54.
The organizational design in which employees are correctly referred to as two-boss
employees is a ________ structure.
A.
product
B.
matrix
C.
geographic
D.
functional
In a matrix structure, each person in a product team reports to two managers: (1) a
functional boss, who assigns individuals to a team and evaluates their performance from a
functional perspective, and (2) the boss of the product team, who evaluates their
performance on the team. Thus, team members are known as two-boss employees.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-03 Describe the types of organizational structures managers can design, and explain why they
choose one structure over another.
Topic: Hierarchy of Authority
Topic: Line of Authority
55.
At Cosmeto & Co., Pat is assigned to a team to develop a new kind of shampoo. He reports
to both the marketing manager and the personal care product manager. The organization
is pursuing a ________ organizational structure.
A.
matrix
B.
global product
C.
customer
D.
geographic
In a matrix structure, each person in a product team reports to two managers: (1) a
functional boss, who assigns individuals to a team and evaluates their performance from a
functional perspective, and (2) the boss of the product team, who evaluates their
performance on the team. Thus, team members are known as two-boss employees.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-03 Describe the types of organizational structures managers can design, and explain why they
choose one structure over another.
Topic: Functional Structure
Topic: Organizational Development (OD)
56.
Employees organized according to a matrix structure are grouped by ________.
A.
functions
B.
position in the company
C.
skill level
D.
seniority in the company
In a matrix structure, managers group people and resources in two ways simultaneously:
by function and by product. Employees are grouped by functions to allow them to learn
from one another and become more skilled and productive.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 07-03 Describe the types of organizational structures managers can design, and explain why they
choose one structure over another.
Topic: Functional Structure
Topic: Organizational Development (OD)
57.
What is the main problem with the matrix structure’s dual reporting relationship?
A.
tracking responsibilities
B.
tasks are more complex
C.
conflicting demands can arise
D.
deciding which job will finish faster
The dual reporting relationships that are at the heart of a matrix structure have always
been difficult for managers and employees to deal with. Often the functional boss and the
product boss make conflicting demands on team members, who do not know which boss
to satisfy first.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-04 Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of
authority and integrating mechanisms.
Topic: Functional Structure
Topic: Organizational Development (OD)
58.
When different managers from different functional areas are brought together to work on
an organizational task, they are known as a(n) ________ team.
A.
functional
B.
co-dependent
C.
cross-functional
D.
independent
A cross-functional team is a group of managers brought together from different
departments to perform organizational tasks.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-03 Describe the types of organizational structures managers can design, and explain why they
choose one structure over another.
Topic: Functional Structure
Topic: Organizational Development (OD)
59.
How does the product team structure differ from the matrix structure?
A.
It allows dual reporting relationships.
B.
It assigns employees to cross-functional teams.
C.
It focuses on quality products.
D.
It allows team members to work with other teams.
The product team structure differs from a matrix structure in two ways: (1) It does away
with dual reporting relationships and two-boss employees, and (2) functional employees
are permanently assigned to a cross-functional team that is empowered to bring a new or
redesigned product to market.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-03 Describe the types of organizational structures managers can design, and explain why they
choose one structure over another.
Topic: Functional Structure
Topic: Organizational Development (OD)
60.
The major goals of the manufacturing function are to keep costs under control and
________.
A.
prepare products on schedule
B.
keep employees happy
C.
develop new products
D.
use the latest production methods
At the functional level, the manufacturing function typically has a short-term view; its
major goal is to keep costs under control and get the product out the factory door on time.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-04 Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of
authority and integrating mechanisms.
Topic: Functional Structure
Topic: Organizational Development (OD)
61.
An organization’s hierarchy of authority is also known as its ________.
A.
chain of command
B.
span of control
C.
corporate ladder
D.
unity of command
The hierarchy of authority is an organization’s chain of command—the relative authority
that each manager has—extending from the CEO at the top, down through the middle
managers and first-line managers, to the nonmanagerial employees who actually make
goods or provide services.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-04 Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of
authority and integrating mechanisms.
Topic: Hierarchy of Authority
62.
The relative authority that each manager in the organization has from the CEO down to the
lowest-level manager is called the ________.
A.
span of control
B.
chain of command
C.
corporate ladder
D.
unity of direction
The hierarchy of authority is an organization’s chain of command—the relative authority
that each manager has—extending from the CEO at the top, down through the middle
managers and first-line managers, to the nonmanagerial employees who actually make
goods or provide services.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-04 Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of
authority and integrating mechanisms.
Topic: Hierarchy of Authority
63.
The number of subordinates who report directly to a manager is known as the manager’s
________.
A.
unity of command
B.
hierarchy of authority
C.
chain of command
D.
span of control
The term ‘”span of control” refers to the number of subordinates who report directly to a
manager. Every manager, at every level of the hierarchy, supervises one or more
subordinates.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-04 Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of
authority and integrating mechanisms.
Topic: Hierarchy of Authority
64.
Rusty is a project manager who has 15 employees reporting directly to him. Those 15
employees are Rusty’s ________.
A.
unity of command
B.
span of control
C.
chain of command
D.
unity of direction
The term “span of control” refers to the number of subordinates who report directly to a
manager. Every manager, at every level of the hierarchy, supervises one or more
subordinates.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-04 Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of
authority and integrating mechanisms.
