Ch. 10 Management

Mondavi Corporation has a finance department, a marketing department, and a production department. Mondavi: a. uses a functional structure. b. has a geographic structure. c. uses a divisional structure. d. uses product-based structure. e. uses a matrix structure.

A

Organizations such as Amazon.com, Google, Facebook, and Priceline.com are examples of firms that are based on: a. digital technology. b. tangible output. c. direct contact with customers. d. mechanistic technology. e. products rather than services.

A

All functions in a specific country or region report to the same division manager in _____ divisions. a. functional b. matrix c. geographic-based d. teams e. networks

C

In times of crisis or risk of company failure, authority should be: a. decentralized. b. centralized at the bottom. c. centralized at the top. d. spread through a wide span of management. e. flat.

C

The _____ is an organization structure that divides the major functions of the organization into separate companies. a. diversification approach b. team approach c. virtual network approach d. BCG approach e. functional approach

C

The formal and legitimate right of a manager to make decisions is _____. a. delegation b. responsibility c. authority d. span of management e. leadership

C

The outcome of information and cooperation is _____. a. organization b. planning c. coordination d. differentiation e. controlling

C

Which of the following structures works best in an uncertain organizational environment? a. A tight structure b. A mechanistic structure c. A horizontal structure d. A functional structure e. A vertical structure

C

Which of the following typically is NOT considered a staff department? a. Strategic planning b. Accounting c. Manufacturing d. Human resources e. Research and development

C

_____ is the trend in recent years. a. Greater work specialization b. Less delegation c. Wider spans of management d. Narrower spans of management e. Tall structure

C

_____ refers to the fact that services are perishable and cannot be stored in inventory. a. Boundarylessness b. Tangible output c. Intangible output d. Flexible operations e. Centralization

C

Relative to a flat organizational structure, a tall structure has a _____ span of management and _____ hierarchical levels. a. wide; fewer b. narrow; fewer c. narrow; wider d. narrow; more e. wide; more

D

Which of the following is not an approach to structural design that reflects different uses of the chain of command? a. Matrix approach b. Team-based approach c. Process approach d. Divisional approach e. Virtual network approach

C

Which of the following refers to the deployment of organizational resources to achieve strategic goals? a. Planning b. Controlling c. Organizing d. Leading e. Strategic management

C

The _____ is the product or functional boss, who is responsible for one side of the matrix. a. matrix boss b. production supervisor c. department boss d. top leader e. two-boss employee

A

When work specialization is extensive: a. employees perform a single task. b. employees perform many tasks. c. employees are often highly challenged. d. employees are often inefficient. e. jobs tend to be large.

A

Shoshanna is manager of a customer service firm where she oversees five subordinates. To help her subordinates learn more about the different roles within the company, Shoshanna regularly assigns them tasks that are not part of their normal routine. This is an example of: a. responsibility b. delegation c. authority d. chain of command e. irrational decision making

B

Swift Move Facilities manufacturers two different bicycle models. The company produces a high volume of products using standardized production runs. The company does very little product customization. Swift Move uses what type of technology structure? a. Service production b. Mass production c. Large-batch production d. Small-batch production e. Continuous process production

B

The functional, _____, and _____ are traditional approaches that rely on the chain of command to define departmental groupings and reporting relationships along the hierarchy. a. divisional, teams b. divisional, matrix c. matrix, teams d. matrix, networks e. teams, networks

B

The matrix structure violates which of the following principles of management? a. Unity of direction b. Unity of command c. Work specialization d. Division of labor e. Span of management

B

The use of teams may lead to too much: a. division of labor. b. decentralization. c. authority and responsibility in top management's hands. d. formalization. e. narrow span of management.

