54) After responsibility for a task is assigned, which of the following comes next to ensure the
successful completion of the task?
A) The centralization of the task is identified.
B) The liability of the task is determined.
C) The span of control is decided.
D) The work team is created.
E) Authority is granted.
55) What type of management is exemplified by the idea that managers should delegate to
subordinates and allow those subordinates to be responsible for decisions?
A) Authentic management
B) Linear management
C) Centralized management
D) Group management
E) Decentralized management
56) Which of the following BEST describes responsibility?
A) The power to make the decisions necessary to complete a task
B) The liability of subordinates for accomplishing tasks assigned by managers
C) The number of people supervised by one manager
D) The duty to perform an assigned task
E) The need to prove satisfactory work performance
57) Which of the following BEST describes authority?
A) The power to make the decisions necessary to complete a task
B) The liability of subordinates for accomplishing tasks assigned by managers
C) The number of people supervised by one manager
D) The ability to take on new responsibility
E) The duty to perform an assigned task
58) Which of the following BEST describes accountability?
A) The power to make the decisions necessary to complete a task
B) The obligation employees have to their manager for the successful completion of an assigned
task
C) The decision to communicate clear expectations related to assigned tasks
D) The number of people supervised by one manager
E) The duty to perform a financial task
59) What authority is based on special expertise and usually involves counseling and advising?
A) Line authority
B) Matrix authority
C) Delegated authority
D) Staff authority
E) Divisional authority
60) What are an organization’s specialists in law, accounting, and human resource management
commonly called?
A) Profit centers
B) Cost centers
C) Staff members
D) Line members
E) Unit managers
61) Which term describes groups of operating employees who are empowered to plan and
organize their tasks and to perform those tasks with a minimum of supervision?
A) Task forces
B) Standing committees
C) Work teams
D) Division committees
E) Board members
62) In a centralized structure, most decision-making authority is delegated to levels of
management at various points below the top.
63) Accountability refers to the obligation of subordinates for accomplishing tasks assigned by
managers.
64) Flat organizational structures are usually associated with centralized decision making.
65) Employees’ abilities and the supervisor’s managerial skills help determine whether span of
control is wide or narrow.
66) When several employees perform the same simple task, a narrow span of control is most
appropriate.
67) Line departments are linked directly to the production and sales of a specific product.
68) Identify and discuss three factors that may affect a manager’s span of control.
69) Briefly summarize the steps in the delegation process.
70) What is the difference between responsibility and authority?
71) What is delegation? Identify four reasons that managers have trouble delegating.
72) List and describe the three forms of authority.
73) Which form of organization is used by most small to medium-sized firms?
A) Divisional
B) Functional
C) Matrix
D) International
E) Stratified
74) Firms with what structure are organized around departments for each basic business action?
A) Divisional structure
B) Matrix structure
C) Functional structure
D) International structure
E) Regional structure
75) Which of the following structures relies on product departmentalization?
A) Matrix
B) Functional
C) Divisional
D) International
E) Regional
76) What are departments called that resemble separate businesses in that they produce and
market their own products?
A) Regions
B) Divisions
C) Function centers
D) Cost centers
E) Work hubs
77) What style of organization relies almost entirely on employees working on a common project
with little or no underlying functional hierarchy?
A) Team
B) Virtual
C) Learning
D) Flexible
E) Stratified
78) What structure is used when an organization has little or no formal structure and with only a
handful of permanent employees, and when needed, is supplemented by temporary employees?
A) Team structure
B) Virtual structure
C) Learning structure
D) Flexible structure
E) Balanced structure
79) What type of organizational structure seeks to integrate continuous improvements with
lifelong learning and personal employee development?
A) Team
B) Virtual
C) Learning
D) Flexible
E) Evolving
80) In a large firm, what can a functional structure foster, even though it can be counter-
productive to the goals of the organization?
A) Competitiveness
B) Centralization
C) Decentralization
D) Diversity
E) Creativity
81) Which of the following types of structure entails a second chain of command, and is often
used when developing new products?
A) Divisional
B) Departmental
C) Committee
D) Matrix
E) Team
82) International organizational structures are an approach to organizational structure developed
in response to the need to manufacture, purchase, and sell in global markets.
83) Divisional structure is the relationships between group functions and activities that determine
authority.
84) The functional organizational structure is the approach to organizational structure used by
most small to medium-sized firms.
85) An international organization is one in which traditional boundaries and structures are
minimized or eliminated altogether.
86) A virtual organization has little or no formal structure.
87) A divisional structure relies on functional departmentalization.
88) What does a divisional structure rely on and why does it rely on this feature?
89) Because international organizational structures have emerged in response to the need to
manufacture, purchase, and sell in global markets; how do some companies adopt a truly global
structure?
90) Describe the four basic forms of organizational structure.
91) List and describe three advantages of a divisional structure.
92) What are everyday social interactions among employees that transcend formal jobs and job
interrelationships called?
A) Traditional structure
B) Informal organization
C) Networking opportunities
D) Production organization
E) Community structure
93) Which term describes creating and maintaining the innovation and flexibility of a small
business environment within the confines of a large, bureaucratic structure?
A) Basic structuring
B) Process organization
C) Intrapreneuring
D) Extrapolating
E) Product innovation
94) Which of the following organizational systems is the part that can be seen and represented in
chart form?
A) Networking
B) Formal organization
C) Informal organization
D) Grapevine
E) Intrapreneuring
95) Which of the following can effectively, but unintentionally, change the formal structure of an
organization?
A) Everyday social interaction of employees
B) Suppliers and vendors
C) Market conditions
D) Members of the Board of Directors
E) Intrapreneuring
96) Which of the following is an informal communications network within the organization?
A) Work groups
B) Social groups
C) The grapevine
D) The corporate structure
E) Teams
97) Which of the following has played an increasingly important role in the growth of the
communication, including the company grapevine?
A) The accuracy of information shared along the grapevine
B) The emergence of smaller organizations, fewer mergers and acquisitions
C) The move of facilities from the suburbs to the inner cities
D) The availability of information technology
E) The increased communication with people outside the organization and decreased
communication with those inside the organization
98) How can an organization minimize the potential damage caused by inaccurate information
spread through the grapevine?
A) Ban employees from using the internet and e-mail for personal reasons.
B) Identify a list of off-limit topics.
C) Respond vigorously to inaccurate information.
D) Allow new information to be released only through formal communication channels.
E) Keep groups small and focused.
99) What is the name given to the middle manager who learns about a new project and becomes
committed to the support of the idea?
A) Stakeholder
B) Sponsor
C) Intrapreneur
D) Innovator
E) Product champion
100) To move a new idea to a marketable entity, who must approve and support the project,
including the funding of the idea?
A) Inventors
B) Sponsors
C) Stakeholders
D) Product champions
E) Project committees
101) When a firm wants to gather information on the potential reaction to a new policy or idea,
how can a manager collect information?
A) Through intrapreneuring
B) Through social media monitoring
C) By utilizing the company grapevine
D) By utilizing the informal chain of command
E) By organizing new reporting relationships
102) Frequently, the informal organization effectively alters a company’s formal structure.
103) The informal organization is not as powerful as the formal structure.
104) Intrapreneuring attempts to create and maintain the innovation and flexibility found in large,
bureaucratic structures.
105) What is an informal organization and how does it relate to the formal structure?
106) How can a firm utilize and control an informal company grapevine?
107) Discuss the types of grapevines within an organization and how accurate the grapevine can
be.
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108) Discuss reasons why informal communication plays a growing role in an organization.