Question 1

Melissa's company is a bureaucratic organization. Melissa is likely to encounter which of the following conditions?
A) real time decisions
B) cross-functional teams
C) empowerment of first-line employees to better serve customers
D) many layers of management

Accepted Answer

Bureaucratic organizations are characterized by many layers of management, strict adherence to rules and procedures, and decision-making authority concentrated at the top of the organization. Real time decisions and cross-functional teams are more commonly found in organizations with flatter hierarchies and a more decentralized decision-making structure. Empowerment of first-line employees to better serve customers is also more likely in organizations that value employee autonomy and decentralized decision-making. Therefore, the best choice is D - many layers of management.

Question 2

In a bureaucratic organization
A) departments communicate with each other on a regular basis.
B) employees follow strict rules and regulations.
C) customer satisfaction is the number one priority.
D) first-line workers are empowered to respond to the needs of customers.

Accepted Answer

In a bureaucratic organization, there is a strict adherence to rules and regulations, which helps maintain consistency and predictability in operations. Departments may communicate with each other, but the priority is ensuring that procedures are followed correctly. Customer satisfaction may not be the primary focus in a bureaucratic organization, and first-line workers may not have the authority to make decisions independently.

Question 3

Which of the following statements most closely identifies the problem with adopting Fayol's principles of organization design for contemporary businesses?
A) Leaving some decision-making power to middle management has the effect of minimizing the effort and results that management would put into the other historical principles of organization.
B) These principles create organizations that don't respond quickly to customer needs.
C) The principles of Fayol and Weber hamper a firm's ability to determine if it is profitable.
D) Authority and responsibility quickly become unrelated.

Accepted Answer

Fayol's principles of organization design focus on hierarchy, command, and control, which may not be as effective in contemporary businesses where customer needs are constantly evolving and require more adaptable organizational structures. These principles may create rigid organizations that are slow to respond to changes in the market, which can be detrimental in today's dynamic business environment.

Question 4

A(n) ________ consists of one person at the top of the organization and many levels of managers who are responsible to that person.
A) hierarchy
B) oligarchy
C) inverted organization
D) informal organization

Accepted Answer

A hierarchy is a traditional organizational structure consisting of a pyramid-shaped chain of command with one person at the top, and several managers at various levels who report to that person. This structure enables the company to define roles and responsibilities, and to delegate tasks efficiently, but it can also create bureaucratic inefficiencies and rigid power dynamics.

Question 5

________ organizations are characterized by many layers of management and function with well-defined rules and procedures.
A) Matrix
B) Inverted
C) Ordered
D) Bureaucratic

Accepted Answer

Bureaucratic organizations function through a hierarchy of authority, with many layers of management and well-defined rules and procedures.

Question 6

Economies of scale
A) are available to small firms but not to large firms due to management inefficiencies.
B) are achieved when a firm reduces its average cost of production as it produces more.
C) can be avoided by purchasing supplies and raw materials in large quantities.
D) help explain the success of small businesses.

Accepted Answer

Economies of scale refer to the cost advantages a firm experiences as it increases production. This allows larger firms to produce goods at a lower cost per unit than small firms, as they can spread fixed costs over a larger output. It has nothing to do with management inefficiencies or the success of small businesses. Purchasing supplies and raw materials in large quantities can contribute to achieving economies of scale, but it is not the only factor.

Question 7

Which of the following statements would best summarize Max Weber's views on the role of workers in an organization?
A) Workers should be empowered to do whatever it takes to satisfy the needs of customers.
B) Workers will be promoted within the organization depending upon "who they know," rather than "what they know."
C) Workers should simply follow well-defined procedures.
D) Although top managers must ultimately make the decisions, workers are an important creative resource for a firm, and top management should listen to their ideas.

Accepted Answer

Weber put a great deal of trust in management, and felt that the firm would do well if employees simply did what they were told.

Question 8

Fayol believed that decision-making authority should remain in the hands of top management
A) in small organizations, but should be delegated to middle and first-line managers in large organizations.
B) in large organizations, but could be delegated to middle and first-line managers in small organizations.
C) in all types and sizes of organizations.
D) only in organizations subjected to significant government regulation.

