Deck 7: Organizing for Success

Question 1

In an) _____ organization, managers encourage employees to work more as teammates than as subordinates who take orders from the boss.

A) organic
B) hierarchical
C) bureaucratic
D) mechanistic
E) formal

Answer 1

A

Question 2

In organizing, coordination is

A) the expectation that employees will perform a job and take corrective action when necessary.
B) a process in which different individuals and units perform different tasks.
C) the procedures that link the various parts of an organization to achieve the organization's overall mission.
D) the legitimate right to make decisions and to dictate to other people what to do.
E) a process that separates units based on products, customers, or geographic regions to reduce integration among the units.

Answer 2

C

Question 3

Coordination by plan deals with establishing common routines and procedures that apply uniformly to everyone.

Answer 3

False

Question 4

Natalie, a manager at a branch of Blue Soul Spa, leads all the ten employees working in her branch. She reports directly to the owner of Blue Soul Spa. Thus, in the context of span of control, Blue Soul Spa is a tall organization.

Question 5

In the context of an organization's vertical structure, traditionally authority resides in people and not in positions.

Question 6

The more highly differentiated a firm is,

A) the greater the need for integration among its units.
B) the lesser the need for integration among its units.
C) there is no need for integration among its units.
D) the more equal the need for integration among its units.
E) the more difference among its units.

Question 7

In general, coordination methods within an organization include standardization, plans, and mutual adjustment.

Question 8

Erica works in the human resources department of an insurance company. Therefore, she works in a staff department rather than a line department.

Question 9

Organizations with an organic structure are much less rigid than mechanistic organizations.

Question 10

________ is the assignment of different tasks to different people or groups in an organization.

A) Locus of control
B) Standardization
C) Division of labor
D) Value chain
E) Supply chain

Question 11

Which of the following types of information is conveyed by a traditional organization chart?

A) work performed by each unit in the organization
B) products manufactured by the organization
C) manner in which decisions are made in the organization
D) geographical location of the organization
E) method in which the organization will interact with the external environment

Question 12

Blue Wing Electronics Inc. has separate company-wide marketing, production, design, and research departments. Thus, it is a divisional organization.

Question 13

Which of the following is a characteristic of a mechanistic organization?

A) informal organizational structure
B) obedience to authority as an expression of commitment
C) broad and evolving job responsibilities
D) high degree of employee interdependence
E) decentralized decision making

Question 14

In an organization, when there are many subunits and many specialists who think differently, differentiation is said to be high.

Question 15

Large organizations are typically more organic and less bureaucratic than small ones.

Question 16

In the context of integration, which of the following is true of the findings of Lawrence and Lorsch?

A) The more highly differentiated the firm, the lesser the need for integration among its units.
B) Focusing on integration may speed up innovation for a while in an organization.
C) Highly differentiated firms were more likely to fail in a complex environment if they failed to integrate their activities adequately.
D) Companies with more structural integration were more likely to introduce new products soon after acquisition.
E) A firm's ability to launch new products is independent of its structural integration.

Question 17

To be successful, partners in a strategic alliance must pay attention to human relationships.

Question 18

The organization chart depicts the

A) geographical location of the different branches of a business.
B) positions in the firm and the way they are arranged.
C) office assignments by area of the firm.
D) responsibilities of each job specification.
E) phone numbers for each employee.

Question 19

In the vertical structure of a firm, authority is the

A) legitimate right of a manager to make decisions and to tell other people what to do.
B) ability of managers to avoid accountability for their subordinates' actions.
C) unconditional power of managers to discriminate against their subordinates based on race, ethnicity, or gender.
D) power of subordinates to reject the work responsibility delegated to them without any reason.
E) influence a manager has over his or her subordinates' personal life.

Question 20

_____ is the process in which different individuals and units perform different tasks.

A) Mutual adjustment
B) Formalization
C) Standardization
D) Specialization
E) Span of control

Question 21

Which of the following is an advantage of delegation?

A) It allows managers to exercise close supervisory control.
B) It helps managers to escape their own responsibilities.
C) It conserves managers' most valuable asset-their time.
D) It increases managers' influence over their subordinates.
E) It makes subordinates less responsible and accountable.

Question 22

In ______ new or additional responsibilities to a subordinate are assigned.

A) mutual adjustment
B) centralization
C) delegation
D) span of control
E) job specialization

Question 23

In the context of a firm's vertical structure, a powerful trend for U.S. businesses over the past few decades has been to

A) reduce the number of hierarchical layers.
B) replace flat organizational structures with tall organizational structures.
C) increase the number of reporting levels.
D) increase formalization.
E) limit decision-making authority to top management.

