Question 1

Staff managers are part of the chain of command of an organization.

Accepted Answer

Staff managers provide advice and support to line managers and are not part of the direct chain of command that involves decision-making and authority over the primary activities of the organization.

Question 2

Among an ad hoc committee, a standing committee, and a task force, only a standing committee is relatively permanent.

Accepted Answer

An ad hoc committee is created for a specific purpose or issue and is dissolved once that purpose is fulfilled. A task force is similar to an ad hoc committee but is typically created for a shorter duration and to address a more specific issue. A standing committee, on the other hand, is a permanent committee established to deal with recurring issues in an organization or government body.

Question 3

The span of management plays a direct role in determining the organization's height.

Accepted Answer

The span of management refers to the number of subordinates a manager can effectively manage. A wider span of management leads to fewer levels of management and therefore a shorter organizational hierarchy or height. Conversely, a narrow span of management leads to more levels of management and a taller organizational hierarchy.

Question 4

Managers within a line structure are typically known as staff managers.

Accepted Answer

Managers within a line structure are typically known as line managers. Staff managers are responsible for supporting the work of line managers and do not have direct authority over employees.

Question 5

Corporate culture has little real influence on the performance of a firm.

Accepted Answer

Corporate culture plays a significant role in shaping the values, norms, and attitudes of the employees within an organization. It affects employee morale, productivity, and commitment to the organization, all of which ultimately impact the overall performance of the firm. Therefore, corporate culture has a real influence on the performance of a firm.

Question 6

A task force is a committee responsible for investigating a major problem or pending decision.

Accepted Answer

A task force is indeed a committee formed to investigate a major problem or decision.

Question 7

Target has several layers of management in between the entry-level management position and CEO. This implies that the span of management for each manager is relatively narrow and the organizational height of Target is tall.

Accepted Answer

The statement correctly describes a tall organizational structure with narrow span of management.

Question 8

Cross-functional teams are not very effective structures to use when developing a new product or service.

Accepted Answer

Cross-functional teams are designed specifically for situations such as developing a new product or service. By bringing together individuals with different areas of expertise and perspectives, cross-functional teams can create more innovative solutions and overcome potential obstacles more effectively. Therefore, they can be very effective structures to use for new product or service development.

Question 9

When the matrix structure is used, employees report to more than one supervisor.

Accepted Answer

In a matrix structure, employees report to both a functional manager and a project or product manager. This allows for better communication and collaboration across departments, but can sometimes lead to confusion or conflicting priorities for employees.

Question 10

The most appropriate, short-term committee to provide a recommendation for a health care benefit plan for a medium size corporation would be a task force.

Accepted Answer

The answer of The most appropriate, short-term committee to provide...

Question 11

Another term used to refer to a formal organization's network of communication is grapevine.

Accepted Answer

The term "grapevine" refers to the informal communication network within an organization, not the formal organization's network of communication.

Question 12

Committees are necessary in an organization but do not offer any advantages over individual decisions and actions.

Accepted Answer

Committees offer several advantages over individual decisions and actions. They bring together individuals with diverse backgrounds and expertise, allow for discussion and debate of issues, can lead to better-informed decisions, and promote accountability and shared responsibility. Committees also provide a framework for consistent decision-making and can help distribute work and responsibilities among members.

Question 13

An advantage of decision-making by a committee in lieu of an individual is that committee deliberations are always faster than individual decisions.

Accepted Answer

This statement is false. Committee deliberations can often take longer than individual decisions, as multiple viewpoints and opinions must be considered and debated before a decision is reached.

Question 14

Companies like Southwest Airlines and Saturn attribute a great deal of their success to their strong corporate cultures, which is inaccurate. In reality, research has determined that, over time, corporate culture has only a marginal influence on firm performance.

Accepted Answer

Research and case studies, including those of Southwest Airlines and Saturn, have shown that strong corporate cultures can significantly contribute to a company's success by enhancing employee engagement, customer satisfaction, and operational efficiency, which in turn can lead to improved firm performance.

Question 15

In a flat organization, administrative costs are higher because more managers are needed.

Accepted Answer

In a flat organization, there are fewer managers and a decentralized decision-making process, which can lead to lower administrative costs.

Question 16

Functional authority allows line managers to make decisions and issue directive relating to the goals of the organization.

Accepted Answer

Functional authority allows staff specialists to issue directives within their area of expertise, but line managers have the primary decision-making authority related to organizational goals.

Question 17

An informal organization can be shown on a formal organization chart.

Accepted Answer

An informal organization cannot be shown on a formal organization chart because it is based on social structure and relationships that are not officially recognized or documented within a company's formal structure. Formal organization charts typically only display formal roles, positions, and reporting lines.

Question 18

The inner rites, rituals, heroes, and values of a firm make up its corporate culture.

Accepted Answer

Corporate culture refers to the shared beliefs, values, behaviors, and practices in an organization. This includes the inner rites, rituals, heroes, and values that shape the organization's identity and influence the behavior of its employees.

Question 19

The matrix organizational structure facilitates greater communication between employees.

Accepted Answer

The matrix organizational structure involves employees from different functional areas working together on a project. This cross-functional approach enhances communication between employees and helps in achieving project goals.

Question 20

When a manager has few subordinates, a narrow span of management exists.

Accepted Answer

A narrow span of management exists when a manager has few subordinates, as the manager can have more direct and frequent interactions with each subordinate.

Quiz 7: Creating a Flexible Organization