MGT Exam 3

The primary reason for delegation is to:

enable a manager to get more work done.

A virtual organization:

exists only in response to its needs.

Unlike reciprocal interdependence, sequential interdependence:

exists when activities generally flow one way between units.

Title VII of the Civil Rights Act of 1964:

forbids discrimination in all areas of employment relationship.

An advantage of the matrix organization is that it:

gives its employees opportunities to learn new skills.

The conglomerate organizational design:

has each business operated by a general manager in charge of its profits.

_____ is an approach to organization design that relies almost exclusively on project-type teams.

team organization

Which of the following factors favors a narrow span of management? a.More nonsupervisory work in a manager's job b.Low requirement for interaction c.High competence of supervisor and subordinates d.Less physical dispersion of subordinates

.More nonsupervisory work in a manager's job

_____ is power that has been legitimized by an organization.

Authority

Underfoot Constructions is a firm with a distinct division of labor and a consistent set of rules. The managers of the firm conduct business in an impersonal way and do not socialize with their subordinates outside of work. In the context of the universal perspectives of organizational design, which of the following terms best describes this firm?

Bureaucracy

Silver Streak, a chain of luxury hotels, departmentalizes into hospitality, food and beverage, and housekeeping divisions. This is an example of _____.

Functional departmentalization

Which of the following is true of 360-degree feedback?

It must be handled so as not to breed fear in a workplace.

The _____ was passed in 1947 to limit union power.

Labor-Management Relations Act

Workers at a shipyard decide to vote for the creation of a union and engage in collective bargaining with the management. The _____ guarantees these rights to them.

National Labor Relations Act

Butterfly Wings, a women's lifestyle store, decides to departmentalize. Liam, the manager of the store, selects the following divisions: dresses, accessories, T-shirts, and footwear. Which of the following methods of departmentalization does Liam use?

Product departmentalization

Which of the following strategies calls for greater or lesser degrees of decentralization in an organization? a.Reactor strategy b.Production strategy c.Human resource strategy d.Research and development strategy

c.Human resource strategy

In the context of the job characteristics approach, skill variety refers to:

the number of things a person does in a job.

According to Graicunas, direct interactions refers to:

a manager's one-to-one relationship with each subordinate.

Which of the following is true of unions?

they limit managements freedom

Which of the following is true of knowledge workers?

Their contributions to an organization are based on what they know

Which of the following is true of arbitrators?

They render decisions that both the union and management must obey.

The _____ design is based on the functional approach to departmentalization.

U-form

Redd Inc. decided to restructure all of its business units. According to the new plan, each of the business units will now have its own customer support department. Redd Inc.'s action illustrates:

a change in its organizational design.

A System 1 organization has:

a closed and restricted interaction process.

_____ is deciding how best to group organizational elements. a.Organizing b.Assimilating c.Marketing d.Authorizing

a. Organizing

Which of the following job elements is listed under the job specification part of the job analysis? a.Abilities needed to perform a job b.Tools needed to perform a job c.Working conditions needed to perform a job d.Equipment needed to perform a job

a.Abilities needed to perform a job

Which of the following is true of the job characteristics approach? a.It takes into account the work system and employee preferences. b.It is a method of job specialization. c.It suggests that low growth-need strength leads to higher employee motivation. d.It involves systematically moving employees from one job to another.

a.It takes into account the work system and employee preferences.

Which of the following is true of a System 4 organization? a.Its control process emphasizes self-control and problem solving. b.Its performance goals are low and passively sought by managers. c.Its goal-setting process discourages group participation. d.Its approach to organization design is the best.

a.Its control process emphasizes self-control and problem solving.

Simon is a professional basketball player. Even though he loves his job, he sometimes feels that practice games are monotonous. In order to keep Simon engaged in the sport, his coach has asked him to coach a junior league team. Which of the following methods of job design has Simon's coach implemented?

a.Job enrichment

Which of the following is an example of internal recruiting? a.Notifying existing employees of new openings b.Conducting campus interviews c.Hiring people through employment agencies and executive search firms d.Recruiting walk-in candidates

a.Notifying existing employees of new openings

____ exists when activities flow both ways between units.

a.Reciprocal interdependence

Which of the following is true of organizations? a.They are not left intact after being designed. b.They are negligibly influenced by variances. c.They are not susceptible to government rules. d.They are not influenced by situations and people.

a.They are not left intact after being designed.

