question

Understand what an organization is and identify its characteristics.

answer

An organization is a group of two or more people working together to achieve a common set of goals. The relationships among positions within an organization can be illustrated by means of an organization chart. Five elements—job design, departmentalization, delegation, span of management, and chain of command—help to determine what an organization chart and the organization itself look like

question

Explain why job specialization is important.

answer

Job specialization is the separation of all the activities within an organization into smaller components and the assignment of those different components to different people. Several factors combine to make specialization a useful technique for designing jobs, but high levels of specialization may cause employee dissatisfaction and boredom. One technique for overcoming these problems is job rotation.

question

Identify the various bases for departmentalization.

answer

Departmentalization is the grouping of jobs into manageable units. Typical bases for departmentalization are by function, product, location, or customer. Because each of these bases provides particular advantages, most firms—especially larger ones—use a combination of different bases to address different organizational situations.

question

Explain how decentralization follows from delegation.

answer

Delegation is giving part of a manager's work to other workers. It involves the following three steps: (1) assigning responsibility, (2) granting authority, and (3) creating accountability. A decentralized firm is one that delegates as much power as possible to people in the lower management levels. In a centralized firm, on the other hand, power is retained at the upper levels.

question

Understand how the span of management describes an organization.

answer

The span of management is the number of workers who report directly to a manager. Spans generally are characterized as wide (many workers per manager) or narrow (few workers per manager). Wide spans generally result in flat organizations (few layers of management); narrow spans generally result in tall organizations (many layers of management).

question

Describe the four basic forms of organizational structure.

answer

There are four basic forms of organizational structure. The line structure is the oldest and simplest structure, in which the chain of command moves in a straight line from person to person down through the levels of management. The line-and-staff structure is similar to the line structure, but adds specialists called staff managers to assist the line managers in decision making. The line structure works most efficiently for smaller organizations, whereas the line-and-staff structure is used by medium- and large-sized organizations. The matrix structure may be depicted as product departmentalization superimposed on functional departmentalization. With the matrix structure, an employee on a cross-functional team reports to both the project manager and the individual's supervisor in a functional department. In an organization with a network structure, the primary function performed internally is administration, and other functions are contracted out to other firms.

question

Describe the effects of corporate culture.

answer

Corporate culture has both internal and external effects on an organization. An organization's culture can influence the way employees think and act, and it can also determine the public's perception of the organization. Corporate culture can affect a firm's performance over time, either negatively or positively. Creating a culture of trust, for example, can lead to increased growth, profits, productivity, and job satisfaction, while retaining the best employees, inspiring customer loyalty, developing new markets, and increasing creativity. In addition, when two or more companies undergo the integration process, their different or similar corporate cultures can affect the success of a merger or acquisition.

question

Understand how committees and task forces are used.

answer

Committees and task forces are used to develop organizational structure within an organization. An ad-hoc committee is created for a specific short-term purpose, whereas a standing committee is relatively permanent. A task force is created to investigate a major problem or pending decision.

question

Explain the functions of the informal organization and the grapevine in a business.

answer

Informal groups are created by group members to accomplish goals that may or may not be relevant to the organization, and they can be very powerful forces. The grapevine—the informal communications network within an organization—can be used to transmit information (important or gossip) through an organization much faster than through the formal communication network. Information transmitted through the grapevine can go in any direction across the organizational structure, skipping up or down levels of management and even across departments.

question

Which of the following is true about departmentalization by function? a. An advantage of this method is quick decision making. b. Each department handles its own marketing and production. c. Older and larger firms usually use this method. d. Most small organizations group this way. e. This is grouping by good or service of the organization.

answer

d. Most small organizations group this way.

question

Grouping jobs into manageable units is called a. departmentalization. b. organizing. c. job specializing. d. delegation. e. a cluster structure.

answer

a. departmentalization.

