Chapter 7 Practice Stuff

3. TRUE

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

30. FALSE

30. The horizontal structure provides traditional control within functional departments, and the vertical structure provides coordination across departments.

31. TRUE

31. The confusion and frustration caused by the dual chain of command is a major problem of the matrix structure.

32. FALSE

32. The overseer of both the product and functional chains of command, responsible for the entire matrix is the matrix boss.

40. TRUE

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

41. FALSE

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

42. TRUE

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

45. TRUE

45. The pure functional structure is appropriate for achieving internal efficiency goals.

46. FALSE

46. A vertical structure that emphasizes specialization and centralization is appropriate when environmental uncertainty is high.

47. TRUE

47. A rigid, vertical structure in an uncertain environment prevents the organization form adapting to change.

48. FALSE

48. The functional structure is appropriate when the primary goal is innovation and flexibility.

5. TRUE

5. Despite the apparent advantages of specialization, many organizations are moving away from this principle.

6. FALSE

6. The principle of unity of command suggests that managers within an organization should reach agreement on the goals and objectives of the organization.

7. TRUE

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

8. FALSE

8. The duty to perform the task or activity an employee has been assigned is called accountability.

matrix

A formal chain of command for both functional and divisional relationships is provided by the ____ approach to structure.

internal efficiency goals.

A pure functional structure is most appropriate for achieving

True

A rigid, vertical structure in an uncertain environment prevents the organization form adapting to change.

temporary

A task force is a ____ committee formed to solve a specific problem.

project manager

A(n) ____ is responsible for coordinating the activities of several departments.

save feedback for completion of the project

According to MANAGER'S SHOPTALK in Chapter 10, all of the following are effective ways for a manager to delegate EXCEPT:

divisional structure is essential.

According to your text, in very large companies, a

-it increases employee participation. -it makes efficient use of human resources. -it works well in a changing environment. -it develops both general and specialist management skills.

Advantages of the matrix structure include

geographic-based

All functions in a specific country or region report to the same division manager in ____ divisions.

there is little duplication of services across divisions.

All of the following are advantages of a divisional structure EXCEPT

excellent coordination between functions.

All of the following are advantages of a functional structure EXCEPT

enlarged tasks for employees.

All of the following are the major disadvantages of the matrix structure EXCEPT

Manufacturing department

Carly's Clothes, Inc. manufactures children's clothes. Which of the following departments for Carly's Clothes can be considered a line department?

decentralization.

Change and uncertainty in the environment are usually associated with

the quality of collaboration across departments.

Coordination is defined as

True

Despite the apparent advantages of specialization, many organizations are moving away from this principle.

-a lack of hands-on control. -the possibility of losing an important part of the organization. -weakened employee loyalty.

Disadvantages of the virtual network approach include

Reengineering

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:

delegation.

Gina wishes to transfer authority and responsibility to her subordinates. This process is known as

matrix

Global companies often use a ____ structure to achieve simultaneous coordination of products across countries.

Vertically

How does managerial authority flow through the organizational hierarchy?

modular

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.

virtual network

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.

chain of command.

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

Tall

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?

Top leader

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(n):

vertical functional

Kara's department is made up of people with similar skills and work activities. Her organization uses the ____ approach to departmentalization.

matrix structure.

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

Project manager

Lisa is responsible for coordinating the efforts of several different departments. Which of the following titles best describes her position?

does a variety of tasks and activities.

Louise works in the manufacturing department at Ice Sculptures. The work in Louise's department is low in task specialization. As a result, Louise

horizontal, vertical

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 ____.

task force.

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

uses a functional structure.

Mondavi Corporation has a finance department, a marketing department, and a production department. Mondavi

functional

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.

framework in which the organization defined how tasks are divided, resources are deployed, and departments are coordinated

Organization structure is defined as the

-The set of formal tasks assigned to individuals -the set of formal tasks assigned to departments -the design of systems to ensure effective coordination of employees across departments -formal reporting relationships

Organizational structure includes which of these?

Digital technology

Organizations such as Amazon.com, Google, Facebook, and Priceline.com are examples of firms that are based on:

False

Organizing defines what to do while strategy defines how to do it.

Scalar principle

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?

narrow, more

Relative to a flat organizational structure, a tall structure has a ____ span of management and ____ hierarchical levels.

encourages decentralization.

