Question 1

To better organize his landscaping business,Frank divides each job into several parts.One part is excavation and removal of old landscaping,the next part is design,followed by purchasing,and the last part is installation of new plants.If he assigns a different employee to each part,this action would be an example of departmentalization.

Accepted Answer

False

Question 2

Alicia dreams of opening her own restaurant and knows that she will need to organize her business.Organizing begins with determining the work to be done.

Accepted Answer

Organizing does start with determining the work to be done.

Question 3

One key to organizational success is to go back to basic principles and build the business on a sound foundation.

Accepted Answer

Going back to basic principles and building the business on a sound foundation is a key to organizational success as it helps to establish a clear vision, mission, and values, and lays a solid groundwork for long-term success.

Question 4

As indicated in the Making Ethical Decisions box titled,"Safety versus Profit",organization decisions that affect profits in a negative way should be avoided at all cost.

Accepted Answer

The statement is incorrect. Ethical decisions should prioritize safety and well-being of all stakeholders, even if it may negatively impact profits. Profit should not be the sole driving factor in decision making.

Question 5

An organization chart shows who is accountable for the completion of specific work and who reports to whom.

Accepted Answer

This statement is true. An organization chart is a visual representation of the hierarchy of an organization, showing the relationships between different positions and who they report to. It is used to define roles and responsibilities, clarify lines of authority, and ensure accountability for the completion of specific work.

Question 6

When Eric Schmidt joined Google™,one of the most successful companies of this decade,he tackled the organization function head-on.In speaking at a large conference with Google founders,Sergey Brinn and Larry

Accepted Answer

The statement mentions that Eric Schmidt joined Google and tackled the organization function head-on, and also mentions Sergey Brin and Larry, so the statement is true.

Question 7

Division of labor is difficult to achieve in small businesses.

Accepted Answer

Division of labor is a basic organizational principle in all organizations. All businesses (both large and small) should contemplate the division of labor in their organizations. The textbook gives an example of three friends starting a lawn care business.

Question 8

Departments are functional units within the business such as sales,accounting,finance,and marketing.

Accepted Answer

Departments are functional units within a business that focus on a specific task or area, such as sales, accounting, finance, and marketing.

Question 9

The process of setting up individual departments to do specialized tasks is called job specialization.

Accepted Answer

The process of setting up individual departments to do specialized tasks is called departmentalization. Job specialization refers to the process of dividing work into smaller tasks that are completed by individuals or teams with specific skills.

Question 10

In a capitalist economy,organizations seldom reorganize due to changing markets.

Accepted Answer

In a capitalist economy, organizations frequently reorganize due to changing markets in order to remain competitive and profitable. Companies that fail to adapt to changing market conditions can quickly become obsolete and go out of business. Therefore, companies must remain flexible and ready to reposition themselves to meet changing customer demands and market trends.

Question 11

Small business organizations lack the size required to reap the benefits of labor specialization.

Accepted Answer

Labor specialization can still occur in small business organizations, but on a smaller scale. Small businesses may not have the resources for highly specialized roles, but employees may still have a diverse set of skills and responsibilities. Small businesses may also rely on cross-training to cover multiple roles.

Question 12

The success of the firm often depends on assigning the right tasks to the right person.

Accepted Answer

Assigning tasks to the right person who has the necessary skills, knowledge and experience can lead to efficient and effective outcomes, eventually contributing to the overall success of the firm. On the other hand, assigning tasks to the wrong person may result in poor performance, delays, mistakes and negative impact on the firm's reputation.

Question 13

The purpose of a division of labor and specialization is to improve an employee's job performance.

Accepted Answer

Division of labor and specialization allow employees to focus on specific tasks and become experts in their area, ultimately leading to improved job performance.

Question 14

Correctly structuring a business organization allows managers to avoid delegating responsibility and authority to employees.

Accepted Answer

Correctly structuring a business organization actually allows managers to effectively delegate responsibility and authority to employees, leading to increased efficiency and productivity.

Question 15

Managing a growing business often requires managers to create departments to accomplish various tasks.

Accepted Answer

As a business grows, the workload also increases. To manage this workload, managers need to create various departments that specialize in different areas of the business. This ensures that each task is carried out efficiently by skilled individuals, leading to overall success of the business.

Question 16

In its effort to reorganize its floor space,Backstreet Books decided to eliminate seating space in its stores in order to make room for bookshelves due to growing interest in books about how to "go green".This company's effort is an example of how a firm may reduce its emphasis in one product line in order to serve customer preferences and trends.

Accepted Answer

The statement accurately describes Backstreet Books' effort to reorganize its floor space in response to customer preferences and trends.

Question 17

Organizing the structure of the company means deciding how many jobs need to be done and who is responsible for doing them.

Accepted Answer

Organizing the structure of the company involves determining the necessary jobs and assigning responsibilities to individuals or departments.

Question 18

The process of creating individual departments to do specialized tasks is called departmentalization.

Accepted Answer

Departmentalization involves grouping individuals into separate departments to perform specialized tasks.

Question 19

Looking at a traditional organization chart,you will view who reports to whom;you will have a sense of each person's authority and responsibility,and the type of work that they perform for the organization.

Accepted Answer

A traditional organization chart provides a visual representation of the hierarchical structure of an organization, including the reporting relationships between different levels of employees. It can give insight into the types of work performed by different roles and the amount of authority and responsibility held by individuals in those roles.

Question 20

Division of labor refers to deciding how many jobs must be accomplished and then dividing them up amongst the labor force.

Accepted Answer

That is correct. Division of labor involves assigning specific tasks or jobs to individual workers or groups of workers in order to increase productivity and efficiency.

Quiz 8: Structuring Organizations for Todays Challenges