Question 1

The expectation that an employee will accept credit or blame for results achieved in performing assigned tasks is called authority.

Accepted Answer

The expectation that an employee will accept credit or blame for results achieved in performing assigned tasks is called responsibility, not authority. Authority refers to the right to make decisions, direct others' work, and give orders.

Question 2

Oftentimes, a manager makes an employee responsible to perform a task, but does not give the person sufficient authority to get the job done.

Accepted Answer

This situation is known as an imbalance between responsibility and authority, where the employee is held accountable for outcomes without being empowered with the necessary authority to make decisions or access resources needed to successfully complete the task.

Question 3

In May 2006 a jury acquitted Jeffrey Skilling and Ken Lay on many counts of fraud and unethical behavior related to Enron.

Accepted Answer

In May 2006, a jury found Jeffrey Skilling and Ken Lay guilty on several counts of fraud and conspiracy related to the collapse of Enron, not acquitted.

Question 4

One of the barriers to delegation is when authority and responsibility have not been defined clearly.

Accepted Answer

When authority and responsibility are not clearly defined, it creates confusion and inefficiency, making it difficult to delegate tasks effectively.

Question 5

American Standard, based in the United States and specializing in the manufacture and sale of plumbing fixtures, air conditioners, and bath fixtures, used its communication competency when it invested in Bulgaria.

Accepted Answer

American Standard is primarily known for its plumbing products, and there is no widely reported evidence to suggest that the company's investment in Bulgaria was specifically due to its communication competency.

Question 6

American Standard has created strong ties with its unions, employees, and other workers in Bulgaria.

Accepted Answer

American Standard has been known to establish strong relationships with its workforce and unions in various countries, including Bulgaria, to ensure smooth operations and labor relations.

Question 7

Neither centralization nor decentralization is absolute in an organization.

Accepted Answer

Most organizations operate on a spectrum between centralization and decentralization, adapting their structure based on strategy, goals, and external conditions, rather than adhering strictly to one approach.

Question 8

Centralization is the concentration of authority at the top of an organization or department.

Accepted Answer

Centralization refers to the process where decision-making authority is concentrated at the top levels of management or within a specific department, with lower levels having less autonomy in decision-making processes.

Question 9

Subordinates may make better decisions than managers because they have a better grasp of the facts.

Accepted Answer

Subordinates often have a closer, more direct interaction with the day-to-day operations and specific details of tasks, giving them a better grasp of the facts relevant to certain decisions.

Question 10

Uniform policies are a characteristic of centralized organizations.

Accepted Answer

Centralized organizations typically implement uniform policies to ensure consistency, control, and alignment with the organization's goals across all departments and levels.

Question 11

Cost may be the least important factor in determining the extent of centralization.

Accepted Answer

The answer of Cost may be the least important factor...

Question 12

In order to help Kate Spade run more effectively, Kate and Andy Spade had to be clear about job definition.

Accepted Answer

Clear job definitions help in setting expectations and responsibilities, which is essential for the effective running of any business, including Kate Spade.

Question 13

Kate Spade has more than 200 stores in the United States and 29 in Asia.

Accepted Answer

The answer of Kate Spade has more than 200 stores...

Question 14

Harley-Davidson has chosen a geographic design to capitalize on regional differences in its 1,300 dealers who sell 28 different models of motorcycles.

Accepted Answer

The answer of Harley-Davidson has chosen a geographic design to...

Question 15

Grouping tasks and employees by function can be both cost effective and efficient.

Accepted Answer

Grouping tasks and employees by function allows for specialization, leading to increased efficiency and potentially lower costs due to reduced duplication of efforts and economies of scale.

Question 16

Kris Kringle uses a functional design for his toymaking operation. This organizational structure may increase career development because each elf trains within their functional area to improve his or her specialized skills.

Accepted Answer

In a functional organizational structure, individuals are grouped based on their function or role within the organization, allowing them to focus and specialize in their area of expertise. This specialization can lead to more in-depth knowledge and skills in their specific domain, potentially enhancing career development opportunities within that function.

Question 17

Inadequate communication between units is a potential pitfall of the functional design.

Accepted Answer

In a functional organizational structure, units are organized by specialty (e.g., marketing, finance, operations), which can lead to silos where units operate independently of one another, potentially leading to inadequate communication between these units.

Question 18

Organizations such as Nestlé, Sheraton Hotels, and Celanese Chemical use product departmentalization in part because they have worldwide operations.

Accepted Answer

The answer of Organizations such as Nestlé, Sheraton Hotels, and...

Question 19

In the product design, all functions for a particular product are organized under one manager.

Accepted Answer

In product design, organizing all functions under one manager is a common approach to ensure cohesive decision-making and streamlined communication, often referred to as a product-centric or product-focused organizational structure.

Question 20

Coordination is usually simplified across product lines because employees tend to focus on broader company goals rather than on goals for their particular product.

Accepted Answer

Coordination across product lines can be complex because employees often focus on the goals specific to their product line, which might not always align perfectly with broader company goals or the goals of other product lines.

Quiz 11: Designing Organizations