Question 1

Novachek,Inc.is a large and bureaucratic firm with many layers of management and formal rules and regulations.The company is losing many of its customers to smaller and more flexible rivals and is currently struggling for survival.Joe has just been hired as Novachek's new CEO,and his most pressing concern is to turn around the struggling company.Joe's best approach to dealing with this type of organization is probably to:
A)eliminate nearly all of the first-line employees.
B)re-engineer the company.
C)establish a committee to investigate the problem.
D)make small,incremental improvements in the production department.

Accepted Answer

Novachek, Inc. is a large and bureaucratic firm that has many layers of management and formal rules and regulations. This makes it difficult to respond quickly to changes in the market, and the company is losing customers to smaller and more flexible rivals. Re-engineering the company would involve rethinking its structure and processes to make it more efficient and responsive to customer needs. This would likely require significant changes to the organization's structure and culture, which may involve job cuts and other difficult decisions for the new CEO. However, if done correctly, it could help to turn the struggling company around and make it more competitive in the market. Eliminating first-line employees, establishing a committee to investigate the problem, or making small, incremental improvements in the production department are unlikely to address the root causes of the company's problems and may not lead to significant improvements in performance.

Question 2

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

Accepted Answer

The unity of command principle states that an employee should receive orders from only one superior to avoid confusion and conflict. Having multiple bosses can lead to conflicting instructions and ultimately frustrate workers.

Question 3

The management at Patriot Mills works hard to ensure that no one in its organization has more than one boss and all workers are treated with fairness and respect.Additionally,the firm divides the work into areas of specialization so that everyone knows to whom they should report.The management of Patriot Mills reflects the ideas and principles of:
A)Henri Fayol.
B)Karl Marx.
C)Peter Drucker.
D)John M.Keynes.

Accepted Answer

The management principles described in the scenario, including specialization of labor and the idea of each worker having only one boss, are consistent with the ideas of Henri Fayol, a pioneer in management theory. Fayol emphasized the importance of division of labor, unity of command, and treating employees with respect and fairness. The other options, Karl Marx, Peter Drucker, and John M. Keynes, did not focus on these specific principles.

Question 4

John has just taken a job in the marketing department with the Shelling Company.After just a few days on the job,John has learned that the company has many layers of management,and seems to have a rule to cover almost every situation.These conditions suggest that the Shelling Company is a(n):
A)decentralized organization.
B)oligopolistic organization.
C)bureaucratic organization.
D)cross-functional organization.

Accepted Answer

The description of the Shelling Company having many layers of management and numerous rules suggests that it is a bureaucratic organization, which is characterized by a highly structured and rule-bound approach to management.

Question 5

The practice of striving for maximum customer satisfaction by ensuring quality from all departments is called _________.
A)Total progressive management
B)TQM
C)Strategic analysis
D)Reformation

Accepted Answer

TQM stands for Total Quality Management, which is the practice of ensuring quality in all aspects of an organization in order to achieve maximum customer satisfaction. This approach involves continuous improvement, employee involvement, and a focus on meeting or exceeding customer expectations. Options A, C, and D are not specific to this concept.

Question 6

ABC Corporation has experienced rapid growth during their five years of existence.While still relatively small,ABC is now big enough that Jennifer,the firm's CEO,has decided to organize the firm into functional departments.This organizational structure will offer ABC all of the following advantages except : A)opportunities for employees to develop their skills in depth. B)good communications among different departments. C)economies of scale in the performance of functions. D)good coordination within functions.

Accepted Answer

Functional departmentalization often leads to poor communication among different departments because each department focuses on its own tasks and objectives, which can create silos.

Question 7

HairNet,a cosmetology trade publication,utilizes people and resources from other organizations as needed.Business relationships are temporary and flexible.HairNet is a networked organization made up of replaceable firms that join the network and leave it as needed.This unique organization is an example of:
A)core competency ranking.
B)real time transparency.
C)virtual corporation.
D)competitive benchmarking.

Accepted Answer

HairNet is a virtual corporation, which is a temporary networked organization made up of replaceable firms that join the network and leave it as needed.

Question 8

Which of the following describes the activity of a firm that assigns specific functions,such as accounting or legal work,to other organizations rather than performing these functions themselves?
A)Benchmarking
B)Functional sharing
C)Virtual distribution
D)Outsourcing

Accepted Answer

Outsourcing involves assigning specific functions to other organizations rather than performing them in-house. Benchmarking refers to comparing a firm's performance to that of competitors or industry standards. Functional sharing and virtual distribution are not terms commonly used to describe outsourcing.

Question 9

An organization with only a few layers of management is known as a:
A)tall organization.
B)leveraged organization.
C)coordinated organization.
D)flat organization.

Accepted Answer

An organization with only a few layers of management is known as a flat organization.

Question 10

A ________organization is characterized by direct two-way lines of responsibility, authority,and communication running from the top to the bottom of the organization,with all people reporting to only one supervisor.
A)cross-functional
B)matrix
C)line and staff
D)line

Accepted Answer

A line organization is characterized by direct two-way lines of responsibility, authority, and communication running from the top to the bottom of the organization, with all people reporting to only one supervisor. It is a traditional organizational structure where decisions are made at the top and flow down the organizational hierarchy.

Question 11

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

Accepted Answer

The answer of Fayol believed that decision-making authority should remain...

