Question 1

General Motors has separate divisions for Chevrolet, GMC, and Cadillac vehicles. This is an example of departmentalization by which of the following?
A) function
B) customer
C) product
D) model

Accepted Answer

GM has separate divisions for Chevrolet, GMC, and Cadillac vehicles, which means their departmentalization is based on the product they offer.

Question 2

Kimberly Clark, manufacturer of Kleenex tissues, Huggies diapers, Cottonelle bathroom tissue, and other brands, departmentalizes based on product. One advantage to this type of departmentalization is that Kimberly Clark can do which of the following?
A) simplify its supervision efforts
B) increase efficiency due to duplication of activities
C) respond to market demands quickly
D) deal effectively with unique customer groups

Accepted Answer

Departmentalizing based on product allows Kimberly Clark to have specialized teams focused on specific products, allowing them to respond to market demands quickly. This type of departmentalization also allows for more efficient use of resources and expertise, as employees can become experts in their specific product line.

Question 3

Johnson & Johnson has a Consumer group, a Professional group, a Pharmaceutical group, and an Industrial group. Johnson & Johnson has which form of departmentalization?
A) customer
B) function
C) product
D) cost

Accepted Answer

The answer of Johnson & Johnson has a Consumer group,...

Question 4

The president of a large semiconductor company discovered that the company was having a problem with product groups working selfishly rather than cooperating with one another. To solve the problem, he combined the company's 12 product groups into three regional management centres. This solution is referred to as departmentalization by which of the following?
A) location
B) function
C) product
D) customer

Accepted Answer

The president reorganized the company's structure based on geographical regions, which is an example of departmentalization by location. This approach groups activities and jobs based on defined geographic areas.

Question 5

Which of the following is a disadvantage of departmentalization by function?
A) Supervision is very difficult because workers are involved in different types of activities.
B) It tends to emphasize the department rather than the organization as a whole.
C) It causes duplication of the same specialized activities throughout the organization.
D) Coordination is very complex because of the way job duties are distributed.

Accepted Answer

Departmentalization by function tends to emphasize the department rather than the organization as a whole, which may lead to a lack of communication and collaboration between departments. This can result in a silo mentality and hinder the overall performance of the organization.

Question 6

The Patel Company, a small furniture manufacturer, divides its organization into marketing, human resources, accounting, and production departments. This is an example of departmentalization by which of the following?
A) location
B) specialty
C) product
D) function

Accepted Answer

The organization is divided based on functions or tasks, making it an example of departmentalization by function.

Question 7

The executive team at a major retailer recently reorganized the company. They decided to departmentalize in a way that would improve responsiveness to the unique demands of customers in different regions of the country. This is especially important because regional preferences are so distinct in their retail category. The company realizes this could create inefficiency because of the duplication of certain activities. In this scenario, the executive team most likely decided to departmentalize by which of the following?
A) customer
B) product
C) specialty
D) location

Accepted Answer

The fact that the company is aiming to respond to regional preferences and wants to avoid inefficiency because of duplication of certain activities suggests that it has departmentalized by location. This means that each region has its own department, which is responsible for the unique demands of customers in that region.

Question 8

Which of the following is a benefit of job rotation?
A) there is no downtime in employee changeover from one operation to the next
B) it is more efficient because employees develop specialized skills for completing their task
C) it allows employees to develop new skills and stay interested in their jobs
D) initial job training is easier

Accepted Answer

Job rotation allows employees to learn new skills and perform different tasks, which can increase job satisfaction and motivation. It also helps to prevent boredom and burnout from doing the same task repeatedly. Additionally, it can create a more versatile workforce, as employees are able to adapt to different roles and responsibilities.

Question 9

Which of the following is a benefit of job specialization?
A) specialized jobs are more efficient because they eliminate employee changeover time from one operation to the next
B) specialized jobs require retraining staff if there is a modification to production
C) employees are less likely to become bored
D) employees are able to develop new skills and identify roles where they may like to focus

Accepted Answer

Specialized jobs are more efficient because they eliminate employee changeover time from one operation to the next. This means that the employee can focus solely on their specific task, allowing them to become more proficient and productive in that area.

Question 10

A company that is organized by the North Region, the West Region, the East Region, and the Central Region would be departmentalization by which of the following?
A) customer
B) function
C) product
D) location

Accepted Answer

The company is departmentalized by location, with each region representing a different geographical area.

Question 11

Selena does data entry for a mobile phone company. Her job is to enter the data exactly as they appear in the field reports that are given to her daily. Which of the following best describes Selena's job?
A) low specialization, low empowerment
B) low specialization, high empowerment
C) high specialization, low empowerment
D) high specialization, low efficiency

Accepted Answer

Selena's job is highly specialized as she is only responsible for data entry and has a specific set of tasks to perform. However, she has low empowerment as she does not have the authority to make decisions or take actions beyond her specific job duties.

Question 12

A company's location, product, function, and customer are common bases for which of the following?
A) departmentalization
B) span of management
C) job specialization
D) job design

Accepted Answer

Departmentalization refers to how jobs or tasks are organized into specific departments or functional areas based on common factors such as location, product, function, and customer.

Question 13

If General Mills has a Cereal Division and a Snack Foods Division, it would be departmentalizing on the basis of which of the following?
A) population
B) customer
C) function
D) product

Accepted Answer

General Mills is departmentalizing on the basis of product by creating separate divisions for cereal and snack foods.

