Question 1

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

Question 2

Fayol's ________ principle states that each worker should report to one, and only one, boss.

Accepted Answer

A)   division of labor
B)   unity of command
C)   esprit de corps
D)   comparative advantageE) A) and C)
F) A) and B)

Question 3

________ is using communications technology and other means to link organizations and allow them to work together on common objectives.

Accepted Answer

A)   Networking
B)   Structural linking
C)   Functional sharing
D)   Strategic planningE) All of the above
F) A) and D)

Question 4

At Better Neighbors Fencing, ten employees perform various aspects of the company's work. Two people are in sales; four perform installation; one purchases materials; one does billing; two perform after-sales inspections. This type of organization reflects Fayol's principle of

Accepted Answer

A)   division of labor.
B)   equity.
C)   unity of command.
D)   hierarchy of authority.E) All of the above
F) B) and C)

Question 5

________ is the term used to describe those functions that a firm can do as well or better than others. It performs these functions in-house, rather than outsourcing.

Accepted Answer

A)   Benchmarks
B)   Standard responsibilities
C)   Operational requirements
D)   Core competenciesE) A) and C)
F) A) and B)

Question 6

Fayol's principle of esprit de corps says that employees should be divided into small groups that can be directed efficiently by a single manager.

Accepted Answer

A) True 
 B)False

Question 7

Assigning various functions that a firm might do for itself to outside organizations is known as competitive allocation.

Accepted Answer

A) True 
 B)False

Question 8

Qiang is a project manager at Enigma Industries and is able to borrow specialists from the organization on a regular basis to assist in major projects. After the project ends, the specialists return to their functional units to await new assignments. Enigma Industries utilizes a

Accepted Answer

A)   line organization model.
B)   bi-functional organization model.
C)   lateral transfer organization model.
D)   matrix organization model.E) A) and D)
F) B) and C)

Question 9

The formal organization of a firm provides the lines of authority to follow in routine situations.

Accepted Answer

A) True 
 B)False

Question 10

A disadvantage of the matrix organization is the temporary nature of the teams.

Accepted Answer

A) True 
 B)False

Question 11

A weakened corporate image is one of the disadvantages of a decentralized business organization.

Accepted Answer

A) True 
 B)False

Question 12

In Weber's view of a bureaucratic organization, the organization demands

Accepted Answer

A)   a spirit of pride and loyalty among the workers.
B)   cross-functional teams.
C)   clearly established rules and guidelines that are to be precisely followed.
D)   self-managed teams.E) A) and D)
F) B) and C)

Question 13

The design of a bureaucratic organization assumes a well-educated workforce.

Accepted Answer

A) True 
 B)False

Question 14

Angelo, a middle manager at a nonprofit, spends much of his time developing ways to implement the ideas from top management. Max Weber would have considered Angelo a bureaucrat.

Accepted Answer

A) True 
 B)False

Question 15

In Weber's view of a bureaucratic organization, the role of top management is to

Accepted Answer

A)   empower workers and enable them to quickly respond to customer wants.
B)   make decisions.
C)   develop the rules and procedures needed to carry out the plans of bureaucrats.
D)   directly supervise front-line employees to better control operations.E) B) and D)
F) A) and B)

Question 16

Weber had a great deal of faith in managers. He was confident that a firm would do well if employees simply did as they were told.

Accepted Answer

A) True 
 B)False

Question 17

In a bureaucratic organization

Accepted Answer

A)   departments communicate with each other on a regular basis.
B)   employees follow strict rules and regulations.
C)   customer satisfaction is the number one priority.
D)   first-line workers are empowered to respond to the needs of customers.E) A) and B)
F) B) and C)

Question 18

The purpose of Weber's and Fayol's principles was for the benefit of management, as opposed to pleasing customers.

Accepted Answer

A) True 
 B)False

Question 19

Today's preference for flat rather than 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 quickly to customer demands.
D)   increase sales through multiple customer contacts by several layers of management.E) A) and B)
F) B) and D)

Question 20

Which of the following is an advantage of a matrix organization structure?

Accepted Answer

A)   It is much cheaper to staff than other organization models.
B)   It provides for efficient use of organizational resources.
C)   The project teams are permanent.
D)   It is a complex organization structure.E) B) and D)
F) All of the above

Exam 8: Structuring Organizations for Todays Challenges

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

Correct AnswerverifiedShow Answer

In Weber's view of a bureaucratic organization, the organization demands

Correct AnswerverifiedShow Answer

In Weber's view of a bureaucratic organization, the role of top management is to

Correct AnswerverifiedShow Answer

In a bureaucratic organization

Correct AnswerverifiedShow Answer

Weber had a great deal of faith in managers. He was confident that a firm would do well if employees simply did as they were told.

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Fayol's principle of esprit de corps says that employees should be divided into small groups that can be directed efficiently by a single manager.

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Which of the following is an advantage of a matrix organization structure?

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Today's preference for flat rather than tall organization structures is mainly due to a flat organization's ability to

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Fayol's ________ principle states that each worker should report to one, and only one, boss.

Correct AnswerverifiedShow Answer

At Better Neighbors Fencing, ten employees perform various aspects of the company's work. Two people are in sales; four perform installation; one purchases materials; one does billing; two perform after-sales inspections. This type of organization reflects Fayol's principle of

Correct AnswerverifiedShow Answer

A weakened corporate image is one of the disadvantages of a decentralized business organization.

Correct AnswerverifiedShow Answer

A disadvantage of the matrix organization is the temporary nature of the teams.

Correct AnswerverifiedShow Answer

________ is the term used to describe those functions that a firm can do as well or better than others. It performs these functions in-house, rather than outsourcing.

Correct AnswerverifiedShow Answer

The purpose of Weber's and Fayol's principles was for the benefit of management, as opposed to pleasing customers.

Correct AnswerverifiedShow Answer

________ is using communications technology and other means to link organizations and allow them to work together on common objectives.

Correct AnswerverifiedShow Answer

Qiang is a project manager at Enigma Industries and is able to borrow specialists from the organization on a regular basis to assist in major projects. After the project ends, the specialists return to their functional units to await new assignments. Enigma Industries utilizes a

Correct AnswerverifiedShow Answer

Angelo, a middle manager at a nonprofit, spends much of his time developing ways to implement the ideas from top management. Max Weber would have considered Angelo a bureaucrat.

Correct AnswerverifiedShow Answer

Assigning various functions that a firm might do for itself to outside organizations is known as competitive allocation.

Correct AnswerverifiedShow Answer

The design of a bureaucratic organization assumes a well-educated workforce.

Correct AnswerverifiedShow Answer

The formal organization of a firm provides the lines of authority to follow in routine situations.

Correct AnswerverifiedShow Answer

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