Deck 11: Fundamentals of Organizing

Question 1

Bureaucracy can be characterized as a management system with detailed procedures, rules, and a clearly outlined organizational hierarchy with impersonal relationships among organization members.

Answer 1

True

Question 2

The matrix structure is contradictory to the principle of unity of command.

Answer 2

True

Question 3

Traditionally, individuals at the top of a pyramid-shaped organizational structure have more authority but less responsibility than individuals at the bottom of the pyramid.

Answer 3

False

Question 4

V. A. Graicunas developed a formula for determining the number of actual relationships between a manager and subordinates when the number of subordinates is known.

Question 5

Henri Fayol recommends that businesses establish multiple guiding authorities when organizing resources.

Question 6

In general, the closer subordinates are physically, the more of them managers can supervise effectively.

Question 7

Organizing is the process of establishing orderly uses for all resources within the management system.

Question 8

The final step in the organization process is to allocate resources and directives for subtasks.

Question 9

A company's informal structure is represented primarily by the organizational chart.

Question 10

Vertical dimensioning is directly related to the concept of the scalar relationship-that is, the chain of command.

Question 11

Within a matrix structure, workers are responsible for their original activities along with project activities.

Question 12

Span of management refers to the number of organizational levels below that of a particular manager's.

Question 13

Four primary forces influence the evolution of formal organizational structure: forces in the manager, forces in the task, forces in the environment, and forces in the subordinates.

Question 14

The formal structure of an organization evolves naturally and tends to be molded by individual norms and values and social relationships.

Question 15

The most widely used basis for establishing departments within the formal structure is by type of product.

Question 16

Mary Parker Follett said that coordination can be attained with the least difficulty through direct horizontal relationships and personal communications.

Question 17

Normally, the greater the height of the organization chart, the smaller the span of management.

Question 18

It is recognized today that the bureaucratic approach without an appropriate emphasis on the human variable is almost certainly a formula for organizational failure.

Question 19

Henri Fayol recommends that businesses avoid red tape, regulations, and paperwork when organizing resources.

Question 20

Fayol has indicated that strict adherence to a particular chain of command is always advisable when seeking information.

Question 21

Which of the following is one of the three main components of the management system that Weber termed a bureaucracy?

A) minimum regulations and paperwork
B) close, personal relations among organization members
C) emphasis on the human variable
D) a flat organizational structure
E) a clearly outlined organizational hierarchy

Question 22

Which of the following is a disadvantage of division of labor?

A) It makes the work more difficult.
B) It makes work more time-consuming and inefficient.
C) It can result in workers getting bored of their work.
D) It prevents workers from specializing at a task.
E) It requires workers to know about the entire process and not just one task.

Question 23

According to Fayol's guidelines for organizing resources, you should ________.

A) establish multiple guiding authorities
B) make extensive use of regulations and paperwork
C) not use sanctions against faults and errors
D) recognize the unity of command
E) not link rewards to performance

Question 24

Which of the following is an advantage of division of labor?

A) It broadens the scope of work.
B) It results in high levels of employee motivation.
C) It makes work more interesting.
D) It saves time.
E) It emphasizes the human variable in organizations.

Question 25

The second and third steps of the organizing process focus on the ________.

A) results of the organizing strategy
B) organizational plans
C) organizational goals and objectives
D) tasks to be performed within the management system
E) allocation of resources and directives

Question 26

The bureaucracy model of organizing was proposed by ________.

A) V. A. Graicunas
B) Henri Fayol
C) Albert Einstein
D) Mary Parker Follett
E) Max Weber

Question 27

Which of the following is one of the three main components of the management system that Weber termed a bureaucracy?

A) minimum regulations and paperwork
B) impersonal relations among organization members
C) emphasis on the human variable
D) a flat organizational structure
E) a loosely defined organizational hierarchy

Question 28

Which of the following is an advantage of division of labor?

A) It results in easier and more efficient work.
B) It broadens the scope of work.
C) It emphasizes the human variable in organizations.
D) It makes work more interesting.
E) It results in high levels of employee motivation.

Question 29

According to Fayol's guidelines for organizing resources, you should do all of the following, EXCEPT ________.

A) establish multiple guiding authorities
B) define duties
C) use sanctions against faults and errors
D) encourage initiative and responsibility
E) offer suitable rewards for services rendered

Question 30

Which of the following is a disadvantage of division of labor?

A) It makes the work more difficult.
B) It overlooks the human variable in organizations.
C) It makes work more time-consuming and inefficient.
D) It prevents workers from specializing at a task.
E) It requires workers to know about the entire process and not just one task.

