Question 1

Vaughn Studios organizes its operations by activity, such as production, marketing, accounting, and finance. Vaughn utilizes _____________ departmentalization in order to maximize their efficiency

Accepted Answer

Functional departmentalization is when an organization groups its activities around common functions such as production, marketing, accounting, and finance. This allows for specialization and efficiency within each functional area.

Question 2

Which of the organization models follows all of Fayol's traditional management rules?

Accepted Answer

The line organization is the most traditional and follows all of Fayol's management principles, including clear chain of command, unity of direction, and scalar chain.

Question 3

In a _____________ organization, specialists from different parts of the organization are brought together on a temporary basis to work on specific projects

Accepted Answer

This is the definition of a matrix organization, where employees from different functional areas are brought together to work on projects.

Question 4

HipHop Music Company assigns workers to departments based on similar skills. Currently, the company has a marketing department, a production department, a finance department, and a human resources department. This suggests that HipHop departmentalizes by:

Accepted Answer

HipHop Music Company departmentalizes by function because they have organized their departments based on similar skills, such as marketing, production, finance, and human resources. Each department focuses on a specific function, thus illustrating function-based departmentalization.

Question 5

Management at Hottie Potatee, a nationwide potato bar chain, believes that its customers value a predictable and consistent level of service and quality. When customers stop at one of its potato bar chain restaurants anywhere in the United States, they should know what to expect in terms of menu, price and quality. In order to maintain this consistency, Hottie Potatee adopted a(n) ______ structure

Accepted Answer

A centralized authority structure involves decision-making being concentrated in one location or in a small group of individuals at the top level of the hierarchy. This allows for consistency and uniformity in decision-making across all locations, which aligns with Hottie Potatee's goal of maintaining consistent service and quality.

Question 6

Employees who perform functions that advise and assist line personnel are known as:

Accepted Answer

Employees who advise and assist line personnel are known as staff personnel. They do not directly handle tasks but provide support and guidance to individuals who do. Middle managers are in charge of a company's division or department, while empowered workers have the authority to make decisions and prioritize tasks. Secondary employees is not a common term used in management.

Question 7

Greenwave Garden Centers is a national chain of discount gardening stores. The top management realizes that different regions of the U.S. have very different climates and soil conditions, so they give regional managers a great deal of freedom to decide exactly what types of plants, fertilizers, and other items to stock and how to best market these products. Greenwave is an example of a _______________ organization

Accepted Answer

Greenwave's management style reflects a decentralized organizational structure in which regional managers are given significant autonomy in decision-making.

Question 8

As a response to a rapidly changing marketplace, Idea Electronics found it necessary to reorganize, including a significant downsize of its middle management. This action will likely result in ___________

Accepted Answer

Downsizing middle management often leads to flattening the organizational structure and empowering employees to take on more responsibility and decision-making authority. This allows for a more agile and responsive organization that can quickly adapt to changes in the marketplace by getting closer to the customer. The other options listed are not directly related to downsizing middle management.

Question 9

Staff positions in an organization:

Accepted Answer

Staff positions are created to provide support and assistance to the line positions in an organization. They do not hold superior authority over the line positions and are not always less well-paid. It is also not necessarily true that they are reserved for retired CEOs.

Question 10

Lockdown Industries produces a variety of anti-crime and safety products such as burglar alarms, smoke detectors, surveillance cameras, and specialty locks. Lockdown sells to households, businesses, and government agencies. They have found that each market requires a different marketing strategy. Lockdown would probably benefit from departmentalization by:

Accepted Answer

Lockdown Industries has found that each market (households, businesses, and government agencies) requires a different marketing strategy. Departmentalization by customer type would allow Lockdown to better focus on each specific market segment's needs and preferences, and tailor their marketing strategies accordingly.

Question 11

__________ are responsible for directly achieving organizational goals

Accepted Answer

Line personnel are the employees directly responsible for achieving the goals of the organization. They are responsible for the core operations and functions of the organization, such as production, sales, and customer service. Organizational specialists (A) are employees who have specialized knowledge or skills and provide support to line personnel. Chain of command managers (C) are responsible for managing the flow of information and decisions between different levels of the organization. Staff personnel (D) provide support services to line personnel but are not directly responsible for achieving organizational goals.

