Deck 8: Organization Structure

Question 1

Mallory manages a branch retail store for Simply Sweet,a retail bakery.She supervises ten people including the bakers and the clerks located in her branch.She reports directly to the owner of Simply Sweet.Simply Sweet would be considered a tall rather than a flat organization.

Answer 1

False

Question 2

Division of labor and specialization are not closely related.

Answer 2

False

Question 3

When there are many subunits and many kinds of specialists who think differently,differentiation is high.

Answer 3

True

Question 4

Coordination refers to the procedures that link the various parts of the organization to achieve the organization's overall mission.

Question 5

Corporate governance is the role of the corporation's executive staff and board of directors in ensuring that the firm's activities meet the goals of the firm's stakeholders.

Question 6

There is no specific ideal number of subordinates that a manager should supervise.

Question 7

Murray works on an automobile assembly line.His job is to assemble the door on every vehicle that is on the line.The job is quite defined and specific as an incorrect assembly could endanger future drivers and passengers of the car.Murray is most likely supervised using a wide span of control.

Question 8

It is generally accepted that fewer hierarchical levels creates greater operating efficiency.

Question 9

The three broad levels of the organizational pyramid are commonly called the organizational structure.

Question 10

The number of subordinates who report directly to an executive or supervisor is called the span of control.

Question 11

The optimal span of control is five subordinates,according to Napoleon Bonaparte.

Question 12

Tabitha,a manager at All-Bright Cleaning Services,Inc.supervises 139 front-line employees.She reports to is the President.All-Bright Cleaning Services,Inc.would be considered a tall organization.

Question 13

Stockholders are generally directly involved in managing the organization.

Question 14

The numerous tasks that must be carried out in a large organization make specialization a necessity.

Question 15

Differentiation means that differentiated units are put together so that work is coordinated into an overall product.

Question 16

Delegation is the assignment of authority and responsibility to a subordinate at a lower level.

Question 17

The organization chart depicts the positions of the board offices in corporate headquarters.

Question 18

Authority resides in people and not in positions.

Question 19

The board of directors determines the strategic direction in corporations.

Question 20

Delegation means that a person is assigned a task that he or she is supposed to carry out.

Question 21

A clear advantage of the functional form of departmentalization is that technical specialists are relatively free of administrative work.

Question 22

Line departments are units that support staff departments.

Question 23

The functional structure would be most appropriate in complex and changing environments.

Question 24

The first step in effective delegation is selecting the person to whom you will delegate.

Question 25

A basic characteristic of decentralized organizations is the delegating of authority to people at lower hierarchical levels to make decisions and take action.

Question 26

Cambridge Computer Installations,Inc.(CCII)has separate company-wide marketing,production,design and research departments.CCII is a divisional organization.

Question 27

Functional departmentalization occurs in only large organizations.

Question 28

If Consuelo,a manager at Nearly New,a consignment store chain,delegates responsibility to a subordinate,she is relieved of the ultimate responsibility and accountability for her subordinate's actions.

Question 29

Sometimes organizations change their degree of centralization.

Question 30

Delegation of work responsibilities is more effective when the manager does not delegate authority also.

Question 31

Macy's Group,has geographic divisions for its operations serving particular states or regions of the U.S.Macy's uses a customer division.

Question 32

One advantage of delegation is that it helps develop effective subordinates.

Question 33

A clear advantage of the product form of departmentalization is that task responsibilities are clear.

Question 34

Effective delegation usually results in the manager losing control of the work to be accomplished.

Question 35

If you are not delegating,you are merely doing things.

Question 36

In a centralized organization the high-level executives make most decisions and pass them down to lower levels for implementation.

Question 37

The divisional organization has departmentalization that groups units around products,customer,or geographic regions.

Question 38

Robin Randalson works in the Human Resources Department for Kindly Kare Corporation,a retirement community.Therefore,Robin works for a staff department,rather than a line department.

Question 39

Accountability means the subordinate's manager has the right to expect the subordinate to perform the job,and the right to take corrective action if the subordinate fails to do so.

Question 40

The three basic approaches to departmentalization are line,staff,and matrix.

Question 41

Another name for a virtual corporation is a dynamic network.

Question 42

A broker is someone who assembles and coordinates participants in a network.

Question 43

Coordination by plan deals with exact rules and procedures that spell out what needs to be done and how.

Question 44

Which of the following depicts the positions in the firm and how they are arranged?

A)Span of control
B)Departmentalization
C)Division of labor
D)Organization chart
E)Value chain

Question 45

To a large degree,problems can be avoided if the key managers in a matrix learn the behavioral skills demanded in the matrix structure.

Question 46

Coordination methods include standardization,plans and mutual adjustment.

Question 47

The primary advantage of both the product and customer/regional approaches to departmentalization is the ability to focus on customer needs and provide faster,better service.

Question 48

Coordination by mutual adjustment involves feedback and discussions to jointly figure out how to approach problems and devise solutions that are agreeable to everyone.

Question 49

Today's complex and dynamic organizations must either reduce the need for information or process more information to cope with high uncertainty and heavy information demands.

Question 50

A network organization makes heavy use of the informal grapevine to run the firm.

