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Just as human beings have a personality, organizations also have a "personality"-the product(s) they sell and the type(s) of market(s) they participate in.

A) True
B) False

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Joe, a salesperson for a landscaping company, is working with a longtime customer who is interested in either cutting back on the services or getting a better price due to the tight economy. Joe tells his manager, "I want to take care of the customer with the best value. So what do you think is the best package to offer in this situation?" Joe and his manager are trying to utilize the _____.


A) contingency design
B) streamlined design
C) focused spending approach
D) boundaryless approach
E) mechanistic design

F) B) and E)
G) A) and B)

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According to Chester I. Barnard, an organization is defined as more than two people who try to collaborate on activities to meet an organization's goals.

A) True
B) False

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Dave, the HR manager, was meeting with Amy, the new controller. He mentioned to her that "If you glance left and right on the line of that chart, you will see horizontal specialization, the different jobs and work specializations." The chart that Dave was showing to Amy is an organization chart.

A) True
B) False

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Define span of control. Contrast the two kinds of spans of control.

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The span of control, or span of manageme...

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The vertical hierarchy is also known as _____.


A) an upward graph
B) the X-Y chart
C) the chain of command
D) the network structure
E) the corporate steps

F) None of the above
G) A) and B)

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Reliable Office Equipment established a structure where people are grouped by similar products, such as the copier and computer divisions. It also has groups that handle certain types of customers, such as those in education and government. Reliable uses a divisional structure.

A) True
B) False

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The AFL-CIO, an union, and the National Federation of Independent Business, are both voluntary groups with the purpose of advancing member interests. They are examples of _____.


A) mutual-benefit organizations
B) nonprofit organizations
C) volunteer co-ops
D) for-profit organizations
E) trade alliances

F) B) and D)
G) A) and E)

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Important decisions are made by middle-level and supervisory-level managers with ____.


A) decentralized authority
B) upper authority
C) focused power
D) centralized authority
E) higher-management influence

F) A) and B)
G) C) and E)

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Adam, the owner of Adam's Roofing, was talking to a visitor in his office, telling her that "We are a fun-loving group that believes in teamwork and a family atmosphere at work, which significantly affects our work outcomes. Plus, we do things together outside of work. This is the 'social glue' that binds the members of our company together." Adam was referring to his company's _____.


A) organizational MBO
B) organizational culture
C) code of ethics
D) diversity plan
E) analytics

F) A) and B)
G) A) and C)

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With a hollow structure, the organization ____.


A) is a rigid non-adaptive structure
B) groups activities around similar products or services
C) has a central core of key functions and outsources others to vendors who are less expensive or faster
D) is often called a horizontal organization
E) assembles product chunks, or modules, provided by outside contractors

F) D) and E)
G) A) and B)

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A hierarchy of authority is ____.


A) also known as a division of labor
B) a control mechanism for making sure the right people do the right things at the right time
C) a diversity structure used in planning with recruiting, selection, and hiring
D) also known as work specialization
E) the arrangement of having discrete parts of a task done by different people

F) A) and D)
G) A) and C)

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According to the competing values framework, clan, adhocracy, market, and hierarchy are ____.


A) organizational values
B) industry cultural standards
C) organizational norms
D) MBO levels of achievement
E) organizational cultures

F) A) and C)
G) B) and D)

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An advantage of centralization is that procedures are not uniform and thus easier to control.

A) True
B) False

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Joe, the owner of Ace Product Sales, emphasizes a professional culture. He is strict when it comes to the way his employees dress in the office and while visiting customers, saying "Our image and success is based on how people view us, so the way we dress is a priority." In addition, Joe strongly believes in awarding his employees during monthly ceremonies. Joe said, "We reward our employees so they feel good about what they are doing, which is the mark of a professional organization." This is a good example of how organizational culture is expressed in observable artifacts.

A) True
B) False

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A company with authority centralized in a single person, a flat hierarchy, few rules, and low work specialization is a characteristic of an organization with a _____.


A) team-based design
B) simple structure
C) hollow structure
D) functional structure
E) horizontal design

F) A) and C)
G) D) and E)

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The arrangement of having discrete parts of a task done by different people is known as division of labor.

A) True
B) False

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Astrid, a customer service representative, was asked by one of her customers if her company would be interested in joining the chamber of commerce to meet potential customers. Astrid believes this is a very good idea and approached her manager, Alan, about becoming a chamber member. Alan told Astrid that "Since the cost of membership is over $500 and you will have to leave the office to attend meetings, I will have to get approval from management above me." This is an example of how important decisions are made in organizations with _____.


A) decentralized authority
B) unity of command
C) work specialization
D) centralized authority
E) line managers

F) A) and E)
G) A) and B)

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Organizations using a matrix structure _____.


A) contain multiple overlapping command structures, in which employees report to several managers
B) centralize authority into a single person
C) contain two command structures, in which some people actually report to two bosses
D) establish a hierarchy in which employees report to only one supervisor
E) utilize teams or workgroups with few lines of authority

F) A) and B)
G) B) and D)

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When the new nurse was hired at the hospital, HR gave her a handout containing a chart that showed a family-tree-like pattern of boxes and lines, the formal lines of authority and the organization's official positions at the hospital. This is an organization chart.

A) True
B) False

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