Unlike a centralized organization, decision-making power and authority in a decentralized organization are:

a.delegated as far down the chain of command as possible.

A _____ is a position in the direct chain of command that is responsible for the achievement of an organization's goals.

a.line position

_____ is the degree to which managerial positions are concentrated in staff positions.

administrative intensity

Michelle is the Chief Executive Officer of a company. It is the duty of her company's board of directors to counsel Michelle on various matters of the company. However, it is up to Michelle if she wants to seek their opinion or not. She may choose to pay heed to the opinions of the board of directors or ignore them. In this scenario, the board of directors of the company is an example of a form of staff authority called _____.

advise authority

Employees at a data analytics firm are paid a certain extra amount of money every month. This amount is dependent on their work output for that month. If their work output is below a certain level of productivity, they do not receive the extra money. This extra amount is an example of ____.

an incentive

In human resource management (HRM), _____ refers to teaching operational or technical employees how to do the job for which they were hired.

training

Robin is organizing the 25th anniversary celebrations of his company. He gives his secretary, Jill, the responsibility of distributing invitations to important clients. Robin allows Jill to access necessary contact information from the company's database. Jill enthusiastically accepts the responsibility and immediately gets to work. This is an example of _____.

delegation

Which of the following is a common element of organization structure? a.Economy of scope b.Job specialization c.Job description d.Economy of scale

b. job specialization

Which of the following is a basic situational factor in determining the best organizational design? a.Communication b.Technology c.Diversification d.Risk

b. technology

Which of the following is a frequent goal of a learning organization? a.To promote mechanistic design b.To measure performance c.To promote groupthink d.To form a virtual organization

b. to measure performance

Which of the following is a similarity between corporate-level and business-level strategies? a.Both are inflexible. b.Both affect organization design. c.Both are incorporated solely in conglomerates. d.Both lead to unrelated diversification.

b.Both affect organization design.

Amy, a human resource (HR) manager of a consultancy firm, assigns the task of narrowing down potential candidates from online job portals to her subordinate. She assigns the responsibility of conducting telephone interviews to another subordinate. Which of the following basic functions of organizational structuring is Amy performing? a.Evaluating results of strategies b.Distributing authority among jobs c.Grouping jobs d.Setting organizational goals

b.Distributing authority among jobs

Which of the following is most likely a consequence of adopting flat organizational structures? a.Decreased employee productivity b.Increased managerial responsibility c.Decreased communication and flexibility d.Increased degree of required interaction

b.Increased managerial responsibility

Which of the following is true of ranking, a common method of employee appraisal? a.It makes the process of assessing people in different work groups effortless. b.It compares employees directly with each other and orders them from best to worst. c.It helps assess large groups of employees easily. d.It provides useful information for feedback because it lists out in detail the quality of one's work.

b.It compares employees directly with each other and orders them from best to worst.

Which of the following is true of an organization that implements related diversification? a.It has a strong hierarchical reporting system. b.It has a high level of coordination among various units. c.It believes in decentralization. d.It relies on functional departmentalization and the mechanistic approach.

b.It has a high level of coordination among various units.

Which of the following is true of job rotation? a.It increases the difficulty level of tasks. b.It involves moving employees from one job to another. c.It refers to employees taking on additional responsibilities. d.It is a form of job specialization.

b.It involves moving employees from one job to another.

Which of the following is an advantage of product departmentalization? a.Organizations are able to use skilled specialists to deal with unique customers. b.The speed and effectiveness of decision making are enhanced. c.Administrative costs decrease as a result of product departmentalization. d.Managers focus on helping their departments instead of others in an organization.

b.The speed and effectiveness of decision making are enhanced.

