Deck 4: Fundamentals of Organizing

Question 1

When an organization adds specialists to improve operations, a line-and-staff organization results.

Answer 1

True

Question 2

Product departmentalization requires more personnel and material resources than does functional departmentalization.

Answer 2

True

Question 3

The process of determining how activities are to be grouped is called departmentalization.

Answer 3

True

Question 4

Grouping together the major functions such as production, sales, and finance is called product departmentalization.

Question 5

In the first stage of organizational growth, the owner/manager performs all the organizational activities.

Question 6

The unity of command principle states that everyone in an organization should report to and be accountable to only one boss for performing a given activity.

Question 7

A narrow span of management is needed by middle managers because they must spend much of their time in long-range planning and working with outside interest groups.

Question 8

The unity of command principle states that line employees should not interact with staff employees.

Question 9

Job assignments in a matrix departmentalization structure are temporary.

Question 10

When a manager puts assistants in charge of production, sales, and finance departments, a line-and-staff organization is created.

Question 11

The functional approach to departmentalization creates efficiency through the principles of specialization.

Question 12

The matrix organization permits an organization to respond more quickly to change than the functional approach does.

Question 13

The higher managers are in an organization, the fewer people they should have reporting directly to them.

Question 14

In line organizations, responsibility and authority are not clearly defined.

Question 15

The span of control principle states that there is a limit to the number of people an individual can manage.

Question 16

Using the functional approach means that one person is accountable for each product line.

Question 17

The functional approach to departmentalization provides the best opportunity for training and developing new managers.

Question 18

Over 50% of new businesses fail in their first year of operations from lack of capital, ineffective management, or both.

Question 19

Use of the unity of command principle lowers morale in organizations that follow it.

Question 20

A matrix organizational structure brings together personnel from several specializations to complete limited tasks.

Question 21

Reengineering is a shift back toward more traditional organizational design.

Question 22

Organizations that have grown by merging with other companies tend to be decentralized

Question 23

Both delegation and decentralization are concerned with the giving of authority to someone at a higher level of management.

Question 24

Perhaps the greatest cost of downsizing is the social cost to employees.

Question 25

If the top managers of an organization need to keep tight control, they will probably create a decentralized organization.

Question 26

Functional authority violates the unity-of-command principle.

Question 27

The right of staff personnel to advise, recommend, serve, and assist line departments is called line authority.

Question 28

There is a tendency toward more decentralization during poor economic times.

Question 29

There is a trend in the United States toward increasing the number of levels of management and shifting toward more centralization.

Question 30

With appropriate techniques, the conflict between line and staff people can be completely eliminated.

Question 31

Close supervision allows a manager to have a wider span of control than does general supervision.

Question 32

Geographically dispersed organizations tend to be centralized.

Question 33

One benefit of downsizing is immediate, tremendous cost reductions.

Question 34

The authority of ideas is associated with advisory authority.

Question 35

Staff personnel carry out the primary activities of the business, such as production and sales.

Question 36

Decentralized structures have more management levels than centralized structures.

Question 37

The increase in education and ability of both supervisors and employees means that supervisors need to have narrower spans of control.

Question 38

Downsizing has had a positive effect on corporate profit in over 90 percent of the firms attempting it.

Question 39

Wide spans of management save the company money.

Question 40

Conflict between line and staff personnel often develops because of overlapping authority and responsibility.

Question 41

____ departmentalization is a hybrid type of departmentalization in which personnel from several specialties are brought together to complete limited-life tasks.

A) Functional.
B) Process.
C) Matrix.
D) Centralized.

Question 42

The ____ approach permits open communication among the relevant functional specialists.

A) Matrix.
B) Partnering.
C) Ethics.
D) Advisory.

Question 43

Functional departmentalization:

A) Maintains the power and prestige of the major functions.
B) Creates efficiency through the principles of specialization.
C) Permits tighter top-management control.
D) All of the above.

Question 44

The number of people a given manager directly supervises is called the:

A) Chain of command.
B) Span of management.
C) Unity of command.
D) Span of authority.

Question 45

In a line organization:

A) Each person has clearly defined responsibilities and reports to an immediate supervisor.
B) There is line and staff authority.
C) Each person reports to two supervisors and has overlapping responsibilities.
D) All of the above.

Question 46

The ____ principle states that everyone in an organization should report to and be accountable to only one boss for performing a given activity.

A) Span of control.
B) Functional authority.
C) General supervision.
D) Unity of command.

Question 47

The unity of command principle:

A) Prevents line employees from coming in contact with staff personnel.
B) Reduces organizational morale.
C) Eliminates conflicts between line and staff.
D) Gives the employee a single manager to turn to when a problem arises.

Question 48

The first stage in the growth of an organization is:

A) When managers are placed in charge of each of the three basic functions.
B) When assistants are hired.
C) A one-person organization.
D) A line-and-staff organization.

Question 49

In the wagon wheel organizational structure, customers are on the outer rim and top management is at the center, the hub.