Question 51

The unity-of-command principle states that a person should have multiple managers who lead together,giving subordinates the same unified message.

Question 52

Which of the following is created through division of labor and job specialization?

A)Integration
B)Coordination
C)Differentiation
D)Span of control
E)Managerial competence

Question 53

An organization chart conveys which of the following?

A)The work performed by each unit
B)The best number of people that can generally be supervised
C)How decisions are made
D)Where the organization is located
E)How the organization will interact with the external environment

Question 54

When organizations differentiate their structures,they also need to be concerned about integration and coordination.

Question 55

The reporting structure and division of labor in an organization is conveyed by the

A)organization chart.
B)span of control.
C)organization hierarchy.
D)span of management.
E)managerial assets.

Question 56

Coordination by plan deals with exact rules and procedures that spell out what needs to be done and how.

Question 57

The simplest and most flexible approach to coordination is by mutual adjustment.

Question 58

Gerry,the operations manager of the Douglas County School District requires all schools to use the same type of computers and operating systems.This simplifies both the purchasing and training processes.In this instance,Gerry can best be described as coordinating the school district using plans.

Question 59

A matrix organization is a hybrid form of organization in which functional and divisional forms overlap.

Question 60

The presence of rules and regulations governing how people in the organization interact is called formalization.

Question 61

A powerful trend for United States businesses over the past few decades has been

A)decreasing the number of hierarchical layers.
B)increasing the number of hierarchical layers.
C)decreasing the span of control.
D)increasing formalization.
E)increasing standardization.

Question 62

__________ refers to the fact that different people often perform specific parts of the entire task.

A)Integration
B)Specialization
C)Departmentalization
D)Coordination
E)Hierarchy

Question 63

The assignment of different tasks to different people or groups in the organization is the

A)strategic plan.
B)organization structure.
C)division of labor.
D)value chain.
E)responsibility chart.

Question 64

The three levels of the organizational hierarchy include

A)top,middle and employee levels.
B)top,middle and operational levels.
C)first,middle and lower levels.
D)top,selected,delegated levels.
E)top,operational and employee levels.

Question 65

The board of directors overseeing an organization is responsible for

A)selecting the CEO.
B)determining the firm's strategic direction.
C)assuring ethical and legal conduct.
D)reviewing financial performance.
E)all of the above.

Question 66

When top executives of Alpha Corporation sit on the Alpha Corporation board,they are called

A)outside directors.
B)collaborative directors.
C)cooperating directors.
D)authoritative directors.
E)inside directors.

Question 67

Coordination refers to

A)the division of labor within an organization.
B)the performance of specific tasks by specific people.
C)the procedures that link the various parts of the organization to achieve the organization's overall mission.
D)the need for specific tasks in the functional fields.
E)the way the positions in the firm are organized.

Question 68

Authority is defined as

A)the legitimate right to tell other people what to do.
B)the procedures that link the various parts of the organization to achieve the organization's overall mission.
C)the assignment of new or additional responsibilities to a subordinate.
D)the expectation that staff will take corrective action when necessary.
E)a person is assigned a task that he or she is supposed to carry out.

Question 69

In the study by Lawrence and Lorsch,companies in complex,dynamic environments developed _____ levels of differentiation;and _____ levels of integration.

A)low;low
B)intermediate;high
C)high;high
D)low;high
E)high;low

Question 70

The three broad levels of the organizational pyramid are called the

A)chain of command.
B)organization structure.
C)organization hierarchy.
D)span of management.
E)organization control.

Question 71

The procedures that link the various parts of the organization for the purpose of achieving the organization's overall mission are called

A)job specialization.
B)diversification.
C)coordination.
D)dynamism.
E)complexity.

Question 72

The organizational pyramid is commonly called the

A)corporation.
B)hierarchy.
C)structure
D)bureaucracy.
E)framework.

Question 73

The operational level of the organization includes

A)the CEO,President and Vice-Presidents.
B)the plant and/or departmental managers.
C)all levels of middle management.
D)first-line managers,supervisors and employees.
E)stockholders and the board of directors.

Question 74

Which of the following is among the major duties of a board of directors?

A)Inspecting the overall advertising and positioning message for the firm
B)Ensuring ethical conduct
C)Reviewing all employees
D)Selecting front-line managers
E)Lobbying on behalf of the firm

Question 75

Large corporations have boards of directors that are elected by

A)employees.
B)managers of all levels.
C)shareholders.
D)top managers.
E)all stakeholders.

Question 76

The number of subordinates who report directly to an executive or supervisor is called the

A)reporting order.
B)span of control.
C)broad report control.
D)bureaucratic span.
E)authoritative span.

Question 77

The legitimate right to make decisions and to tell other people what to do is referred to as

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

Question 78

The oversight of the firm by its executive staff and board of directors is called corporate

A)control.
B)oversight.
C)power.
D)governance.
E)strategy.

Question 79

The process by which different individuals and units perform specific parts of the larger task is called

A)accountability.
B)authority.
C)responsibility.
D)specialization.
E)differentiation.

Question 80

Top management includes which of the following?

A)Chief Financial Officer
B)First-line Manager
C)Operational Supervisors
D)Division Supervisor
E)Personnel Supervisor