MGMT 309 Chapter 10

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

c. It involves moving employees from one job to another. Job rotation involves systematically moving employees from one job to another. The jobs do not change; instead, workers move from job to job. See 10-2: Designing Jobs.

Span of management is the number of: a. managers in an organization. b. hierarchical layers in a firm. c. people reporting to a particular manager. d. top managers in an organization.

c. people reporting to a particular manager. Span of management is the number of people reporting to a particular manager. For years, managers and researchers sought to determine the optimal span of management. See 10-4: Establishing Reporting Relationships.

According to Graicunas, direct interactions refers to: a. a manager's one-to-one relationship with other managers. b. relationships among the subordinates themselves. c. relationships between groups of subordinates. d. a manager's one-to-one relationship with each subordinate.

d. a manager's one-to-one relationship with each subordinate. Graicunas noted that a manager must deal with three kinds of interactions with and among subordinates: direct (the manager's one-to-one relationship with each subordinate), cross (among the subordinates themselves), and group (between groups of subordinates). Graicunas went so far as to quantify span of management issues. See 10-4: Establishing Reporting Relationships.

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 _____. a. compulsory advice b. advise authority c. administrative advice d. functional authority

a. compulsory advice In this scenario, the council of teachers is an example of a form of staff authority called compulsory advice. In the case of compulsory advice, the line manager must consider the advice but can choose to heed it or ignore it. See 10-7: Differentiating Between Positions.

Silver Streak, a chain of luxury hotels, departmentalizes into hospitality, food and beverage, and housekeeping divisions. This is an example of _____. a. functional departmentalization b. product departmentalization c. customer departmentalization d. location departmentalization

a. functional departmentalization This is an example of functional departmentalization. Functional departmentalization groups together those jobs involving the same or similar activities. See 10-3: Grouping Jobs: Departmentalization.

_____ is power that has been legitimized by an organization. a. Specialization b. Coordination c. Delegation d. Authority

d. authority Authority is power that has been legitimized by an organization. See 10-5: Distributing Authority.

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. The job characteristics approach is an alternative to job specialization that does take into account the work system and employee preferences. It suggests that jobs should be diagnosed and improved along five core dimensions. See 10-2: Designing Jobs.

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 b. Job exchange c. Job specialization d. Job rotation

a. Job enrichment The method of job design implemented by Simon's coach is job enrichment. In addition to being a player, he is now given the additional responsibility of coaching as well. Job enrichment attempts to increase both the number of tasks a worker does and the control the worker has over the job. See 10-2: Designing Jobs.

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

a. More nonsupervisory work in a manager's job The amount of nonsupervisory work expected of a manager is important in determining a manager's span of management. The more nonsupervisory work, the narrower the potential span. See 10-4: Establishing Reporting Relationships.

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. a. decentralized b. restructured c. tall d. centralized

d. centralized Minkolet is an example of a centralized organization. In a centralized organization, decision-making power and authority are retained at the higher levels of management. See 10-5: Distributing Authority.

In the context of the job characteristics approach, skill variety refers to: a. the degree of control a worker has over how a work is performed. b. the perceived importance of a task. c. the extent to which a worker knows how well a job is being performed. d. the number of things a person does in a job.

d. the number of things a person does in a job. In the context of the job characteristics approach, skill variety refers to the number of things a person does in a job. The job characteristics approach is an alternative to job specialization that does take into account the work system and employee preferences. See 10-2: Designing Jobs.

_____ is the process of systematically retaining power and authority in the hands of higher-level managers. a. Decentralization b. Job enlargement c. Job enrichment d. Centralization

d. Centralization

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. One manager, with no formal authority, facilitates flow of information between interdependent units. c. A group is assembled consisting of the most experienced persons from 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. Organizations that use the hierarchy to achieve coordination place one manager in charge of interdependent departments or units. To ensure coordination and minimize conflict, one manager is in charge of the whole operation. See 10-6: Coordinating Activities.

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

d. It encompasses designing jobs in an organization. There are six basic building blocks that managers can use in constructing an organization: designing jobs, grouping jobs, establishing reporting relationships between jobs, distributing authority among jobs, coordinating activities among jobs, and differentiating among positions. Organizational structure refers to the set of elements that can be used to configure a company. See 10-1: The Elements of Organizing.

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

a. Organizing Organizing is deciding how best to group organizational elements. There are six basic building blocks that managers can use in constructing an organization: designing jobs, grouping jobs, establishing reporting relationships between jobs, distributing authority among jobs, coordinating activities among jobs, and differentiating among positions. See 10-1: The Elements of Organizing.