Accepted Answer

One of Fayol's principles of organization states that the amount of decision-making power vested in top management should vary according to circumstances. Fayol believed that top management could assume all decision-making power in small organizations, but that decision-making power could be delegated to lower levels of management in large organizations.

Question 9

A(n) ________ is used by an organization to show who is accountable for the completion of specific work and who reports to whom.
A) balance sheet
B) Venn diagram
C) stakeholder outline
D) organization chart

Accepted Answer

An organization chart is a visual representation or a diagram used by an organization to show the hierarchical structure and relationships between different positions, departments, and individuals within the organization. It clearly shows who is accountable for specific work and who reports to whom, making it an essential tool for effective communication and decision-making within the organization.

Question 10

At Better Neighbors Fencing, ten employees perform various aspects of the company's work. Two people are in sales; four perform installation; one purchases materials; one does billing; two perform after-sales inspections. This type of organization reflects Fayol's principle of
A) division of labor.
B) equity.
C) unity of command.
D) hierarchy of authority.

Accepted Answer

Fayol's principle of division of labor states that work should be divided among individuals and groups to ensure that tasks are done by those with the necessary skills and expertise. In the given scenario, the work is clearly divided among ten employees based on their specific roles and responsibilities, reflecting the principle of division of labor. The other principles listed (equity, unity of command, hierarchy of authority) are not as applicable to the given scenario.

Question 11

Joelle, a designer for a business that installs underground sprinkler systems for residential and commercial customers, is experiencing some frustration. She has two bosses, Reid and Bryan, who both share the ownership responsibilities of the business. While Reid is in charge of commercial accounts, Bryan is in charge of residential accounts. Sometimes, however, Reid and Bryan double book Joelle's time, creating irritations and animosity. Since they share managerial responsibility, there is no clear way to decide whose accounts are most important. This type of situation represents a violation of Fayol's principle.
A) division of labor
B) clarity of objective
C) priority of assignment
D) unity of command

Accepted Answer

This situation represents a violation of the principle of unity of command, which states that each employee should have only one direct supervisor. In this case, Joelle is receiving conflicting instructions from both Reid and Bryan, who both share managerial responsibilities.

Question 12

Cameron, a financial manager at Southeastern Bank, always attempts to treat each subordinate with respect and fairness. Cameron's treatment of employees is an example of Fayol's principle of
A) unity of command.
B) equity.
C) empowerment.
D) order.

Accepted Answer

Cameron's attempt to treat each subordinate with respect and fairness aligns with Fayol's principle of equity, which involves treating employees fairly and justly.

Question 13

According to Max Weber's views on bureaucratic organizations, Sean's function, as a middle manager at a bureaucratic company, would be to
A) make key operating decisions.
B) evaluate the daily performance of first-line employees.
C) ensure the organization achieves esprit de corps.
D) implement the decisions of top management.

Accepted Answer

Max Weber's views on bureaucratic organizations suggest that middle managers are responsible for implementing the decisions of top management. They are seen as a link between top management and first-line employees and are responsible for ensuring that the organization operates efficiently and effectively. Thus, Sean's function as a middle manager would be to implement the decisions made by the top management.

Question 14

Max Weber favored which of the following?
A) inverted organizations
B) worker participation in decision making
C) staffing and promotions based on qualifications
D) flat organizations

Accepted Answer

Max Weber believed in staffing and promotions based on qualifications, which is a key aspect of bureaucratic organizations. He believed that roles should be filled by individuals who have the necessary qualifications, rather than based on factors such as nepotism or personal relationships.

Question 15

If companies follow the theories of Fayol and Weber, which of the following scenarios is likely to result?
A) Organization design will benefit by the emergence of quick decision making.
B) Organization design will eliminate systems of hierarchy and chains of command due to their hindrance of esprit de corps.
C) Organizations that grow will develop several layers of management and the time that it takes to make and carry out a decision will increase.
D) There will be a significant reduction of workforce due to specialization and departmentalization.

Accepted Answer

Fayol and Weber's theories emphasize the importance of hierarchy and the division of labor, meaning that as organizations grow, they will develop several layers of management and it will take longer to make and carry out decisions. This contradicts options A and B. Option D is not directly related to the theories of Fayol and Weber.