Question 31

________ is the assignment of various portions of a particular task among a number of organization members.

A) Participation
B) Job enlargement
C) Division of labor
D) Job rotation
E) Work sharing

Question 32

Which of the following is one of the three main components of the management system that Weber termed a bureaucracy?

A) minimum regulations and paperwork
B) close, personal relations among organization members
C) emphasis on the human variable
D) detailed procedures and rules
E) a loosely defined organizational hierarchy

Question 33

________ skill is the ability to establish orderly uses for resources within the management system.

A) Organizing
B) Communication
C) Planning
D) Controlling
E) Marketing

Question 34

________ is the process of establishing orderly uses for resources within the management system.

A) Organizing
B) Communication
C) Planning
D) Controlling
E) Motivation

Question 35

Which of the following is the main criticism of Weber's bureaucracy model?

A) It fails to emphasize setting detailed procedures and rules.
B) It gives short shrift to the human variable within organizations.
C) It does not emphasize a clearly defined organizational structure.
D) It overemphasizes positive relationships among organization members.
E) It attempts to eliminate paperwork and regulations.

Question 36

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

A) establish major tasks
B) reflect on plans and objectives
C) allocate resources and directives for subtasks
D) evaluate results of organizing strategy
E) divide major tasks into subtasks

Question 37

Alistair Fashions, a clothing manufacturer, uses an assembly-line to manufacture clothes whereby different groups of workers specialize in particular tasks-cutting fabric, finishing sleeves, making collars, fixing zippers, sewing buttons, etc. Identify the organizing system being used here.

A) job rotation
B) job enlargement
C) participative management
D) division of labor
E) job enrichment

Question 38

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

A) Allocate resources and directives for subtasks.
B) Evaluate results of organizing strategy.
C) Establish major tasks.
D) Reflect on plans and objectives.
E) Divide major tasks into subtasks.

Question 39

According to Fayol's guidelines for organizing resources, you should avoid ________.

A) formulating precise decisions
B) using sanctions against faults and errors
C) instituting and effecting controls
D) regulations, redtape, and paperwork
E) defining duties

Question 40

Which of the following is an advantage of division of labor?

A) It emphasizes the human variable in organizations.
B) It results in high levels of employee motivation.
C) It results in specialization and higher skill levels.
D) It makes work more interesting.
E) It broadens the scope of work.

Question 41

Unity of command is the management principle that recommends that ________.

A) all managers share the same goals
B) all employees should accept their formal leader or leaders
C) an individual have only one boss
D) organizational plans be consistent with organizational goals
E) the organizing system be consistent with organizational plans

Question 42

________ is directly related to the concept of the scalar relationship-that is, the chain of command.

A) Matrix structuring
B) Departmentalizing
C) Vertical dimensioning
D) Horizontal dimensioning
E) Lateralizing

Question 43

According to the contingency viewpoint to designing span of management, the appropriate span of management narrows when ________.

A) the activities performed by supervised individuals are similar
B) subordinates are carrying out simple functions
C) the manager needs to spend a lot of time on planning activities
D) subordinates' activities need little synchronization
E) subordinates are physically located close to one another

Question 44

Follett said that coordination can be attained with the least difficulty through ________.

A) a bureaucratic structure
B) a strict adherence to the chain of command
C) minimizing the human element
D) direct horizontal relationships and personal communications
E) discussions with people higher up the organization hierarchy

Question 45

Dorothy Woods, CEO of Arcadia Corp., is planning to widen the spans of management in the organization in order to have a flatter organization. Which of the following, if true, would support Dorothy's strategy?

A) Arcadia Corp. is a market leader in developing, manufacturing and selling customized innovative, cutting edge communication technology to corporations.
B) Arcadia Corp. is engaged in manufacturing bottle caps for a leading cola brand.
C) Arcadia Corp. relies heavily on virtual teams spread across its offices in several countries.
D) Arcadia Corp. will save a significant amount of money on managers' salaries if it reduces the number of managerial levels.
E) Arcadia Corp. has a reputation for pioneering innovative managerial practices in the industry.

Question 46

Which of the following is one of Follett's guidelines on coordination?

A) Personal communication should be minimized in coordination.
B) Managers can assume that if their system shows coordination now, it will show coordination in the future.
C) The human element should be minimized in coordination.
D) The communication process is an essential consideration in any attempt to encourage coordination.
E) Coordination can be achieved with least difficulty through vertical relationships.

Question 47

________ is defined as the orderly arrangement of group effort to provide unity of action in the pursuit of a common purpose.

A) Justification
B) Combination
C) Amalgamation
D) Coordination
E) Rationalization

Question 48

Which of the following is one of Follett's guidelines on coordination?