Question 24

In an organization, _____ may be valuable when departments have different priorities or conflicting goals, which need to be mediated by top management.

A) decentralization
B) wide spans of control
C) external locus of control
D) standardization
E) centralization

Question 25

In the context of the vertical structure of a firm, a wide span of control builds a _____ organization with few reporting levels.

A) flat
B) centralized
C) tall
D) bureaucratic
E) formal

Question 26

Which of the following statements about delegation of responsibility and authority is true?

A) It does not require a subordinate to report back to his or her boss.
B) Managers should use delegation to escape their own responsibilities.
C) It can occur between any two individuals in any type of structure with regard to any task.
D) All managers are comfortable fully delegating assignments to their subordinates.
E) It does not require a subordinate to take accountability for achieving results.

Question 27

Veronica recently accepted a job with a reputed bank as an internal auditor. She found that her job was quite different from her previous internships. Her new company had strictly defined job responsibilities and lines of communication. For every decision she needed to make, approval had to be obtained from upper management. Overall, she found the atmosphere to be quite formal. Veronica's organization has a

A) wide span of control.
B) high degree of centralization.
C) flat organizational structure.
D) matrix organizational design.
E) narrow locus of control.

Question 28

In an) _____ organization, important decisions usually are made at the top.

A) informal
B) centralized
C) flat
D) organic
E) decentralized

Question 29

In _____ organizations, more decisions are made at lower levels of management.

A) tall
B) formal
C) mechanistic
D) decentralized
E) narrow

Question 30

In the presence of which of the following conditions should the span of control be wide?

A) Tasks are not clearly defined and instructions are ambiguous.
B) Subordinates are poorly trained.
C) Employees' access to information is restricted.
D) Jobs are similar, and performance measures are comparable.
E) Subordinates prefer close supervisory control to autonomy.

Question 31

_____ is the expectation that employees will perform a job, take corrective action when necessary, and report upward on the status and quality of their performance.

A) Unity-of-command
B) Accountability
C) Job specialization
D) Mutual adjustment
E) Span of control

Question 32

In a vertical structure, narrow spans of control build an) _____ organization with many reporting levels.

A) flat
B) wide
C) tall
D) decentralized
E) informal

Question 33

An employee who has _______ is supposed to carry out specified tasks.

A) responsibility
B) authority
C) coordination
D) unity-of-command
E) span of control

Question 34

__________ is a structure with authority directly related to the three broad levels of the organizational pyramid.

A) Hierarchy
B) Value chain
C) Locus of control
D) Specialization
E) Division of labor

Question 35

In the context of delegation, a problem faced by a subordinate in carrying out a delegated task is

A) having the power to take corrective action.
B) being given more responsibility than authority.
C) depending on autonomy than close supervisory control.
D) eliminating any opportunity for creativity.
E) having to report to the manager about the status and quality of performance.

Question 36

In an) _____ organization, top managers make all the decisions and pass them down to lower levels for implementation.

A) informal
B) centralized
C) organic
D) flat
E) horizontal

Question 37

David, a human resource intern, was given an assignment by his manager. He needed to obtain information from other departments to complete the assignment. But, some departments refused to share information with an intern. David was frustrated because he did not have the power to get the information he needed. In the context of this situation, David's manager made the mistake of

A) delegating inappropriate tasks to an intern.
B) assigning responsibility without delegating adequate authority.
C) "passing the buck" for David's performance.
D) becoming accountable for David's work.
E) overestimating David's capabilities.

Question 38

Which of the following is true of effective delegation?

A) Once a task has been delegated, the manager need not be available.
B) Tasks such as disciplining subordinates and conducting performance reviews are best delegated.
C) A manager should contribute as little resources as possible for completion of the delegated task.
D) The ideas of the subordinate should not be taken into consideration during delegation.
E) Throughout the delegation process, the manager and the subordinate must work together.

Question 39

The first step in the delegation process, defining the goal, requires a manager to

A) identify the employee he or she favors the most.
B) understand the nature of each employee.
C) recognize the most responsible employee.
D) clearly understand the outcome he or she wants.
E) identify a tedious assignment that can be delegated.

Question 40

Identify one of the following as a true statement about delegation.

A) A manager should delegate to a subordinate enough authority to get the work done.
B) A subordinate must not be allowed to take credit for the results of the assignment.
C) A subordinate need not report to his or her boss about the status of the assignment.
D) A manager should use delegation to escape his or her own responsibilities.
E) A subordinate's accountability reduces when a manager delegates work to him or her.

Question 41

Identify one of the following as a characteristic feature of matrix organizations.

A) Resource utilization is inefficient.
B) Higher management levels are overloaded with operational decisions.
C) The principle of unity-of-command is followed.
D) The decision-making process is highly centralized.
E) Dual career ladders are elaborated.