Question 16

When Barrett opened his auto body shop, his business plan included a(n) ________ that showed the relationships among employees in his organization and the lines of authority and responsibility.
A) business view map
B) department categorization
C) organization chart
D) operating matrix grid

Accepted Answer

An organization chart shows the structure of a company or organization, including the relationships among employees and the lines of authority and responsibility. It is commonly included in a business plan to provide a clear understanding of the management structure.

Question 17

Which of the following statements explains the unity of command principle of management?
A) All workers must share the same goal.
B) Every firm has one strong leader, and everyone should support that individual.
C) Workers can become frustrated and confused if they have more than one boss.
D) All authority should rest with top management, since only top managers carry the responsibility of bad decisions.

Accepted Answer

The unity of command principle of management states that a worker should have only one boss. This is important because if a worker reports to multiple bosses, it can lead to confusion and frustration, and potentially conflicting directives. Therefore, having a clear chain of command and a single point of contact for workers is essential for maintaining efficiency and avoiding complications.

Question 18

Mountain Top Community College is a multi-district college in the Denver area with four campuses. Each campus has one president, two vice presidents, five deans, 12 department chairs, over 100 faculty members, and several persons in support roles. The presidents from each campus report to four vice chancellors and the vice chancellors report to the chancellor. It is clear that Mountain Top has a well-defined ________.
A) channel of academic culture
B) chain of command
C) responsibility environment
D) bureaucratic reallocation

Accepted Answer

The description of the organizational structure indicates a clear hierarchy of authority, with each level of leadership reporting to the level above it. This is referred to as a chain of command.

Question 19

One advantage of a bureaucratic organization is that
A) it is very responsive to the wants and needs of customers.
B) there are very few layers of management.
C) it encourages cooperation among different departments within the organization.
D) employees know they are expected to follow the rules and regulations.

Accepted Answer

A bureaucratic organization provides clear rules and job descriptions, which can help employees know what is expected of them. This can create a sense of order and stability, which can be beneficial for the organization.

Question 20

Josie recently took a job in the marketing department for Beachside Bagels and Bakery. After just a few days on the job, Josie learned that the company has many layers of management, and seems to have a rule to cover almost every situation. These conditions suggest that Beachside Bagels and Bakery is a(n)
A) cross-functional organization.
B) decentralized organization.
C) oligopolistic organization.
D) bureaucratic organization.

Accepted Answer

The fact that Beachside Bagels and Bakery has many layers of management and numerous rules suggests that it is a bureaucratic organization. Bureaucracies are characterized by a highly structured organizational hierarchy, formalized rules and procedures, and an emphasis on following established protocols.

Quiz 8: Structuring Organizations for Todays Challenges

Melissa's company is a bureaucratic organization. Melissa is likely to encounter which of the following conditions?

In a bureaucratic organization

Which of the following statements most closely identifies the problem with adopting Fayol's principles of organization design for contemporary businesses?

A(n) ________ consists of one person at the top of the organization and many levels of managers who are responsible to that person.

________ organizations are characterized by many layers of management and function with well-defined rules and procedures.

Economies of scale

Which of the following statements would best summarize Max Weber's views on the role of workers in an organization?

Fayol believed that decision-making authority should remain in the hands of top management

A(n) ________ is used by an organization to show who is accountable for the completion of specific work and who reports to whom.

At Better Neighbors Fencing, ten employees perform various aspects of the company's work. Two people are in sales; four perform installation; one purchases materials; one does billing; two perform after-sales inspections. This type of organization reflects Fayol's principle of

Cameron, a financial manager at Southeastern Bank, always attempts to treat each subordinate with respect and fairness. Cameron's treatment of employees is an example of Fayol's principle of

According to Max Weber's views on bureaucratic organizations, Sean's function, as a middle manager at a bureaucratic company, would be to

Max Weber favored which of the following?

If companies follow the theories of Fayol and Weber, which of the following scenarios is likely to result?

When Barrett opened his auto body shop, his business plan included a(n) ________ that showed the relationships among employees in his organization and the lines of authority and responsibility.

Which of the following statements explains the unity of command principle of management?

One advantage of a bureaucratic organization is that