A) Personal communication should be minimized in coordination.
B) Managers can assume that if their system shows coordination now, it will show coordination in the future.
C) The human element should be minimized in coordination.
D) Coordination cannot be left to chance.
E) Coordination can be achieved with least difficulty through vertical relationships.

Question 49

Which of the following is true about the traditional organization chart constructed in pyramid form?

A) Lines between boxes designate informal lines of communication between individuals.
B) Relative positioning of individuals within boxes on the chart indicates broad social relationships.
C) Individuals toward the top of the pyramid have more authority than those toward the bottom.
D) Such organizational charts cannot communicate the complexity of the organization.
E) Individuals toward the bottom of the pyramid have more responsibility than those toward the top.

Question 50

Informal structure is ________.

A) molded by individual norms and values and social relationships
B) defined as the relationships among organizational resources as outlined by management
C) represented primarily by the organization chart
D) usually represented in a pyramid form
E) usually identical to an organization's formal structure

Question 51

Which of the following is one of Follett's guidelines on coordination?

A) Personal communication should be minimized in coordination.
B) Managers can assume that if their system shows coordination now, it will show coordination in the future.
C) The human element should be minimized in coordination.
D) Managers should plan for coordination.
E) Coordination can be achieved with least difficulty through vertical relationships.

Question 52

Organization structure is represented primarily by means of a graphic illustration called a(n) ________.

A) semantic network
B) executive dashboard
C) directed graph
D) organization chart
E) critical path

Question 53

According to the contingency viewpoint to designing span of management, the appropriate span of management narrows when ________.

A) the activities performed by supervised individuals are similar
B) subordinates are carrying out simple functions
C) the manager spends little time on planning activities
D) subordinates' activities need to be synchronized carefully
E) subordinates are physically located close to one another

Question 54

According to the contingency viewpoint to designing span of management, the appropriate span of management widens when ________.

A) the activities performed by supervised individuals are dissimilar
B) subordinates are carrying out simple functions
C) the manager needs to spend a lot of time on planning activities
D) subordinates' activities need to be synchronized carefully
E) subordinates are widely physically separated

Question 55

Fred is a Grade D manager in Lighthouse Infrastructure and manages a small team of eight engineers. The company has 15 Grade D managers. He worked his way up from the lowest grade, Grade E, where he was one of 52 line managers and hopes to be promoted to Grade C soon, which would make him one of the six vice-presidents in the company. However, breaking into Grade B, comprising three presidents, will be a challenge. Only the CEO and COO occupy Grade A. Which of the following numbers represents Fred's span of control?

A) 15
B) 60
C) 52
D) 8
E) 11

Question 56

According to the contingency viewpoint to designing span of management, the appropriate span of management widens when ________.

A) the activities performed by supervised individuals are similar
B) subordinates are carrying out complex functions
C) the manager needs to spend a lot of time on planning activities
D) subordinates' activities need to be synchronized carefully
E) subordinates are widely physically separated

Question 57

Traditionally, an organization chart is constructed in ________ form.

A) radial tree
B) spider diagram
C) pyramid
D) hyperbolic tree
E) pie-diagram

Question 58

Span of management refers to ________.

A) the number of levels in an organization
B) the number of organizational levels above an individual
C) the number of organizational levels below an individual
D) the number of bosses an individual has
E) the number of individuals a manager supervises

Question 59

According to the contingency viewpoint to designing span of management, the appropriate span of management widens when ________.

A) the activities performed by supervised individuals are dissimilar
B) subordinates are carrying out complex functions
C) the manager needs to spend a lot of time on planning activities
D) subordinates' activities need to be synchronized carefully
E) subordinates are physically located close to one another

Question 60

Formal structure is ________.

A) molded by individual norms and values and social relationships
B) defined as the relationships that evolve naturally among organization members
C) represented primarily by the organization chart
D) usually drawn directly from an organization's informal structure
E) usually identical to an organization's informal structure

Question 61

Which of the following is an advantage of functional departmentalizing?

A) facilitates coordination between various functions
B) facilitates assigning of blame when a product performs poorly
C) allows firms to pool human resources for both short-term and long-term projects
D) promotes consistency in how functions are carried out
E) facilitates differentiation of strategy across different segments

Question 62

Andrew is a mid-level manager with three organizational levels above him and two below him. He has four analysts reporting directly to him. Using Graicunas's formula, calculate the total number of possible relationships between Andrew and his subordinates.

A) 4
B) 16
C) 44
D) 56
E) 64

Question 63

The ________ of an organization refers to the extent to which firms use lateral subdivisions or specialties within an organization.

A) laddering
B) horizontal dimensioning
C) vertical integration
D) vertical dimensioning
E) backward integration

Question 64

Which of the following modes of departmentalization contradicts the principle of the unity of command?

