Chapter 7

What are two weaknesses of functional departmentalization?

Decision making across departments is slow. It requires greater coordination among departments.

Which two factors would lead to a business being more centralized in its organization?

Decisions to be made are risky. Low-level managers are not highly skilled in decision-making.

Why can overcentralization cause serious problems for an organization? (Select all that apply)

It can take longer for the organization to respond to changes on a regional scale. It can prevent low-level employees from reporting problems. It can take longer for the organization to implement decisions.

Which of the following is TRUE of departmentalization by product?

It duplicates functions and resources.

Which of the following would be a positive result of departmentalization by product?

It helps coordinate all the activities related to a product or product group. It simplifies decision making.

_____ can cause serious problems for a company, in part because it may take longer for the organization as a whole to implement decisions and to respond to changes and problems on a regional scale.

Overcentralization

Top Managers lower level managers

Should not directly supervise more than four to eight people. Are capable of managing a much larger number of subordinates, even as high as twenty-five people.

Which two of the following characterize centralized organizations?

Very little decision-making authority is delegated to lower levels. Authority is concentrated at the top levels of the organization.

An organization structure in which decision-making authority is maintained at the top level of management is called a(n) ______ organization.

centralized

When the decisions to be made by a business are risky, and low-level managers are not highly skilled in decision making, the company tends to be more _____.

centralized

At Belinda's company, when pressed to meet a deadline, every worker is expected to put in overtime hours and work together to get the job done. This commitment to teamwork is part of the company's ______.

culture

A real estate agency matches its brokers to the type of groups it services: first-time home buyers, urban dwellers, house flippers, business owners, etc. This exemplifies ______ departmentalization.

customer

Select from the following the ways in which departments are commonly organized.

customer, product, function, geographic region

In a(n) ______ organization the decision-making authority is delegated as far down the chain of command as possible.

decentralized

Rather than have the top level of management make all the decisions, Jake's company gives all lower-level managers the authority to make decisions for his or her department. Jake's company operates as a(n) ______ organization.

decentralized

In the retail clothing industry the customer demands vary from state to state. Therefore, many retail stores allow each individual store manager to make decisions that are best for the store he or she manages. This exemplifies a(n) ______.

decentralized structure

When jobs are organized by function, ______.

decision making that involves more than one department may be slow

If Pete was tasked with developing an organizational structure for his company, he would ______.

define the various positions in the company and their relationship to one another

Mr. Jones, the president of a firm gives the responsibility for all marketing activities to the vice president of marketing and the responsibility of financial matters to the CFO. In doing so, the president has _______ and has established a relationship and accountability between himself and his subordinates.

delegated authority

Giving employees not only tasks but also the power to make commitments, use resources, and take whatever actions are necessary to carry out those tasks is the definition of ______.

delegation of authority

The grouping of jobs into working units usually called departments, units, groups, or divisions is called ______.

departmentalization

What word reflects the rationale for specialization in the workplace?

efficiency

True or false: The act of delegating authority to a subordinate relieves the superior of accountability for the delegated job.

false

True or false: The maximum number of people a manager should manage is no more than ten.

false

The form of departmentalization that groups jobs that perform similar functional activities, like finance and marketing, is called ______ departmentalization.

functional

When a company looks to departmentalize by areas of business like Japan, America, and Australia it is exemplifying departmentalization by ______.

geographic location

Overspecialization can result in all of the following EXCEPT ______.

less injuries

A _____ span of management exists when a manager directly supervises only a few subordinates.

narrow

A company has three main product lines: cleaning products, laundry products, and paper products. If it organizes its jobs around these product lines, it is using which form for departmentalization?

product

If a book seller was to separate its organization according to the types of books it sells it would be an example of departmentalization by ______.

product

Cybill's manager wanted her to design the new ad campaign for the firm's new product. She was given all the necessary resources to complete the task. Cybill understands that her manager is going to hold her accountable to make sure the ad campaign is executed successfully. This exemplifies the concept of ______.

responsibility

The obligation, placed on employees through delegation, to perform assigned tasks satisfactorily and be held accountable for the proper execution of work is the definition of ______.

responsibility

The functional approach to departmentalization is common in ______ organizations.

small

If the owner of a lawn-mowing company were to take the division of labor a step further and divide the mowing task into three separate activities (mowing, trimming, and raking) performed by three separate employees specifically trained for their assigned duty this would exemplify _____.

specialization

The owner of a flower shop has three employees. Two employees are better at arranging flowers in a vase while the third is skilled at preparing the flowers to be arranged. Separating the employees by these skills is called ______.

specialization

An organization's _____ develops when managers assign work tasks and activities to specific individuals or work groups and coordinate the diverse activities required to reach the firm's objectives.

structure

At its core, the reason companies divide labor and specialize is because ______.

they want to be as efficient as possible

True or false: Every organization, regardless of size, organizational type, product, or profit objective has a corporate culture.

true

True or false: Growth requires organizing---the structuring of human, physical, and financial resources to achieve objectives in an effective and efficient manner.

true

True or false: In recent years, the trend has been toward more decentralized organizations, and some of the largest and most successful companies, including GE, IBM, Google, and Nike, have decentralized decision making authority.

true

A _____ span of management is appropriate when superiors and subordinates are located close to one another, the manager has few responsibilities other than supervision, subordinates are highly competent, and there are specific operating procedures in place.

wide

Which principle means that employees who accept an assignment and the authority to carry it out are answerable to a superior for the outcome?

accountability

The principle of accountability means that ______.

an employee who accepts an assignment and the authority to carry it out is answerable to a superior for the outcome

As companies expand and hire more people, these people need to know how they fit into the organization so that the company will achieve its objectives effectively and efficiently. The development of a(n) ______ will help to organize the firm's growth.

organizational structure

Job dissatisfaction, poor work quality, more injuries, and high employee turnover are all negative consequences of ______.

overspecialization

A McDonald's restaurant anywhere in the world has an atmosphere and look that represents the company's values of cleanliness, quality service, and value. This is an example of ______.

organization culture

To find out the relationships among people in a company one may consult the company's ______.

organizational chart