Intro-Into-Business: Ch. 8 Learn Smart: Practice

As the owner of a small bookstore, while monitoring the environment, you discover that Barnes and Noble will pen a store in your area. What must you do based on this information? A. Adjust to the new realities. B. Plan for changes, but wait and see if you need them. C. Hope the information is inaccurate, and do nothing. D. Close shop and move to a different location.

A. Adjust to the new realities.

What type of departmentalization is shown in this example? I. Vice President (international operations) a. Canadian division b. Japanese division c. European division d. Korean division A. By geographic location B. By product C. By process D. By customer group

A. By geographic location

Max Weber's principles of organization resembled Fayol's. In addition, Weber emphasized which of the following principles? A. Consistent procedures, regulations, and policies B. Subordination of individual interests to the general interest C. Written rules, decision guidelines, and detailed records D. Job descriptions

A. Consistent procedures, regulations, and policies and C. Written rules, decision guidelines, and detailed records and D. Job descriptions

Which of the following would be the result of a departmentalization process? A. The creation of a group including only accountants to process financial transactions B. The creation of an employee handbook. C. The creation of a group of specialists to process the human resources functions of the business D. Separating the functions of a taco stand into a cashier and toco maker.

A. The creation of a group including only accountants to process financial transactions and C. The creation of a group of specialists to process the human resources functions of the business

If you owned a small company, and a major competitor started promoting itself in your area, what information might you look for while monitoring the business environment? A. What new products are customers demanding? B. How is the environment changing due to pollution? C. What do your customers believe about global warming D. Who are your competitor's target clients in the area?

A. What new products are customers demanding? and D. Who are your competitor's target clients in the area?

The line organization has direct lines of ___________ that extend from the top manager to employees at the lowest level of the organization. A. communication B. responsibility C. collaboration D. authority

A. communication and B. responsibility and D. authority

Department managers are given authority and responsibility for the work of a department to: A. control its entire process B. reduce the controls needed for the process C. increase the controls needed for the process D. reduce the number of employees needed

A. control its entire process

A firm that makes leather coats has one department to cut the leather, another to dye it, and a third to sew the coat together. This is an example of: A. departmentalization by process B. departmentalization by product C. departmentalization by customer group D. departmentalization by geographic location

A. departmentalization by process

An organizational structure that has only a few levels of managers who have a broad span of control is called a: A. flat organization B. tall organization C. centralized organization D. matrix organization

A. flat organization

The reason for implementing departmentalization include: A. grouping all of those doing the same task together B. reducing communication between those doing the same task C. providing less oversight to workers D. assigning people with the correct knowledge to each task

A. grouping all of those doing the same task together and D. assigning people with the correct knowledge to each task

The personnel directly responsible for achieving organizational goals are: A. line personnel B. staff personnel C. the legal department D. human resources personnel

A. line personnel

An organization shows who reports to whom, who is accountable for accomplishing specific work, and the relationships among people in the company in a(n): A. organization chart B. vision statement C. mission statement D. annual report

A. organizational chart

Line personnel are those responsible for the achievement of organizational goals such as making a product. They include such employees as: A. the supervisor of a department that cuts out tabletops B. the payroll department C. members of the human resources department D. the public relations group

A. the supervisor of a department that cuts out tabletops

Principles proposed by Weber and Fayol that are still useful in today's organizations include: A. written rules, decision guidelines, and records B. staffing and promotion based on qualifications C. fluid and flexible procedures and regulations D. job description

A. written rules, decision guidelines, and records and B. staffing and promotion based on qualifications and D. job description

In a decentralized organization the decision-making authority is delegated as far __________ the chain of command as possible. A. Up B. Down

B Down

Nike's strength is in manufacturing athletic shoes and Apple's is in marketing innovative electronics. These are examples of each company's: A. largest cost center B. core competencies C. organizational purpose D. mission statement

B. core competencies

For departments to operate effectively, they must be allocated resources such as: A. equipment B. funds C. personnel D. production goals

B. funds and C. personnel

Line managers are those who have the authority to: A. provide advice about affirmative action. B. issue orders C. adjust to changing conditions D. enforce discipline

B. issue orders and C. adjust to changing conditions and D. enforce discipline

The advantages of centralized authority in organizations include: A. increased flexibility B. more efficiency C. less top management control D. more responsiveness to customers