Which of the following is true of line managers? a.They hold informal or illegitimate positions in an organization. b.They work toward organizational goals. c.They are of two types, functional authority and advice authority. d.They provide expertise, advice, and support.

b.They work toward organizational goals.

The _____ is a model of organization design consistent with the human relations movement, stressing attention to developing work groups and concern with interpersonal processes.

behavioral model

Michael, a manager of a company, has assigned a supervisor to each of the work groups across all departments. Michael has taken the responsibility of coordinating between the supervisors to track their progress. In this scenario, Michael is _____.

developing an organizational structure.

which of the following is a U.S. government pension plan to which both employers and employees contribute? a.National Insurance b.Medicare c.Social Security d.Medicaid

c. social security

Franchesca, the Chief Executive Officer (CEO) of a tea manufacturing company, has a very thorough selection procedure while hiring employees. As a result, most of the employees in her company are very competent and are well trained. In this scenario, which of the following will be most effective in Franchesca's company? a.A tall organizational structure b.A narrow span of management c.A wide span of management d.A less scattered organizational structure

c.A wide span of management

Which of the following is a disadvantage of product departmentalization? a.Assessment of individual product groups is difficult. b.Speed of decision making is decreased. c.Administrative costs are increased. d.Integration of all activities of one product group is difficult.

c.Administrative costs are increased.

Which of the following is a disadvantage of the matrix design? a.Employees have limited opportunity to learn new skills. b.Teams cannot be created and redefined as needed. c.Employees may be uncertain about reporting relationships. d.Top managers do not get enough time to pay attention to long-range planning.

c.Employees may be uncertain about reporting relationships.

Which of the following best describes affirmative action? a.Preventing discrimination of an organization's existing employees on the basis of race, sex, age, nationality, and cultural differences b.Ensuring that employees hired are from a culture similar to that of the existing employees c.Intentionally hiring qualified employees from racial, sexual, and ethnic groups that are underrepresented in a firm d.Requiring that both men and women doing the same job are paid the same salary

c.Intentionally hiring qualified employees from racial, sexual, and ethnic groups that are underrepresented in a firm

Which of the following is true of assessment centers? a.They are permanent facilities established in every firm according to the law. b.They conduct drug tests and credit checks. c.They are particularly good for selecting current employees for promotion. d.They reveal inherent biases in the way people perceive and judge others at a first meeting.

c.They are particularly good for selecting current employees for promotion.

_____ is the process of systematically retaining power and authority in the hands of higher-level managers.

centralization

Minkolet, an accessory company, requires that all its employees, including sales personnel, accountants, human resource personnel, and research personnel, report to the Chief Executive Officer. All decisions are made by the Chief Executive Officer. The lower-level managers and the employees do not have a say in any of the decisions made. Minkolet is an example of a _____ organization.

centralized

The second stage of the organizational life cycle is:

characterized by the growth of a firm's resources.

The bureaucratic model of organization is based on the:

classical organizational theory

_____ is the financial remuneration given by an organization to its employees in exchange for their work.

compensation

The principal of a school has the responsibility of finalizing the school curriculum for the new academic year. A council of teachers advises the principal on matter that should be included in the school curriculum. It is the principal's duty to hear what the council recommends. The principal has the liberty to heed it or ignore it. In this scenario, the council is an example of a form of staff authority called _____.

compulsory advice

A firm that implements a _____ is centralized as it attempts to control prices.

cost leadership strategy

Which of the following is true of functional departmentalization? a.It groups and arranges activities around products or product groups. b.It groups jobs based on basic managerial functions such as planning and controlling. c.It groups activities on the basis of defined geographic sites or areas. d.It groups together jobs involving the same or similar activities.

d. it groups together jobs involving the same or similar activities

Which of the following is a question that is most closely related to organizational design? a.How should we advertise our products? b.How should we create our marketing mix? c.Who should be our lead suppliers? d.How should we departmentalize our organization?

d.How should we departmentalize our organization?

