Question 1

A department is best defined as a:
A) unique group of resources that management has assigned to carry out a particular task.
B) group of employees upon whom the decision-making authority resides.
C) group that is formed among employees of an organization who have similar interests.
D) subgroup that is formed when members in formal groups feel uncomfortable with the way they are expected to behave.

Accepted Answer

A department is a unique group of resources that management has assigned to carry out a particular task or set of tasks. It is a functional unit within an organization that is responsible for carrying out specific functions or activities. Departments are created to facilitate efficient and effective functioning of an organization, and to ensure that resources are optimally utilized.

Question 2

The management at Oranges Inc.reduces the size of the company's workforce in order to become more flexible.For specific projects requirements,it arranges alliances.This is an example of the _____ structure.
A) customer
B) geographic
C) network
D) organic

Accepted Answer

The arrangement of alliances for specific projects requirements suggests a network structure, in which companies form alliances to achieve specific objectives or projects. This structure is characterized by a flexible, decentralized organization that forms temporary partnerships to address specific challenges or opportunities. Therefore, option C (network structure) is the best choice. Options A (customer structure) and B (geographic structure) do not fit the description provided, and option D (organic structure) is not specific enough to determine its fit in this scenario.

Question 3

Power is best defined as the:
A) obligation to perform assigned activities.
B) duty to advise or assist those with line authority.
C) ability to get others to act in a certain way.
D) duty to advise or assist those with functional authority.

Accepted Answer

Power is the ability to influence others to act in a certain way, whether through coercion, persuasion, or other means. it does not necessarily involve an obligation or duty to perform specific activities, as in options A, B, and D.

Question 4

The right given to employees to carry out tasks and give orders related to the organization's primary purpose is called:
A) centralized authority.
B) functional authority.
C) staff authority.
D) line authority.

Accepted Answer

Line authority is the right given to employees to carry out tasks and give orders related to the organization's primary purpose. This type of authority flows downwards from higher levels of management to lower levels and is essential for achieving organizational goals. Centralized authority involves concentrating decision-making power at the top of the organization, while functional and staff authority are types of specialized support positions that provide advice and assistance to line managers but do not have the same level of decision-making power.

Question 5

Tamara,a supervisor,decides to organize a company softball team to play against other companies in the city.She starts by laying down the purpose of the team.In this list she includes improvement of the team's morale,physical exercise,and most importantly,having fun.Which of the following steps in the organizing process is Tamara concentrating on at present?
A) Grouping activities
B) Defining objectives
C) Assigning duties
D) Determining resources

Accepted Answer

Tamara is currently defining the objectives for the softball team, which is a step in the organizing process. Grouping activities, assigning duties, and determining resources are other steps in the organizing process.

Question 6

Functional authority is best defined as the right given by higher management to:
A) specific middle managers to recruit and dismiss line managers.
B) specific staff personnel to give orders concerning an area in which the staff personnel have expertise.
C) carry out tasks and give orders related to the organization's primary purpose.
D) advise or assist those with line authority.

Accepted Answer

Functional authority allows specific staff personnel to give orders in areas where they have expertise, even though they do not have line authority.

Question 7

At Booze Speaker Company,operations are departmentalized under the following sections-home speakers,automobile speakers,and commercial speakers.These departments are well-demarcated and employees are responsible only for their own department.In the context of departmentalization,this company is most likely using the:
A) organic structure.
B) combination structure.
C) geographic structure.
D) product structure.

Accepted Answer

The description given of Booze Speaker Company indicates that the company has divided its operations into separate departments based on the different products it offers - home speakers, automobile speakers, and commercial speakers. This is an example of product departmentalization, which is a type of functional departmentalization. Therefore, the best choice is D) Product structure.

Question 8

Which of the following is a defining characteristic of centralized organizations?
A) Management grants absolute authority to middle managers.
B) Managers at the top retain a great deal of authority.
C) Line authority is only in the hands of the supervisors.
D) They share a lot of authority with employees at all levels.

Accepted Answer

Centralized organizations feature a top-down hierarchy where managers at the top level retain a great deal of control and decision-making power. Lower-level employees have limited authority and follow instructions from higher-ups.

Question 9

Which of the following is typically true in organizations with much height?
A) They are referred to as flat organizations.
B) Many people report to each manager.
C) Employees have complete control over their work.
D) They are not very flexible or responsive to customers.

Accepted Answer

Organizations with much height, also known as tall organizations, often have many layers of management, which can lead to slower decision-making and less flexibility in responding to customer needs.

Question 10

Which of the following is true about decentralized organizations?
A) All management levels share a lot of authority.
B) Top managers retain all the authority.
C) A product organization structure exists.
D) Line authority does not exist.

Accepted Answer

Decentralized organizations distribute authority and decision-making throughout the organization, meaning that management levels share authority rather than all authority staying with top managers. A product organization structure and line authority may still exist within a decentralized organization.

Question 11

Which of the following best describes a functional structure?
A) It is an organizational structure where boundaries between jobs continually shift and people pitch in wherever their contributions are needed.
B) It is an organizational structure where work and resources are assigned to departments responsible for all the activities related to producing and delivering a particular product.
C) It is an organizational structure where the organization is departmentalized according to the type of customer served.
D) It is an organizational structure where the personnel and other resources are grouped according to the types of work they carry out.

Accepted Answer

A functional structure groups personnel and resources according to the types of work they carry out. This typically results in departments such as finance, human resources, and operations. The goal is to allow for specialization and efficiency within each department.