question

An informal group is created by the members of the group a. True b. False

answer

a. True

question

An organization can be as little as just one person working to achieve a set of goals. a. True b. False

answer

b. False

question

A manager in charge of a team is called a a. staff manager. b. line manager. c. job specialist. d. project manager. e. subordinate.

answer

d. project manager.

question

________ helps clarify who reports to whom and clarify positions a. Departmentalization b. Delegation c. Job rotation d. An organization chart e. Specialization

answer

d. An organization chart

question

There are no positive aspects to a company grapevine a. True b. False

answer

b. False

question

What is considered to be the first step in the delegation process? a. Creating accountability b. Assigning responsibility c. Assessing and evaluating d. Creating motivation e. Granting authority

answer

b. Assigning responsibility

question

A virtual organization can also be known as a ________ structure. a. network b. cluster c. matrix d. cross-functional team e. corporate culture

answer

a. network

question

Relationships within a company are visually represented in an organization chart. a. True b. False

answer

a. True

question

Departmentalization by location allows for rapid response to unique demands or requirements of different locations. a. True b. False

answer

a. True

question

What is the primary drawback of departmentalization by customer? a. Boredom by employees b. Slow reaction by departments to problems or challenges c. Lack of connection with customers d. Difficult to deal with unique customers e. Larger-than-usual administrative staff

answer

e. Larger-than-usual administrative staff

question

A company can only be organized by one departmentalization base. a. True b. False

answer

b. False

question

Henry Ford was the first to emphasize the power of specialization a. True b. False

answer

b. False

question

Which of the following terms is NOT included in the definition of corporate culture? a. Its heroes b. The inner rites c. The rituals d. The mission statement e. The values of the firm

answer

d. The mission statement

question

If an employee learns one or two highly specialized tasks, it is assumed that that employee should be able to perform it very efficiently a. True b. False

answer

a. True

question

A rational approach to handling a grapevine is to a. recognize the existence of it. b. punish anyone involved in it. c. reply in email to all information that runs through it. d. respond to all information that runs through it. e. stop all communication that runs through it.

answer

a. recognize the existence of it.

question

When managers and subordinates are very competent, a narrow span of control is best. a. True b. False

answer

b. False

question

Job rotation is often a solution for ________. a. satisfied employees b. all managers c. bored employees d. the CEO and president e. content and motivated employees

answer

c. bored employees

question

An ad hoc committee is often tasked with performing recurring items a. True b. False

answer

b. False

question

The chain of command is the line of authority that extends throughout the levels of the organization. a. True b. False

answer

a. True

question

The more specialized a job is within an organization, the more difficult it is to design specialized equipment. a. True b. False

answer

b. False

question

Departmentalization by location can only be done within regions of a country. a. True b. False

answer

b. False

question

Authority is the power to accomplish an assigned job or task a. True b. False

answer

a. True

question

Delegation is rarely an important part of a manager's job or responsibility a. True b. False

answer

b. False

question

When workers are spread throughout a variety of locations, a narrow span of management is likely best. a. True b. False

answer

a. True

question

Conflict between line managers and staff managers is very rare in most large organizations. a. True b. False

answer

b. False

question

A matrix structure combines vertical and horizontal lines of authority. a. True b. False

answer

a. True

question

How employees spend their time and how company guests are greeted says something about the corporate culture of an organization a. True b. False

answer

a. True

question

Information in a grapevine always runs horizontally a. True b. False

answer

b. False

question

Which of the following positions are most often represented by broken lines in an organization chart? a. President b. Regional sales manager c. Human resource manager d. Department manager e. Vice President

answer

c. Human resource manager

question

What is the primary drawback to job specialization? a. Difficult job training b. Boredom c. Loss of time changing from operations d. Little specialized equipment available e. Motivation

answer

b. Boredom

question

Which of the following is not an effective departmentalization? a. By function b. By location c. By manager d. By product e. By customer

answer

c. By manager

question

Delegation assigns part of a manager's tasks as well as ________ to other workers in the organization a. authority b. motivation c. accountability d. salary e. inspiration

answer

a. authority

question

If an organization concentrates power and authority at the upper levels, it can be said to be a(n) ________ organization. a. delegation b. centralized c. decentralized d. departmentalization by function e. informal

answer

b. centralized

question

Span of management is also known as span of a. specialization. b. power. c. departmentalization. d. control. e. knowledge.