Question 12

Tamika works for a pharmaceutical company that services hospitals,doctors and consumers.Her company should departmentalize by which of the following ways?
A)product
B)customer group
C)function
D)process

Accepted Answer

Since Tamika's company services hospitals, doctors, and consumers, customer group departmentalization would be the most appropriate choice to ensure that each group receives tailored marketing and sales strategies. Product, function, and process departmentalization may not effectively address the different needs and preferences of the three customer groups.

Question 13

Which of the following determines the degree of decentralization a firm might use?
A)The degree to which lower level management is empowered to make decisions.
B)The degree of product standardization desired by the marketplace.
C)The chain of command used to follow the flow of authority from the top of the hierarchy to the lowest levels.
D)The geographical area served by the firm's operations.

Accepted Answer

The degree of decentralization in a firm is determined by the extent to which lower-level managers are given the power to make decisions. This means that the closer decision-making power is to the front-line employees, the more decentralized the organization is, and the more empowered these employees are. This degree of decentralization can vary depending on the nature of the industry and the size of the company.

Question 14

Fayol's ________principle says that a spirit of pride and loyalty should be created among people within an organization.
A)hierarchy of loyalty
B)equity
C)unity of command
D)esprit de corps

Accepted Answer

Fayol's principle of "esprit de corps" emphasizes the importance of creating a sense of pride, loyalty, and unity among employees within an organization. This can lead to increased morale, teamwork, and productivity.

Question 15

The traditional technique used to departmentalize an organization is by:
A)customer group.
B)geographic area.
C)function.
D)production process.

Accepted Answer

Departmentalizing an organization by function groups individuals who perform similar activities and have similar skills together. This allows for efficient use of resources and coordination within departments. The other options (customer group, geographic area, and production process) may also be useful in certain situations, but are not the traditional or most common method of departmentalizing.

Question 16

Henri Fayol and Max Weber are best known for their contributions to:
A)finance theory.
B)organization theory.
C)marketing theory.
D)production theory.

Accepted Answer

Henri Fayol and Max Weber are both considered pioneers in the field of organization theory. Fayol is known for his 14 principles of management, which focused on concepts such as division of labor, unity of command, and scalar chain. Weber, on the other hand, introduced the idea of bureaucracy as a form of organizational structure. Both of their contributions have had a lasting impact on the study of organizations and management.

Question 17

All of the following are advantages of the matrix organizational structure except:
A)it requires cooperation between employees and managers.
B)it gives flexibility to managers in assigning people to projects.
C)it can produce creative solutions to new-product development problems.
D)it provides for more efficient use of organizational resources.

Accepted Answer

The answer of All of the following are advantages of...

Question 18

Vaughan Studios organizes its operations by activity,such as production,marketing,accounting,and finance.Vaughn utilizes ________departmentalization in order to maximize their efficiency:
A)product
B)functional
C)standardized
D)customer

Accepted Answer

Vaughan Studios has organized its operations by activity, which is the definition of functional departmentalization. This type of departmentalization groups together employees who perform similar tasks or have similar skills, which can help maximize efficiency within each function. The other options (product, standardized, and customer departmentalization) do not fit the description of the way Vaughan Studios has organized its operations.

Question 19

Excite Enterprises uses an accounting firm to handle the payroll and tax functions for this firm.Using the services of another firm in this manner is an example of:
A)core competencies.
B)outsourcing.
C)benchmarking.
D)functional reassignment.

Accepted Answer

Outsourcing is the practice of using external firms to handle work that is traditionally performed within a company. In this case, Excite Enterprises is outsourcing their payroll and tax functions to an accounting firm.

Question 20

The ________of a business firm is the structure that details lines of authority,responsibility,and position.
A)normative design
B)formal organization
C)matrix reloaded structure
D)informal organization

Accepted Answer

The formal organization of a business firm outlines the official structure of the organization with clear lines of authority and responsibility. This includes the hierarchical levels of management, the duties and responsibilities of each position, and the formal communication channels within the organization. The other options do not accurately describe the structure of a business firm's organization.

Quiz 9: Structuring Organizations for Todays Challenges

Which of the following correctly identifies the rationale behind the unity of command principle of management?

John has just taken a job in the marketing department with the Shelling Company.After just a few days on the job,John has learned that the company has many layers of management,and seems to have a rule to cover almost every situation.These conditions suggest that the Shelling Company is a(n) :

The practice of striving for maximum customer satisfaction by ensuring quality from all departments is called _________.

Which of the following describes the activity of a firm that assigns specific functions,such as accounting or legal work,to other organizations rather than performing these functions themselves?

An organization with only a few layers of management is known as a:

A ________organization is characterized by direct two-way lines of responsibility, authority,and communication running from the top to the bottom of the organization,with all people reporting to only one supervisor.

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

Tamika works for a pharmaceutical company that services hospitals,doctors and consumers.Her company should departmentalize by which of the following ways?

Which of the following determines the degree of decentralization a firm might use?

Fayol's ________principle says that a spirit of pride and loyalty should be created among people within an organization.

The traditional technique used to departmentalize an organization is by:

Henri Fayol and Max Weber are best known for their contributions to:

All of the following are advantages of the matrix organizational structure except:

Vaughan Studios organizes its operations by activity,such as production,marketing,accounting,and finance.Vaughn utilizes ________departmentalization in order to maximize their efficiency:

Excite Enterprises uses an accounting firm to handle the payroll and tax functions for this firm.Using the services of another firm in this manner is an example of:

The ________of a business firm is the structure that details lines of authority,responsibility,and position.