Question 1

Which of the following is an example of a move to reorganize?
A)Reducing the labor force within your business
B)Revising plans by creating contingency plans
C)Managing by objectives and clearing pathways for success
D)Developing a way to monitor financial success

Accepted Answer

Reducing the labor force within a business involves a significant restructuring of the organization's personnel and can be classified as a move to reorganize.

Note: The other options listed are important strategic actions for a business, but they do not necessarily involve restructuring or reorganizing the organization as a whole.

Question 2

Fayol's ____________ principle says that tasks should be divided into areas of specialization.
A)departmentalization
B)comparative advantage
C)division of labor
D)centralization

Accepted Answer

Fayol's division of labor principle emphasizes the importance of dividing tasks among different individuals and departments based on their areas of specialization or expertise. This helps improve efficiency, productivity, and quality of work, as each person can focus on specific tasks and perform them better than others who might not have the same skillset or knowledge. Departmentalization refers to the process of grouping tasks or activities into different departments or functional areas based on their relatedness or similarity. Comparative advantage is a concept in economics that refers to the ability of an individual, company, or country to produce a good or service at a lower opportunity cost than others. Centralization refers to the concentration of decision-making power and authority in a few individuals or at the top of the organizational hierarchy.

Question 3

In Weber's view of a bureaucratic organization,the role of top management was to:
A)empower workers and enable them to quickly respond to customer wants.
B)make decisions.
C)develop the rules and procedures needed to carry out the plans of bureaucrats.
D)directly supervise front-line employees to better control operations.

Accepted Answer

According to Weber, the role of top management in a bureaucratic organization is to make decisions. This is because decision-making is centralized in the hands of the highest levels of management who have the authority to set policies, procedures and rules that guide the actions of lower-level employees. Top management is responsible for making decisions that shape an organization's operations and strategies.

Question 4

In the Making Ethical Decisions box,titled,"Safety versus Profit",which of the following statements best forms the theme of this passage?
A)In the beginning,company procedures that require value judgments are often too costly.As the business grows,the owner can add ethical procedures to each job.
B)The principles of organization state that the only company objective is to gain profits for the owners)or stockholders.If your competitors are cutting corners with safety regulations,you should consider the same.
C)The only way to be profitable is to avoid risk.If new safety equipment becomes available that is applicable to your business,even if it slows productivity,you should adopt it.
D)The corporate culture you create as you begin your service will last a long time.Your workers will adopt your values.

Accepted Answer

The theme of the passage is about establishing a corporate culture that prioritizes ethical values, which will influence the behavior and values of workers over time.

Question 5

In Weber's view of a bureaucratic organization,the organization demanded:
A)a spirit of pride and loyalty among the workers.
B)cross-functional teams.
C)clearly established rules and guidelines that were to be precisely followed.
D)self-managed teams.

Accepted Answer

Weber believed that a bureaucratic organization required clear rules, functional specialization, hierarchical authority, and impersonal relationships. This meant that employees were expected to follow rules and guidelines precisely, rather than relying on their own judgment or discretion. The goal was to create a well-structured and efficient organization that could operate based on rational principles rather than individual whims or preferences.

Question 6

Henri Fayol and Max Weber are best known for their contributions to:
A)production theory.
B)marketing theory.
C)organization theory.
D)finance theory.

Accepted Answer

Henri Fayol and Max Weber are both known for their contributions to organization theory. Fayol is known for his 14 principles of management, which include concepts such as unity of command, division of labor, and scalar chain. Weber is known for his work on bureaucracy, which describes an ideal type of organizational structure characterized by hierarchical authority, rules and procedures, and specialization of roles.

Question 7

As Bret prepares to open his new business,he has identified the tasks that need to be accomplished and has assigned employees to each task.This illustrates a:
A)management departmentalization.
B)division of labor.
C)specialization of priorities.
D)mass production economies.

Accepted Answer

The scenario describes the division of labor, which involves breaking down tasks and assigning them to specific employees based on their skills and abilities. This helps to increase efficiency and productivity in the organization. The other options do not accurately reflect the scenario presented.