answer

d. control.

question

In a taller organization, why would administrative costs be higher? a. More employees are needed at the lowest levels. b. More duplication of staff positions is needed. c. More managers are necessary. d. More raw materials are needed. e. More equipment is necessary.

answer

c. More managers are necessary.

question

Which of the following is a characteristic of a line structure? a. Line managers do not exist at the top levels of the organization. b. Managers need to be highly-skilled experts in just one or two areas. c. Managers need a wide range of knowledge. d. Managers can be very specialized. e. Many staff managers are used in a line structure.

answer

c. Managers need a wide range of knowledge.

question

The ________ structure offers flexibility, possible increased morale, and can nurture creativity. a. matrix b. network c. line d. formal e. line-and-staff

answer

a. matrix

question

accountability

answer

the obligation of a worker to accomplish an assigned job or task

question

ad hoc committee

answer

a committee created for a specific short-term purpose

question

authority

answer

the power, within an organization, to accomplish an assigned job or task

question

centralized organization

answer

an organization that systematically works to concentrate authority at the upper levels of the organization

question

chain of command

answer

the line of authority that extends from the highest to the lowest levels of an organization

question

corporate culture

answer

the inner rites, rituals, heroes, and values of a firm

question

cross-functional team

answer

a team of individuals with varying specialties, expertise, and skills that are brought together to achieve a common task

question

decentralized organization

answer

an organization in which management consciously attempts to spread authority widely in the lower levels of the organization

question

delegation

answer

assigning part of a manager's work and power to other workers

question

departmentalization

answer

the process of grouping jobs into manageable units

question

departmentalization by customer

answer

grouping activities according to the needs of various customer populations

question

departmentalization by function

answer

grouping jobs that relate to the same organizational activity

question

departmentalization by location

answer

grouping activities according to the defined geographic area in which they are performed

question

departmentalization by product

answer

grouping activities related to a particular product or service

question

grapevine

answer

the informal communications network within an organization completely separate from and sometimes faster than the organization's formal communication channels May be accurate or distorted; managers should be aware and use appropriately

question

informal group

answer

a group created by the members themselves to accomplish goals that may or may not be relevant to an organization Pattern of behavior and interaction that stems from personal rather than official relationships Formed by the members themselves to accomplish goals that may or may not be relevant to the organization Can be powerful forces in organizations exerting positive as well as negative influences

question

informal organization

answer

the pattern of behavior and interaction that stems from personal rather than official relationships

question

job rotation

answer

the systematic shifting of employees from one job to another

question

job specialization

answer

the separation of all organizational activities into distinct tasks and the assignment of different tasks to different people

question

line managers

answer

a position in which a person makes decisions and gives orders to subordinates to achieve the organization's goals

question

line structure

answer

an organizational structure in which the chain of command goes directly from person to person throughout the organization

question

line-and-staff structure

answer

an organizational structure that utilizes the chain of command from a line structure in combination with the assistance of staff managers

question

matrix structure

answer

an organizational structure that combines vertical and horizontal lines of authority, usually by superimposing product departmentalization on a functionally departmentalized organization

question

network structure

answer

an organizational structure in which administration is the primary function, and most other functions are contracted out to other firms Administration is the primary function, and most other functions are contracted out to other firms

question

organization

answer

a group of two or more people working together to achieve a common set of goals

question

organization chart

answer

a diagram that represents the positions and relationships within an organization

question

organizational height

answer

the number of layers, or levels, of management in a firm

question

responsibility

answer

the duty to do a job or perform a task

question

span of management (or span of control)

answer

the number of workers who report directly to one manager

question

staff managers

answer

a position created to provide support, advice, and expertise within an organization

question

standing committee

answer

a relatively permanent committee charged with performing some recurring task

question

task force

answer

a committee established to investigate a major problem or pending decision

question

What is an Organization?

