Deck 6: Organizing the Business

Question 1

International organizational structures are an approach to organizational structure developed in response to the need to manufacture,purchase,and sell in global markets.

Answer 1

True

Question 2

Organizational structure is the specification of the jobs to be done within an organization and the ways in which those jobs relate to one another.

Answer 2

True

Question 3

According to the text,a profit center is a division of a company whose revenues exceed its expenses.

Answer 3

False

Question 4

Functional structure relies on product departmentalization.

Question 5

The building blocks of all organizations are specialization and centralization.

Question 6

All organizations can successfully use the same organizational structure.

Question 7

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

Question 8

The organization's informal structure is its official arrangement of jobs and job relationships.

Question 9

Intrapreneuring is the process of creating and maintaining the innovation and flexibility of a small-business environment within the confines of a large corporation.

Question 10

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

Question 11

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

Question 12

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

Question 13

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

Question 14

Organization charts are graphical representations of employee salary information.

Question 15

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

Question 16

Line authority is authority that flows up and down the chain of command.

Question 17

Authority is the duty to perform an assigned task.

Question 18

Matrix structure is a combination of two separate structures.

Question 19

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

Question 20

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

Question 21

Flat organizational structures are usually associated with centralized decision making.

Question 22

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

Question 23

The matrix form of organizational structure was pioneered by NASA.

Question 24

In a sense,all organizations have only one major "job."

Question 25

Common line functions include law,accounting,and human resources.

Question 26

Acme Oil Company has three divisions: Exploration,Extraction,and Refining.This is an example of process departmentalization.

Question 27

For the delegation process to work smoothly,responsibility and authority must be equivalent.

Question 28

Semiconductor giant Intel recently reorganized from two business units into five,each focusing on different product types.Intel uses the divisional structure.

Question 29

The functional organizational structure is the approach to organizational structure used by most small to medium-sized firms.

Question 30

Specialized jobs are harder to learn and are performed less efficiently than nonspecialized jobs.

Question 31

If any staff department fails to complete its task,the company cannot sell and deliver finished goods.

Question 32

A division is a functional area,such as human resources,that serves all areas of a company.

Question 33

A virtual organization has little or no formal structure.

Question 34

McDonald's utilizes a decentralized decision-making structure.

Question 35

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

Question 36

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

Question 37

An international organization is one in which traditional boundaries and structures are minimized or eliminated altogether.

Question 38

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

Question 39

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

Question 40

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

Question 41

Reporting relationships within the company shown on the organization chart as solid lines are defined as the ________.

A) mission statement
B) chain of command
C) lines of responsibility
D) grapevine

Question 42

Decentralization works best in a complex,rapidly changing environment.

Question 43

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

A) departmentalization
B) delegation
C) organization charts
D) mission statement

Question 44

The specification of the jobs to be done within an organization and the ways in which those jobs relate to one another is called ________.

A) scientific management
B) a mission statement
C) job specialization
D) organizational structure

Question 45

Coordination across functional departments becomes more complicated in smaller firms than in larger firms.

Question 46

Line,staff,and committee and team forms of authority are not likely to all be found within the same organization.

Question 47

A team organization typically does not utilize functional hierarchy.

Question 48

The informal organization is not as powerful as the formal structure.

Question 49

As organizations grow in size,it is both normal and necessary that they become at least somewhat flatter.

Question 50

Intrapreneuring attempts to create and maintain the innovation and flexibility found in large,bureaucratic structures.

Question 51

Frequently,the informal organization effectively alters a company's formal structure.

Question 52

After accountability is created,authority is granted and responsibility is assigned to complete the delegation process.

Question 53

To avoid bureaucracy within the organization,most large organizations tend to adopt the same types of departmentalization for all levels.

Question 54

After an organizational structure has been created,it is set in stone.

Question 55

Tall organizational structures are prone to delays in information flow.

Question 56

A divisional structure relies on functional departmentalization.

Question 57

Job specialization is a natural part of organizational growth.

Question 58

If a company is using a functional structure,adapting to a temporary matrix structure is possible.

Question 59

For the delegation process to work smoothly,responsibility must slightly exceed one's level of authority.

Question 60

Decision-making authority is sometimes granted to members of both committees and work teams.

Question 61

________ is the assignment of a task,responsibility,or authority by a manager to a subordinate.

A) Delegation
B) Responsibility
C) Centralization
D) Decentralization

Question 62

Decentralized firms tend to be ________.

A) flat
B) tall
C) multi-layered
D) none of the above

Question 63

A separate unit responsible for its own costs and profits is referred to in the text as a(n)________.

A) economic unit
B) specialized unit
C) profit center
D) cost center

Question 64

The process of identifying the specific jobs that need to be done and designing the people who will perform them leads to ________.

A) departmentalization
B) job specialization
C) group tasks
D) segmentation

Question 65

Authority that flows up and down the chain of command is called ________.

A) staff authority
B) departmental authority
C) line authority
D) delegated authority

Question 66

The duty to perform an assigned task is called ________.

A) delegation
B) authority
C) responsibility
D) accountability

Question 67

The power to make the decisions necessary to complete the task is ________.

A) delegation
B) authority
C) responsibility
D) accountability

Question 68

Which of the following represents a building block for all business organizations?

A) specialization
B) departmentalization
C) decision-making hierarchy
D) all of the above

Question 69

Centralized firms tend to be ________.

A) flat
B) tall
C) large
D) very responsive to change

Question 70

When the organization is divided according to production processes,it is referred to as ________.

A) functional departmentalization
B) process departmentalization
C) customer departmentalization
D) geographic departmentalization

Question 71

Departments linked to the production and sales of specific products are ________.

A) staff departments
B) matrix departments
C) line departments
D) organizational departments

Question 72

When each department targets a specific customer category,departmentalization occurs along ________.

A) functional lines
B) customer lines
C) product lines
D) process lines

Question 73

Decentralization is typical in companies that ________.

A) face stable, predictable environments
B) face complex and dynamic environments
C) are smaller in size
D) focus tightly on maintaining standardization

Question 74

Centralized authority is commonly found in companies that ________.

A) face stable, predictable environments
B) face unstable, unpredictable environments
C) are very large in size
D) must be responsive to change

Question 75

The number of people managed by one supervisor is called the manager's ________.

A) authority
B) responsibility
C) span of control
D) line authority

Question 76

Authority given to a special group of employees that play central roles in the firm's daily operations is called ________.

A) risk aversion
B) committee and team authority
C) line authority
D) matrix organization

Question 77

In a ________ organization,most decision-making authority is held by upper-level managers.

A) democratic
B) free-reign
C) centralized
D) decentralized

Question 78

Dividing an organization according to the specific product or service being created is called ________.

A) product departmentalization
B) customer departmentalization
C) functional departmentalization
D) process departmentalization

Question 79

Grouping jobs into logical units is called ________.

A) specialization
B) accountability
C) process management
D) departmentalization

Question 80

________ is the obligation employees have to their manager for the successful completion of an assigned task.

A) Authority
B) Centralization
C) Accountability
D) Span of control