Ch 8

List the factors that are associated with less supervisor involvement and thus larger spans of control.

(1) Work performed by subordinates is stable and routine. (2) Subordinates perform similar work tasks. (3) Subordinates are concentrated in a single location. (4) Subordinates are highly trained and need little direction in performing tasks. (5) Rules and procedures defining task activities are available. (6) Support systems and personnel are available for the manager. (7) Little time is required in nonsupervisory activities such as coordination with other departments or planning. (8) Managers' personal preferences and styles favor a large span.

Define task forces and project management

A task force is a temporary team or committee designed to solve a short-term problem involving several department. A project manager is a person who is responsible for coordinating the activities of several departments for the completion of a specific project.

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

A.line

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.matrix

Compare and contrast authority, responsibility, accountability and delegation.

Authority is defined as the formal and legitimate rights of a manager to make decisions, issue orders and allocate resources. Responsibility is the duty to perform the task that has been assigned. Many argue that authority and responsibility go hand-in-hand, i.e., in order for someone to fulfill their responsibility, they must have an equivalent level of authority. Accountability means that those with authority and responsibility are subject to reporting and justifying task outcomes to those higher in the chain of command. Accountability brings authority and responsibility together. The principle of delegation allows managers to transfer authority and responsibility to those lower in the organizational hierarchy. Delegation should increase an organization's flexibility by allowing people "on the spot" to make decisions.

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.organizing

Reengineering basically means preserving the past by establishing the sequence of activities by how work was done

False

Describe reengineering and what it involves.

Reengineering, sometimes called business process reengineering, is the radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed. Reengineering involves a shift to a horizontal structure based on teams. Basically, it means starting over, throwing out all the notions of how work was done and deciding on how it can best be done now.

Define span of management and explain if there is an ideal span of management.

The span of management, or span of control, is the number of employees who report directly to one supervisor. There is not an ideal span of management. The number depends upon several characteristics of the situation including the nature of the work done by the subordinates, the locations where the work is done, the training and education of the workers, the level of definition of the task, the time available to the manager and the manager's personal preferences and style.

A project manager is a person responsible for coordinating the activities of several departments for the completion of a specific project.

True

Authority is the right to use resources, make decisions and issue orders in an organization.

True

In a geographic-based structure, all functions in a specific country or region report to the same division manager.

True

The distinctive feature of the project manager position is that the person is not a member of one of the departments being coordinated.

True

The framework in which the organization defines how tasks are divided, resources are deployed and departments are coordinated is called organizational structure

True

The number of employees reporting to a supervisor is his or her span of management.

True

The radical redesign of business processes to achieve dramatic improvements in cost, quality, service and speed is called reengineering.

True

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

a. Departmentalization

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

a. Division of labour

Which of the following five organizations should have a flatter structure than the others? a. Organization A with 2 hierarchical levels b. Organization B with 4 hierarchical levels c. Organization C with 6 hierarchical levels d. Organization D with 8 hierarchical levels e. Organization E with 10 hierarchical levels

a. Organization A with 2 hierarchical levels

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 labour e. Span of management

a. Scalar principle

How does managerial authority flow through the organizational hierarchy a. Vertically b. Sporadically c. Horizontally d. Circular e. Periodically

a. Vertically

A company is designed along functional lines. New product development is very slow and the process is plagued by problems. One of the problems is that marketing does not communicate with production. This is an example of poor _____. a. coordination b. planning c. motivating d. leading e. Controlling

a. coordination

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. differentiation

A company has a finance department, a marketing department and a production department. The company: 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. uses a functional structure.

The employees of Manager A are highly trained and all perform similar tasks in the same location. The employees of Manager B are spread over three or four locations. In addition, Manager B provides almost no support systems to many of these employees. Which of the following statements is most correct? a. Manager A's span of management can be larger than Manager's B span of management. b. Manager B's span of management can be larger than Manager A's span of management. c. Manager A can have more problems with unity of command than Manager B. d. All of these e. None of these

b. Manager B's span of management can be larger than Manager A's span of management.

A company produces high volumes of products using standardized production runs, but does very little product customization. The company uses which type of technology structure? a. Service production b. Mass production c. Large-batch production d. Small-batch production e. Continuous process production

b. Mass production

To help employees learn more about the different roles within a company, a manager regularly assigns the employees tasks that are not part of their normal routine. This is an example of: a. irresponsibility b. delegation c. authority d. chain of command e. irrational decision making

b. delegation

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

b. framework in which the organization defines how tasks are divided, resources are deployed, and departments are coordinated

A company underwent a significant 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. reengineering

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

b. the project; employees

means that decision authority is located near the _____ of the organization. a. Centralization; bottom b. Decentralization; top c. Centralization; top d. Centralization; middle

c. Centralization; top

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

c. Wider spans of management

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. a temporary

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

c. authority

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

c. authority and responsibility in top management's hands.

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. chain of command.

The outcome of information and cooperation is

c. coordination

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

c. delegation

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

c. geographic-based

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. matrix

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. project manager

An employee has two supervisors, one a functional manager and the other a divisional manager. The employee works for a company with a _____ structure. a. functional b. divisional c. geographic d. matrix e. product

d. Matrix

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

d. Project manager

William has seven levels of management between himself and the company's CEO. In contrast, his friend at another company Marie has four levels of management between her and the company CEO. By comparison, William's company has what type of organizational structure? a. Narrow b. Wide c. Flat d. Tall e. Identical

d. Tall

A manager was looking at the company's organization chart in an attempt to discover who reports to whom. The manager is studying the organization's: a. degree of formalization. b. amount of differentiation. c. degree of centralization. d. chain of command. e. division of labour.

d. chain of command.

Compared 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. narrow; more

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 these.

A company has operations in North America, South America, Europe and Asia. The CEO's direct supervisors are VPs for each of the four continents. The company can best be described as using what organizational structure? a. Network b. Matrix c. Functional d. Divisional e. Geographic

e. Geographic

All of the following are major disadvantages of the matrix structure EXCEPT: a. Generates a substantial amount of conflict. b. Managers spend too much time resolving the conflict. c. Dual chain of command creates confusion. d. Power imbalances can result between managers on either side of the matrix. e. Managers can gain more knowledge and experience.

e. Managers can gain more knowledge and experience

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

e. cost leadership