MGMT EXAM 2 Ch 10

Certainty in the environment is usually associated with decentralization.

False

The modular approach is similar to networking.

True

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

b. Permanent teams

Two chains of command exist, with top priority given to the team managers, in a matrix approach to departmentalization.

False

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. the project, people.

A task force is a committee formed to solve a specific problem. a. standing b. permanent c. temporary d. all of the above e. none of the above

c. temporary

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. what; how

A(n) ______ 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. functional structure

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. enlarged tasks for employees.

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. there is little duplication of services across divisions.

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. employees perform a single task.

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. Unity of command

Which of these 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. Unity of command

Silver Moon has wide spans of management, 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 network approach. e. none of the above.

b. along functional lines.

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. decentralization.

Velma works in the manufacturing department at Ice Sculptures. The work in Velma's department is low in task specialization. As a result, Velma 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. does a variety of tasks and activities.

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. excellent coordination between functions.

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. network b. modular c. virtual organization d. team e. matrix

b. modular

The degree to which machinery is involved in the production to the exclusion of people is called a. productivity. b. technical complexity. c. production structure. d. people friendly structure. e. none of the above.

b. technical complexity.

Patty 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 network structure

c. A divisional structure

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.

In very large companies, according to your text, a a. functional structure is necessary. b. matrix structure is a requirement. c. divisional structure is essential. d. team approach should be avoided. e. divisional structure is inefficient.

c. divisional structure is essential.

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. network structure. e. team-based structure.

c. divisional structure.

______ 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 the above

d. Less response time, quicker decisions

______ is a contemporary approach to structural design in departmentalization. a. Functional b. Divisional c. Traditional divisions d. Teams e. Geographic-based

d. Teams

Tyler was recently looking at his company's organization chart in an attempt to discover who reports to whom. Tyler 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. chain of command.

______ is NOT a contingency factor that influences an organization's structure. a. Strategy b. Environment c. Interdependence d. Production technology e. Competitor's structure

e. Competitor's structure

Which of the following is characterized by use of the Internet and other digital processes to conduct or support business online? a. Small batch technology b. Continuous technology c. Tangible technology d. Service technology e. Digital technology

e. Digital technology

A flat structure is characterized by a relatively few hierarchical levels and a correspondingly narrow span of management.

False

A functional manager is a person who is responsible for coordinating the activities of several departments.

False

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

False

A visual representation of an organization's structure, showing communication and lines of power is called a structure graph.

False

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

False

At Creative Expressions, departments are grouped together into separate self-contained groups based on common products and product lines. This is an example of departmental approach.

False

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.

False

Consumer technology is technology characterized by intangible outputs and direct contact between employees and customers.

False

Given the challenges to meet customer needs and adapt to the environment, most organizations today discourage managers to delegate authority to the lower levels

False

In functional structures, divisions are created as self-contained units with separate functional departments for each division.

False

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

False

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

False

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

False

The functional structure is sometimes called a product, a program, or self-contained unit structure.

False

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

False

The idea that organizations develop a well-defined line of authority in the organization that includes all employees is suggested by the network approach.

False

The level to which complex machinery is involved in the production process at the same level as people is called the technical complexity.

False

The nature of the network structure means that the subcontractor becomes a permanent part of and an internal division of the organization.

False

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

False

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

False

The type of technology that involves mechanization of the entire workflow and nonstop production is called continual flow production, according to Woodward.

False

Two contemporary approaches to departmentalization are the use of teams and groups.

False

When the primary goal is innovation and flexibility, the functional structure is appropriate.

False

At Owl 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.

True

Competitiveness on a global scale is the biggest advantage of the network approach to structure.

True

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

True

Organizing is the deployment of organizational resources to achieve strategic goals.

True

Procter and Gamble, General Mills, and General Foods all use product managers to coordinate their product lines. These product managers are project managers.

True

Strategy defines what to do; organizing defines how to do it

True

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

True

The organization, in a network approach to structure, becomes a small broker and departments are independent contracting services to the broker for a profit.

True

______ 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. Concern for customers' needs is high

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. Line

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. Reengineering

Which of these 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. Scalar principle

Which of the following has the lowest level of technical complexity? a. Small batch production b. Continuous process production c. Flexible manufacturing d. Mass production e. Routine manufacturing

a. Small batch production

Jack and Jill work at Glacier Point, Inc. Although they both work on the assembly line, they have the authority to make many decisions about their job. Glacier Point 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. a high degree of decentralization.

According to Woodward, the most sophisticated and complex form of production technology is a. continuous process production. b. mass production. c. small batch production. d. routine production. e. unit production.

a. continuous process production.

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

a. divisional structure.

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 within functions. e. results in an efficient use of resources.

a. encourages decentralization.

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

a. horizontal matrix

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. resulting economies of scale.

______ has the highest level of technical complexity a. Small batch production b. Continuous process production c. Flexible manufacturing d. Mass production e. Routine manufacturing

b. Continuous process production

______ 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. Staff; line

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. Subordinates accept it.

JoAnna Banana's accounting firm uses __________ technology to be flexible and decentralized in a fast paced world that demands a focus on horizontal processes rather than departmental functions. a. batch b. digital c. continuous d. tangible e. manufacturing

b. digital

Sonia 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. divisional structure.

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. divisional, matrix

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 the above

c. Centralization, top

Which of the following is NOT one of the basic types of workflow technology identified by Woodward? a. Large batch b. Continuous process production c. Intermediate batch d. Small batch e. All of the above were identified by Woodward

c. Intermediate batch

______ 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 the above

c. Managers have to find ways to tie different departments

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. Manufacturing

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

c. Organizing

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. Network approach

c. Process approach

can be defined as technology characterized by intangible outputs and direct contact between employees and customers. a. Tangible technology b. Direct technology c. Service technology d. Complex technology e. Flexible manufacturing

c. Service technology

Which of the following factors is NOT associated with larger span of control? a. Work performed by subordinates in 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. Subordinates are located at various different locations.

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

c. The network approach

Recent workplace design trends such as hoteling and free-address offices are a result of which approach? a. Matrix approach b. Team approach c. Virtual approach d. Modular approach e. Network approach

c. Virtual approach

_____ 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. Wider spans of management

______ is 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. Work specialization

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

c. flexible.

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. functional

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

c. internal efficiency goals.

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 ______individual responsible for coordinating the activities of several departments. a. department manager b. line manager c. project manager d. middle manage e. moderating manager

c. project manager

A type of technology that involves the production of a few goods designed to customer specifications is a. continuous process production. b. mass production. c. small batch production. d. routine service production. e. hi-tech production.

c. small batch production.

The purpose of is to organize resources to accomplish organizational goals. a. strategy b. motivation c. structure d. control e. leadership

c. structure

Amanda 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. Project manager

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

d. matrix structure.

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. narrow, more

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

d. seven

Brittany'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. vertical functional