Question 50

The process of determining how activities are to be grouped is called:

A) Responsibility.
B) Departmentalization.
C) leadership.
D) Production.

Question 51

When an organization puts managers in charge of the three basic activities:

A) The manager's span of control is increased.
B) A line-and-staff organization is formed.
C) The unity of command principle is violated.
D) A line organization is formed.

Question 52

Which of the following is NOT an advantage of using the unity of command principle?

A) It allows staff personnel to make important decisions within their area of expertise and take action on them.
B) It decreases confusion because everyone is accountable to only one person.
C) It prevents duplication and conflict when orders and instructions are passed down.
D) It promotes higher morale than is generally found in organizations that do not follow it.

Question 53

The matrix organization structure:

A) Reduces organizational conflict.
B) Permits the unity of command principle.
C) Allows the organization to respond rapidly to change.
D) All of the above.

Question 54

The form of departmentalization that groups together common functions into departments such as marketing, production, or finance, is: ____ departmentalization.

A) Functional.
B) Wagon wheel.
C) Inverted pyramid.
D) Product.

Question 55

The three basic activities common to all manufacturing operations are:

A) Financing, producing, and selling.
B) Financing, maintaining, and producing.
C) Producing, financing, and hiring.
D) Producing, hiring, and selling.

Question 56

In Likert's internal systems model, there are three broad categories of variables: causal, intervening, and end-results variables.

Question 57

The span of control principle holds that:

A) Each manager should control a separate department.
B) There is a limit to the number of people a manager can supervise effectively.
C) There is no limit to the number of people a manager can supervise effectively.
D) The best way to manage is through use of control.

Question 58

The inverted pyramid structure is a very flat organization with few management levels.

Question 59

Reengineering is very expensive and should be used only for big challenges that really matter.

Question 60

One of the disadvantages of the matrix structure is the possible lack of:

A) Open communication.
B) Clarity and coordination in assigned roles.
C) Flexibility.
D) Appropriateness for technologically oriented organizations.

Question 61

Over the years, companies have tended to:

A) Narrow their span of control at all levels.
B) Broaden their span of control at all levels.
C) Create new unity of command principles.
D) None of the above.

Question 62

The process of eliminating unnecessary levels of management, and thus reducing the number of staff personnel and supervisors, is:

A) Centralizing.
B) Concentration.
C) Downsizing.
D) Partnering.

Question 63

Line-and-staff organizations:

A) Have fewer employees than line organizations.
B) Have specialists in certain positions to assist the line personnel.
C) Violate the span of management principle.
D) All of the above.

Question 64

These individuals use their expertise to assist others in various areas of business activities:

A) Line personnel.
B) Staff personnel.
C) Operative personnel.
D) Decentralized personnel.

Question 65

This type of authority is also known as "authority of ideas".

A) Functional authority.
B) Advisory authority.
C) Network forms.
D) Line authority.

Question 66

In Likert's internal systems model ____ variables reflect the achievements of the organization.

A) Causal.
B) Intervening.
C) End-result.
D) Functional.

Question 67

In ____ organizations, middle and lower levels of management make broader, more important decisions about their units.

A) Decentralized.
B) Centralized.
C) Tightly controlled.
D) Functional.

Question 68

Describe what matrix departmentalization is, and some of the advantages of a matrix structure.

Question 69

Which of the following is at odds with the unity of command principle?

A) Span of management.
B) Line management.
C) Functional authority.
D) Decentralization.

Question 70

What are the advantages and disadvantages of the functional approach to departmentalization?

Question 71

Reengineering:

A) Results in specialization of labor.
B) Means starting over.
C) Centralizes authority.
D) All of the above.

Question 72

In a wagon wheel organization, who is at the hub, and therefore the most important?

A) The CEO.
B) The sales manager.
C) The marketing manager.
D) The customer.

Question 73

In a(n) ____ organization form, "helping hands" symbolize that all other levels of the organization are there to help and support the sales personnel to better serve and satisfy the customer.

A) "Hands On".
B) Wagon wheel.
C) Network form.
D) Inverted pyramid.

Question 74

If there has been a strong history of growth in an organization, where mergers and acquisitions have occurred, that organization will most likely be:

A) Centralized.
B) Causal.
C) Decentralized.
D) None of the above.

Question 75

A restricted kind of authority which gives a staff person authority over an operation is called:

A) Advisory authority.
B) Command authority.
C) Line authority.
D) Functional authority.

Question 76

When a quality control specialist tells a production manager to adjust a machine to increase the quality of the product, he or she is using:

A) Advisory authority.
B) Unity of command.
C) Functional authority.
D) Line authority.

Question 77

They carry out the primary activities of a business.

A) Line personnel.
B) Functional personnel.
C) Staff personnel.
D) Upper level management.

Question 78

List and explain the four stages of the growth of an organization.

Question 79

All of the following are benefits of downsizing EXCEPT:

A) Tremendous cost reductions.
B) Improved management of operations.
C) Constant and close supervision on each level.
D) Higher profits.

Question 80

What are the advantages and disadvantages of the product approach to departmentalization?