Question 1

At Green Acres Fencing Company,eight employees each perform various aspects of the company's work.One person does sales,four perform installation;one purchases materials;one does billing;one performs after-sales inspections.This type of organization reflects Fayol's principle of:

Accepted Answer

The organization described in the scenario reflects Fayol's principle of division of labor, as each employee is assigned specific roles and responsibilities within the company.

Question 2

Economies of scale:

Accepted Answer

Economies of scale refer to the cost advantages that arise when a firm increases its level of output. One of the main benefits of economies of scale is that they allow firms to produce more goods and services at a lower cost per unit, thereby reducing average cost of production. This typically benefits large firms more than small firms, as large firms have greater output levels and can therefore take advantage of economies of scale more effectively. Choosing A, C, or D would be incorrect as they do not accurately describe economies of scale.

Question 3

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

Accepted Answer

The unity of command principle of management states that an employee should receive orders from only one superior to avoid confusion and frustration. Having multiple bosses can lead to conflicting orders and uncertainty about whom to obey.

Question 4

When Bret started his auto mechanic shop his business plan included a(n)_______________ that showed the relationship among employees in his organization and the lines of authority and responsibility.

Accepted Answer

An organization chart shows the hierarchal structure of an organization including the lines of authority and responsibility among employees. Choices A, B, and D do not refer to a specific tool or document for organizing employees and their responsibilities.

Question 5

In Weber's view of a bureaucratic organization,the organization demanded:

Accepted Answer

According to Weber, a bureaucratic organization requires clearly established rules and guidelines that were to be precisely followed. This ensures consistency and fairness in decision-making, but may also lead to inflexibility and a lack of innovation. Pride and loyalty among workers and cross-functional or self-managed teams are not necessary components of Weber's bureaucratic structure.

Question 6

The line of authority that moves from the top of a hierarchy to the lowest level is called the:

Accepted Answer

The chain of command represents the hierarchy of authority in an organization, with the ultimate decision-making power residing at the top and cascading down to the lower levels. This structure enables a clear delegation of responsibilities, helps maintain order, and allows for efficient communication and decision-making.

Question 7

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

Accepted Answer

According to Fayol and Weber's theories, organizations that grow will develop several layers of management and the time that it takes to make a decision will increase. This is because their theories emphasize the importance of a clear hierarchy and formalized lines of communication, which can slow down decision-making processes in larger organizations. Option A is incorrect because quick decision-making is not a primary focus of their theories. Option B is incorrect because both Fayol and Weber advocate for clear hierarchies and chains of command in order to maintain order and efficiency. Option D is also incorrect because while specialization and departmentalization may lead to a reduction in overall workforce, this is not a primary focus of their theories.

Question 8

Max Weber favored which of the following?

Accepted Answer

Max Weber favored staffing and promotions based on qualifications, as opposed to factors like social status or personal connections. This idea became known as the "ideal bureaucracy" where position and authority are based on merit, competency, and experience rather than personal relationships or political affiliations.

Question 9

In a bureaucratic organization:

Accepted Answer

Bureaucratic organizations are characterized by strict adherence to rules and regulations. This ensures consistency and uniformity in decision-making processes and reduces the risk of error. While departments may communicate with each other, this is not necessarily a defining characteristic of a bureaucratic organization. Customer satisfaction may be important, but it is not necessarily the number one priority in a bureaucratic organization, which prioritizes efficiency and consistency in decision-making. Similarly, first-line workers are not typically empowered to make decisions on their own in a bureaucratic organization.

Question 10

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

Accepted Answer

The description of many layers of management and numerous rules suggest a bureaucratic organization, which is characterized by a high degree of formalization and standardization.

Question 11

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

Accepted Answer

An organization chart is a visual representation of the structure of an organization, showing the relationships and relative ranks of positions within it. It is used to determine who is accountable for the completion of specific work and who reports to whom. A balance sheet is a financial statement that shows a company's assets, liabilities, and equity at a specific point in time. A Venn diagram is a diagram that shows all possible logical relations between a finite collection of different sets. A stakeholder outline is a document that outlines the stakeholders involved in a project or organization and their interests, goals, and influence levels.

Question 12

Campbell is a middle manager for a bureaucratic organization.According to Max Weber's views on bureaucratic organizations,Campbell's function within the organization is to:

Accepted Answer

According to Max Weber's views on bureaucratic organizations, middle managers like Campbell are responsible for implementing the decisions made by top management. They are not tasked with making key operating decisions or evaluating the daily performance of first-line employees. While it is important for organizations to have a positive team spirit, this is not necessarily the responsibility of middle managers in a bureaucratic organization.

Question 13

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

Accepted Answer

A hierarchy is a structure consisting of multiple levels of authority, with each level typically responsible to the one above it. The person at the top of the organization serves as the ultimate authority and makes decisions that affect the entire organization.

Question 14

______________ organizations are characteristic of many layers of management and function with well-defined rules and procedures.

Accepted Answer

Bureaucratic organizations have a hierarchical structure with many layers of management and well-defined rules and procedures.

Question 15

In a statement reported in the New York Times,Lars Bjork,CEO of Qliktech,remarked that he appreciates the order that bureaucracy can bring to an organization;however,when adding order to a process,the employees involved need to understand why that order is being implemented.It has to make sense.With this in mind,which of the following statements would be of great concern to this CEO?

Accepted Answer

The answer of In a statement reported in the New...

Question 16

Bill,a financial manager at Carlyle Bank and Trust always strives to treat each subordinate with respect and fairness.Bill's treatment of employees is an example of Fayol's principle of:

Accepted Answer

Bill's treatment of employees with respect and fairness exemplifies the principle of equity, which is one of Fayol's 14 principles of management. This principle suggests that managers should treat their employees fairly and impartially, providing them with equal opportunities and rewards based on their contributions to the organization.

Question 17

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

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 18

One advantage of a bureaucratic organization is that:

Accepted Answer

The advantage of a bureaucratic organization is that it sets clear rules and regulations for employees, promoting consistency and accountability. This can lead to increased efficiency and reliability in organizational operations.

Question 19

Sarah is a designer for a business that installs underground sprinkler systems for residential and commercial customers.Sarah designs and presents systems to prospective customers.Brothers Tom and Bill share the ownership responsibilities.Tom is in charge of commercial accounts and Bill is in charge of residential accounts.Sometimes Tom and Bill double book Sarah's time,creating frustration and animosity.Since they share supervisory responsibility,there is no clear way to decide whose accounts are most important.This type of situation represents a violation of Fayol's ____________ principle.

Accepted Answer

The situation represents a violation of the unity of command principle, as Sarah is receiving conflicting instructions from two supervisors (Tom and Bill) and there is no clear hierarchy or chain of command in terms of priority of work assignments.

Question 20

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

Accepted Answer

Fayol's principles emphasized hierarchy, formalization, and standardization, which can limit an organization's ability to quickly respond to changing customer needs and market conditions. This is particularly problematic in today's fast-paced business environment.

Quiz 8: Adapting Organizations to Todays Markets