_____ exists when activities flow both ways between units. a. Reciprocal interdependence b. Sequential interdependence c. Pooled interdependence d. Indirect interdependence

a. Reciprocal interdependence Reciprocal interdependence exists when activities flow both ways between units. See 10-6: Coordinating Activities.

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. b. distributed equally among all managers. c. given to the most senior employees in the organization. d. retained at the higher levels of management.

a. delegated as far down the chain of command as possible. A decentralized organization is one in which decision-making power and authority are delegated as far down the chain of command as possible. Conversely, in a centralized organization, decision-making power and authority are retained at the higher levels of management. See 10-5: Distributing Authority.

A _____ is a position in the direct chain of command that is responsible for the achievement of an organization's goals. a. line position b. matrix position c. staff position d. divisional position

a. lines position A line position is a position in the direct chain of command that is responsible for the achievement of an organization's goals. See 10-7: Differentiating Between Positions.

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 wide span of management c. A narrow span of management d. A less scattered organizational structure

b. A wide span of management In this scenario, a wide span of management will be most effective in Franchesca's company. The greater the competence, the wider the potential span. See 10-4: Establishing Reporting Relationships.

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

b. Administrative costs are increased. In product departmentalization, administrative costs rise because each department must have its own functional specialists for areas such as market research and financial analysis. Also, managers in each department may focus on their own product or product group to the exclusion of the rest of the organization. See 10-3: Grouping Jobs: Departmentalization.

_____ is the degree to which managerial positions are concentrated in staff positions. a. Departmentalization b. Administrative intensity c. Job specialization d. Delegation

b. Administrative intensity Administrative intensity is the degree to which managerial positions are concentrated in staff positions. An organization with high administrative intensity is one with many staff positions relative to the number of line positions; low administrative intensity reflects relatively more line positions. See 10-7: Differentiating Between Positions.

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 The basic function of organizational structuring that Amy is performing is distributing authority among jobs. There are six basic building blocks that managers can use in constructing an organization: designing jobs, grouping jobs, establishing reporting relationships between jobs, distributing authority among jobs, coordinating activities among jobs, and differentiating among positions. See 10-1: The Elements of Organizing.

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 Wide spans of management result in flat organizations, which may lead to improved employee morale and productivity as well as increased managerial responsibility. Many organizations today are moving toward flat structures to improve communication and flexibility. See 10-4: Establishing Reporting Relationships.

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. In product departmentalization, the speed and effectiveness of decision making are enhanced. See 10-3: Grouping Jobs: Departmentalization.

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. A line position is a position in the direct chain of command that is responsible for the achievement of an organization's goals. See 10-7: Differentiating Between Positions.

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 _____. a. product departmentalization b. delegation c. centralization d. job rotation

b. delegation This is an example of delegation. Delegation is the process by which managers assign a portion of their total workload to others. See 10-5: Distributing Authority.

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 _____. a. redefining the mission statement. b. developing an organizational structure. c. setting an organizational goal. d. evaluating the success of his own professional goals.

b. developing an organizational structure. In this scenario, Michael is developing an organizational structure. Organizational structure refers to the set of elements that can be used to configure a company. There are six basic building blocks that managers can use in constructing an organization: designing jobs, grouping jobs, establishing reporting relationships between jobs, distributing authority among jobs, coordinating activities among jobs, and differentiating among positions. See 10-1: The Elements of Organizing.

Unlike reciprocal interdependence, sequential interdependence: a. exists when activities flow both ways between units. b. exists when activities generally flow one way between units. c. is the most complex form of interdependence. d. is the lowest level of interdependence.

b. exists when activities generally flow one way between units. In sequential interdependence, the output of one unit becomes the input for another in a sequential fashion and the level of interdependence is generally one way. Reciprocal interdependence exists when activities flow both ways between units. See 10-6: Coordinating Activities.

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 _____. a. direct interdependence b. pooled interdependence c. sequential interdependence d. reciprocal interdependence

b. pooled interdependence The different outlets of Lomanta exhibit pooled interdependence. Units with pooled interdependence operate with little interaction—the output of the units is pooled at the organizational level. See 10-6: Coordinating Activities.

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) _____. a. managerial hierarchy b. task force c. integrating department d. managerial liaison

b. task force The committee of representatives used to maintain coordination is an example of a task force. A task force might be assembled by drawing one representative from each group. The coordination function is thus spread across several individuals, each of whom has special information about one of the groups involved. See 10-6: Coordinating Activities.