Question 12

Organizing is best defined as the management function of:
A) determining how to achieve the set objectives.
B) setting the goals and objectives of the company.
C) setting up the group, allocating resources, and assigning work to achieve goals.
D) influencing people to act or not act in a certain way.

Accepted Answer

Organizing is the management function of setting up the group, allocating resources, and assigning work to achieve goals. Option A refers to planning, Option B refers to goal-setting, and Option D refers to leadership.

Question 13

Which of the following best describes an organic structure?
A) It is an organizational structure where boundaries between jobs continually shift and people pitch in wherever their contributions are needed.
B) It is an organizational structure where work and resources are assigned to departments responsible for all the activities related to producing and delivering a particular product.
C) It is an organizational structure where the organization is departmentalized according to the type of customer served.
D) It is an organizational structure where the departmentalization is done by combining both product and geographical structures.

Accepted Answer

An organic structure is characterized by a more flexible and decentralized approach to organizing work, with a focus on cross-functional teams that can adapt and respond quickly to changing circumstances. Boundaries between jobs are often blurred, and individuals are expected to take on multiple roles as needed. This stands in contrast to a more rigid, mechanistic structure that relies on strict job descriptions and hierarchical lines of authority. Options B, C, and D describe other types of organizational structures, such as functional, customer-based, and matrix structures, respectively.

Question 14

The difference between line authority and staff authority is that staff authority:
A) is the right to advise or assist those with line authority.
B) is the right to advise or assist those with functional authority.
C) gives one the right to fire employees with line authority.
D) gives one the right to fire employees with functional authority.

Accepted Answer

Line authority is the right to make decisions and direct the work of subordinates, while staff authority is the right to advise or assist those with line authority. Staff authority does not give the right to fire employees, only to provide guidance and assistance to those with line authority.

Question 15

Which of the following is typically true in organizations with little height?
A) They are more productive than tall organizations.
B) Only a few people report to each manager.
C) Employees have a lot of decision-making authority.
D) They are not very flexible or responsive to customers.

Accepted Answer

In organizations with little height, also known as flat organizations, there are fewer hierarchical levels, which often results in employees having more decision-making authority and autonomy.

Question 16

The number of levels in an organization from top management down to the operative employees describes the _____ of the organization.
A) efficiency level
B) breadth
C) height
D) scope

Accepted Answer

The number of levels in an organization is referred to as the height of the organization. This refers to the vertical distance between the highest level of management and the lowest levels of operational employees.

Question 17

The positions at the bottom of the organization chart are those with the:
A) highest discretion and scope.
B) highest responsibility and experience.
C) least authority and responsibility.
D) least efficiency and productivity.

Accepted Answer

Positions at the bottom of the organization chart have the least authority and responsibility, often involving routine tasks that require minimal decision-making or problem-solving skills. These positions typically do not have a significant impact on the overall direction or success of the organization and may have limited opportunities for advancement.

Question 18

Authority is best defined as the:
A) obligation to steer clear of nepotism.
B) right to perform a task or give orders to someone else.
C) obligation to perform assigned activities.
D) ability to prevent instances of whistle-blowing.

Accepted Answer

Authority refers to the legitimate right or power to perform a task, make decisions, or give orders to someone else. It implies a formal positioning of power, which could be at the individual or organizational level. The individual with authority is expected to enforce obedience to his/her directives, and it may come with certain responsibilities and accountability measures in place.

Question 19

Home Office Company's human resources department has the authority to ensure that all departments are complying with the laws pertaining to fair employment practices.This authority is most appropriately referred to as:
A) staff authority.
B) autocratic authority.
C) functional authority.
D) centralized authority.

Accepted Answer

Functional authority is the authority or power given to individuals, departments or teams to supervise or oversee a specific function or area of the organization. In this case, the human resources department has functional authority over ensuring compliance with fair employment practices laws, which means they have the power to direct and coordinate activities related to fair employment practices throughout the organization. This differs from staff authority, which would be more of a supportive role, and centralized or autocratic authority, which would involve more central control and decision-making power.

Question 20

Shakil works for a national grocery chain that is divided into well-demarcated groups such as the Northeastern Division,the Northwestern Division,the Southeastern Division,and the Southwestern Division.These groups have been set up in keeping with large groups of customers located in their respective locations.In the context of departmentalization,this company is most likely using a(n):
A) geographic structure.
B) customer structure.
C) product structure.
D) organic structure.

Accepted Answer

The company is grouping its divisions based on the geographic locations of their customers, which is a characteristic of a geographic structure. Customer structure would involve grouping by specific customer types, product structure would involve grouping by the type of product or service offered, and organic structure refers to a flexible and decentralized organizational structure, which is not necessarily related to this situation.

Quiz 7: Organizing and Authority

A department is best defined as a:

The management at Oranges Inc.reduces the size of the company's workforce in order to become more flexible.For specific projects requirements,it arranges alliances.This is an example of the _____ structure.

Power is best defined as the:

The right given to employees to carry out tasks and give orders related to the organization's primary purpose is called:

Functional authority is best defined as the right given by higher management to:

Which of the following is a defining characteristic of centralized organizations?

Which of the following is typically true in organizations with much height?

Which of the following is true about decentralized organizations?

Which of the following best describes a functional structure?

Organizing is best defined as the management function of:

Which of the following best describes an organic structure?

The difference between line authority and staff authority is that staff authority:

Which of the following is typically true in organizations with little height?

The number of levels in an organization from top management down to the operative employees describes the _____ of the organization.

The positions at the bottom of the organization chart are those with the:

Authority is best defined as the:

Home Office Company's human resources department has the authority to ensure that all departments are complying with the laws pertaining to fair employment practices.This authority is most appropriately referred to as: