Question 1

An organizational hierarchy establishes one person at the top of an organization.

Accepted Answer

A) True 
 B)False

Question 2

In a line organization, there are many specialists who serve as advisors and assistants to the managers who make decisions.

Accepted Answer

A) True 
 B)False

Question 3

An organization that has contact people at the top and the chief executive officer at the bottom is known as a(n) :

Accepted Answer

A)  bureaucracy.
B)  oligarchy.
C)  improvised organization.
D)  inverted organization.E) A) and D)
F) A) and C)

Question 4

The process of setting up individual functional units of the business to do specialized tasks is called:

Accepted Answer

A)  Departmentalization.
B)  Division of labor.
C)  Job specialization.
D)  Delegation of authority.E) All of the above
F) A) and C)

Question 5

As indicated in the Spotlight for Small Business box titled, "Keeping that Small- Company Feeling," the giant media company formed by AOL and Time Warner proved that the informal organization is not conducive to creativity and innovation.

Accepted Answer

A) True 
 B)False

Question 6

Networking requires transparency to work most effectively.

Accepted Answer

A) True 
 B)False

Question 7

As indicated in the Making Ethical Decisions box titled, "Safety versus Profit", organization decisions that affect profits in a negative way should be avoided at all cost.

Accepted Answer

A) True 
 B)False

Question 8

Organizations that utilize functional departmentalization benefit from improved communication between departments.

Accepted Answer

A) True 
 B)False

Question 9

In firms with centralized authority, each business unit is treated as if it is a completely separate and independent organization.

Accepted Answer

A) True 
 B)False

Question 10

Today's preference to flat vs. tall organization structures is mainly due to a flat organization's ability to:

Accepted Answer

A)  encourage esprit de corps among employees in various departments.
B)  increase the cost of labor through economies of scale.
C)  respond readily to customer demands.
D)  increase sales through multiple customer contacts by several layers of management.E) All of the above
F) C) and D)

Question 11

A firm's informal organization refers to the structure that identifies the authority, responsibility, and position of people within the organization.

Accepted Answer

A) True 
 B)False

Question 12

Most businesses adopt a bureaucratic organization in order to speed up their decision making process.

Accepted Answer

A) True 
 B)False

Question 13

If companies follow the theories of Fayol and Weber, which of the following scenarios is likely to result?

Accepted Answer

A)  Organization design will be benefit by the emergence of quick decision-making
B)  Organization design will eliminate systems of hierarchy and chains of command due to their hindrance of esprit de corps
C)  Organizations that grow will develop several layers of management and the time that it takes to make a decision will increase
D)  There will be a significant reduction of work force due to specialization and departmentalizationE) C) and D)
F) None of the above

Question 14

Which of the following statements most closely identifies the problem with adopting Fayol's principles of organization design for contemporary businesses?

Accepted Answer

A)  Leaving some decision-making power to middle management had the effect of minimizing the effort and results that management would put into the other historical principles of organization
B)  The rule making that developed from these principles created organizations that didn't respond quickly to customer needs
C)  The principles of Fayol and Weber hampered a firm's ability to determine if it was profitable
D)  Authority and responsibility quickly became unrelatedE) A) and B)
F) A) and C)

Question 15

A bureaucracy is an organization with many layers of managers who set rules and regulations and oversee all decisions.

Accepted Answer

A) True 
 B)False

Question 16

Cross-functional self-managed teams work best when .

Accepted Answer

A)  leadership is shared
B)  there are at least two line and staff mangers on the team
C)  the teams consist of members of only two functional units
D)  The academic levels of all members are comparableE) All of the above
F) A) and D)

Question 17

A virtual corporation refers to a permanent network of firms linked by high-tech communication systems.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is an example of a move to reorganize?

Accepted Answer

A)  Reducing the labor force within your business
B)  Revising plans by creating contingency plans
C)  Managing by objectives and clearing pathways for success
D)  Developing a way to monitor financial successE) A) and B)
F) All of the above

Question 19

An advantage of a tall organization is that it ensures fast and efficient communications throughout the organization.

Accepted Answer

A) True 
 B)False

Question 20

Max Weber favored which of the following?

Accepted Answer

A)  Inverted organizations
B)  Worker participation in decision making
C)  Staffing and promotions based on qualifications
D)  Flat organizationsE) A) and D)
F) B) and D)

Exam 8: Structuring Organizations for Todays Challenges

Today's preference to flat vs. tall organization structures is mainly due to a flat organization's ability to:

Correct AnswerverifiedShow Answer

A bureaucracy is an organization with many layers of managers who set rules and regulations and oversee all decisions.

Correct AnswerverifiedShow Answer

Organizations that utilize functional departmentalization benefit from improved communication between departments.

Correct AnswerverifiedShow Answer

As indicated in the Spotlight for Small Business box titled, "Keeping that Small- Company Feeling," the giant media company formed by AOL and Time Warner proved that the informal organization is not conducive to creativity and innovation.

Correct AnswerverifiedShow Answer

Cross-functional self-managed teams work best when .

Correct AnswerverifiedShow Answer

If companies follow the theories of Fayol and Weber, which of the following scenarios is likely to result?

Correct AnswerverifiedShow Answer

As indicated in the Making Ethical Decisions box titled, "Safety versus Profit", organization decisions that affect profits in a negative way should be avoided at all cost.

Correct AnswerverifiedShow Answer

Most businesses adopt a bureaucratic organization in order to speed up their decision making process.

Correct AnswerverifiedShow Answer

Which of the following is an example of a move to reorganize?

Correct AnswerverifiedShow Answer

In a line organization, there are many specialists who serve as advisors and assistants to the managers who make decisions.

Correct AnswerverifiedShow Answer

Networking requires transparency to work most effectively.

Correct AnswerverifiedShow Answer

An organization that has contact people at the top and the chief executive officer at the bottom is known as a(n) :

Correct AnswerverifiedShow Answer

A virtual corporation refers to a permanent network of firms linked by high-tech communication systems.

Correct AnswerverifiedShow Answer

A firm's informal organization refers to the structure that identifies the authority, responsibility, and position of people within the organization.

Correct AnswerverifiedShow Answer

An advantage of a tall organization is that it ensures fast and efficient communications throughout the organization.

Correct AnswerverifiedShow Answer

An organizational hierarchy establishes one person at the top of an organization.

Correct AnswerverifiedShow Answer

In firms with centralized authority, each business unit is treated as if it is a completely separate and independent organization.

Correct AnswerverifiedShow Answer

The process of setting up individual functional units of the business to do specialized tasks is called:

Correct AnswerverifiedShow Answer

Max Weber favored which of the following?

Correct AnswerverifiedShow Answer

Which of the following statements most closely identifies the problem with adopting Fayol's principles of organization design for contemporary businesses?

Correct AnswerverifiedShow Answer

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