question

Organization charts are graphical representations of employee salary information.

answer

False

question

Job specialization is the process of eliminating unnecessary or undesirable jobs.

answer

False

question

Departmentalization refers to the process of grouping jobs into logical units.

answer

True

question

Geographic departmentalization divides firms according to the areas of the country or the world that they serve.

answer

True

question

In a centralized structure, most decision-making authority is delegated to levels of management at various points below the top.

answer

False

question

Accountability refers to the liability of subordinates for accomplishing tasks assigned by managers.

answer

True

question

Divisional structure is the relationships between group functions and activities that determine authority.

answer

False

question

International organizational structures are an approach to organizational structure developed in response to the need to manufacture, purchase, and sell in global markets.

answer

True

question

The chain of command is depicted by solid lines on an organization chart.

answer

True

question

Organizational structure is a function of the organization's mission and strategy.

answer

True

question

The building blocks of all organizations are specialization and centralization.

answer

False

question

As organizations grow and become larger, jobs tend to become less specialized.

answer

False

question

Acme Oil Company has three divisions: Exploration, Extraction, and Refining. This is an example of process departmentalization.

answer

True

question

Firms with production, marketing, human resource, and finance departments have a process form of organization.

answer

False

question

Firms typically use the same form of departmentalization at upper and lower levels.

answer

False

question

Flat organizational structures are usually associated with centralized decision making.

answer

False

question

Employees' abilities and the supervisor's managerial skills help determine whether span of control is wide or narrow.

answer

True

question

When several employees perform the same simple task, a narrow span of control is most appropriate.

answer

False

question

For the delegation process to work smoothly, responsibility and authority must be equivalent.

answer

True

question

Line departments are linked directly to the production and sales of a specific product.

answer

True

question

The functional organizational structure is the approach to organizational structure used by most small to medium-sized firms.

answer

True

question

The matrix form of organizational structure was pioneered by NASA.

answer

True

question

An international organization is one in which traditional boundaries and structures are minimized or eliminated altogether.

answer

False

question

A virtual organization has little or no formal structure.

answer

True

question

Frequently, the informal organization effectively alters a company's formal structure.

answer

True

question

The informal organization is not as powerful as the formal structure.

answer

False

question

Intrapreneuring attempts to create and maintain the innovation and flexibility found in large, bureaucratic structures.

answer

False

question

After an organizational structure has been created, it is permanent and cannot be changed.

answer

False

question

Job specialization is a natural part of organizational growth.

answer

True

question

To avoid bureaucracy within the organization, most large organizations tend to adopt the same types of departmentalization for all levels.

answer

False

question

Coordination across functional departments becomes more complicated in smaller firms than in larger firms.

answer

False

question

Decentralization works best in a complex, rapidly changing environment.

answer

True

question

For the delegation process to work smoothly, responsibility must slightly exceed one's level of authority.

answer

False

question

Line, staff, committee and team forms of authority are not likely to all be found within the same organization.

answer

False

question

A divisional structure relies on functional departmentalization.

answer

False

question

A team organization typically does not utilize functional hierarchy.

answer

True

question

Which term refers to the specification of jobs to be done within an organization and the ways in which those jobs relate to one another?

answer

organizational structure

question

Which of the following clarifies structure and shows employees where they fit into a firm's operations?

answer

organization charts

question

What do the solid lines on an organization chart show in reporting relationships within a company?

answer

B chain of command

question

What is the process of designing specific jobs that need to be done and identifying the people who will perform them called?

answer

B) job specialization

question

Which term covers grouping jobs into logical units?

answer

D) departmentalization

question

What kind of departmentalization happens when an organization is divided into operations related to different products?

answer

process departmentalization

question

What is the main organizational characteristic of decentralized firms?

answer

flat

question

Which feature characterizes the organization of centralized firms?

answer

tall

question

What is an employee's duty to perform an assigned task?

answer

responsibility

question

What is the power to make the decisions necessary to complete a task called?

answer

authority

question

What is authority that flows up and down the chain of command called?

answer

line authority

question

What type of departments are linked to the production and sales of specific products?

answer

line departments

question

What is authority given to a special group of employees that play central roles in the firm's daily operations called?

answer

committee and team

question

What are everyday social interactions among employees that transcend formal jobs and job interrelationships called?

answer

informal organization

question

Which term describes creating and maintaining the innovation and flexibility of a small business environment within the confines of a large, bureaucratic structure?

answer

intrapreneuring

question

Which factor plays a key role in determining an organization's structure?

answer

mission and strategy

question

What do managers do when the "job" of a firm is broken down into smaller jobs?

answer

specialize the job

question

At Chaparral Steel, some employees transport scrap steel while others operate shredding equipment. What does this example demonstrate?

answer

specialization

question

Which of the following is a natural part of organizational growth?

answer

job specialization

question

Determining how people performing certain tasks can best be grouped together is called what?