Question 14

A computer manufacturer is first divided into the following groups: Consumers, Small Business, Large Business, and Educational Institutions. Within each of these divisions, management is organized into finance, operations, marketing, and human resources. This company is organized first by customer, and then by which of the following?
A) model
B) function
C) product
D) location

Accepted Answer

The company is organized by customer first, but within each division, it is organized by functions such as finance, operations, marketing, and human resources. Therefore, the best choice is B) function.

Question 15

If a new company desires to departmentalize in a way that will simplify supervision and facilitate clear lines of communication, it will most likely departmentalize by which of the following?
A) product
B) location
C) customer
D) function

Accepted Answer

Function departmentalization groups positions based on the functions they perform, such as marketing, finance, or production. This type of departmentalization simplifies supervision by bringing together employees with similar skills and expertise, facilitates clear lines of communication within each department, and enables the company to develop specialized skills and knowledge in each area.

Question 16

Phil is the art director for a video game production company. He works with the writers, graphic artists, and programmers to bring the team's ideas to life. Although the theme of each game is set by the executive team, Phil is able to take that basic theme in just about any direction he chooses. Which of the following best describes Phil's job?
A) low specialization, low empowerment
B) low specialization, high empowerment
C) high specialization, high empowerment
D) high specialization, low efficiency

Accepted Answer

Phil has a low specialization because he works with writers, graphic artists, and programmers, indicating that he has a broad range of responsibilities. However, he has a high level of empowerment because he is able to take the theme set by executives in any direction he chooses. This means he has a lot of creative freedom and decision-making power in his role.

Question 17

TD Bank has one group of loan officers who handle consumer loans and another group who work with commercial loans for business. Grouping work units this way is known as departmentalization by which of the following?
A) function
B) customer
C) product
D) specialty

Accepted Answer

Departmentalization by customer groups work units by the type of customer they serve, such as consumer loans or commercial loans for a business, as is the case with TD Bank.

Question 18

Which type of departmentalization can lead to slow decision making and can result in "silos" where employees tend to stress the needs of the department over the needs of the whole organization?
A) customer
B) function
C) product
D) location

Accepted Answer

Function departmentalization can lead to slow decision making and can result in "silos" where employees tend to stress the needs of the department over the needs of the whole organization because each function operates independently and may not communicate effectively with other functions. This can lead to a lack of collaboration and a focus on individual goals rather than organizational goals.

Question 19

Which of the following involves grouping jobs and people into manageable units?
A) departmentalization
B) centralized organization
C) bureaucratic structuring
D) informal organizing

Accepted Answer

Departmentalization involves grouping jobs and people into manageable units based on their functions, products, customers or geographic locations. Centralized organization refers to a hierarchy where decision-making is concentrated at the top, bureaucratic structuring refers to the use of rules and regulations to control organizational activities while informal organizing refers to the spontaneous and natural formation of relationships and groups within an organization.

Question 20

Employees at a chemical factory are systematically moved every two weeks among three different departments in the organization. What is this practice called?
A) job empowerment
B) job specialization
C) job enlargement
D) job rotation

Accepted Answer

This practice is called job rotation, as employees are systematically moved among different departments in the organization every two weeks. Job empowerment involves giving employees more autonomy and control over their work, job specialization involves focusing on a particular area of expertise, and job enlargement involves expanding the range of tasks assigned to a particular job.

Quiz 7: Creating a Flexible Organization

General Motors has separate divisions for Chevrolet, GMC, and Cadillac vehicles. This is an example of departmentalization by which of the following?

Kimberly Clark, manufacturer of Kleenex tissues, Huggies diapers, Cottonelle bathroom tissue, and other brands, departmentalizes based on product. One advantage to this type of departmentalization is that Kimberly Clark can do which of the following?

Johnson & Johnson has a Consumer group, a Professional group, a Pharmaceutical group, and an Industrial group. Johnson & Johnson has which form of departmentalization?

Which of the following is a disadvantage of departmentalization by function?

The Patel Company, a small furniture manufacturer, divides its organization into marketing, human resources, accounting, and production departments. This is an example of departmentalization by which of the following?

Which of the following is a benefit of job rotation?

Which of the following is a benefit of job specialization?

A company that is organized by the North Region, the West Region, the East Region, and the Central Region would be departmentalization by which of the following?

Selena does data entry for a mobile phone company. Her job is to enter the data exactly as they appear in the field reports that are given to her daily. Which of the following best describes Selena's job?

A company's location, product, function, and customer are common bases for which of the following?

If General Mills has a Cereal Division and a Snack Foods Division, it would be departmentalizing on the basis of which of the following?

If a new company desires to departmentalize in a way that will simplify supervision and facilitate clear lines of communication, it will most likely departmentalize by which of the following?

TD Bank has one group of loan officers who handle consumer loans and another group who work with commercial loans for business. Grouping work units this way is known as departmentalization by which of the following?

Which type of departmentalization can lead to slow decision making and can result in "silos" where employees tend to stress the needs of the department over the needs of the whole organization?

Which of the following involves grouping jobs and people into manageable units?

Employees at a chemical factory are systematically moved every two weeks among three different departments in the organization. What is this practice called?