Question 8

As your good friend ponders putting some structure to his/her graphic design business idea,which of the following do you not advise him/her to do?
A)Prepare the non-changeable marketing plan for the next three years,including marketing analysis and marketing strategy
B)List the work that needs to be done such as 1)computer assisted design;2)sales generation;3)accounting and bookkeeping;4)purchasing and supply ordering,and more
C)List who will do the various jobs,including who will perform the computer work,who will keep the books,and who will go out and create sales
D)Assign responsibility and authority to certain employees

Accepted Answer

It is not advisable to prepare a non-changeable marketing plan for the next three years as the market is constantly changing and evolving, and it is important to be flexible and adaptable to these changes. A more effective approach would be to create a general marketing plan that can be adjusted and revised according to the current market trends and needs.

Question 9

Dividing tasks into smaller jobs is called:
A)job enrichment.
B)job specialization.
C)departmentalization.
D)division of authority.

Accepted Answer

Dividing tasks into smaller jobs is called job specialization, where each employee specializes in a specific task to increase efficiency and productivity. Job enrichment involves providing employees with more challenging tasks and increasing their responsibility, departmentalization refers to grouping tasks based on function or product, and division of authority involves allocating decision-making power to different levels of management.

Question 10

The process of setting up individual functional units of the business to do specialized tasks is called:
A)Departmentalization.
B)Division of labor.
C)Job specialization.
D)Delegation of authority.

Accepted Answer

Departmentalization involves setting up individual functional units in a business to perform specialized tasks. This allows for efficiency and coordination within each unit, as well as clear lines of communication and accountability. Division of labor and job specialization are related concepts, but they do not encompass the entire process of organizing functional units within a business. Delegation of authority is also an important management technique, but it refers specifically to the process of assigning tasks and decision-making power to employees within those functional units, rather than the process of setting up the units themselves.

Question 11

The proven success of job specialization lies in the fact that:
A)it leads to groupthink.
B)it avoids the pitfalls of division of labor,where workers become removed from thinking conceptually about the business.
C)it is a detractor to others who are thinking about entering your industry because it successfully creates barriers to entry.
D)it adds efficiency to the business's operation by identifying tasks that some do better than others.

Accepted Answer

Job specialization allows individuals to focus on tasks that they are better suited for, leading to increased efficiency in the business's operations. This is because tasks can be completed more quickly and accurately when workers have specialized skills and knowledge. Additionally, job specialization can lead to greater job satisfaction for employees, as they are able to develop expertise in a particular area and become valued members of the team.

Question 12

Job specialization is known to:
A)minimize delegated authority and responsibility.
B)improve job performance.
C)create work teams and improve resource allocation.
D)establish procedures.

Accepted Answer

Job specialization allows an employee to become an expert in their specific area of work, improving their skills and performance.

Question 13

Dividing the required work among a group of employees is called:
A)departmentalization.
B)delegation of responsibility.
C)division of labor.
D)separation of control.

Accepted Answer

Dividing the required work among a group of employees is called division of labor. Departmentalization refers to grouping similar tasks or functions within an organization, delegation of responsibility is the process of assigning tasks and decision-making authority to subordinates, and separation of control refers to separating the tasks of planning and controlling an organization's operations.

Question 14

__________ believed that managers were trustworthy and companies would do well if employees simply did what they were told.
A)John Keynes
B)Adam Smith
C)Peter Drucker
D)Max Weber

Accepted Answer

Max Weber believed in the concept of bureaucratic management, where managers were seen as rational and trustworthy individuals who had the authority to give orders to subordinates who were expected to follow them. This approach emphasized clear hierarchical structures, formal rules, and procedures, and the belief that employee satisfaction was not important as long as they followed orders and performed their duties efficiently.