answer

A group of 2+ people working together to achieve a common set of goals. Developing organization charts 1-Organization chart - A diagram that represents the positions and relationships within an organization 2-Chain of command - The line of authority that extends from the highest to the lowest levels of the organization 3-Staff (advisory) positions - Jobs that are not part of the direct chain of command in the organization

question

Major Considerations for Organizing a Business

answer

1-Job Design 2-Departmentalization 3-Delegation 4-Span of Management 5-Chain of Command

question

Job Design

answer

1-Job Specialization 2-Rationale for Specialization 3-Alternatives to Job Specialization

question

Job Design: Rationale for specialization

answer

1-The "job" of the organization is too large for one person to accomplish 2-A worker learning only a specific, highly specialized task should be able to learn to do it efficiently 3-Workers do not lose time switching from one operation to another 4-Specialization makes it easier to design machinery to assist those who do the job 5-Specialization makes it easier to train new workers

question

Job Design: Alternatives to Job Specialization

answer

1-Job rotation systematically shifts employees from one job to another 2-Job enlargement 3-Job enrichment

question

Departmentalization: Common bases

answer

1-By function 2-By product 3-By location 4-By customer 5-Combinations

question

Multi-base Departmentalization for New-Wave Fashions Inc

answer

Most firms use more than one basis for departmentalization to improve efficiency and to avoid overlapping positions.

question

Steps in Delegation

answer

1-Responsibility 2-Authority 3-Accountability

question

Barriers to Delegation

answer

1-Fear the work will not get done 2-Fear the work will be done too well 3-Inability to plan and assign work effectively

question

Steps in the Delegation Process

answer

1-The manager assigns responsibility 2-The subordinate is empowered to do the task 3-Ultimate accountability remains with the manager

question

Decentralization of Authority

answer

Decentralized organization --Management consciously attempts to spread authority widely in the lower levels of the organization Centralized organization --Authority is concentrated at the upper levels of the organization Factors favoring decentralization --A complex and unpredictable business environment --Decisions that carry low risk or that are unimportant --Highly capable lower-level managers with strong decision-making skills --Past practices of the firm in decentralizing its structure and decision-making processes

question

The Span of Management

answer

Wide Span Large # of subordinates to one manager Narrow Span Only a few subordinates to one manager

question

The Span of Management: Wide Span (Flat organization)

answer

High level of competence in managers & workers Standard Operating Procedures (SOPs) Few new problems

question

The Span of Management: Narrow Span (Tall organization)

answer

Physical dispersion of subordinates Manager has additional tasks High level of interaction req'd between manager & workers High frequency of new problems

question

Forms of Organizational Structure

answer

1-Line 2-Line & Staff 3-Matrix 4-Network (Virtual Org)

question

Line Structure

answer

1-The chain of command goes directly from person to person throughout the organization 2-Simplicity allows for quick decision making and direct accountability 3-Most suitable for small organizations with lower volume of activities than medium or large organizations

question

Line-and-Staff Structure

answer

Utilizes the chain of command from a line structure in combination with the assistance of staff managers Line managers make decisions and give orders to subordinates ---->Line authority—line managers can make decisions and issue directives related to organizational goals Staff managers provide support, advice, and expertise ---->Advisory authority—the expectation that line managers will consult with staff managers before making decisions ---->Functional authority—staff managers' authority to make decisions and issues directives within their area of expertise

question

Line-and-Staff Structure Reasons for conflict between line and staff managers

answer

1. Staff managers often have more formal education 2. Staff managers are sometimes younger and more ambitious 3. Line managers may perceive staff managers as a threat 4. Staff managers may become angry if their recommendations are not adopted