A) customer
B) functional
C) geographic
D) matrix
E) product or service

Question 65

Graicunas's formula is as follows: C = n( + n- 1). What does C stand for in this formula?

A) the total number of departments possible in an organization
B) the appropriate number of subordinates a manager can have
C) the appropriate number of levels an organization can have
D) the total number of possible relationships between manager and subordinates
E) the degree of the difficulty in coordinating a certain number of subordinates

Question 66

Which of the following is a criticism of Graicuna's work in span of management?

A) He failed to emphasize the importance of span of management on the organization.
B) He does not recognize the principle of unity of command.
C) He does not consider the number of actual relationships among superiors and subordinates.
D) He fails to specify what will happen if the number of subordinates increases or decreases.
E) He takes into account managers' relationships outside the organization.

Question 67

Which of the following is true about the height of an organization chart?

A) An organization's structure should be built from bottom to top to ensure that appropriate spans of management are achieved at all levels.
B) Span of management usually has no influence on the height of an organization chart.
C) Increasing spans of management to eliminate certain management positions and thereby reducing salary expenses will help the organization achieve long-tern success.
D) Normally, the greater the height of the organization chart, the smaller the span of management.
E) Overall, managers seem to be using taller organizational structures now than in the past.

Question 68

The organization structure at Sinclair Funds, a financial services company, is divided horizontally into Insurance, Mutual Funds, and Wealth Management departments. Identify the departmentalization mode being used here.

A) matrix
B) customer
C) product or service
D) geographic
E) functional

Question 69

Pixel Technologies, a manufacturer of electronic products and cell phones, has departmentalized the organization on the basis of ________ by dividing the business into two divisions-Electronics Retailers and Cell Phone Retailers.

A) geography
B) products
C) functional
D) customers
E) matrix

Question 70

Gizmo Sales, a company that sells office supplies to companies in Atlanta, GA, has organized the business horizontally into departments named North Atlanta, South Atlanta, and Downtown Atlanta. This indicates that Gizmo has departmentalized on the basis of ________.

A) products
B) projects
C) customers
D) territories
E) functions

Question 71

Graicunas's formula is as follows: C = n( + n- 1). What does n stand for in this formula?

A) the total number of departments in an organization
B) the appropriate number of subordinates a manager can have
C) the total number of levels an organization can have
D) the known number of subordinates for a particular manager
E) the appropriate number of possible relationships between manager and subordinates

Question 72

________ developed a formula for determining the number of possible relationships between a manager and subordinates when the number of subordinates is known.

A) Mary Parker Follett
B) Henri Fayol
C) F. W. Taylor
D) Max Weber
E) V. A. Graicunas

Question 73

Which of the following is an advantage of departmentalizing by matrix?

A) It clarifies the power structure within the firm.
B) It helps employees prioritize responsibilities.
C) It facilitates coordination across projects.
D) It allows firms to achieve unity of command.
E) It allows firms to pool human resources for short-term and long-term projects.

Question 74

At Landmark Constructions, crucial projects are handled completely by project managers who are empowered to borrow marketing, sales, engineering, finance and R&D staff and other employees from various parts of the organization to complete their projects. Identify the departmentalization mode being used in this company.

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

Question 75

According to the contingency viewpoint to designing span of management, which of the following situations would warrant a relatively wide span of control?

A) Supervising a team of scientists engaged in complex research work.
B) Supervising a team of factory workers sewing buttons onto shirts.
C) Managing a virtual team of engineers spread across several countries.
D) Managing a highly interdependent production team.
E) Managing and coordinating the activities of a marketing team.

Question 76

According to Graicunas's formula for determining the number of possible relationships between a manager and subordinates, as the number of subordinates increases arithmetically, the number of possible relationships between the manager and those subordinates ________.

A) increases proportionately
B) decreases proportionately
C) increases geometrically
D) increases arithmetically too
E) decreases geometrically

Question 77

Which of the following is a potential disadvantage of functional departmentalizing?

A) difficulty for employees to prioritize responsibilities
B) lack of unity of command
C) difficulty in coordinating between various functions
D) difficulty in assigning blame or credit for the performance of a function
E) lack of consistency in carrying out functions

Question 78

The organization structure at Kinetic Machines is horizontally divided into Marketing, Finance, Production, and R&D departments. Identify the departmentalization mode being used here.

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

Question 79

________ organizations are also called project organizations.

A) Silo
B) Functional
C) Radial
D) Pyramid
E) Matrix

Question 80

Which of the following is the most widely used basis for departmentalization?

A) customer
B) work functions
C) geography
D) matrix
E) product or service