Question 15

When Bret started his auto mechanic shop his business plan included an)_______________ that showed the relationship among employees in his organization and the lines of authority and responsibility.
A)business view map
B)department categorization
C)organization chart
D)operating matrix grid

Accepted Answer

An organization chart is a visual representation of the hierarchical structure of a company or organization, showing the relationships among employees and the lines of authority and responsibility. It is a common tool used in business plans to illustrate the structure of the company. The other options (business view map, department categorization, operating matrix grid) do not accurately describe this type of chart.

Question 16

Max Weber used the term ________ to describe middle managers whose job was to implement the orders of top management:
A)management
B)autocrats
C)staff personnel
D)bureaucrats

Accepted Answer

Max Weber used the term "bureaucrats" to describe middle managers whose job was to implement the orders of top management.

Question 17

Fayol's ____________ principle says that workers' attitudes would create an environment of pride and loyalty within an organization.
A)esprit de corps
B)hierarchy of loyalty
C)unity of command
D)equity

Accepted Answer

The principle being described is known as esprit de corps, which means a sense of unity, camaraderie, and loyalty among the members of an organization. Fayol believed that by promoting a positive attitude among workers, an organization could create a strong team spirit and a sense of pride in the work being done. This would lead to improved productivity and a more harmonious workplace.

Question 18

Organization theorists emerged during the era of mass production,meaning:
A)the development of ways to produce a large quantity of product efficiently.
B)the development of ways to purchase raw materials in bulk.
C)the decline in the cost of production due to an increase in the cottage industry.
D)the era when most companies adopted very similar methods of producing goods and services,which led to standardization of organizational design.

Accepted Answer

Organization theorists emerged during the era of mass production, which refers to the development of ways to produce a large quantity of product efficiently. This era led to the emergence of new management practices and organizational structures to keep up with the demands of mass production. Therefore, choice A is the best answer.

Question 19

Fayol's _____________ principle states that each worker should report to one,and only one,boss.
A)division of labor
B)unity of command
C)esprit de corps
D)comparative advantage

Accepted Answer

Fayol's principle of unity of command emphasizes the importance of a clear reporting structure in which each employee receives orders and direction from only one boss. This helps to avoid confusion, conflicting priorities, and the potential for employees to receive contradictory instructions from different managers. The other options (division of labor, esprit de corps, comparative advantage) are also important principles in management, but they do not specifically relate to the idea of a single reporting relationship.

Question 20

The concept of ____________ suggests that as a firm produces more,the average cost of goods produced goes down.
A)natural growth
B)survival of the fittest
C)cost enhancement
D)economies of scale

Accepted Answer

Economies of scale is the concept that as a firm increases its production capacity, it can achieve lower average costs of production due to various factors such as spreading fixed costs over larger quantities of output, increased buying power for raw materials, and more efficient use of resources. This can lead to increased profitability and competitive advantage for the firm.

Quiz 8: Structuring Organizations for Todays Challenges

Which of the following is an example of a move to reorganize?

Fayol's ____________ principle says that tasks should be divided into areas of specialization.

In Weber's view of a bureaucratic organization,the role of top management was to:

In the Making Ethical Decisions box,titled,"Safety versus Profit",which of the following statements best forms the theme of this passage?

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

Henri Fayol and Max Weber are best known for their contributions to:

As Bret prepares to open his new business,he has identified the tasks that need to be accomplished and has assigned employees to each task.This illustrates a:

As your good friend ponders putting some structure to his/her graphic design business idea,which of the following do you not advise him/her to do?

Dividing tasks into smaller jobs is called:

The process of setting up individual functional units of the business to do specialized tasks is called:

The proven success of job specialization lies in the fact that:

Job specialization is known to:

Dividing the required work among a group of employees is called:

__________ believed that managers were trustworthy and companies would do well if employees simply did what they were told.

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

Max Weber used the term ________ to describe middle managers whose job was to implement the orders of top management:

Fayol's ____________ principle says that workers' attitudes would create an environment of pride and loyalty within an organization.

Organization theorists emerged during the era of mass production,meaning:

Fayol's _____________ principle states that each worker should report to one,and only one,boss.

The concept of ____________ suggests that as a firm produces more,the average cost of goods produced goes down.