Question 1

In a bureaucratic organization:

Accepted Answer

A bureaucratic organization is characterized by a hierarchical structure, strict rules, and adherence to procedures. Employees are expected to follow the rules and regulations set by the organization, and decision-making is centralized at the top of the hierarchy. While departments may communicate with each other, the primary focus is on maintaining the efficiency and stability of the organization, rather than customer satisfaction. Empowerment of first-line workers is not a key feature of a bureaucratic organization.

Question 2

Economies of scale:

Accepted Answer

Economies of scale refer to the cost advantage that a firm experiences as it increases its level of production. This happens because fixed costs (like rent, machinery, and salaries) get spread out over a larger number of products, reducing the average cost per unit. This advantage is typically only available to larger firms that can take advantage of the cost spread. Small firms may not have enough production to achieve economies of scale, but it is not due to management inefficiencies. Purchasing supplies in bulk (C) is a common way to access economies of scale, but it is not the only way. Finally, while economies of scale can help explain the success of larger businesses, they are not the reason that small businesses can also be successful.

Question 3

Sarah is a designer for a business that installs underground sprinkler systems for residential and commercial customers. Tom and Bill share the ownership responsibilities of the business. Tom is in charge of commercial accounts and Bill is in charge of residential accounts. Sometimes Tom and Bill double book Sarah's time, creating frustration and animosity. Since they share supervisory responsibility, there is no clear way to decide whose accounts are most important. This type of situation represents a violation of Fayol's ____________ principle

Accepted Answer

The situation described violates the unity of command principle, which states that an employee should receive orders from only one supervisor. In this case, Sarah is receiving conflicting demands from both Tom and Bill, creating frustration and animosity.

Question 4

When Brian started his auto mechanic shop, his business plan included a(n) _______________ that showed the relationships among employees in his organization and the lines of authority and responsibility

Accepted Answer

An organization chart is a visual representation of the structure of an organization, showing the relationships among employees and their lines of authority and responsibility. It is an essential tool for any business plan to ensure that everyone in the organization understands their role and how it fits into the larger picture.

Question 5

Fayol believed that decision-making authority should remain in the hands of top management:

Accepted Answer

One of Fayol's principles of organization states that the amount of decision-making power vested in top management should vary according to circumstances. Fayol believed that top management could assume all decision-making power in small organizations, but that decision-making power could be delegated to lower levels of management in large organizations.

Question 6

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

Accepted Answer

According to Weber's view, the role of top management in a bureaucratic organization is to make decisions. They are responsible for setting goals, making plans, and determining the course of action for the organization. They are also responsible for monitoring performance and making changes as necessary to achieve the goals of the organization. Empowering workers and developing rules and procedures are typically the responsibility of middle management, and direct supervision of employees is the responsibility of front-line managers.

Question 7

Bill, a financial manager at Carlyle Bank and Trust, always strives to treat each subordinate with respect and fairness. Bill's treatment of employees is an example of Fayol's principle of:

Accepted Answer

Bill's treatment of employees with respect and fairness aligns with Fayol's principle of equity, which emphasizes treating employees fairly and without bias. Unity of command refers to the principle that employees should have one supervisor giving them orders. Empowerment and order relate to other principles.

Question 8

A(n) __________ is used by an organization to show who is accountable for the completion of specific work and who reports to whom

Accepted Answer

An organization chart is specifically designed for the purpose of showing the hierarchy and reporting structure within an organization or company. It outlines each person's job title, responsibilities, and who they answer to within the organization. The other choices (balance sheet, Venn diagram, and stakeholder outline) do not serve this specific purpose.

Question 9

______________ organizations are characterized of many layers of management and function with well-defined rules and procedures

Accepted Answer

Bureaucratic organizations have many layers of management and operate through well-defined rules and procedures. Matrix organizations have less defined hierarchy and emphasize cross-functional teams. Inverted and ordered organizations are not commonly used terms to describe organizational structure.

Question 10

Which of the following statements explains the unity of command principle of management?

Accepted Answer

Unity of command principle of management states that every employee should receive orders and be accountable to only one supervisor to avoid confusion and frustration among workers. Having more than one boss can lead to conflicting orders and priorities, making it difficult to complete tasks effectively.

