation discovered that his company was having a problem with counterproductive product groups that were working selfishly rather than cooperating with one another.To solve the problem, he combined the company's twelve product groups into three regional management centres.This solution is referred to as departmentalisation by

A) location.
B) function.
C) product.
D) customer.
E) objective.

Question 40

Location, product, function, and customer are common bases for a firm's

A) span of management.
B) job design.
C) job specialisation.
D) chain of command.
E) departmentalisation.

Question 41

The assignment of part of a manager's work and authority to a worker is called

A) delegation.
B) responsibility.
C) authorisation.
D) accountability.
E) relegation.

Question 42

Although departmentalisation may be determined within an organisation on the basis of one criterion, such as location, most organisations find ____ to be a more efficient means of conducting business.

A) Decentralisation
B) more than one basis for departmentalisation
C) delegation of authority
D) Centralisation
E) managerial decision making

Question 43

The degree of centralisation of an organisation is based on the

A) degree of departmentalisation.
B) level of bureaucracy.
C) organisation chart.
D) delegation of authority.
E) degree of job specialisation.

Question 44

Ann delegated work to an employee who mismanaged public funds.Ann, rather than the employee, was reprimanded for this mismanagement.Ann is now reluctant to delegate because she

A) does not care whether the work is properly done.
B) knows the person who delegates remains accountable for the work.
C) does not trust any of her subordinates.
D) fears a subordinate will do the work so well that he or she will attract the approval of top management.
E) is so disorganised that she simply cannot plan and assign work effectively.

Question 45

A common characteristic of a centralised organisation is

A) democratic decision making.
B) decision making by a few top-level managers.
C) a flat span of management.
D) placing decision making near the workplace.
E) authority placed at lower levels.

Question 46

Jason assigns responsibility to a subordinate for preparing a sales presentation for an important potential client and authorises the necessary expenditures of money and human resources, but he still requires a dress rehearsal to be presented to him before the actual presentation.Jason realises that accountability cannot be

A) created.
B) delegated.
C) assigned.
D) expected.
E) accepted.

Question 47

Susan was given the responsibility for chairing a campus committee.To complete the delegation process, she should be given the ____ to carry out this responsibility.

A) duty
B) subordinates
C) authority
D) skills
E) salary

Question 48

Delegation consists of giving a subordinate all of the following except

A) responsibility.
B) authority.
C) accountability.
D) a line position.
E) both accountability and a line position.

Question 49

Janet is a runner for a large law firm.Her duties include purchasing supplies for the copy room.Janet was given permission by the office manager to sign credit-card receipts when making purchases.Janet has been given ____ to use the firm's credit card.

A) responsibility
B) obligation
C) authority
D) staff centrality
E) accountability

Question 50

Dana is assigned to create a training programme for newly hired mortgage loan officers.She has the ____ to complete this assignment.

A) authority
B) Delegation
C) Network
D) responsibility
E) accountability

Question 51

Since Sears operates in a complex and dynamic environment, its store managers are given significant freedom to run their stores.This indicates that top leaders at Sears

A) centralise decision making.
B) deemphasise lower-level management training.
C) control their managers tightly.
D) deemphasise lower-level management accountability.
E) decentralise authority.

Question 52

Amy, an administrative assistant in the business division of a university, is assigned the responsibility of serving the needs of the division's professors.However, Amy often reads books and looks at catalogs during working hours because she has plenty of free time.It appears that the professors in the division have failed to

A) delegate.
B) work hard.
C) teach class.
D) prioritise.
E) be held accountable.

Question 53

One's duty to do a job or perform a task is called

A) authority.
B) accountability.
C) responsibility.
D) delegation.
E) obligation.

Question 54

Mark left his position as a manager of a Target store after two years.He complained of being burned out from having to fulfill too many roles and tasks for one position.Mark probably never learned to use the tool of

A) segmentation.
B) decentralisation.
C) control.
D) delegation.
E) centralisation.

Question 55

As a new manager for Walmart, Peter is unwilling to delegate work.He realises that, although he can delegate assignments to others, he cannot delegate his

A) power to carry them out.
B) authority.
C) obligation to see that tasks are completed.
D) responsibility to carry out assignments.
E) function to complete tasks.

Question 56

The more complex and uncertain a company's environment, the more likely it is that the company will

A) decentralise the organisation.
B) have a split between decentralised and centralised decision making.
C) centralise the organisation.
D) increase the span of control, thus increasing the number of employees on board.
E) decrease the span of control, thus decreasing the workforce.

Question 57

Authority and ____ are synonymous terms.

A) power
B) responsibility
C) duty
D) delegation
E) accountability

Question 58

If First National Bank were to assign one of its bank tellers to business merchants and two others to individual accounts, it would be departmentalising on the basis of

A) location.
B) population.
C) customer.
D) function.
E) service.

Question 59

A firm organised on the basis of retail customers and wholesale customers utilises the concept of departmentalisation by

A) location.
B) function.
C) customer.
D) product.
E) task.

Question 60

Which of the following statements about accountability is false?

A) Managers create accountability.
B) Managers delegate accountability.
C) Accountability is the obligation of the worker.
D) Creating accountability is a step in the delegation process.
E) Managers are accountable for tasks they assign.

