Deck 6: Organizing the Business

Question 1

Organization charts are graphical representations of employee salary information.

Answer 1

False

Question 2

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

Answer 2

False

Question 3

McDonald's utilizes a decentralized decision-making structure.

Answer 3

False

Question 4

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

Question 5

Business owners tend to be good at delegating.

Question 6

In the delegation process, responsibility is assigned first; then, authority is granted,.

Question 7

The functional organizational structure is highly flexible and readily adaptable to changing circumstances.

Question 8

The matrix form of organizational structure uses a second chain of command.

Question 9

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

Question 10

Intrapreneurs are individuals who are hired by large organizations to develop ideas for new products.

Question 11

A divisional structure relies on functional departmentalization.

Question 12

Centralized firms tend to be _____.

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

Question 13

The informal organization _____.

A) is the part that can be seen and represented in chart form
B) captures the formal assignment of authority
C) can reinforce office politics that put the interests of individuals ahead of those of the firm
D) works to integrate continuous employee learning and development

Question 14

Which of the following elements determine an organization's structure?

A) the organization's size
B) the organization's mission
C) the organization's strategy
D) all of the above

Question 15

The extent to which a job is broken down into smaller tasks is referred to as _____.

A) departmentalization
B) specialization
C) accountability
D) authority

Question 16

Which of the following is a benefit of the division of activities?

A) control is narrowed and made easier
B) coordination is narrowed and made easier
C) top managers can see how units are performing
D) all of the above

Question 17

Dividing a store into a men's department, a women's department, a luggage department, and so on, is an example of ____.

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

Question 18

The U.S. Army has a _____ organizational structure, with many organizational layers.

A) tall
B) short
C) flat
D) broad

Question 19

Which of the following factors affect the manager's span of control?

A) employee's ability
B) supervisor's management skills
C) simplicity of the task
D) all of the above

Question 20

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

A) delegation
B) liability
C) centralization
D) authority

Question 21

According to the text, food manufacturer H. J. Heinz is organized into seven _____, including food service, infant foods, condiments, Star-Kist tuna, pet foods, frozen foods, and other products.

A) departments
B) regions
C) units
D) divisions

Question 22

A _____ organization seeks to integrate continuous improvements with continuous employee development.

A) team
B) virtual
C) learning
D) flexible

Question 23

Which of the following organizational systems is the part that can be seen and represented in chart form?

A) normal organization
B) formal organization
C) informal organization
D) grapevine

Question 24

Which statement about departmentalization is NOT true?

A) Managers departmentalize jobs randomly.
B) Managers departmentalize jobs logically.
C) Control and coordination are narrowed and made easier.
D) Top managers can see more easily how various units are performing.

Question 25

A manager's span of control is usually _____ in a _____ structure.

A) narrower; flat
B) wide; flat
C) wide; tall
D) none of the above

Question 26

In some organizations, the matrix structure is _____.

A) a temporary measure
B) used for project teams
C) referred to as a "combination" structure
D) all of the above

Question 27

Which of the following statements regarding the organizational grapevine is true?

A) Grapevines are found in nearly all organizations.
B) Grapevines follow the same patterns as formal channels of communication.
C) Managers have no control over the grapevine.
D) The grapevine is very rarely an asset.

Question 28

Define accountability.

Question 29

Discuss the factors that influence a firm's organizational structure.

Question 30

Assess the degree of formality between the boss and subordinates often found in U.S. companies.

Question 31

Assess the degree of formality between the boss and subordinates often found in Latin American companies.

Question 32

Does the grapevine exist within organizations in foreign countries? Explain your thoughts.