B. more efficiency

A firm that has a marketing department organized geographically and a production process organized by a function has which type of department structure? A. Process B. Customer group C. Hybrid D. Geographic

C. Hybrid

If an organization temporarily borrows its specialists from different functional areas to accomplish a common project, it is implementing what type of organization? A. Line organization B. Virtual organization C. Matrix organization D. Self-managed team

C. Matrix organization

Which of the following exemplify line personnel in the line-and-staff organization? A. Human resource managers B. Legal advisers C. Packaging personnel D. Production workers

C. Packaging personnel and D. Production workers

During the most recent economic crisis, Macy's department store switched to a decentralized structure by giving local managers more authority to buy, price, and promote merchandise. Why would they take such measures? A. To layoff corporate level employees. B. To narrow the span of control. C. To merchandise appropriately for each area. D. Local managers salaries are lower than they are at corporate.

C. To merchandise appropriately for each area.

The arrangement of jobs around the needs of various types of customers is known as: A. job specialization B. departmentalization by process C. departmentalization by customer group D. departmentalization by geographic location E. departmentalization by product

C. departmentalization by customer group

When a firm assigns one or more of its functions to an outside organization, it is : A. insourcing B. delegating C. outsourcing D. inefficient

C. outsourcing

The type of structure in a firm where there are several levels of managers each with a narrow span of control is called a: A. flat organization B. matrix organization C. tall organization D. centralized organization

C. tall organization

The bureaucratic principles proposed by Fayol and Weber would likely apply better to which of the following institutions? A. A food truck B. Google C. A hobby shop D. U.S. Army

D. U.S. Army

Cross-functional self-managed teams are used in organizations to A. reduce team empowerment B. reduce the communication between divisions C. increase the effect of specialization D. break down barriers between functional departments

D. break down barriers between functional departments

In the organization with many layers of managers the pyramidal organization chart would be quite tall due to ___________ spans of control (exists when a manager directly supervises only a few subordinates). A. departments B. customers C. broad D. narrow E. suppliers

D. narrow

__________ by function groups workers according to their skills and expertise so they can work together more effectively.

Departmentalization

Which organizational theorist promoted the pyramid-shaped organization structure as critical to his bureaucracy-based philosophy?

Weber

In the past many organizations designed rules and regulations to give managers control over employees. An organization's reliance in these rules is called ___________.

bureaucracy

A bank has a department for customer accounts and another department for corporate accounts. The bank is departmentalizing by ___________ ____________.

customer group

Companies that allow their managers to make key decisions to cater to local markets are __________.

decentralized

The process of setting up individual departments to do specialized tasks is called ____________.

departmentalization

The current trend in organization is to __________ the span of control.

expand

An advantage of a __________ organization structure is that lower level employees have authority to respond more quickly to customer needs.

flat

Departmentalization by __________ may create groupthink, where all members think alike and so make poorer decisions.

function

The organization structure that creates a chain of command with one person at the top and others in ranked order to the bottom is a ____________.

hierarchy

Some companies create __________ structures because the sales department has geographic departments, production is by function, and marketing is by customer groups.

hybrid

In line-and-staff structures, staff managers provide advice and support to __________ departments on specialized matters such as finance, engineering, human resources, and the law.

line

Those directly responsible for the achievement of organization goals through production, distribution, and marketing of the company's products and services are its ___________ managers.

line

Adjusting to changing markets is a critical ____________ function.

managerial

A ___________ structure, also called a project management structure, sets up teams from different departments, thereby creating two or more intersecting line of authority.

matrix

In a __________ organization, project managers are in charge of teams made up of members from several departments.

matrix

For a department to operate effectively, the organization must allocate it sufficient __________ such as funds and personnel.

resources

Employees who advise and assist line managers in meeting their goals are called __________ personnel.

staff

In a line and staff organization, those who advise line personnel but do not have the authority to issue direct orders to them are the company's __________ personnel.

staff

In a virtual corporation the replaceable firms are joined together on a(n) ____________ basis to create a flexible organization.

temporary

If the structure of an organization is a tall pyramid, it would be likely to have __________ decision making.

centralized

The line of authority that moves from the top of a hierarchy to the lowest level is called __________ __________ __________.

chain of command