Relative to the functional structure, the divisional structure

False

Small-batch production is distinguished by standardized production runs.

divisional structure.

Stephanie works in one of seven research and development departments at Tara's Terrace, Inc. This would suggest that Tara's Terrace has a

Unity of command

The matrix structure violates which of the following principles of management?

coordination.

The outcome of information and cooperation is

seven

Traditionally, a span of management of about ____ has been recommended.

the project, people

Typically, project managers have authority over ____ but not over ____ assigned to it.

chain of command.

Unity of command and the scalar principle are both closely related to the

-functional -divisional -team

When the organization is structured along ____ lines, coordination is required.

employees perform a single task.

When work specialization is extensive

line

Which department performs tasks that reflect the organization's primary goals and mission?

Concern for customers' needs is high

Which is an advantage of the divisional structure?

Subordinates accept it.

Which of the following characteristics distinguishes authority?

Subordinates are located at various different locations.

Which of the following factors is NOT associated with larger span of control?

Managers have to find ways to tie different departments

Which of the following happens as organizations grow?

Teams

Which of the following is a contemporary approach to structural design in departmentalization?

A horizontal structure

Which of the following is an incorrect fit in a stable organizational environment?

Process approach

Which of the following is not an approach to structural design that reflects different uses of the chain of command?

Departmentalization

Which of the following is the basis for grouping positions into departments and departments into the total organization?

Reengineering

Which of the following leads to strong coordination across functional areas and greater flexibility in responding to changes in the environments?

Permanent teams

____ are brought together as a formal department in the organization.

staff;line

____ departments include all of those that provide specialized skills in support of ____ departments.

Division of labor

____ is also referred to as work specialization.

The virtual network approach

____ is an organization structure that divides the major functions of the organization into separate companies and coordinates their activities from a small headquarters organization.

The virtual network approach

____ is an organization structure that divides the major functions of the organization into separate companies.

Wider spans of management

____ is the trend in recent years.

Centralization, top

____ means that decision authority is located near the ____ of the organization.

Scalar principle

____ refers to a clearly defined line of authority in the organization that includes all employees

A vertical structure

____ works best in a stable organizational environment.

Intangible output

_________ refers to the fact that services are perishable and cannot be stored in inventory.

1. TRUE

1. The deployment of organizational resources to achieve strategic goals refers to organizing.

10. FALSE

10. The acceptance theory of authority argues that managers have authority because employees do not have a choice in choosing to accept their commands.

11. TRUE

11. Line departments perform tasks that reflect the organization's primary goal and mission.

12. TRUE

12. The right to advise, recommend, and counsel in the staff specialists' area of expertise is included in staff authority.

18. FALSE

18. Certainty in the environment is usually associated with decentralization.

13. TRUE

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

14. TRUE

14. Traditional views of organizational design recommend a span of management of about 7 to 10 subordinates per manager.

15. FALSE

15. Many hierarchical levels and a correspondingly narrow span of management refers to a flat structure.

16. FALSE

16. The trend in recent years has been toward narrower spans of control as a way to facilitate delegation.

17. TRUE

17. A tall structure is a management structure characterized by an overall narrow span of management and a relatively large number of hierarchical levels.

19. TRUE

19. The basis for grouping positions into departments and departments into the total organization is referred to as departmentalization.

2. FALSE

2. Organizing defines what to do while strategy defines how to do it.

20. TRUE

20. For companies to operate effectively, the amount of centralization or decentralization should fit the firm's strategy.

21. TRUE

21. At Fox End, people are grouped together in departments by common skills and work activities, including a sales department and a production department. This is an example of vertical functional approach.

22. FALSE

22. The functional structure offers a way to decentralize decision making and provide direction from the teams in the field.

23. FALSE

23. Because the chain of command converges at the top, the functional structure provides a way to decentralize decision making and provide unified direction from all managers.

24. FALSE

24. Quick response to external changes is an advantage of vertical functional structure.

49. FALSE

49. Small-batch production is distinguished by standardized production runs.

resulting economies of scale.

An advantage of functional structures is the

cost leadership

An organization strives for internal efficiency with a(n) ____ strategy.

a high degree of decentralization.

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

Kevin's span of management can be larger than Nichole's.