Question 42

If a manager delegates responsibility to a subordinate, he or she is

A) relieved of accountability for the actions of his or her subordinate.
B) responsible for the actions of his or her subordinate.
C) not evaluated on the actions of his or her subordinate.
D) managed by his or her subordinate.
E) free to move on to other work.

Question 43

A _____ is composed of temporary arrangements among members that can be assembled and reassembled to meet a changing competitive environment.

A) modular network
B) mechanistic organization
C) divisional organization
D) functional organization
E) hierarchical network

Question 44

________ organization has departmentalization that groups units around products, customers, or geographic regions.

A) Divisional
B) Centralized
C) Network
D) Functional
E) Virtual

Question 45

In _____ organizations, most decisions are made at lower levels.

A) centralized
B) decentralized
C) organic
D) informal
E) hierarchical

Question 46

Which of the following is a disadvantage of a matrix organization?

A) Managers who share subordinates may jockey for power.
B) People may care more about their own function than about the company as a whole.
C) Higher management levels are overloaded with operational decisions.
D) Resource utilization becomes inefficient because resources are not shared.
E) Employees may fail to focus on overall product quality and customer satisfaction.

Question 47

The _____ step in effective delegation of work responsibilities is selecting the person to whom one will delegate the work.

A) first
B) second
C) third
D) fourth
E) fifth

Question 48

Which of the following statements about matrix organization is true?

A) It creates an environment in which the unity-of-command principle is strictly followed.
B) It is a collection of independent, mostly single-function firms that collaborate to produce a good or service.
C) It is composed of dual reporting relationships in which some employees report to two superiors.
D) It involves holding employees together by contracts that stipulate results expected, rather than by hierarchy and authority.
E) It results in a centralized decision-making system.

Question 49

True Ketchup Inc. manufactures and distributes sauces, pickles, and spices. The company has separate divisions responsible for developing and marketing each item. Thus, the company has adopted a _____ approach to departmentalization.

A) geographic
B) functional
C) matrix
D) customer
E) product

Question 50

Unicorn Sports Inc. manufactures and distributes athletic wear, sporting equipment, and protective sports gear worldwide. They are departmentalized based on products sold to professional athletes, products sold to people who pursue sports only for leisure, and products sold to sports teams. Which approach to departmentalization does the company follow?

A) geographic
B) functional
C) matrix
D) customer
E) product

Question 51

Which of the following approaches to departmentalization requires proper management of all the issues surrounding decentralization and delegation for it to be effective?

A) functional
B) product
C) network
D) bureaucratic
E) mechanistic

Question 52

In the context of horizontal structure of a firm, _____ are those that have responsibility for the principal activities of the firm.

A) staff departments
B) public relation divisions
C) geographic divisions
D) line departments
E) human resource divisions

Question 53

The _____, led by the chairperson, makes major decisions affecting the organization, subject to corporate charter and bylaw provisions.

A) stockholders
B) board of directors
C) employees
D) tax payers
E) middle managers

Question 54

In a horizontal structure, _____ deal directly with the organization's primary goods or services; they make things, sell things, or provide customer service.

A) public relation divisions
B) accounting divisions
C) staff departments
D) organic structures
E) line departments

Question 55

Which of the following is an advantage of functional departmentalization?

A) Managers care more about the company as a whole than just their departments.
B) Employees are able to focus exclusively on customer satisfaction.
C) It encourages managers to become generalists.
D) Economies of scale can be realized.
E) There is increased coordination between different functions.

Question 56

In a _____ organization, jobs and departments) are specialized and grouped as production, marketing, human resources, research and development, finance, accounting, and so forth based on the skills they require.

A) divisional
B) network
C) matrix
D) functional
E) projectized

Question 57

All the _____ of a firm are directly involved in managing its operations.

A) stockholders
B) board of directors
C) top-level managers
D) tax payers
E) first-line managers

Question 58

The _____ structure is most appropriate for businesses operating in complex and changing environments.

A) matrix
B) network
C) divisional
D) functional
E) organic

Question 59

Subdividing an organization into smaller units in a horizontal structure is

A) departmentalization.
B) positioning.
C) decentralization.
D) delegating.
E) standardization.

Question 60

When delegating work responsibilities to a subordinate, a manager should delegate any

A) authority to the subordinate.
B) evaluation to the subordinate.
C) employees to the subordinate.
D) responsibility to the subordinate.
E) project deliverables to the subordinate.

Question 61

The approach to coordination, __________, involves feedback and discussions to jointly figure out how to approach problems and devise solutions that are agreeable to everyone.