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. a. dispersion of command b. unity of command c. decentralization of command d. horizontal structure of command

b. unity of command Latitia incorporates the unity of command as a component of chain of command in her organization. The chain of command actually has two components. The first, called unity of command, suggests that each person within an organization must have a clear reporting relationship to one and only one boss. See 10-4: Establishing Reporting Relationships.

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 _____. a. the job characteristics approach b. work teams c. job specialization d. job enlargement

b. work teams In this scenario, Maya uses the job design method involving work teams. Under this arrangement, a group is given responsibility for designing the work system to be used in performing an interrelated set of tasks. In a work team, the group itself decides how jobs will be allocated. See 10-2: Designing Jobs.

_____ refers to the set of elements that can be used to configure a company. a. Administrative intensity b. Organizational divestment c. Organizational structure d. Organizational entropy

c. Organizational structure Organizational structure refers to the set of elements that can be used to configure a company. There are six basic building blocks that managers can use in constructing an organization: designing jobs, grouping jobs, establishing reporting relationships between jobs, distributing authority among jobs, coordinating activities among jobs, and differentiating among positions. See 10-1: The Elements of Organizing.

In the context of coordination among departments in an organization, _____ represents the lowest level of interdependence. a. Sequential interdependence b. Reciprocal interdependence c. Pooled interdependence d. Direct interdependence

c. Pooled interdependence In the context of coordination among departments in an organization, pooled interdependence represents the lowest level of interdependence. Units with pooled interdependence operate with little interaction—the output of the units is pooled at the organizational level. See 10-6: Coordinating Activities.

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? a. Functional departmentalization b. Customer departmentalization c. Product departmentalization d. Location departmentalization

c. Product departmentalization Liam uses product departmentalization. Product departmentalization involves grouping and arranging activities around products or product groups. See 10-3: Grouping Jobs: Departmentalization.

The primary reason for delegation is to: a. prevent employees from getting bored. b. determine an individual's work-related abilities. c. enable a manager to get more work done. d. minimize competition among workers.

c. enable a manager to get more work done. The primary reason for delegation is to enable a manager to get more work done. Subordinates help ease the manager's burden by doing major portions of the organization's work. See 10-5: Distributing Authority.

Unlike job enlargement, job enrichment involves: a. decreasing the responsibility an employee has toward a job. b. moving frequently from one job to another. c. increasing the control a worker has over a job. d. allowing an entire group to design a work system.

c. increasing the control a worker has over a job On the assumption that doing the same basic task over and over is the primary cause of worker dissatisfaction, job enlargement was developed to increase the total number of tasks workers perform. Job enrichment attempts to increase both the number of tasks a worker does and the control the worker has over the job. See 10-2: Designing Jobs.

A surplus of _____ represents a drain on an organization's cash and an inefficient use of resources. a. matrix positions b. line positions c. staff positions d. hybrid positions

c. staff positions A surplus of staff positions represents a drain on an organization's cash and an inefficient use of resources. A staff position is intended to provide expertise, advice, and support for line positions. See 10-7: Differentiating Between Positions.

Under customer departmentalization, an organization: a. groups together jobs involving the same or similar activities. b. structures its activities based on basic managerial functions such as planning and controlling. c. structures its activities to respond to and interact with specific consumer or consumer groups. d. groups jobs on the basis of defined geographic sites or areas.

c. structures its activities to respond to and interact with specific consumer or consumer groups. Under customer departmentalization, an organization structures its activities to respond to and interact with specific customers or customer groups. The basic advantage of this approach is that the organization is able to use skilled specialists to deal with unique customers or customer groups. See 10-3: Grouping Jobs: Departmentalization.

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. Functional departmentalization groups together those jobs involving the same or similar activities. The most common base for departmentalization, especially among smaller organizations, is by function. See 10-3: Grouping Jobs: Departmentalization.

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. Organizing is deciding how best to group elements in a firm. Just as children select different kinds of building blocks, managers can choose a variety of structural possibilities. See 10-1: The Elements of Organizing.

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 _____. a. functional authority b. compulsory advice c. administrative advice d. advise authority

d. advise authority In this scenario, the board of directors of the company is an example of the advise authority form of staff authority. One form of staff authority is advise authority. In this form of authority, the line manager can choose whether to seek or to avoid input from staff, and even when advice is sought, the line manager might still choose to ignore it. See 10-7: Differentiating Between Positions.