answer

departmentalization

question

What type of departmentalization does Kraft Foods use by having separate divisions for different types of foods?

answer

product

question

Vlasic has separate departments to transform cucumbers into fresh-packed pickles, pickles cured in brine, and relishes. What is this an example of?

answer

process departmentalization

question

What is dividing a store into a men's department, a women's department, and a luggage department an example of?

answer

customer departmentalization

question

A snack food firm has one division for the United States, one for Europe, and another for Asia. How is this firm departmentalized?

answer

by geography

question

In what type of organization do most lower-level decisions need to be approved by upper management before they can be implemented?

answer

centralized

question

At McDonald's, most advertising is handled at the corporate level, and any local advertising must be approved by a regional manager. What kind of organization is McDonald's demonstrating?

answer

centralized

question

In what type of organization is decision-making authority delegated to levels of management at various points below the top?

answer

decentralized

question

What kind of organization becomes more responsive to its environment by breaking the company into more manageable units?

answer

decentralized

question

With relatively few layers of managers, what do decentralized organizations tend to reflect?

answer

flat organizational structure

question

Companies with centralized authority systems typically require multiple layers of management. What type of organizational structures are these companies utilizing?

answer

tall

question

With its many organizational layers, what type of organizational structure does the U.S. Army demonstrate?

answer

tall

question

In tall organizations, which feature describes the span of control?

answer

narrow

question

What is the preferred span of control when jobs are more diversified or prone to change?

answer

narrow

question

Which of the following begins when a manager assigns responsibility to a subordinate?

answer

delegation

question

After responsibility for a task is assigned, which of the following comes next?

answer

the granting of authority

question

Which of the following BEST describes responsibility?

answer

the duty to perform an assigned task

question

Which of the following BEST describes authority?

answer

the power to make the decisions necessary to complete a task

question

Which of the following BEST describes accountability?

answer

the obligation employees have to their manager for the successful completion of an assigned task

question

What authority is based on special expertise and usually involves counseling and advising?

answer

staff authority

question

What are an organization's specialists in law, accounting, and human resource management commonly called?

answer

staff members

question

Which term describes groups of operating employees who are empowered to plan and organize their tasks and to perform those tasks with a minimum of supervision?

answer

work teams

question

Which form of organization is used by most small to medium-sized firms?

answer

functional

question

Firms with what structure are structured around departments for each basic business action?

answer

functional structure

question

Which of the following structures relies on product departmentalization?

answer

divisional

question

What are departments called that resemble separate businesses in that they produce and market their own products?

answer

divisions

question

The organization of the health care producer Johnson & Johnson includes consumer health care products, medical devices and diagnostics, and pharmaceuticals. What kind of organizational structure does this company use?

answer

divisions

question

What style of organization relies almost entirely on employees working on a common project, with little or no underlying functional hierarchy?

answer

team

question

What structure does an organization with little or no formal structure and with only a handful of permanent employees use?

answer

virtual structure

question

What type of organization seeks to integrate continuous improvements with continuous employee development?

answer

learning

question

Which of the following organizational systems is the part that can be seen and represented in chart form?

answer

formal organization

question

What has Rubbermaid used to create and maintain the innovation and flexibility of a small business environment within the large, bureaucratic structure?

answer

intrapreneuring

question

Which of the following is an advantage of job specialization?

answer

Workers can develop expertise in their jobs.

question

Procter & Gamble has Baby Care, Beauty Care, Health Care, and Home and Fabric Care divisions in its U.S. operations. What is this an example of?

answer

product departmentalization

question

American Wood Products has three divisions. The Lumberjack division is involved in harvesting trees and transporting them to lumber mills. The Milling division transforms cut timber into dimensional lumber for building. The Paper Products division makes paper and cardboard from the remnants of the milling process. What type of departmentalization is this an example of?

answer

process departmentalization

question

Silver Designs is a high-end clothing manufacturer. They have three divisions producing clothes for men, women, and teens. What is this an example of?

answer

customer departmentalization

question

Which statement about organizational structure is TRUE?

answer

As a company gets larger, it tends to adopt a decentralized structure.

question

Jack Welch, former CEO of General Electric, stated, "If you don't let managers make their own decisions, you're never going to be anything more than a one-person business." What style of management is Welch proposing?

answer

decentralized management

question

What is the sequence of events in the delegation process?

answer

granting authority follows assigning responsibility

question

Which statement about line departments is TRUE?

answer

They include those directly linked to the sales of products.

question

Which of the following are the "doers" and producers in a company?

answer

line employees

question

Which statement about staff responsibility is TRUE?

answer

It is clearly different from line authority.

question

Which feature will a committee have?

answer

some decision-making responsibility

question

At Ace Products, three vice presidents report to the CEO, including the VP for Finance, the VP for Marketing, and the VP for Operations. What type of structure does Ace Products have?

answer

functional

question

What does functional structure foster?

answer

centralization

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