Dustin's subordinates are highly trained and all perform similar tasks. Brittany'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?

small batch

In __________ production, firms produce goods in batches of one or a few products designed to customer specification.

matrix boss

The ____ is the product or functional boss, who is responsible for one side of the matrix.

True

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

work specialization

Which of the following refers to the degree to which organizational tasks are subdivided into individual jobs?

25. FALSE

25. Divisions are created, in functional structures, as self-contained units with separate functional departments for each division.

26. TRUE

26. The divisional structure encourages decentralization.

27. TRUE

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

28. FALSE

28. With a matrix structure, the entire organization is made up of horizontal teams that coordinate their work and work directly with customers to accomplish the organization's goals.

29. FALSE

29. Aspects of both functional and divisional structures simultaneously in the same part of the organization are combined in the virtual network approach.

33. TRUE

33. The modular approach is similar to virtual networking.

34. TRUE

34. The divisional structure fosters excellent coordination within divisions, but coordination across divisions is often poor.

35. FALSE

35. In the divisional approach, coordination across divisions is great whereas coordination within divisions is often poor.

36. TRUE

36. The matrix approach can be highly effective in a complex, rapidly changing environment in which the organization needs to be flexible and adaptable.

37. TRUE

37. One major disadvantage of the virtual network approach is the lack of hands-on control.

38. TRUE

38. Coordination is the quality of collaboration across departments.

39. FALSE

39. Reengineering is the outcome of information and cooperation.

4. FALSE

4. A organizational map is a visual representation of an organization's structure, showing communication and lines of power.

43. TRUE

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

44. FALSE

44. When an organization uses a differentiation strategy, it strives for internal efficiency.

9. FALSE

9. Most organizations today discourage managers to delegate authority to the lower levels given the challenges to meet customer needs and adapt to the environment

Boars' Nest uses a vertical structure.

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?

continuous process production

In a ____________ organization, the entire work flow is mechanized in a sophisticated and complex form of production technology.

Centralized at the top

In times of crisis or risk of company failure, authority should be:

coordination.

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

Geographic

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?

divisional structure.

Self-contained unit structure is a term used for

along functional lines.

Shooting Star, Inc. has slow response to external changes, centralized decision making, and poor coordination across departments. It is likely structured

Delegation

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:

what;how

Strategy defines ___ to do (it) while organizing defines___ to do (it).

Mass production

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?

organizational chart

The ____________ delineates the chain of command, indicates departmental tasks and how they fit together, and provides order and logic for the organization.

flexibility; competitiveness

The biggest advantage to a virtual network approach is ____ and ____ on a global scale.

True

The deployment of organizational resources to achieve strategic goals refers to organizing.

authority.

The formal and legitimate right of a manager to make decisions is

False

The functional structure is appropriate when the primary goal is innovation and flexibility.

divisional, matrix

The functional, ____, and ____ are traditional approaches that rely on the chain of command to define departmental groupings and reporting relationships along the hierarchy.

accountability.

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

flexible.

The pure functional structure does not enable the organization to be

-lack of participative teams. -centralized decision-making. -the competitive global environment.

The team approach to departmentalization is a response to

decentralization.

The use of teams may lead to too much

A divisional structure

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?

virtual network structure

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

divisional structure.

When departments are grouped together on the basis of organizational outputs, the organization is using a

-Increased barriers among departments -Unplanned decentralization -Time and resources spent on meetings -Less response time, quicker decisions

Which of the following is(are) an advantage of team structure?

Organization B with three hierarchical levels

Which of the following organizations have a flat structure compared to others?

Organizing

Which of the following refers to the deployment of organizational resources to achieve strategic goals?

The span of management

Which of the following refers to the number of employees reporting to a supervisor?

A vertical structure

Which of the following structures is an incorrect fit in an unstable organizational environment?

Functional structure

Which of the following structures is most consistent with a strategy of stability?

Virtual network approach

Which of the following structures is the leanest of all organization forms because little supervision is required?

A horizontal structure

Which of the following structures works best in an uncertain organizational environment?

Manufacturing

Which of the following typically is NOT considered a staff department?

differentiation

With a(n) ____ strategy, the organization attempts to develop innovative products unique to the market.

Unity of command

____ means that each employee is held accountable to only one supervisor.

bot shows the characteristics of the organizations vertical structure and is a visual representation of the organization's structure

the organization chart