Question 1

When decisions tend to be made at lower levels in an organization,the organization is said to be decentralized.

Accepted Answer

Decentralization means that decision-making authority is given to lower levels in the organization, rather than being centralized at the top.

Question 2

Designing is the fourth management function; it deals with what tasks are to be done,who is to do them,and where decisions are to be made.

Accepted Answer

The fourth management function is controlling, not designing. Designing is not considered one of the primary management functions.

Question 3

There are four basic elements in organizational structure.

Accepted Answer

There are six elements: work specialization, departmentalization, authority and responsibility, span of control, centralization and decentralization, and formalization.

Question 4

Accountability is the obligation or expectation to perform any assigned duties.

Accepted Answer

The answer of Accountability is the obligation or expectation to...

Question 5

Organizational design is the process in which managers change or develop an organization's structure.

Accepted Answer

Organizational design involves deliberate and purposeful changes to the structure of an organization, undertaken by its managers.

Question 6

The trend in recent years has been toward a smaller span of control.This trend is consistent with managers' efforts to reduce costs and increase flexibility.

Accepted Answer

The trend has been toward a larger span of control to reduce costs and increase flexibility by flattening organizational structures.

Question 7

Customer departmentalization groups jobs on the basis of product or customer flow.

Accepted Answer

Customer departmentalization groups jobs on the basis of specific customer segments rather than product or customer flow.

Question 8

Responsibility refers to the rights inherent in a managerial position.

Accepted Answer

Responsibility refers to the obligations and duties that come with a managerial position, not rights. Managers have the responsibility to make decisions, assign tasks, manage resources, and ensure that goals are achieved.

Question 9

The advantage of work specialization is that it tends to result in high employee motivation and high productivity.

Accepted Answer

The answer of The advantage of work specialization is that...

Question 10

The degree to which activities in an organization are divided into separate jobs is called work specialization.

Accepted Answer

Work specialization refers to the degree to which tasks in an organization are divided into separate jobs. This means that each person is responsible for a specific set of tasks, which helps to increase efficiency and productivity within the organization.

Question 11

When cosmetics maker Estée Lauder organized its structure around its major brands and operated each as a separate company,it was using product departmentalization.

Accepted Answer

Product departmentalization is organizing a company based on its products or brands. Estée Lauder operates each of its major brands as a separate company, which demonstrates product departmentalization.

Question 12

Organizational design and organizational structure mean the same thing.

Accepted Answer

Organizational design refers to the process of arranging and defining an organization's structure, systems, roles, and workflows to achieve specific goals. Organizational structure refers to the formal arrangement of roles, responsibilities, and relationships within an organization. While the two concepts are related, they are not interchangeable.

Question 13

Standardization refers to the degree to which jobs within the organization are standardized and the extent to which employee behaviour is guided by rules and procedures.

Accepted Answer

The answer of Standardization refers to the degree to which...

Question 14

John has just been informed that he will be working on a new team to develop a line of athletic shoes.His team will include individuals from the design team,the production team,the finance team,as well as the sales and marketing teams.It appears as though John will be working on a cross-functional team.

Accepted Answer

A cross-functional team is composed of individuals from different functional areas or departments within an organization, working together towards a common goal or project. In this scenario, John will be working with individuals from various teams and departments, indicating that it is a cross-functional team.

Question 15

Staff authority is the ability to direct the work of any employee who does not have a higher rank in the organization.

Accepted Answer

Staff authority refers to the right to advise or assist those with line authority, rather than the ability to direct the work of any employee regardless of their rank.

Question 16

Large public corporations must employ departmentalization by function because it is mandated in the corporate charter.

Accepted Answer

Large public corporations can choose to employ departmentalization by function, but it is not mandated in their corporate charter. It is instead a common organizational structure used to increase efficiency and effectiveness in managing different areas of the company.

Question 17

When work specialization originally began to be implemented early in the twentieth century,employee productivity initially rose.

Accepted Answer

Work specialization, also known as division of labor, was implemented in industries such as manufacturing and assembly lines in the early 1900s. This led to an increase in employee productivity as tasks were broken down into simpler and more repetitive actions, allowing workers to become highly skilled at their specific tasks. However, this approach has been criticized for its negative impact on employee satisfaction and overall job quality.

Question 18

Unity of command prevents an employee from trying to follow two conflicting commands at once.

Accepted Answer

Unity of command states that employees should only receive commands from one superior to prevent confusion and conflicting orders.

Question 19

Work specialization continues to be an important organizing mechanism and a source of ever-increasing productivity.

Accepted Answer

The answer of Work specialization continues to be an important...

Question 20

Line authority can be exerted only after a manager checks with his or her superior.

Accepted Answer

Line authority allows managers to make decisions and issue commands within their designated areas of responsibility without needing to consult with their superiors for every decision.

Quiz 5: Organizational Structure and Design