Question 1

Staff units and positions typically have more power and greater status in a company than line units and positions.

Accepted Answer

Line units and positions are directly involved in the core activities of a company, such as production and sales, and typically hold more authority and responsibility for achieving the organization's primary goals, whereas staff units and positions provide support, advice, and specialized services to the line units.

Question 2

Departmentalization refers to how specific work units or groups are divided and coordinated within an organization.

Accepted Answer

Departmentalization involves dividing an organization into different departments, which perform tasks according to the departments' specializations in the organization.

Question 3

Tall structures have a wider span of control than flat structures.

Accepted Answer

Tall structures have a narrower span of control, meaning a manager supervises fewer subordinates, which contrasts with flat structures where managers have a wider span of control, overseeing more subordinates.

Question 4

The number of individuals reporting to a supervisor is called the chain of command.

Accepted Answer

The number of individuals reporting to a supervisor is referred to as the span of control, not the chain of command. The chain of command describes the hierarchy through which authority and commands flow within an organization.

Question 5

The sales and finance functions of a firm are examples of line units.

Accepted Answer

The answer of The sales and finance functions of a...

Question 6

While individuals at lower levels of an organization are largely focused on the internal environment of the organization, the CEO and top management team are more focused on how the organization is positioned in the external environment.

Accepted Answer

The CEO and top management team are primarily responsible for strategic decision-making, which includes understanding and responding to external factors such as market trends, competition, and regulatory changes. Individuals at lower levels are more focused on day-to-day operations and internal processes.

Question 7

Staff units provide specialized expertise and services in an advisory capacity to line units.

Accepted Answer

Staff units are designed to offer specialized expertise, advice, and services to support the functions of line units, but they do not have direct authority over the operations.

Question 8

Staff units are groups that assist the line units by providing specialized expertise and services to them.

Accepted Answer

Staff units are designed to provide specialized expertise, advice, and services to line units, helping them to perform their primary functions more effectively.

Question 9

Divisional departmentalization is a division of labor through the formation of work units or groups within an organization.

Accepted Answer

The answer of Divisional departmentalization is a division of labor...

Question 10

Two types of departmentalization are functional departmentalization and divisional departmentalization.

Accepted Answer

Functional departmentalization groups employees based on their work functions, such as marketing or finance, while divisional departmentalization organizes them based on products, services, customer types, or geographic locations.

Question 11

Organizational context is the characteristics of a job, organization, or work situation that affect the way people in that situation act and interact.

Accepted Answer

Organizational context includes elements such as organizational culture, structure, leadership, and the physical work environment, all of which influence employees' behaviors, attitudes, and interactions within the workplace.

Question 12

Decentralization increases when the discretion to spend money, to hire people, and to make similar decisions is moved farther up the hierarchy of authority.

Accepted Answer

Decentralization actually increases when the discretion to spend money, to hire people, and to make similar decisions is moved farther down the hierarchy of authority, giving more power and decision-making authority to lower-level employees or units.

Question 13

Executives, managers, and supervisors are hierarchically connected through unity of command, which is a listing of who reports to whom up and down the firm.

Accepted Answer

Unity of command is a principle that states each employee should report to only one manager, rather than detailing who reports to whom throughout the organization's hierarchy.

Question 14

Production and operations are examples of staff units.

Accepted Answer

Production and operations are examples of line units, directly involved in the core activities of a business, such as creating and delivering products or services, unlike staff units which provide support and advice.

Question 15

Centralization is the degree to which the authority to make decisions is restricted to higher levels of management.

Accepted Answer

Centralization refers to decision-making power being concentrated at higher levels of management.

Question 16

Organization charts tell us about line versus staff positions and units.

Accepted Answer

Organization charts visually represent the structure of an organization, including the hierarchy and relationships between positions. They distinguish between line positions, which are directly involved in the core activities of the organization, and staff positions, which provide specialized advice and support to the line positions.

Question 17

Operations charts are diagrams that depict the formal structures of organizations.

Accepted Answer

Operations charts are diagrams that depict the formal processes and activities within an organization, not its formal structure. The formal structure of an organization is typically depicted in an organizational chart.

Question 18

The hierarchy of authority refers to the listing of positions of responsibility and who reports to whom.

Accepted Answer

The hierarchy of authority outlines the structure of reporting relationships within an organization, indicating who is responsible for what and who reports to whom, ensuring clear lines of authority and communication.

Question 19

Organizations that rely heavily on functional departmentalization can limit communication and knowledge sharing across functional areas.

Accepted Answer

The answer of Organizations that rely heavily on functional departmentalization...

Question 20

Functional departmentalization refers to the grouping of individuals by skill, knowledge, and action.

Accepted Answer

Functional departmentalization involves organizing a company's structure based on common job functions, so that each division contains employees who share skills, knowledge, and activities related to their specific function.

Quiz 2: OB in Context