A) coordination by mutual adjustment
B) unity-of-command
C) coordination by specialization
D) coordination by formalization
E) authoritative decision making

Question 62

Which of the following is one of the strategies that managers can use to cope with high uncertainty and heavy information demand's in today's environments?

A) limit horizontal relationships
B) reduce the need for information
C) avoid depending on the experience of the organization's human needs
D) cut spending on information systems
E) eliminate stack resources

Question 63

A ______ is an organization skilled at creating, acquiring, and transferring knowledge as well as at modifying its behavior to reflect new knowledge and insights.

A) learning organization
B) conglomerate
C) mechanistic organization
D) formal organization
E) closed system

Question 64

An) _____ is a person who assembles and coordinates participants in a network.

A) entrepreneur
B) broker
C) innovator
D) chairperson
E) intrapreneur

Question 65

______, in organizational integration, means establishing common routines and operating procedures that apply uniformly to everyone.

A) Specialization
B) Unity-of-command
C) Mutual adjustment
D) Authorization
E) Standardization

Question 66

First Health Inc. and Quadra Software

Question 67

In the context of technology configurations, a small, local restaurant with one cook, two servers, and one cashier is an example of a

A) job shop.
B) large batch company.
C) strategic business unit.
D) conglomerate.
E) heavy industry.

Question 68

A _________ organization is one in which top management ensures that there is consensus about the direction in which the business is heading.

A) centralized.
B) high-involvement
C) mechanistic
D) tall
E) bureaucratic

Question 69

In the ____ approach to organization structure, decision making is decentralized to a level where information is processed properly and relevant knowledge is applied.

A) matrix
B) organic
C) functional
D) product
E) hierarchical

Question 70

_____ is a way of managing in which everyone is committed to continuous improvement of his or her part of the operation.

A) Mass customization
B) Mutual adjustment
C) Unity-of-command
D) Micromanagement
E) Total quality management

Question 71

Which of the following is true of a network organization?

A) A network organization limits the amount of information shared between its members.
B) In a network organization, the technical specialization of the functional structure is absent.
C) A network organization lacks the market responsiveness of the product structure.
D) In a network organization, managers within the organization interact closely with members outside it.
E) A network organization is a single firm in which jobs are specialized and grouped according to business functions.

Question 72

In the context of organizational agility, which of the following is true of learning organizations?

A) They base their decisions on guesswork and assumptions.
B) They avoid learning from other organizations.
C) They avoid benchmarking in order to keep up internal performance standards.
D) They are primarily concerned about finding quick fixes to current problems.
E) They are skilled at experimenting with new approaches.

Question 73

In the _____ approach task responsibilities are clear and managers are more independent and accountable.

A) organic
B) functional
C) product
D) matrix
E) creative

Question 74

Which of the following is a disadvantage of the traditional approaches to departmentalization?

A) Employees may care more about the company as a whole than their respective departments.
B) The approach makes managers generalists, not specialists.
C) People may pay more attention to customer satisfaction than to functional tasks.
D) Communication between functions may fall off due to conflicts.
E) The structure limits functional differentiation.

Question 75

______ introduced one of the most important contributions to total quality management-statistical tools to analyze the causes of product defects.

A) Six sigma quality
B) Quality adjustment method
C) Mass inspection
D) mutual adjustment.
E) Just-in-time

Question 76

In the context of organizational integration, _____ refers to a situation when interdependent units are required to meet deadlines and objectives that contribute to a common goal.

A) coordination by plan
B) unity-of-command
C) standardization
D) span of control
E) centralization

Question 77

In the context of total quality management, which of the following is one of W. Edwards Deming's "14 points" of quality?

A) Strive for short-term improvement rather than long-term profit.
B) Ensure compliance by inducing fear among those who deviate from process.
C) Allow autonomy and spontaneity.
D) Use numerical quotas regularly.
E) Rely on mass inspection to ensure quality.

Question 78

The unity-of-command principle states that a person should have

A) multiple managers.
B) only one boss.
C) no boss.
D) only two bosses.
E) several bosses.

Question 79

Which of the following is a characteristic of a high-involvement organization?

A) Employee participation in decision making is limited.
B) The organization has a flat, decentralized structure built around a customer, good, or service.
C) The employees at lower levels of management are not held accountable for delivering a good or service.
D) People who try to expand their skills beyond their job profile are discouraged.
E) Much of the work is done independently by experts in the top management.

Question 80

In the context of the horizontal structure of a firm, which of the following is true of line departments?

A) They depend on being an expert in a particular function for their growth.
B) They provide specialized or professional skills that support other departments.
C) They make things, sell things, or provide customer service.
D) They depend on the staff departments to make major operating decisions.
E) They cannot be held accountable for the "bottom-line" results of their decisions.