question

Line-and-Staff Structure Minimizing conflict between line and staff managers

answer

1. Integrate line and staff managers into one team 2. Ensure that responsibilities are clearly defined 3 Hold both line and staff managers accountable for results

question

Matrix structure

answer

1. A structure that combines vertical and horizontal lines of authority, usually by superimposing product departmentalization on functional departmentalization 2. Authority flows both down and across 3. Employees on cross-functional teams report to both the project manager in charge of the team and to their superiors in their home-base functional department

question

Matrix Structure - Advantages

answer

1. Added flexibility 2. Increased productivity 3. Higher morale 4. Increases in creativity and innovation 5. Personal development of team members

question

Matrix Structure - Disadvantages

answer

1. Chain of command conflicts 2. May take longer to resolve problems and reach solutions 3. Personality clashes 4. Poor communications 5. Undefined individual roles 6. Unclear responsibilities 7. Difficulty in determining how to reward individual and team performance

question

Network (Virtual Org): Strength

answer

Flexibility allows the organization to adjust quickly to changes

question

Network (Virtual Org): Weaknesses

answer

1. Difficulty controlling the quality of work by other organizations 2. Low morale and high turnover of hourly workers 3. Vulnerability of relying on outside contractors

question

Indicators of Corporate Culture

answer

1- The physical setting (e.g., building and office layout) 2- Corporate statements about itself 3- How the company greets its guests 4- How employees spend their time at work (alone or in groups)

question

Types of Corporate Cultures

answer

1-Networked culture 2-Mercenary culture 3-Fragmented culture 4-Communal culture

question

Corporate Cultures - Networked

answer

a. Trust and friendship among employees b. Strong commitment to the organization c. Informal environment Extrovert energized by relationships Tolerant of ambiguities and have low needs for structure Can spot politics and act to stop "negative" politics Consider yourself easygoing, attainable, and loyal to others

question

Corporate Cultures - Mercenary

answer

a. Passion, energy, sense of purpose, excitement for work b. Intense, focused, determined to win Goal-oriented and have an obsessive desire to complete tasks. Thrive on competitive energy Keep "relationships" out of work - develop them.

question

Corporate Cultures- Fragmented

answer

a. Employees not friends; work "at" (not "for") organization b. Employees have autonomy, flexibility, equality Are a reflective and self-contained introvert Have a high autonomy drive and strong desire to work independently Have a strong sense of self

question

Corporate Cultures - Communal

answer

a. Friendship, commitment, focus on performance, high energy b. Lives revolve around the product; success is celebrated by all You consider yourself passionate Strong need to identify with something bigger than yourself. You enjoy being in teams Prepared to make sacrifices for the greater good.

question

Cultural Change is needed when

answer

1. A company's environment changes 2. The industry becomes more competitive 3. Company performance is mediocre 4. The company is growing or becomes a large firm

question

Committee Types

answer

1. Ad Hoc Created for a specific short-term purpose 2. Standing Relatively permanent; charged with performing some recurring task 3. Task Force Established to investigate a major problem or pending decision

question

Differences with individual action - Advantages

answer

members bring more information and knowledge; more accurate decisions; results communicated more effectively

question

Differences with individual action - Disadvantages

answer

Decision making takes longer; may reach unnecessary compromises; one person may dominate

question

A benefit of specialization is improved efficiency and increased productivity

answer

True

question

Job rotation involves assigning an employee more tasks and greater control.

answer

False

question

The power to make decisions is granted through authority.

answer

True

question

Accountability is created, not delegated.

answer

True

question

The span of management should be wide when a great deal of interaction is required between the supervisor and worker.

answer

False

question

Line positions support staff positions in decision making.

answer

True

question

Many firms find that by using matrix organization, the motivation level is lowered, and personal growth of employees is limited.

answer

False

question

In the mercenary culture, employees work "at" the organization, not "for" it.

answer

False

question

Creating a culture of trust can lead to decreased productivity and job satisfaction.

answer

False

question

Ad hoc committees can be used effectively to review a firm's employee benefits plan.

