1. In the first stage of organizational growth, the owner/manager performs all the organizational activities.
a. True
b. False
2. Line organization is the first stage of growth of an organization.
a. True
b. False
3. All organizations inevitably go through all four stages of growth.
a. True
b. False
4. In line organizations, responsibility and authority are not clearly defined.
a. True
b. False
5. When an organization adds specialists to improve operations, a line-and-staff organization results.
a. True
b. False
6. The process of determining how activities are to be grouped is called departmentalization.
a. True
b. False
7. A given organization can use only a single approach to departmentalization.
a. True
b. False
8. The functional approach to departmentalization creates efficiency through the principles of specialization.
a. True
b. False
9. Most organizations use the matrix approach at the top and other approaches at lower levels.
a. True
b. False
10. Functional departmentalization helps in centralizing an organization’s expertise.
a. True
b. False
11. Product departmentalization requires more personnel and material resources than does functional
departmentalization.
a. True
b. False
12. A matrix organizational structure brings together personnel from several specializations to complete limited-life tasks.
a. True
b. False
13. The matrix organization permits an organization to respond more quickly to change than the functional approach
does.
a. True
b. False
14. Job assignments in a matrix departmentalization structure are temporary.
a. True
b. False
15. The unity of command principle states that everyone in an organization should report to and be accountable to only
one boss for performing a given activity.
a. True
b. False
16. In an organization following the unity of command principle, the operating employees are themselves responsible for
motivating the other employees and achieving effective results without any supervisors overseeing their work.
a. True
b. False
17. In an organization following the unity of command principle, there always tends to be duplication of orders and
instructions.
a. True
b. False
18. The morale in organizations following the unity of command principle is higher than in those organizations which do
not follow this principle.
a. True
b. False
19. Ideally, the top managers in an organization should have the least number of people directly reporting to them.
a. True
b. False
20. A narrow span of management is needed by middle managers because they must spend much of their time in long–
range planning and working with outside interest groups.
a. True
b. False
21. Companies following a policy of a narrow span of control are often hampered in achieving effective results.
a. True
b. False
22. In many situations, general supervision is more effective than close supervision.
a. True
b. False
23. Wide spans of management save the company money.
a. True
b. False
24. Staff personnel carry out the primary activities of the business, such as production and sales.
a. True
b. False
25. The staff personnel are always more important than the line personnel in an organization.
a. True
b. False
26. A major way to avoid conflict between line and staff people is to ensure that people clearly understand the
authority/responsibility relationships between individuals and departments.
a. True
b. False
27. The right of staff personnel to advise, recommend, serve, and assist line departments is called line authority.
a. True
b. False
28. Functional authority violates the unity of command principle.
a. True
b. False
29. Advisory authority is also called the authority of ideas.
a. True
b. False
30. The concept of decentralization is closely related to the concept of delegation.
a. True
b. False
31. Geographically dispersed organizations tend to be centralized.
a. True
b. False
32. In a decentralized organization, the upper management makes most of the important decisions that concern all levels
or units within the organization.
a. True
b. False
33. Organizations that have grown by merging with other companies tend to be decentralized
a. True
b. False
34. There is a tendency toward more decentralization during poor economic times.
a. True
b. False
35. There is a trend in the United States toward increasing the number of levels of management and shifting toward
more centralization.
a. True
b. False
36. If the top managers of an organization need to keep tight control, they will probably create a decentralized
organization.
a. True
b. False
37. One benefit of downsizing is immediate, tremendous cost reductions.
a. True
b. False
38. Perhaps the greatest cost of downsizing are the social costs.
a. True
b. False
39. Downsizing has had a positive effect on corporate profit in over 90 percent of the firms attempting it.
a. True
b. False
40. Reengineering is a shift back toward more traditional organizational design.
a. True
b. False
41. Reengineering is very expensive and should be used only for big challenges that really matter.
a. True
b. False
42. The inverted pyramid structure is a very flat organization with few management levels.
a. True
b. False
43. In the wagon wheel organizational structure, customers are on the outer rim and top management is at the center,
the hub.
a. True
b. False
44. In Likert’s internal systems model, there are three broad categories of variables: causal, intervening, and end-results
variables.
a. True
b. False
45. In the one-person organization stage, .
a. all functions of the organization are performed by the owner and his/her assistants.
b. there are more than 150 employees, and each person has clearly defined responsibilities.
c. all functions of the organization are performed by the owner/founder.
d. specialists are hired to oversee the work of different departments.
46. Which of the following is true of line organizations?
a. The owner performs all the functions single-handedly.
b. The accountability of employees is maximized in such organizations.
c. It is easy for employees to evade their responsibilities in such organizations.
d. Authority is decentralized in these organizations.
47. In a line organization:
a. each person has clearly defined responsibilities and reports to an immediate supervisor.
b. a single person performs all the tasks of the organization.
c. each person does the tasks assigned to him/her with no manager overseeing their activities.
d. authority is decentralized, and the decision-making process is very slow.
48. is the organizational process of determining how activities are to be grouped.
a. Consolidation
b. Departmentalization
c. Centralization
d. Generalization
49. When an organization divides its sales personnel, accounting personnel, and operations personnel into different
groups, it is using .
a. consumer departmentalization
b. geographic departmentalization
c. functional departmentalization
d. product departmentalization
50. Which of the following is an advantage of functional departmentalization?
a. Each individual in the organization takes responsibility for the total performance.
b. Each manager oversees a large variety of functions, so it is easy to train managers to take over the top
position.
c. Coordination among functions become easier as the organization grows.
d. There is centralization of the organization’s expertise.
51. departmentalization is a hybrid type of departmentalization in which personnel from several specialties are
brought together to complete limited–life tasks.
a. Functional
b. Product
c. Matrix
d. Consumer
52. One disadvantage of product departmentalization is that:
a. there is less coordination of functions at the product division level.
b. it requires more personnel and material resources.
c. lower management assumes a greater burden of establishing effective coordination.
d. it results in an increased threat from competition.
53. One of the disadvantages of the matrix structure is the lack of:
a. open communication.
b. clarity and coordination in assigned roles.
c. flexibility.
d. appropriateness for technologically oriented organizations.