LTCA 105 4.3.9 Quiz: Chapter 10

For companies to operate effectively, the amount of centralization or decentralization should fit the firm's strategy. a. True b. False

a. True

The basis for grouping positions into departments and departments into the total organization is referred to as departmentalization. a. True b. False

a. True

The divisional structure encourages decentralization. a. True b. False

a. True

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

a. True

In which approach of structural design are departments independent and services contracted to the central hub for a profit? a. Virtual network b. Functional c. Divisional d. Matrix e. Team

a. Virtual network

An advantage of functional structures is the a. resulting economies of scale. b. easy pinpointing of responsibility for product problems. c. development of general management skills. d. enlarged tasks for employees. e. flexibility in an unstable environment.

a. resulting economies of scale.

Which of the following structures has a wide span, is horizontally dispersed, and has fewer hierarchical levels? a. Flat b. Decentralized c. Tall d. Centralized e. None of these choices

a.flat

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

b. False

Divisions are created, in functional structures, as self-contained units with separate functional departments for each division. a. True b. False

b. False

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

b. False

Small-batch production is distinguished by standardized production runs. a. True b. False

b. False

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

b. False

The horizontal structure provides traditional control within functional departments, and the vertical structure provides coordination across departments. a. True b. False

b. False

Myah 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 a. standing committee. b. task force. c. None of these choices d. permanent committee. e. team.

b. task force.

Organizations such as Amazon.com, Google, Facebook, and Priceline.com are examples of firms that are based on a. mechanistic technology. b. products rather than services. c. digital technology. d. strict hierarchies. e. tangible output

c. digital technology.

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

c. division of labor.

Decision authority is pushed downward to lower organization levels with a. centralization. b. staff authority. c. line authority. d. decentralization. e. tall structures.

d. decentralization.

Stephanie works in one of seven research and development departments at Tara's Terrace, Inc. This would suggest that Tara's Terrace has a a. wide span of control. b. high degree of centralization. c. matrix structure. d. divisional structure. e. functional structure.

d. divisional structure.

Decision authority is located near the top of the organization with a. staff authority. b. decentralization. c. tall structures. d. line authority. e. centralization.

e. centralization.

In times of crisis or risk of company failure, authority may be a. centralized at the bottom. b. spread through a wide span of management. c. decentralized. d. flat. e. centralized at the top.

e. centralized at the top.