Question 12

JayLo Corporation has experienced rapid growth during its five years of existence. While still relatively small, JayLo is now big enough that Jessa, the firm's CEO, has decided to organize the firm into functional departments. Jessa can likely expect which of the following to occur?

Accepted Answer

When the company is organized into functional departments, employees can specialize and develop their skills in-depth, leading to opportunities for growth and development. While quick response to changes in the business environment and excellent communication between departments are desirable outcomes, they are not guaranteed simply by organizing into functional departments. Increase in scope of performance of functions is also not inherently improved by departmentalization.

Question 13

During the past six years, the marketing department manager at Creative Concepts International made a strong push to hire mover/shaker professionals that had superior performance records prior to joining this company. It didn't take long for these enthusiastic marketers to recognize the many talents within their department. They marveled at how much they were like each other and how they seemed to agree with each other's work styles and ideas. After a while, it became difficult for others in the organization to present to this group. If the idea did not originate within the marketing department, marketers did not give it much credence. Management counselors would describe this phenomenon as ______

Accepted Answer

The phenomenon described in the scenario is groupthink, where a group values harmony and agreement over critical thinking and dissenting opinions. This can lead to a lack of diversity of ideas and a reluctance to consider ideas from outside the group.

Question 14

Which of the following factors help determine a manager's span of control?

Accepted Answer

The level of standardization of the work to be done is a key factor that helps determine a manager's span of control. If the work is highly standardized and routine, the manager can oversee a larger number of employees. If the work is complex and requires a higher level of expertise, the manager's span of control will likely be smaller. The other factors listed (number of global competitors, method of accounting for production, form of business ownership) are not directly related to a manager's span of control.

Question 15

Organizations that require consistent production standards to help create a high-quality public image would tend to favor:

Accepted Answer

Centralized authority allows for clear and consistent communication of production standards and ensures that they are adhered to across the organization. This helps maintain a high-quality public image by presenting a consistent and reliable image to customers and stakeholders. An inverted organization, high levels of employee empowerment, and flat organizational structures may not provide the necessary level of standardization and control required for consistent production standards.

Question 16

Today's preference for flat rather than tall organization structures is mainly due to a flat organization's ability to:

Accepted Answer

Flat organization structures are preferred because they encourage quick decision-making and allow for easy communication between employees. This enables them to respond promptly to changing customer demands. The other options are not correct as they do not align with the benefits of flat organizations.

Question 17

As the head of the engineering department for her company, Jody works with her team on complex and challenging projects. The level of detail in this work requires Jody to spend a significant amount of time with each team member, providing advice and support. Due to the complexity and time involvement of each project, Jody has a(n) ________ span of control

Accepted Answer

A narrow span of control means that Jody has fewer direct reports, allowing her to provide more individualized attention and support. This is necessary for the complex and challenging projects her department is working on, which require a significant amount of time and detail. A wide span of control would mean that Jody has too many direct reports to effectively provide the necessary level of support and guidance. Unlimited span of control is not a common management style and functional span of control refers to the number of people reporting to a manager based on their function or expertise, rather than the level of attention required for each project.

Question 18

International Inns and Conference Centers (IICC), a national chain of professional event centers, utilizes a centralized authority structure. Which of the following provides the most likely explanation for why management at IICC would favor centralized authority?

Accepted Answer

Centralized authority is beneficial for maintaining a uniform image and high-quality service, which is likely a priority for IICC as it is a national chain of professional event centers.

Question 19

A ____________ organization is characterized by direct two-way lines of responsibility, authority, and communication running from the top to the bottom of the organization, with all people reporting to only one supervisor

Accepted Answer

A line organization, also known as a scalar organization, is the most traditional type of organizational structure where authority is concentrated at the top and flows down through a direct chain of command. All individuals and functional departments report to only one person, typically a supervisor or manager, who is responsible for their performance and outputs.

Question 20

Springfield National Bank organizes its loan operations based on the market served, such as consumer, small business, and nonprofit organizations. Departmentalization based on ________ allows Springfield to better serve borrowers with different needs

Accepted Answer

Departmentalization based on customer group allows the bank to tailor its loan operations to meet the specific needs of different types of borrowers. This specialization can lead to more efficient and effective customer service.

Quiz 8: Structuring Organizations for Todays Challenges