Which of the following is an emerging issue in organization design? a.Competitive parity b.Economy of scope c.Concentric diversification d.Internationalization of business

d.Internationalization of business

Which of the following is true of organizational structure? a.It explains the marketing strategies of an organization. b.It pertains to the external environment of an organization. c.It defines the regulatory environment of an organization. d.It encompasses designing jobs in an organization.

d.It encompasses designing jobs in an organization.

Which of the following is true of organizing? a.It encompasses planning annual goals of a firm. b.It reduces the overall efficiency of a firm. c.It applies exclusively to the top management of a firm. d.It involves deciding how to group elements in a firm.

d.It involves deciding how to group elements in a firm.

Which of the following is true of the ideal bureaucracy? a.Employees are dismissed arbitrarily. b.Performance metrics for the same task vary with employee skill level. c.Employment is based on favoritism. d.Managers conduct business in an impersonal way.

d.Managers conduct business in an impersonal way

Which of the following best describes the technique of hierarchy as a structural coordination technique? a.A group is assembled by drawing one representative from each department or unit. b.A group is assembled consisting of the most experienced persons from interdependent units. c.One manager, with no formal authority, facilitates flow of information between interdependent units. d.One manager is placed in charge of interdependent departments or units.

d.One manager is placed in charge of interdependent departments or units.

A question of decentralization refers to the:

decision-making latitude to give the head of each unit.

_____ is the extent to which an organization is broken down into subunits.

differentiation

_____ is the set of organizational activities directed at attracting, developing, and maintaining an effective workforce.

human resource management

Unlike job enlargement, job enrichment involves:

increasing the control a worker has over a job

The divisional design of an organization:

involves businesses in related areas.

Organization design for large organizations:

is extremely complex

_____ is the process of dealing with employees who are represented by a union.

labor relations

Using _____, a product is manufactured in assembly-line fashion by combining component parts into another part or finished product.

large-batch technology

A _____ is one that works to facilitate the lifelong personal development of all of its employees while continually transforming itself to respond to changing demands and needs.

learning organization

In the case of a knowledge worker, the failure to update skills may result in the:

loss of competitive advantage for an organization.

The _____ is based on two overlapping bases of departmentalization.

matrix design

Latitia instructs all the employees of her organization to report to her directly. She asks them to send her individual end-of-day updates as well. Latitia incorporates the _____ as a component of chain of command in her organization.

unity of command

Maya is the project leader of a construction project. She assembles a group of employees to work with her on the project. The group collectively decides how specific jobs will be allocated to each of the members. In this scenario, Maya uses the job design method involving _____.

work teams

_____ is the overall set of structural elements and the relationships among those elements used to manage the total organization.

organization design

_____ is the total number of full-time or full-time-equivalent employees.

organizational size

_____ refers to the set of elements that can be used to configure a company.

organizational structure

A team organization has:

people floating from project to project.

Span of management is the number of:

people reporting to a particular manager.

In the context of coordination among departments in an organization, _____ represents the lowest level of interdependence.

pooled interdependence

Lomanta, a jewelry company, has seven outlets in a city. Each outlet has its own finance, sales, and designing departments. All transactions are recorded for each outlet separately and are finally summed together on a monthly basis to calculate profits or losses. The different outlets of Lomanta exhibit _____.

pooled interdependence

An organization that pursues a(n) _____ has wider spans of management, and it tries to be very flexible and adaptable in its approach to doing business.

prospector strategy

The Fair Labor Standards Act:

requires the payment of overtime rates for work in excess of 40 hours per week.

Contingent workers:

should be called in for well-defined periods of time.

A _____ contains information on each employee's education, experience, and career aspirations.

skills inventory

A mechanistic organization has:

specialized jobs

A surplus of _____ represents a drain on an organization's cash and an inefficient use of resources.

staff positions

Under customer departmentalization, an organization:

structures its activities to respond to and interact with specific consumer or consumer groups.

The planning committee of a school has a meeting concerning its annual sports event. It decides to temporarily form a committee comprising one representative from each grade. The responsibility of these representatives will be to coordinate different activities in sports for their grades in accordance with certain school guidelines. The committee of representatives used to maintain coordination is an example of a(n) _____.

task force