Chapter 10 Management

1. TRUE

1. The deployment of organizational resources to achieve strategic goals refers to organizing.

10. FALSE

10. The acceptance theory of authority argues that managers have authority because employees do not have a choice in choosing to accept their commands.

11. TRUE

11. Line departments perform tasks that reflect the organization's primary goal and mission.

12. TRUE

12. The right to advise, recommend, and counsel in the staff specialists' area of expertise is included in staff authority.

13. TRUE

13. The number of employees reporting to a supervisor is his or her span of management.

14. TRUE

14. Traditional views of organizational design recommend a span of management of about 7 to 10 subordinates per manager.

15. FALSE

15. Many hierarchical levels and a correspondingly narrow span of management refers to a flat structure.

16. FALSE

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

17. TRUE

17. A tall structure is a management structure characterized by an overall narrow span of management and a relatively large number of hierarchical levels.

18. FALSE

18. Certainty in the environment is usually associated with decentralization.

19. TRUE

19. The basis for grouping positions into departments and departments into the total organization is referred to as departmentalization.

2. FALSE

2. Organizing defines what to do while strategy defines how to do it.

20. TRUE

20. For companies to operate effectively, the amount of centralization or decentralization should fit the firm's strategy.

21. TRUE

21. At Fox 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.

22. FALSE

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

23. FALSE

23. 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.

24. FALSE

24. Quick response to external changes is an advantage of vertical functional structure.

25. FALSE

25. Divisions are created, in functional structures, as self-contained units with separate functional departments for each division.

26. TRUE

26. The divisional structure encourages decentralization.

27. TRUE

27. In a geographic-based structure, all functions in a specific country or region report to the same division manager.

28. FALSE

28. With a matrix structure, the entire organization is made up of horizontal teams that coordinate their work and work directly with customers to accomplish the organization's goals.

29. FALSE

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

3. TRUE

3. The framework in which the organization defines how tasks are divided, resources are deployed and departments are coordinated is called organizational structure.

30. FALSE

30. The horizontal structure provides traditional control within functional departments, and the vertical structure provides coordination across departments.

31. TRUE

31. The confusion and frustration caused by the dual chain of command is a major problem of the matrix structure.

32. FALSE

32. The overseer of both the product and functional chains of command, responsible for the entire matrix is the matrix boss.

33. TRUE

33. The modular approach is similar to virtual networking.

34. TRUE

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

35. FALSE

35. In the divisional approach, coordination across divisions is great whereas coordination within divisions is often poor.

36. TRUE

36. The matrix approach can be highly effective in a complex, rapidly changing environment in which the organization needs to be flexible and adaptable.

37. TRUE

37. One major disadvantage of the virtual network approach is the lack of hands-on control.

38. TRUE

38. Coordination is the quality of collaboration across departments.

39. FALSE

39. Reengineering is the outcome of information and cooperation.

4. FALSE

4. A organizational map is a visual representation of an organization's structure, showing communication and lines of power.

40. TRUE

40. A project manager is a person responsible for coordinating the activities of several departments for the completion of a specific project.

41. FALSE

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

42. TRUE

42. The radical redesign of business processes to achieve dramatic improvements in cost, quality, service and speed is called reengineering.

43. TRUE

43. The distinctive feature of the project manager position is that the person is not a member of one of the departments begin coordinated.

44. FALSE

44. When an organization uses a differentiation strategy, it strives for internal efficiency.

45. TRUE

45. The pure functional structure is appropriate for achieving internal efficiency goals.

46. FALSE

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

47. TRUE

47. A rigid, vertical structure in an uncertain environment prevents the organization form adapting to change.

48. FALSE

48. The functional structure is appropriate when the primary goal is innovation and flexibility.

49. FALSE

49. Small-batch production is distinguished by standardized production runs.

5. TRUE

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

6. FALSE

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

7. TRUE

7. Authority is the right to use resources, make decisions and issue orders in an organization.

8. FALSE

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

9. FALSE

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

True

A rigid, vertical structure in an uncertain environment prevents the organization form adapting to change.

True

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

False

Organizing defines what to do while strategy defines how to do it.

False

Small-batch production is distinguished by standardized production runs.

True

The deployment of organizational resources to achieve strategic goals refers to organizing.

True

The framework in which the organization defines how tasks are divided, resources are deployed and departments are coordinated is called organizational structure.

False

The functional structure is appropriate when the primary goal is innovation and flexibility.