Question 1

Most organizations use the matrix approach at the top and other approaches at lower levels.

Accepted Answer

False

Question 2

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

Accepted Answer

In a matrix organizational structure, employees are grouped by both function and product, allowing for the pooling of resources from different areas of expertise to work on projects that have a temporary lifespan.

Question 3

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

Accepted Answer

Product departmentalization often involves creating separate departments for each product or product line, each with its own resources and personnel specialized in that product, leading to a higher overall requirement for resources and personnel compared to functional departmentalization, which organizes departments around essential functions (e.g., marketing, finance) and can share resources more efficiently across products.

Question 4

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.

Accepted Answer

The answer of A narrow span of management is needed...

Question 5

The morale in organizations following the unity of command principle is higher than in those organizations which do not follow this principle.

Accepted Answer

The unity of command principle, which states that each employee should receive orders from only one superior, helps in avoiding confusion and conflict in instructions, thereby often leading to higher morale as employees have clear guidance and less conflict in their roles.

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.

Accepted Answer

The unity of command principle ensures clarity in reporting and accountability by stipulating that each employee should receive orders from and be answerable to only one supervisor, preventing confusion and conflict of instructions.

Question 7

Line organization is the first stage of growth of an organization.

Accepted Answer

The answer of Line organization is the first stage of...

Question 8

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

Accepted Answer

In a matrix organization, employees report to both project and functional managers, allowing for more flexible resource allocation and quicker adaptation to change compared to the traditional functional approach, where employees report to a single department head.

Question 9

A given organization can use only a single approach to departmentalization.

Accepted Answer

Organizations often use a combination of departmentalization approaches to effectively manage and organize their operations, adapting to their specific needs and goals.

Question 10

In an organization following the unity of command principle, the operating employees are themselves responsible for motivating the other employees and achieving effective results without any supervisors overseeing their work.

Accepted Answer

The unity of command principle states that each employee should receive orders from only one superior, not that employees operate without supervision or are solely responsible for motivating others and achieving results.

Question 11

Ideally, the top managers in an organization should have the least number of people directly reporting to them.

Accepted Answer

This is because having too many direct reports can overwhelm top managers, making it difficult for them to provide adequate support, guidance, and feedback to each individual, thus hindering effective management and decision-making.

Question 12

All organizations inevitably go through all four stages of growth.

Accepted Answer

Not all organizations go through all four stages of growth (startup, growth, maturity, and renewal/decline) as some may fail early, be acquired, or remain in a particular stage for their entire existence.

Question 13

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

Accepted Answer

Departmentalization refers to the process of dividing an organization into different departments, which perform specific tasks or functions, based on criteria such as function, product, geographic location, or customer base, thereby organizing activities into manageable groups.

Question 14

Functional departmentalization helps in centralizing an organization's expertise.

Accepted Answer

Functional departmentalization groups together jobs involving the same or similar activities, thereby centralizing expertise in each function (e.g., marketing, finance, HR), which can lead to more efficient and effective performance.

Question 15

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

Accepted Answer

The functional approach to departmentalization groups jobs based on similar activities, skills, expertise, and resources, leading to efficiency gains through specialization and expertise development.

Question 16

In an organization following the unity of command principle, there always tends to be duplication of orders and instructions.

Accepted Answer

The unity of command principle ensures that each employee receives orders from only one superior, reducing the risk of duplication of orders and instructions.

Question 17

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

Accepted Answer

In the first stage of organizational growth, the owner/manager typically performs all the key activities and makes all the important decisions, as the organization is usually small and manageable by a single person or a very small team.

Question 18

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

Accepted Answer

In a line-and-staff organization, specialists (staff) are added to support and advise the line managers, enhancing the efficiency and effectiveness of operations by providing specialized knowledge and services.

Question 19

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

Accepted Answer

In line organizations, responsibility and authority are clearly defined, with direct, clear lines of authority and communication from the top of the organization to the bottom.

Question 20

Job assignments in a matrix departmentalization structure are temporary.

Accepted Answer

In a matrix departmentalization structure, employees are assigned to projects or tasks for a temporary period and may report to multiple managers, reflecting the dynamic and flexible nature of this organizational design.

Quiz 4: Fundamentals of Organizing