B

_____ departments include all of those that provide specialized skills in support of _____ departments. a. Line; staff b. Staff; line c. Primary; functional d. Functional; primary e. Line; functional

B

_____ means that each employee is held accountable to only one supervisor. a. Scalar principle b. Unity of command c. Work specialization d. Division of labor e. Span of management

B

_____ teams are brought together as a formal department in the organization. a. Cross-functional b. Permanent c. Formal d. Ad-hoc e. Task

B

Strategy defines _____ to do (it) while organizing defines _____ to do (it). a. how; what b. how; why c. what; how d. what; why e. when; what

C

A pure functional structure is most appropriate for achieving: a. innovation. b. differentiation. c. internal efficiency goals. d. flexibility. e. all of these

C

The _____ is an organization structure that divides the major functions of the organization into separate companies and coordinates their activities from a small headquarters organization. a. diversification approach b. team approach c. virtual network approach d. BCG approach e. functional approach

C

The pure functional structure does not enable the organization to be: a. a cost leader. b. efficient. c. flexible. d. stable. e. all of these.

C

Which of the following refers to the degree to which organizational tasks are subdivided into individual jobs? a. Multitasking b. Lines of authority c. Work specialization d. Autonomy e. Team structure

C

Louise works in the manufacturing department at Ice Sculptures. The work in Louise's department is low in task specialization. As a result, Louise: a. usually performs a single task. b. does a variety of tasks and activities. c. is often bored. d. is rarely challenged. e. generally goofs-off.

B

In a _____ organization, the entire work flow is mechanized in a sophisticated and complex form of production technology. a. service production b. mass production c. large-batch production d. small-batch production e. continuous process production

E

Salta Communications is a global telecommunications company that has operations on four continents. The CEO's direct supervisors include VPs for the North American South American, European, and the Asian divisions. Salta can best be described as using what organizational structure?

E

A task force is _____ committee(s) formed to solve a specific problem. a. a standing b. a permanent c. a temporary d. all of these e. none of these

C

Which of the following organizations have a flat structure compared to others? a. Organization A with eleven hierarchical levels b. Organization B with three hierarchical levels c. Organization C with eight hierarchical levels d. Organization D with six hierarchical levels e. Organization E with seven hierarchical levels

B

Which of the following refers to the number of employees reporting to a supervisor? a. The line of authority b. The span of management c. The chain of command d. The management chain e. Delegation

B

Which of the following structures is the leanest of all organization forms because little supervision is required? a. Functional approach b. Virtual network approach c. Team approach d. Matrix approach e. Divisional approach

B

Which of the following is(are) an advantage of team structure? a. Increased barriers among departments b. Unplanned decentralization c. Time and resources spent on meetings d. Less response time, quicker decisions e. All of these

D

Which of the following structures is most consistent with a strategy of stability? a. Team based structure b. Organic structure c. Matrix structure d. Functional structure e. Learning structure

D

Which of the following characteristics distinguishes authority? a. It is vested in people, not positions. b. Subordinates accept it. c. It flows across the horizontal hierarchy. d. It emerges from the organizational values. e. Individuals are born with this power.

B

Barney and Betty work at Mountain Peak, Inc. Although they both work on the assembly line, they have the authority to make many decisions about their job. Mountain Peak can be said to have: a. a high degree of decentralization. b. a wide span of management. c. a high degree of centralization. d. a narrow span of management. e. no management.

A

How does managerial authority flow through the organizational hierarchy? a. Vertically b. Sporadically c. Horizontally d. In a circular fashion e. Authority is static - it does not flow

A

In the _____ structure, the organization is viewed as a central hub surrounded by a network of outside specialists which are sometimes spread all over the world. a. virtual network b. matrix c. functional d. divisional e. geographic

A

A formal chain of command for both functional and divisional relationships is provided by the _____ approach to structure. a. matrix b. vertical functional c. divisional d. product e. team-based

A

An advantage of functional structures is the: a. resulting economies of scale. b. enlarged tasks for employees. c. easy pinpointing of responsibility for product problems. d. development of general management skills. e. flexibility in an unstable environment.

