Question 1

Which of the following management functions entails the process of arranging people and resources to work toward a common goal?
A) Controlling
B) Leading
C) Planning
D) Organizing

Accepted Answer

Organizing is the management function that involves arranging people and resources to achieve a common goal. This includes determining tasks, grouping tasks into departments or teams, delegating authority, and allocating resources such as budget, equipment, and supplies.

Question 2

At Ink Pens Manufacturing (IPM), there are departments for marketing, engineering, and manufacturing. Which of the following structures does IPM exemplify?
A) A matrix structure
B) A cross-functional structure
C) An informal structure
D) A functional structure

Accepted Answer

IPM exemplifies a functional structure where departments are separated by function or specialized roles. In this case, the departments are marketing, engineering, and manufacturing.

Question 3

Which of the following divisional structures brings together people and jobs performed in the same location?
A) Product structures
B) Customer structures
C) Geographical structures
D) Process structures

Accepted Answer

Geographical structures group together employees and functions based on their location. This is ideal for organizations that have multiple locations or operate in different regions. This structure enables coordination, communication, and decision making at local levels.

Question 4

Organization charts provide all of the following EXCEPT: A) a clear division of work. B) diagrams of reporting relationships among employees. C) job titles of employees. D) unofficial relationships among employees.

Accepted Answer

Organization charts typically provide a clear division of work, diagrams of reporting relationships among employees, and the job titles of employees. However, they do not provide information on unofficial relationships among employees, which can be difficult to track and may not be reflected on a formal chart.

Question 5

An organizational structure consists of all the following EXCEPT: A) a system of tasks. B) reporting relationships. C) a management mission. D) communication linkages.

Accepted Answer

An organizational structure is primarily concerned with defining the relationships between individuals and groups in an organization, including reporting relationships, communication linkages, and a system of tasks. While a management mission is an important aspect of an organization's overall strategic planning and goal-setting, it is not a component of the organizational structure itself.

Question 6

A __________ groups together people with similar skills who perform similar tasks.
A) cross-functional structure
B) functional structure
C) horizontal structure
D) matrix structure

Accepted Answer

A functional structure groups together people with similar skills who perform similar tasks. A cross-functional structure pulls together individuals from different functional areas to work on a project or assignment. A horizontal structure involves the collaboration of multiple teams or individuals at the same hierarchical level. A matrix structure combines elements of both functional and cross-functional structures.

Question 7

The __________ allocates jobs to different people and groups.
A) organization chart
B) division of labor
C) shadow organization
D) informal structure

Accepted Answer

Division of labor is a method of allocating tasks and responsibilities to different individuals and groups within an organization. An organization chart is a visual representation of the company's structure, while a shadow organization and informal structure refer to unofficial networks or power structures within the company.

Question 8

The network of unofficial relationships among an organization's members is called the __________.
A) informal structure
B) planned structure
C) formal structure
D) industrial structure

Accepted Answer

The network of unofficial relationships among an organization's members is known as the informal structure. It refers to the way individuals in a group or organization interact and communicate outside of the formal channels of authority. This structure is often based on personal relationships, common interests, or social networks, and it can have a significant impact on the organization's culture, communication, and decision-making processes.

Question 9

Community Bank Inc. currently operates with a functional structure. A lack of communication across functional departments has affected the performance of the employees. This scenario illustrates the concept of:
A) matrix structure.
B) top-down structure.
C) functional chimneys.
D) cross-functional team.

Accepted Answer

Functional chimneys refer to a lack of communication and collaboration between different functional departments within a functional structure. This scenario clearly illustrates that issue, indicating that the bank is operating with functional chimneys. Matrix structure involves employees working on projects that cross different functional departments, while top-down structure is characterized by a clear chain of command and decision-making authority. Cross-functional teams, on the other hand, are formed specifically to improve communication and collaboration across functional departments.

Question 10

Your roommate wants to learn about organization charts. You can tell her that an organization chart can tell you all of the following about an organization EXCEPT its: A) division of work. B) formal structure. C) reporting relationships. D) control mechanisms.

Accepted Answer

An organization chart shows the formal structure of an organization, including its division of work and reporting relationships. However, it may not necessarily depict the control mechanisms used by the organization.

Question 11

Big Money Bank has several branches that are headed by branch managers. The loan manager, investments manager, operations manager, and trust manager in each branch report directly to the branch manager. This scenario is an example of a __________.
A) dysfunctional structure
B) matrix structure
C) network structure
D) product structure

Accepted Answer

The scenario described is an example of a product structure, where each branch manager oversees functional areas, such as the loan manager, investments manager, operations manager, and trust manager, which are specific to a particular product or service.

Question 12

Maria, the vice-president of operations at Choco Candy, Inc. (CCI), plans to create new divisions of CCI in China, India, and Malaysia. In this scenario, Maria develops a _______ for CCI.
A) product structure
B) geographical structure
C) team structure
D) service structure

Accepted Answer

Geographic structure is a type of organizational structure that groups units based on geography or territory. In this scenario, Maria plans to create new divisions of CCI in different countries, which indicates a geographical structure.

