Chapter 7 & 9

If an organization has to coordinate different projects at the same time, the most effective form of organizational structure to employ would be a _____. functional structure line structure line-and-staff structure traditional structure matrix structure

matrix structure

Salespeople working independently for the same company, who are individually accountable for their work, could be an example of a: work group. self-directed work team. project team. committee. cooperative.

work group

_____, a pattern of formal communication, occurs when individuals from different units and organizational levels communicate. Asynchronous communication Grapevine communication Lateral communication Horizontal communication Diagonal communication

Diagonal communication

A beverage company manufacturing and marketing certain premium brands of drinks has two divisions—one in Europe and the other in Asia. Both divisions cater to the same type of clientele. However, this method of organizing jobs has helped the company be more efficient and responsive to local competition. Which of the following types of departmentalization is the company using? Product departmentalization Geographical departmentalization Functional departmentalization Process departmentalization Customer departmentalization

Geographical departmentalization

_____ are informal channels of communication, separate from management's formal, official communication channels. Mission statements Policies Job descriptions Grapevines Team meetings

Grapevines

In terms of organizational structure, which of the following statements is true of the multidivisional structure? It makes it easy to realize the economies of scale that result from grouping functions together. It allows delegation of decision-making authority. It curbs innovation and effective decision making within an organization. It prevents duplication of work. It creates two or more intersecting lines of authority by setting up teams from different departments.

It allows delegation of decision-making authority.

Which of the following statements is true of organizational culture? It is absent in large organizations. It can only be conveyed through formal communication between managers and subordinates. It exists only in the top management of an organization. It helps ensure that all members of a company share values. It is seldom seen in profit-making businesses.

It helps ensure that all members of a company share values.

Which of the following statements is true of product departmentalization? It prevents duplication of functions and resources. It complicates decision making. It includes functional activities within each product division. It emphasizes overall organizational objectives rather than individual products. It adversely affects the coordination of activities related to a product.

It includes functional activities within each product division.

In the context of assigning tasks within an organization, which of the following statements is true of specialization? It allows employees to perform different roles. It occurs when the activities that must be performed within an organization are too numerous for one person to handle. It makes the task of training employees complex as several skills will have to be imparted. It results in workers wasting time as they need to shift from one job to another. It eliminates boredom and monotony so that employees are more productive.

It occurs when the activities that must be performed within an organization are too numerous for one person to handle.

Which of the following statements is true of functional departmentalization? It is rarely seen in small organizations. It requires great coordination when decision making involves more than one department. It speeds up decision-making processes that involve more than one department. It tends to emphasize an organization as a whole rather than just the departmental units. It involves only one manager handling all the functional units.

It requires great coordination when decision making involves more than one department.

Which of the following is an advantage of specialization? It gives employees the opportunity to learn new skills frequently. It eliminates boredom and monotony. It plays a significant role in reducing the employee turnover rate in an organization. It improves working relationships in crowded specialized electronic plants. It saves time as workers do not have to shift from one job to another.

It saves time as workers do not have to shift from one job to another.

In the context of organizational structure, which of the following statements is true of the matrix structure? It eliminates the problem of intersecting lines of authority. It superimposes project-based departments on function-based departments. It is usually a permanent form of organizational structure. It usually restricts flexibility and creativity. It is inexpensive and simple.

It superimposes project-based departments on function-based departments.

Walter Snacks, an international fast food chain, is facing tough competition in foreign markets. Any decision such as introducing a new product or service, dropping an existing product line, or changing promotional strategies needs to be approved by the top managers in the company's headquarters. This takes a lot of time to implement decisions and as a result the company is unable to effectively respond to changes and problems on a regional scale. Which of the following causes can be attributed to the problems faced by Walter Snacks? Product departmentalization Undercapitalization Overcentralization Wide span of control Employee empowerment

Overcentralization

Which of the following phenomena may result in employees becoming bored and dissatisfied with their jobs? Job rotation Decentralization Job enrichment Delegation of authority Overspecialization

Overspecialization

Aries Corp. is a multinational food company that manufactures several products such as baked snacks and confectionery. In order to increase employee productivity, the company decides to assign each employee a single task. For example, workers in the packaging unit work only for that segment and do not change their roles. Which of the following concepts is illustrated in this scenario? Specialization Downsizing Outsourcing Benchmarking Job rotation

Specialization

The rationale of _____ is that people can work more efficiently if they master just one task rather than all tasks.

