Question 1

The optimum number of subordinates a manager should supervise is referred to as the span of control.

Accepted Answer

The statement is true. The span of control is the number of subordinates that a manager or supervisor can effectively supervise, guide, and control. It is important to determine an appropriate span of control for effective management and delegation of tasks.

Question 2

Kate holds a middle-management position with a large corporation. She prefers to involve her subordinates in decision making. She also favors allowing workers a fair amount of flexibility in how they do their jobs. Kate's approach to management exemplifies the principles first popularized by Max Weber.

Accepted Answer

Max Weber is known for his theory of bureaucracy, which emphasizes a structured, hierarchical approach to management with strict rules and procedures, not the participative and flexible style described.

Question 3

Sam supervised a group of people in a very large organization. The refrigerator in their lunchroom stopped functioning. He started the paperwork on the day it died, and the refrigerator request went out for bid; two middle managers needed to approve acceptance of the bid and document their decision, and the purchasing director had final approval. The refrigerator arrived six months later. Max Weber would have approved of the decision process and documentation of it at Sam's company to back up such a refrigerator purchase.

Accepted Answer

Max Weber was a proponent of bureaucracy, which emphasizes following established rules and procedures in decision-making and documentation. The decision process and documentation of the refrigerator purchase at Sam's company aligns with this bureaucratic approach.

Question 4

In today's business environment, the trend is to decrease the span of control.

Accepted Answer

The trend in today's business environment is towards increasing the span of control, facilitated by advancements in technology and communication tools that allow managers to effectively oversee more employees.

Question 5

Span of control refers to the number of different markets a business can serve efficiently.

Accepted Answer

Span of control refers to the number of subordinates a manager can effectively manage, not the number of markets a business can serve.

Question 6

The degree to which an organization allows lower-level managers to make decisions reflects the degree of decentralization.

Accepted Answer

Decentralization refers to the dispersal of decision-making authority throughout an organization to lower-level managers, whereas a centralized organization concentrates decision-making authority at the top. Therefore, the degree of decentralization is directly related to the level of decision-making authority delegated to lower-level managers.

Question 7

As a result of rapidly changing markets and global differences in consumer tastes, more firms are considering centralized authority.

Accepted Answer

Due to rapidly changing markets and global differences in consumer tastes, more firms are considering decentralized authority to allow for faster decision-making and adaptations to local preferences.

Question 8

In firms with centralized authority, each business unit is treated as if it is a completely separate and independent organization.

Accepted Answer

In firms with centralized authority, decision-making and control are concentrated in a particular department or individual, and the business units are not treated as completely separate and independent organizations. The central authority has the power to make decisions for all business units and ensure that they align with the overall goals and strategies of the firm.

Question 9

At Dilly-Dally Sportswear Store a manager needs to be called to the front of the store and sign off on every return that a cashier performs. The CEO continues this policy because he wants every manager to "look those customers right in the eye" and "stake their job on taking those items back." Clearly, Dilly-Dally empowers its employees to make decisions at their jobs.

Accepted Answer

The policy indicates that managers, not cashiers, have the authority to approve returns, suggesting that employees are not empowered to make decisions independently.

Question 10

Centralized authority provides for the delegation of authority to employees who are then better able to respond to customers' needs.

Accepted Answer

Centralized authority concentrates decision-making power at the top level, limiting the delegation of authority to lower-level employees and potentially slowing response to customers' needs.

Question 11

As a new employee in a bureaucratic organization, Nelle can expect a great deal of independence and authority.

Accepted Answer

Bureaucratic organizations tend to have a hierarchical structure where decision-making authority is typically centralized at the top. New employees would generally have less autonomy and independence in their roles until they have gained experience and seniority within the organization.

Question 12

An advantage of decentralized authority is that those individuals closest to the customers and more familiar with local conditions make decisions.

Accepted Answer

Decentralized authority allows for decision-making to occur at the local level, which means that those who are closest to the customers and familiar with local conditions can make decisions that are best suited for their particular situation. This can lead to more efficient and effective decision-making.

Question 13

Blake is a manager at a car seat manufacturing company. He believes that it is very important and less confusing if each worker has only one boss. Blake's view is consistent with Fayol's unity of command principle.

Accepted Answer

Fayol's unity of command principle states that each worker should have only one boss to avoid confusion and conflicting instructions. Blake's belief aligns with this principle.

Question 14

Most businesses adopt a bureaucratic organization in order to speed up their decision-making process.

Accepted Answer

Bureaucratic organizations typically have many levels of management and decision-making processes, which can actually slow down decision-making.

Question 15

The more standardized the work, the wider the span of control.

Accepted Answer

The more standardized the work, the easier it is for a manager to oversee and delegate tasks, allowing for a wider span of control. Conversely, more complex or specialized tasks may require a narrower span of control.

Question 16

Soprano Industries follows a chain of command with authority moving from the top of the hierarchy down to lower-level managers. The company is organized by department with established rules and regulations that everyone is expected to follow. These characteristics suggest that Soprano Industries is an example of a bureaucratic organization.

Accepted Answer

The features mentioned in the statement (hierarchy, departments, rules, and regulations) are all characteristic of a bureaucratic organization.

Question 17

Paige believes all workers should receive the same wage rate regardless of their position within a company. Paige's views on wages illustrate Fayol's principle of equity.

Accepted Answer

Fayol's principle of equity refers to fairness and justice in the treatment of employees, not equal pay regardless of position.

Question 18

A weakened corporate image is one of the disadvantages of a decentralized business organization.

Accepted Answer

In a decentralized business organization, decision-making and control is spread across different departments or offices. This can sometimes lead to inconsistency in branding and messaging, which can weaken the overall corporate image.

Question 19

Antonio works in the accounting department of a large firm. This is an example of Fayol's division of labor concept.

Accepted Answer

Fayol's division of labor concept suggests that work should be divided into specialized tasks and assigned to individuals based on their skills and abilities. Antonio's role in the accounting department demonstrates this concept in action.

Question 20

Rob is a middle manager who spends much of his time devising ways to implement the ideas of top management. Max Weber would have considered Rob a bureaucrat.

Accepted Answer

According to Max Weber, a characteristic of bureaucracy is a hierarchy of authority where lower-level officials are responsible for implementing the decisions made by higher-level officials. As Rob is implementing the ideas of top management, he fits this description and would be considered a bureaucrat.

Quiz 8: Structuring Organizations for Todays Challenges