Question 61

In an organisation with a ____, a manager is most likely to spend considerable time supervising and working with employees.

A) flat organisational width and wide height span
B) narrow span of control and tall organisational height
C) flat organisational height and a wide span of control
D) wide span of control and a tall organisational height
E) narrow span of control and flat organisational height

Question 62

A manager with many subordinates is said to have a

A) tall organisational structure.
B) narrow span of control.
C) managerial hierarchy.
D) wide span of control.
E) matrix structure.

Question 63

George Brown is a regional sales manager for Unisys, a large manufacturer of computer systems.As such, George is responsible for salespeople throughout the region, and he must interact with them frequently to solve problems.Which of the following descriptions is most characteristic of Unisys and its sales managers?

A) Wide span of management control and flat organisational height
B) Narrow span of management control and flat organisational height
C) Wide span of management control and tall organisational height
D) Narrow span of management control and tall organisational height
E) Low administrative costs and clear communication

Question 64

All of the following are reasons for a narrow span of management except

A) workers are located far from one another.
B) few new problems are expected.
C) the manager must do a lot of work other than managing.
D) a great deal of interaction between management and workers is needed.
E) new problems arise frequently.

Question 65

The number of workers who report directly to one manager is called

A) authority.
B) accountability.
C) responsibility.
D) the span of management.
E) centralisation.

Question 66

Many organisations today are moving toward a(n) ____ organisation in an effort to get decisions made more quickly and action plans implemented more rapidly.

A) Taller
B) Wider
C) Flatter
D) narrower
E) efficient

Question 67

The number of layers in the organisational structure of Dayton Hudson Corporation indicates the company's

A) chain of command.
B) organisational height.
C) line authority.
D) organisational structure.
E) management hierarchy.

Question 68

A span of control may be wide when

A) managers and workers are located far from one another.
B) a great deal of interaction among levels is needed.
C) few new problems are expected to arise.
D) the manager has a lot of work other than managing.
E) new problems arise frequently.

Question 69

The number of layers, or levels, in a firm is referred to as the firm's

A) organissational structure.
B) managerial hierarchy.
C) cluster structure.
D) organisational height.
E) bureaucratic structure.

Question 70

Determining how many subordinates will report to each manager gives an organisation its

A) chain of command.
B) span of management.
C) degree of centralisation.
D) nature and degree of departmentalisation.
E) degree of specialisation.

Question 71

Which of the following does not prevent managers from delegating?

A) They are so disorganised that they cannot assign work effectively.
B) They want to make sure the work gets done properly.
C) They usually have few responsibilities and therefore little to delegate.
D) They fear that the subordinate will do excellent work and become a threat to the manager.
E) They know that they are still ultimately responsible for the work.

Question 72

The head of the marketing department at CBS Environmental, Inc., supervises twelve people in her department.This represents her

A) chain of command.
B) degree of specialisation.
C) level of authority.
D) span of management.
E) nature and degree of departmentalisation.

Question 73

Zyquila is a manager in an organisation where a great deal of interaction is required between herself and her workers and new problems arise frequently.Zyquila is likely to have

A) a wide span of management.
B) little authority to delegate.
C) decentralised power.
D) departmentalisation by consumer.
E) a narrow span of control.

Question 74

A consulting manager at SAP has a very wide span of control.This is probably because the

A) firm has a very loose, informal organisational structure.
B) consulting manager has a low level of accountability.
C) consulting manager is expected to delegate authority.
D) manager's subordinates aren't given much responsibility.
E) manager and his or her subordinates are very competent.

Question 75

Rockwood International needs to make risky decisions on a daily basis.Therefore, its managers are likely to

A) centralise decision making.
B) let lower-level managers make important decisions.
C) train lower-level managers to make more decisions.
D) decentralise authority.
E) centralise rare skills.

Question 76

A biotechnology company is constantly faced with important decisions that are likely to have severe consequences on the future of the company.The top managers should

A) decentralise decision-making authority.
B) appoint lawyers to make business decisions.
C) train first-line managers to make these decisions.
D) exercise centralised decision-making authority.
E) consult investors when making important daily decisions.

Question 77

A manager with few subordinates is said to have a

A) narrow span of control.
B) flat organisational structure.
C) managerial hierarchy.
D) matrix structure.
E) wide span of control.

Question 78

The number of subordinates reporting directly to one manager is called

A) the chain of command.
B) a decentralised organisation.
C) a centralised organisation.
D) the span of control.
E) the management hierarchy.

Question 79

Mr.Kerr will manage employees throughout the northwestern region of the UK.His employees will consist of most major nationalities and both males and females.In determining his span of control, you should consider which of the following span factors?

A) The percentage of females
B) The percentage of minorities
C) The percentage with college degrees
D) The percentage who do not have college degrees
E) Whether the subordinates are physically located far from one another

Question 80

In which of the following types of organisations would managers have the greatest opportunity for advancement?

A) One with a tall organisational height
B) One that is small and located regionally
C) One that typically offers managers a wide span of control
D) One with a flat organisational height
E) One that is departmentalised by function