Business Management: Chpt. 4

A widely used financial planning tool is a a. budget b. policy c. standard d. goal

A

All authority can be traced in a direct line from top to bottom in a. a line organization b. a team organization c. a matrix organization d. all of the responses

A

Authority in an organization is delegated a. from top to bottom b. from one department to another c. from employees to customers d. from one manager to another but never from a manager to an employee

A

The organization structure that is efficient but with many layers of management is the a. line organization b. line and staff organization c. matrix organization d. all of the responses

A

When an employee has an obligation to do an assigned task, the employee has been given a. responsibility b. authority c. a goal d. a procedure

A

the obligation to accept responsibility for the outcomes of assigned tasks

Accountability

A list of steps to be followed for performing certain work is a a. process b. procedure c . goal d. method

B

If an employee regularly receives instructions from more than one manager, there is a problem with a. span control b. unity of command c. policies and procedures d. standard

B

Managers have access to specialists for advice and assistance in a. a line organization b. a line and staff organization c. a project or matrix organization d. none of the responses

B

The management function responsible for arranging resources to complete work is a. planning b. organizing c. implementing d. controlling

B

To be effective, goals must be a. general b. achievable c. independent from each other d. all of the responses

B

Strategic planning a. is short-term planning b.determines how work will be done and who will do it c. provides broad goals and direction for the entire business d. is a short, specific statement of the purpose and direction of the business

C

The most flexible organizational structure for a business is the a. line organization b. line and staff organization c. matrix organization d. centralized organization

C

To ensure that the quality of work is acceptable, businesses develop a. organizational charts b. goals c. standards d. schedules

C

When a new business first begins to organize activities into units, it should a. create many small units b. put all activities into one large unit c. group activities into a few natural divisions d. prepare unit work schedules

C

business structure in which a few top managers do all the major planning and decision making

Centralized Organization

Which of the following is NOT an example of an operation plan? a. setting monthly production levels b. planning inventory levels c. developing a department budget d. revising the mission statement for the business

D

a business which is divided into smaller operating units and managers who head the units have almost total responsibility and authority for operations.

Decentralized Organization

authority given to individual employees to make decisions and solve problems they encounter on their jobs with the resources available to them.

Empowerment

All large businesses are organized into five divisions: operations, marketing, finance, personnel, and production.

False

An organizational chart is a visual device that lists the policies and procedures of a business.

False

Effective planning is less important to the success of a business than other management functions, such as organizing, implementing, and controlling.

False

Goals should be stated in broad, nonspecific language to make them easier to reach.

False

Once standards are set in a department, they should not be revised.

False

The top managers in a business are involved in planning, but first-level managers such as supervisors are not.

False

Typically, goals should not be communicated to employees, because it will result in too much pressure to meet the goals.

False

an organization with fewer levels of management than traditional structures.

Flattened Organization

the addition staff specialist to a line organization

Line and Staff Organization

an organization which combines workers into temporary work teams to complete specific projects.

Matrix Organization

an illustration of the structure of an organization, major job classifications, and the reporting relationships among the organization's personnel.

Organization Chart

determining how plans can be accomplished most effectively and arranging resources to complete work

Organizing

guidelines used in making decisions regarding specific, recurring situations

Policies

a team in which members together are responsible for the work assigned to the team.

Self-Directed Work Team

the number of employees who that any one manager supervises directly

Span of Control

a specific measure by which something is judged.

Standard

business structure that divides employees into permanent work teams

Team Organization

An example of a schedule is the assignment of employees to specific tasks in a department.

True

Goals are the results a business expects to achieve

True

In order to be effective, a business plan should always be in writing.

True

Most of the operational planning in a business is the responsibility of middle-level managers and supervisors.

True

Procedures can be developed to describe how a policy should be implemented.

True

The results of strategic planning are goals and strategies that guide the entire business.

True

The three major elements that are a part of effective organizing are the division of work, the facilities and working conditions, and the employees.

True

Unity of command requires that no employee have more than one supervisor at a time.

True

a broad, lasting and often inspirational view of a company's reason for existing

Vision