Question 11

Campbell is a middle manager for a bureaucratic organization. According to Max Weber's views on bureaucratic organizations, Campbell's function within the organization is to:

Accepted Answer

According to Max Weber's views on bureaucratic organizations, middle managers like Campbell are responsible for implementing the decisions of top management. They do not have the authority to make key operating decisions, evaluate the daily performance of first-line employees, or ensure esprit de corps.

Question 12

The line of authority that moves from the top of a hierarchy to the lowest level is called the:

Accepted Answer

The chain of command is the line of authority that moves from the top of a hierarchy to the lowest level. It is the path along which communication and orders flow, and it establishes who is authorized to make decisions and take action within an organization. The other choices are not as accurate or relevant to this concept.

Question 13

Max Weber favored which of the following?

Accepted Answer

Max Weber believed in the concept of bureaucracy, which aimed to achieve efficiency and rationality in organizations by basing staffing and promotions on qualifications rather than personal relationships or favoritism. This is reflected in his emphasis on rules, procedures, and merit-based selection criteria. While he did not explicitly advocate for worker participation in decision-making or flat organizations, his emphasis on formal procedures and rules could be seen as a way to limit the power of individual managers and ensure consistency and fairness in decision-making. Inverted organizations, which turn the traditional hierarchical structure on its head, were not a concept that Weber discussed.

Question 14

One advantage of a bureaucratic organization is that:

Accepted Answer

Bureaucratic organizations have a set of rules and regulations that govern their operations. Employees are expected to follow these rules, which ensures consistency and reliability in operations. As a result, employees know what is expected of them, and there is little ambiguity regarding their responsibilities. This knowledge allows employees to work more efficiently and confidently, which benefits the organization in the long run.

Question 15

John recently accepted a job in the marketing department with the Burbank Bagel Boys. After just a few days on the job, John learned that the company has many layers of management, and seems to have a rule to cover almost every situation. These conditions suggest that Burbank Bagel Boys is a(n):

Accepted Answer

The fact that Burbank Bagel Boys has many layers of management and seems to have a rule to cover almost every situation suggests that the organization is bureaucratic. A bureaucratic organization is characterized by strict adherence to rules and regulations, many levels of management, a focus on formal procedures and processes, and a hierarchical structure.

Question 16

Which of the following statements most closely identifies the problem with adopting Fayol's principles of organization design for contemporary businesses?

Accepted Answer

Fayol's principles of organization design emphasize a bureaucratic structure with strict rules and standardized procedures. While this may have worked well in the past, contemporary businesses need to be agile and responsive to changing customer needs. Too much rule making can create an organization that is slow to adapt and unable to satisfy customers in a fast-paced environment. Therefore, the adoption of these principles might not be suitable for contemporary businesses.

Question 17

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

Accepted Answer

Weber believed that a bureaucratic organization should have clearly established rules and guidelines that are strictly followed. This is seen as a way to ensure consistency, fairness, and impersonality in decision-making and to minimize the influence of personal relationships and favoritism. While loyalty and pride may be desired, they are not considered essential characteristics of a bureaucratic organization according to Weber. Similarly, cross-functional and self-managed teams may exist in some bureaucratic organizations, but they are not core principles of the bureaucratic model.

Question 18

If companies follow the theories of Fayol and Weber, which of the following scenarios is likely to result?

Accepted Answer

According to Fayol and Weber, a hierarchical system of management is necessary for large organizations. This means that as organizations grow, they will develop several layers of management, resulting in longer decision-making processes.

Question 19

At Green Acres Fencing Company, eight employees perform various aspects of the company's work. One person does sales; four perform installation; one purchases materials; one does billing; one performs after-sales inspections. This type of organization reflects Fayol's principle of:

Accepted Answer

The organization of tasks among the employees demonstrates the principle of division of labor, where each employee is responsible for a specific task or set of tasks.

Question 20

A(n) __________ consists of one person at the top of the organization and many levels of managers who are responsible to that person

Accepted Answer

A hierarchy is a traditional organizational structure where there is one leader at the top and then several levels of management beneath that person. This is the most common type of organizational structure in business. An oligarchy refers to a small group of people who hold most of the power within an organization, so this is not an accurate answer. An inverted organization is a newer type of structure where there is less emphasis on hierarchy and more emphasis on employee empowerment, so this is also not the best answer. An informal organization refers to the social connections and relationships within a company that are not part of the formal hierarchy, so this is not an accurate answer either.

Quiz 8: Structuring Organizations for Todays Challenges