Specialization

_______ is the division of labor into small, specific tasks and the assignment of employees to do a single task.

Specialization

Which of the following statements is true of project teams? Their membership is mostly based on organizational position and hierarchy. They are permanent. They only deal with specific quality, productivity, or service problems. They do not run their operation. Their membership is likely to be composed of people from different functional areas

Their membership is likely to be composed of people from different functional areas

Which of the following statements is true of centralized organizations? They seldom make risky decisions. They are more likely to have highly skilled low-level managers who are good decision makers. They usually require little time to implement their decisions. They delegate very little decision-making authority to lower levels. They operate in complex, unpredictable environments.

They delegate very little decision-making authority to lower levels.

Which of the following statements is true of teams as opposed to work groups in an organization? They create individual work products. They have shared leadership roles. They do not have group accountability. They measure performance indirectly. They do not perform real work.

They have shared leadership roles.

Which of the following is an advantage of self-directed work teams? They have the flexibility to change rapidly to meet the competition. They have to report to two managers—functional managers and project managers. They create individual work products. Their team members have limited job assignments. Their team members do not have to cross-train.

They have the flexibility to change rapidly to meet the competition.

Which of the following statements is true of work groups in an organization? They have shared leadership roles. They create collective work products. They measure performance directly by assessing collective work products. They have both individual and group accountability. They have the same purpose as the broader organizational mission.

They have the same purpose as the broader organizational mission.

Which of the following statements is true of decentralized organizations? They require lower-level managers to have strong decision-making skills. They often tend to curb creativity and innovation. They typically have narrow span of management. They limit the decision-making authority to the top management. They are usually extremely slow in implementing decisions.

They require lower-level managers to have strong decision-making skills.

At Alba Inc., subordinates send efficiency and quality reports to their respective managers at the end of each week. Which of the following patterns of formal communication does this best illustrate? Upward communication Horizontal communication Diagonal communication Parallel communication Downward communication

Upward communication

In the context of organizing jobs, banks with separate departments for commercial banking activities and for consumer or retail banking will follow: customer departmentalization. product departmentalization. functional departmentalization. geographical departmentalization. seniority-based departmentalization.

customer departmentalization.

A pattern of relationships and accountability between a superior and his or her subordinates is established by the process of: job rotation. delegation of authority. outsourcing. centralization. product development.

delegation of authority.

In an organization, the vice president of marketing directly assigns a task to a production manager. The pattern of formal communication illustrated in this scenario is _____. horizontal communication peer communication lateral communication diagonal communication upward communication

diagonal communication

In a pharmaceutical firm, the vice president of marketing wants to plan and coordinate the launch of a new drug with the vice president of research and development. Any related communication between them will be referred to as _____. horizontal communication upward communication downward communication diagonal communication asynchronous communication

horizontal communication

In an insurance company, the senior manager of life insurance division casually discusses a new car in the market with the senior manager of health insurance division. This is an example of _____. informal communication upward communication downward communication asynchronous communication diagonal communication

informal communication

A tall organization typically has: a wide span of management. many layers of management. a decentralized structure. lower administrative costs than a flat organization. lesser number of managers than a flat organization.

many layers of management.

Establishing a positive ______ sets the tone for all other decisions, including building an efficient organizational structure.

organizational culture

A company that manufactures toiletries and other grooming commodities has separate units for personal care, home care, and health care. Thus, the company is following _____ to organize jobs. geographical departmentalization customer departmentalization functional departmentalization product departmentalization process departmentalization

product departmentalization

In a ___ organization, the span of management is narrow.

tall

When BlueGiant Electronics Inc. faced the problem of frequent customer complaints and declining sales, a temporary, cross-functional team was created to look into the matter. At the end of three years, the team had to make suggestions and initiate necessary changes within the company to improve brand image and regain customer loyalty. Such a team is referred to as a _____. cooperative committee specialized department product-development team task force

task force

Project _____ normally run their operation and have total control of a specific work project.

teams