A

Innovative Creations Corporation is designed along functional lines. New product development is very slow and the process is plagued by many problems. One of the problems is that the people in marketing never communicate with the people in production. This is an example of poor _____. a. coordination b. planning c. motivating d. leading e. controlling

A

Makai's Marketing Mix (MMM) does not use its resources wisely. The employees at MMM spend too much time in meetings and not enough time focusing on the task at hand. MMM's management should consider changing the organizational structure from _____ to _____. a. horizontal, vertical b. team based, horizontal c. vertical, team based d. mechanistic, rigid e. team-based, virtual network

A

Relative to the functional structure, the divisional structure: a. encourages decentralization. b. has a higher degree of work specialization. c. has a more pronounced division of labor. d. has excellent coordination across departments. e. results in an efficient use of resources.

A

Self-contained unit structure is a term used for: a. divisional structure. b. functional structure. c. term structure. d. matrix structure. e. virtual network structure.

A

The biggest advantage to a virtual network approach is _____ and _____ on a global scale. a. flexibility; competitiveness b. coordination; organization c. communication; organization d. communication; no cost e. flexibility; coordination

A

Which department performs tasks that reflect the organization's primary goals and mission? a. Line b. Staff c. Primary d. Functional e. Strategic planning

A

Which is an advantage of the divisional structure? a. Concern for customers' needs is high. b. There is little duplication of services across divisions. c. There is good coordination across divisions. d. Top management retains tight control of the organization. e. There is no competition for corporate resources.

A

Which of the following is the basis for grouping positions into departments and departments into the total organization? a. Departmentalization b. Centralization c. Decentralization d. Formalization e. Specialization

A

Which of the following leads to strong coordination across functional areas and greater flexibility in responding to changes in the environments? a. Reengineering b. Layoffs c. Downsizing d. A temporary committee e. An ad hoc committee

A

With a(n) _____ strategy, the organization attempts to develop innovative products unique to the market. a. differentiation b. integration c. reengineering d. cost leadership e. defensive

A

_____ is also referred to as work specialization. a. Division of labor b. Unity of command c. Scalar chain d. Esprit de corps e. Virtual network approach

A

_____ refers to a clearly defined line of authority in the organization that includes all employees. a. Scalar principle b. Unity of command c. Work specialization d. Division of labor e. Span of management

A

A(n) _____ works best in a stable organizational environment. a. loose organizational structure b. vertical structure c. organic structure d. horizontal structure e. loose organizational structure or an organic structure

B

All of the following are advantages of a functional structure EXCEPT: a. economies of scale. b. excellent coordination between functions. c. in-depth skill specialization and development. d. high quality technical problem solving. e. career progress within functional departments.

B

Change and uncertainty in the environment are usually associated with _____. a. work specialization b. decentralization c. centralization d. tight vertical control e. division of labor

B

Coordination is defined as: a. the ability of the organization to produce timely products. b. the quality of collaboration across departments. c. differentiation. d. the quantity of goods produced by the organization. e. all of these.

B

Flash Card Inc. recently underwent a significant company-wide change that involved revision of its manufacturing and leadership processes. The result of this was a stronger emphasis on horizontal coordination. This level of change is referred to as _____. a. reorganization b. reengineering c. e-engineering d. strategic planning e. corporate structuring

B

In the _____ approach, a manufacturing company uses outside suppliers to provide entire chunks of a product, which are then assembled into a final product by a handful of workers. a. virtual network b. modular c. virtual organization d. team e. matrix

B

Organization structure is defined as the: a. visual representation of the organization. b. framework in which the organization defined how tasks are divided, resources are deployed, and departments are coordinated. c. division of labor. d. unbroken line of authority that links all individuals in the organization. e. none of these.

B

Shooting Star, Inc. has slow response to external changes, centralized decision making, and poor coordination across departments. It is likely structured: a. along divisional lines. b. along functional lines. c. based on the team approach. d. based on the virtual network approach. e. none of these.

B

Stephanie works in one of seven research and development departments at Tara's Terrace, Inc. This would suggest that Tara's Terrace has a: a. functional structure. b. divisional structure. c. wide span of control. d. high degree of centralization. e. matrix structure.