Question 13

Which of the following structures groups together people working on the same product, in the same geographical area, or with similar customers?
A) A matrix structure
B) A network structure
C) A divisional structure
D) An informal structure

Accepted Answer

A divisional structure groups together people working on the same product, in the same geographical area, or with similar customers. This structure allows for more autonomy and flexibility within each division to cater to their specific needs and goals. A matrix structure may also group people working on the same product, but it is characterized by multiple reporting lines and can be more complex. A network structure emphasizes collaboration and partnerships with external organizations, rather than internal grouping of employees. An informal structure is not a deliberate organizational design and lacks formal roles and responsibilities.

Question 14

Which of the following is NOT a form of divisional structure? A) Product structure B) Functional structure C) Customer structure D) Geographical structure

Accepted Answer

Functional structure is not a form of divisional structure. It is a type of organizational structure where tasks are grouped based on the function or department they belong to, such as accounting, marketing, and human resources. In a divisional structure, the organization is divided based on different products, customer groups, or geographical regions.

Question 15

A chart that describes a company's formal structure is called a(n):
A) PERT chart.
B) employee chart.
C) organization chart.
D) Pareto chart.

Accepted Answer

A chart that describes a company's formal structure is called an organization chart. A PERT chart is a project management tool, an employee chart is a more informal document that lists employees and their job titles, while a Pareto chart is used to display frequency data.

Question 16

__________ are made up of relationships between organizational members that are unofficial and not specified by the formal structure.
A) Strategic organizations
B) Vertical organizations
C) Shadow organizations
D) Formal organizations

Accepted Answer

Shadow organizations refer to the informal relationships and networks within an organization that are not officially recognized or structured. These networks can have a significant impact on organizational culture and decision-making processes.

Question 17

All of the following are problems with informal structures EXCEPT that they: A) assist in getting the work done. B) may work against organizational goals. C) breed resistance to change. D) distract members from their work.

Accepted Answer

Informal structures can often assist in getting work done as they facilitate communication and connections between employees. The other options are all potential problems with informal structures.

Question 18

The process of grouping together people and jobs into work units is called __________.
A) breakeven analysis
B) relationship management
C) socialization
D) departmentalization

Accepted Answer

Departmentalization is the process of grouping together people and jobs into work units. Option A, breakeven analysis, is a financial analysis used to determine the point at which revenue received equals the costs associated with receiving the revenue. Option B, relationship management, refers to managing and nurturing relationships with customers, clients, and other stakeholders. Option C, socialization, refers to the process by which an individual learns the norms and values of a particular culture or group.

Question 19

In a functional structure, a lack of communication between functional departments leads to a lack of:
A) coordination between the functional units.
B) expertise in solving technical problems.
C) a clear career path for employees.
D) training within the departments.

Accepted Answer

In a functional structure, each functional department focuses on its own goals and objectives without proper communication with other departments. As a result, functional units work in silos, which leads to a lack of coordination and collaboration between them. This lack of coordination can cause delays, errors, and rework, adversely affecting the overall performance of the organization.

Question 20

A(n) __________ graphically describes the arrangement of work positions within an organization.
A) informal structure
B) PERT chart
C) organization chart
D) business strategy

Accepted Answer

An organization chart graphically displays the structure and relationships of work positions within an organization. It typically includes job titles and the chain of command, showing who reports to whom. Options A, B, and D do not describe the arrangement of work positions within an organization.

Quiz 7: Information and Decision-Making

Which of the following management functions entails the process of arranging people and resources to work toward a common goal?

At Ink Pens Manufacturing (IPM) , there are departments for marketing, engineering, and manufacturing. Which of the following structures does IPM exemplify?

Which of the following divisional structures brings together people and jobs performed in the same location?

Organization charts provide all of the following EXCEPT:

An organizational structure consists of all the following EXCEPT:

A __________ groups together people with similar skills who perform similar tasks.

The __________ allocates jobs to different people and groups.

The network of unofficial relationships among an organization's members is called the __________.

Community Bank Inc. currently operates with a functional structure. A lack of communication across functional departments has affected the performance of the employees. This scenario illustrates the concept of:

Your roommate wants to learn about organization charts. You can tell her that an organization chart can tell you all of the following about an organization EXCEPT its:

Big Money Bank has several branches that are headed by branch managers. The loan manager, investments manager, operations manager, and trust manager in each branch report directly to the branch manager. This scenario is an example of a __________.

Maria, the vice-president of operations at Choco Candy, Inc. (CCI) , plans to create new divisions of CCI in China, India, and Malaysia. In this scenario, Maria develops a _______ for CCI.

Which of the following structures groups together people working on the same product, in the same geographical area, or with similar customers?

Which of the following is NOT a form of divisional structure?

A chart that describes a company's formal structure is called a(n) :

__________ are made up of relationships between organizational members that are unofficial and not specified by the formal structure.

All of the following are problems with informal structures EXCEPT that they:

The process of grouping together people and jobs into work units is called __________.

In a functional structure, a lack of communication between functional departments leads to a lack of:

A(n) __________ graphically describes the arrangement of work positions within an organization.