Topic: Hierarchy of Authority
65.
The manager of the human resources department of a company is a ________ manager.
A.
line
B.
product
C.
staff
D.
task force
A staff manager is someone responsible for managing a specialist function, such as
finance, marketing, R&D, or human resources.
Difficulty: 2 Medium
Learning Objective: 07-04 Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of
authority and integrating mechanisms.
Topic: Task Role
Topic: Task Specialist Roles
66.
The kitchen workers at Joe’s Coffee Shop and Bakery report directly to Sue, the kitchen
manager. Sue is a ________ manager.
A.
line
B.
product
C.
staff
D.
task force
A line manager is someone in the direct line or chain of command who has formal
authority over people and resources.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-04 Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of
authority and integrating mechanisms.
Topic: Task Role
Topic: Task Specialist Roles
67.
An organizational structure becomes taller when it ________.
A.
grows in size and the hierarchy of authority lengthens
B.
maintains its original size and the hierarchy remains constant
C.
hires more employees while keeping the same number of managers
D.
expands its product base but maintains its staff size
As an organization grows in size (normally measured by the number of its managers and
employees), its hierarchy of authority normally lengthens, making the organizational
structure taller. A tall organization has many levels of authority relative to company size.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-04 Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of
authority and integrating mechanisms.
Topic: Hierarchy of Authority
68.
The idea that an organization’s hierarchy should be designed with as few levels of
authority as are necessary to use the organization’s resources in an efficient and effective
manner falls under which of the following principles?
A.
Span of control
B.
Centralization
C.
Minimum chain of command
D.
The unity of command
The principle of the minimum chain of command states that top managers should always
construct a hierarchy with the fewest levels of authority necessary to efficiently and
effectively use organizational resources.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-04 Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of
authority and integrating mechanisms.
Topic: Hierarchy of Authority
69.
Organizations can keep their hierarchy flat by ________.
A.
decreasing the span of control
B.
increasing the number of levels of management
C.
decentralizing authority
D.
centralizing authority
One way in which managers can keep the organizational hierarchy flat is by decentralizing
authority. That is by giving lower-level managers and nonmanagerial employees the right
to make important decisions about how to use organizational resources.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-04 Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of
authority and integrating mechanisms.
Topic: Decentralized Authority
Topic: Hierarchy of Authority
70.
Allocating authority in an organization, which gives lower-level managers and
nonmanagerial employees the right to make important decisions about how to use
organizational resources, is an example of ________.
A.
decentralization of authority
B.
a high span of control
C.
centralization of authority
D.
maximum chain of command
Decentralization gives lower-level managers and nonmanagerial employees the right to
make important decisions about how to use organizational resources. If managers at
higher levels give lower-level employees the responsibility of making important decisions
and only manage by exception, then the problems of slow and distorted communication
noted previously are kept to a minimum.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-04 Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of
authority and integrating mechanisms.
Topic: Decentralized Authority
71.
An organization that allows its employees to behave in a flexible way even as the
organization grows and becomes taller is utilizing ________.
A.
managing as a rule
B.
decentralizing authority
C.
decreasing the span of control
D.
decreasing autonomy
Decentralizing authority allows an organization and its employees to behave in a flexible
way even as the organization grows and becomes taller. This is why managers are so
interested in empowering employees, creating self–managed work teams, establishing
cross-functional teams, and even moving to a product team structure.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-04 Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of
authority and integrating mechanisms.
Topic: Decentralized Authority
72.
CoreSol Ltd. gives one manager in each of three departments (marketing, engineering, and
production) the responsibility of coordinating with each other to brainstorm new product
ideas. The department managers can increase coordination by establishing ________.
A.
horizontal integration
B.
decentralization
C.
a liaison role
D.
vertical integration
Managers can increase coordination among functions and divisions by establishing liaison
roles. When the volume of contacts between two functions increases, one way to improve
coordination is to give one manager in each function or division the responsibility for
coordinating with the other.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 07-04 Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of
authority and integrating mechanisms.
Topic: Task Specialist Roles
73.
Which of the following is often known as an ad hoc committee?
A.
Functional team
B.
Cross-functional team
C.
Task force
D.
Managers with integrating roles
Task forces are often called ad hoc committees because they are temporary; they may
meet on a regular basis or only a few times. When the problem or issue is solved, the task
force is no longer needed; members return to their normal roles in their departments or
are assigned to other task forces.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-04 Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of
authority and integrating mechanisms.
Topic: Task Force
74.
Organizing tools that managers use to increase communication among functions and
divisions are known as ________ mechanisms.
A.
functional
B.
communication
C.
integrating
D.
coordinating
To increase communication and coordination among functions or between divisions and to
prevent these problems from emerging, top managers incorporate various integrating
mechanisms into their organizational architecture. The greater the complexity of an
organization’s structure, the greater is the need for coordination among people, functions,
and divisions to make the organizational structure work efficiently and effectively. Thus
when managers adopt a divisional, matrix, or product team structure, they must use
complex integrating mechanisms to achieve organizational goals. Several integrating
mechanisms are available to managers to increase communication and coordination.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-04 Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of
authority and integrating mechanisms.
Topic: Coordinating Functions and Divisions