B

Typically, project managers have authority over _____ but not over _____ assigned to it. a. people; the project b. the project; people c. resources; the project d. people; other resources e. finances; products

B

Which of the following is a contemporary approach to structural design in departmentalization? a. Functional b. Divisional c. Traditional divisions d. Teams e. Geographic-based

D

A(n) ____ is responsible for coordinating the activities of several departments. a. department manager b. line manager c. project manager d. operative e. moderating manager

C

According to MANAGER'S SHOPTALK in Chapter 10, all of the following are effective ways for a manager to delegate EXCEPT: a. delegate the whole task. b. select the right person. c. save feedback for completion of the project. d. evaluate and reward performance. e. give thorough instruction.

C

Boars' Nest Distributors is continually hampered by an inability to adapt to an unstable environment. Which of the following is a plausible explanation as to why? a. Boars' Nest's structure is too loose. b. Boars' Nest's structure is too horizontal. c. Boars' Nest uses a vertical structure. d. All of these. e. Both Boars' Nest's structure is too loose and structure is too horizontal.

C

Gina wishes to transfer authority and responsibility to her subordinates. This process is known as: a. accountability. b. coordination. c. delegation. d. departmentalization. e. passing the buck.

C

Global companies often use a _____ structure to achieve simultaneous coordination of products across countries. a. functional b. divisional c. matrix d. product-based e. process-based

C

Kevin's subordinates are highly trained and all perform similar tasks. Nichole's subordinates are spread over two locations and she has little available in the way of support systems. Which of the following statements is most correct? a. Nichole's span of management can be larger than Kevin's. b. Nichole will have problems with unity of command. c. Kevin's span of management can be larger than Nichole's. d. Kevin has more problems with work specialization. e. None of these.

C

Organ Rentals Corporation has been having numerous problems. Communication across departments is poor and decisions are backing up at the top of the organization. Organ Rentals uses a _____ structure. a. geographic b. product c. functional d. matrix e. team-based

C

Rebecca works for a company that has clearly defined lines of authority. Each employee knows that he or she has authority and responsibility for a distinct set of tasks. Employees are also aware of the company's reporting structure as well as successive management levels all the way to the top. Rebecca's company follows which principle? a. Specialization principle b. Unity of command principle c. Scalar principle d. Authority principle e. Responsibility principle

C

Theresa works in an organization where coordination across organizational units is poor and the units perceived themselves to be in competition with one another for organizational resources. These characteristics are consistent with which of the following structures? a. A matrix structure b. A functional structure c. A divisional structure d. A team-based structure e. A virtual network structure

C

Unity of command and the scalar principle are both closely related to the: a. amount of work specialization in an organization. b. degree of formalization. c. chain of command. d. amount of bureaucracy in the organization. e. matrix structure.

C

When departments are grouped together on the basis of organizational outputs, the organization is using a: a. functional structure. b. matrix structure. c. divisional structure. d. virtual network structure. e. team-based structure.

C

Which of the following factors is NOT associated with larger span of control? a. Work performed by subordinates is stable and routine. b. Subordinates perform similar work tasks. c. Subordinates are located at various different locations. d. Subordinates are highly trained and need little direction. e. Rules and procedures defining task activities are available.

C

Which of the following happens as organizations grow? a. Positions and departments are deleted. b. Management layers are eliminated to save cost. c. Managers have to find ways to tie different departments. d. Top management becomes more autocratic. e. None of these.

C

_____ means that decision authority is located near the _____ of the organization. a. Centralization; bottom b. Decentralization; top c. Centralization; top d. Centralization; middle e. None of these

C

Which of the following is an incorrect fit in a stable organizational environment? a. A tight structure b. A rigid structure c. A functional structure d. A horizontal structure e. A vertical structure

D

Carly's Clothes, Inc. manufactures children's clothes. Which of the following departments for Carly's Clothes can be considered a line department? a. Finance department b. Human Resources department c. Research and development department d. Manufacturing department e. Marketing department

D

Disadvantages of the virtual network approach include: a. a lack of hands-on control. b. the possibility of losing an important part of the organization. c. weakened employee loyalty. d. all of these. e. a lack of hands-on control and weakened employee loyalty.