answer

True

question

The process of dividing work to be done by an entire organization into separate parts and assigning the parts to positions within the organization is called a. departmentalization. b. delegation. c. job design. d. specialization. e. organizing.

answer

d. specialization.

question

Who was the first to recognize the power of specialization? a. Karl Marx b. Max Weber c. John Kenneth Galbraith d. Adam Smith e. Thomas Friedman

answer

d. Adam Smith

question

ABC Distributors is reorganizing to better control costs. The company decided to group hospitals, schools, and churches together into one department. Which departmentalization base is the company using? a. Location b. Function c. Employees d. Product e. Customer

answer

e. Customer

question

Older and larger firms that produce and sell a variety of products tend to organize by a. location. b. product. c. customer. d. function. e. executive decisions.

answer

b. product.

question

A supervisor assigned to Wendy, the most proficient employee in the accounting department, a project on cost control that was due in three weeks. For Wendy to be accountable for the project, what must Wendy be given? a. Responsibility b. Power c. Authority d. Training e. Control

answer

a. Responsibility

question

Many managers are reluctant to delegate. Which one of the following is not one of the reasons they are reluctant to do so? a. They want to be sure that the work gets done. b. They fear that workers will do the work well and attract the approving notice of higher-level managers. c. They are so disorganized that they simply are not able to plan and assign work. d. Most managers are workaholics. e. Most subordinates are reluctant to accept delegated tasks.

answer

c. They are so disorganized that they simply are not able to plan and assign work.

question

A narrow span of management works best when a. subordinates are located close together. b. the manager has few responsibilities outside of supervision. c. little interaction is required between the manager and the worker. d. new problems arise frequently. e. few problems arise on a daily basis.

answer

d. new problems arise frequently.

question

A relatively permanent committee charged with performing some recurring task is called a. an ad hoc committee. b. a standing committee. c. a task force. d. a managerial committee. e. a permanent committee.

answer

a standing committee.

question

A committee is organized to review applications for scholarships. The group will award two scholarships to recent high school graduates. What type of committee would work best? a. Ad hoc committee b. Task force c. Liaison committee d. Standing committee e. Self-managed team

answer

a. Ad hoc committee

question

In order to best handle the grapevine, managers should a. try to eliminate it. b. respond slowly to inaccurate information. c. respond aggressively to accurate information. d. recognize its existence. e. reprimand employees who pass on important information.

answer

d. recognize its existence.

question

Organizing a business begins with: acquiring the necessary resources choosing the best qualified employees developing an efficient plan of action determining the work to be done

answer

determining the work to be done

question

Dividing the required work among a group of employees its called: a. departmentalization b. delegation of responsibility c. division of labor d. separation of control

answer

c. division of labor

question

The process of setting up individual functional units of business to do specialized tasks is called Departmentalization Division of Labor Job Specialization Delegation of authority

answer

Departmentalization

question

Job Specialization is known to Minimize delegated authority and responsibility Improve job performance create work teams and improve resource allocations establish procedures

answer

Improve job performance

question

When Bret started his auto mechanic shop his business plan included a(n) _____ that showed the relationship among employees in his organization and the lines of authority and responsibility. business view map department categorization organization chart operating matrix grid

answer

organization chart

question

Henry Fayol and Max Weber are best known for their contribution to: production theory marketing theory organization theory finance theory

answer

organization theory

question

Fayol's ______ principle states that each worker should report to one, and only one, boss. division of labor unity of command esprit de corps comparative advantage

answer

unity of command

question

Fayol's _____ principle says that tasks should be divided into areas of specialization. departmentalization comparative advantage division of labor centralization

answer

division of labor

question

The line of authority that moves from top of a hierarchy to the lowest level is called the chain of logic chain of command organizational design delegation of contingent authority

answer

chain of command

question

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: Make key operating decisions. Evaluate the daily performances of first line employees Ensure the organization achieves esprit de corps implement the decisions of top management

answer

implement the decisions of top management

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