D

In _____ production, firms produce goods in batches of one or a few products designed to customer specification. a. service b. customer-induced c. continuous process d. small batch e. mass

D

Jacob was recently looking at his company's organization chart in an attempt to discover who reports to whom. Jacob is studying his organization's: a. degree of formalization. b. amount of differentiation. c. degree of centralization. d. chain of command. e. division of labor.

D

Jacob, a customer service representative for AB Retailers, has seven levels of management between himself and the company's CEO. In contrast, his friend Rhonda, a customer service representative for YZ Retailers, has only four levels of management between her and the company CEO. Compared to YZ, Jacob's company has what type of organizational structure? a. Narrow b. Wide c. Flat d. Tall e. Identical

D

Kara's department is made up of people with similar skills and work activities. Her organization uses the _____ approach to departmentalization. a. team-based b. horizontal matrix c. divisional d. vertical functional e. process

D

Kent works at the Tick Tock, Inc. He has two bosses, one a functional manager and the other a divisional manager. Tick Tock, Inc. has a _____ structure. a. functional b. divisional c. geographic d. matrix e. product

D

Lisa is responsible for coordinating the efforts of several different departments. Which of the following titles best describes her position? a. Department manager b. Middle manager c. First-level supervisor d. Project manager e. Chairman of the board

D

Marissa was recently assigned to a committee whose task is to research new product opportunities. Once this group generates a list of six or seven viable options, it will be disbanded. This group is also known as a _____. a. team b. standing committee c. permanent committee d. task force e. none of these

D

The organization chart: a. shows the characteristics of the organization's vertical structure. b. is a visual representation of the organization's structure. c. details the formal reporting relationships that exist within an organization. d. all of these. e. both shows the characteristics of the organization's vertical structure and is a visual representation of the organization's structure.

D

The people with authority and responsibility are subject to reporting and justifying task outcomes to those above them in the chain of command. This is called _____. a. delegation b. line authority c. staff authority d. accountability e. hierarchy

D

The team approach to departmentalization is a response to: a. lack of participative teams. b. centralized decision-making. c. the competitive global environment. d. all of these. e. both lack of participative teams and centralized decision-making.

D

Traditionally, a span of management of about _____ has been recommended. a. three b. five c. fifteen d. seven e. twenty

D

Walt works for a large company. Recently, his organization began to contract out such functions as training, engineering, and computer service. This approach is consistent with a _____ structure. a. functional b. team c. divisional d. virtual network e. service

D

When the organization is structured along _____ lines, coordination is required. a. functional b. divisional c. team d. all of these e. functional or divisional

D

Advantages of the matrix structure include: a. it increases employee participation. b. it makes efficient use of human resources. c. it works well in a changing environment. d. it develops both general and specialist management skills. e. all of these.

E

All of the following are advantages of a divisional structure EXCEPT: a. high concern for customers' needs. b. fast response, flexibility in an unstable environment. c. emphasis on overall product and division goals. d. development of general management skills. e. there is little duplication of services across divisions.

E

All of the following are the major disadvantages of the matrix structure EXCEPT: a. it generates a large amount of conflict. b. managers spend much time resolving conflict. c. the confusion caused by the dual chain of command. d. the power imbalance that can result between the sides of the matrix. e. enlarged tasks for employees.

E

An organization strives for internal efficiency with a(n) _____ strategy. a. integration b. diversification c. differentiation d. defensive e. cost leadership

E

Juan is a top manager at I.F.L., a matrix organization. He oversees both the product and functional chains of command, and is responsible for maintaining a power balance between the two sides of the matrix. Juan is a _____. a. political leader b. functional leader c. divisional leader d. matrix leader e. top leader

E

Organizational structure includes which of these? a. The set of formal tasks assigned to individuals b. The set of formal tasks assigned to departments c. The design of systems to ensure effective coordination of employees across departments d. Formal reporting relationships e. All of these are part of organizational structure.

E

The _____ delineates the chain of command, indicates departmental tasks and how they fit together, and provides order and logic for the organization. a. management chart b. employee directory c. structural table d. administrative chart e. organizational chart

E