54. The temporary nature of assignments under departmentalization does not allow employees to feel they belong
to one project team.
a. matrix
b. functional
c. geographic
d. technical
55. The principle states that everyone in an organization should report to and be accountable to only one boss for
performing a given activity.
a. span of control
b. functional authority
c. limited line authority
d. unity of command
56. Which of the following is true of the unity of command principle?
a. It prevents duplication and conflict when orders and instructions are passed down.
b. It increases confusion and “passing the buck” because everyone is accountable to different supervisors and
managers in the organization for a given assignment.
c. It inhibits supervisors from building supportive relationships with their employees.
d. It lowers the morale of employees working in the organization that has adopted this principle.
57. The unity of command principle:
a. prevents line employees from coming in contact with staff personnel.
b. reduces organizational morale.
c. increases conflicts between line and staff personnel.
d. gives the employee a single manager to turn to when a problem arises.
58. The number of people a given manager directly supervises is called the:
a. chain of command.
b. span of management.
c. unity of command.
d. division of labor.
59. Which of the following is an ideal way for an organization to apply the span of control principle?
a. Top-level managers should have the highest number of people directly reporting to them.
b. Middle managers should have the highest number of people directly reporting to them.
c. First-level managers should have the highest number of people directly reporting to them.
d. Every manager in the organization should have not more than two employees reporting directly to him/her.
60. Over the years, companies have tended to:
a. narrow their span of control at all levels.
b. broaden their span of control at all levels.
c. create new unity of command principles.
d. ignore the principle of span of control as it it is outdated.
61. Line-and-staff organizations:
a. have fewer employees than line organizations.
b. have specialists in certain positions to assist the line personnel.
c. have a large number of employees and do not face any conflicts between departments or between employees.
d. consider line personnel as more important than staff personnel.
62. carry out the primary activities of a business such as producing or selling products and/or services.
a. Line personnel
b. Chief executive officers
c. Staff personnel
d. Chairpersons
63. use their expertise to assist others in the organization in various areas of business activities.
a. Line personnel
b. Staff personnel
c. Operative personnel
d. Rank-and-file employees
64. The authority of most staff departments to serve and suggest ideas to line departments is called:
a. line authority.
b. functional authority.
c. advisory authority.
d. network authority.
65. A restricted kind of authority which gives a staff person authority over a given operation is called:
a. advisory authority.
b. command authority.
c. line authority.
d. functional authority.
66. When a quality control specialist tells a production manager to adjust a machine to increase the quality of the
product, he or she is using:
a. advisory authority.
b. unity of command.
c. functional authority.
d. line authority.
67. Which of the following violates the unity of command principle?
a. Span of management
b. Line management
c. Functional authority
d. Centralization
68. If there has been a strong history of growth in an organization, where mergers and acquisitions have occurred, then
such an organization will most likely be:
a. centralized.
b. causal.
c. decentralized.
d. inflexible.
69. In organizations, middle and lower levels of management make broader, more important decisions about their
units.
a. decentralized
b. centralized
c. tightly controlled
d. one–person
70. The process of eliminating unnecessary levels of management, and thus reducing the number of staff personnel and
supervisors, is:
a. decentralization.
b. delegation.
c. downsizing.
d. partnering.
71. All of the following are benefits of downsizing EXCEPT:
a. tremendous cost reductions.
b. improved management of operations.
c. constant and close supervision on each level.
d. higher profits.
72. Reengineering:
a. should be used only when the focus of the organization is to improve the quality of products.
b. should be used by companies while planning new product development.
c. means merging with another company and adopting its organizational structure.
d. means closing down the organization and selling its shares to a larger company.
73. In the wagon wheel organizational structure, the form the hub of the wheel.
a. suppliers
b. customers
c. middle managers
d. top–level managers
74. In a(n) organization form, “helping hands” symbolize that all other levels of the organization are there to help
and support the sales personnel to better serve and satisfy the customer.
a. “Hands On”
b. wagon wheel
c. network
d. inverted pyramid
75. According to the internal systems model developed by Likert, reflect the internal state and health of the
organization.
a. causal variables
b. end-result variables
c. intervening variables
d. structural variables
76. List and explain the four stages of growth of an organization.
77. What are the advantages and disadvantages of the functional approach to departmentalization?
78. What are the advantages and disadvantages of the product approach to departmentalization?
79. Describe what matrix departmentalization is, and some of the advantages of a matrix structure.
80. Explain the principle of the span of control. Why is it related to management level?
1. Top-level managers must solve a variety of different, nonrecurring problems. Much
81. Explain the principle of unity of command. Why is this principle important?
1. It prevents duplication and conflict when orders and instructions are passed down.
2. It decreases confusion and “passing the buck” because everyone—including
3. It provides a basis whereby a supervisor and his or her employees can learn about
4. It provides an opportunity for a supervisor and employees to develop supportive
5. It promotes higher morale than is generally found in organizations that do not follow
82. Discuss the functions of both line and staff personnel and how each group contributes to the organization’s
effectiveness.
83. What are the three types of authority? Give an example of each.
84. Why should the use of functional authority be limited?
85. Describe the difference between centralization and decentralization. What drives some organizations to become
decentralized?
86. Discuss the benefits and costs of downsizing an organization.
87. Discuss reengineering.
88. Discuss the inverted pyramid organizational structure.
89. In describing a wagon wheel organizational structure, who is at its hub, who is on its spokes, and who is on its rim?
90. What are the three types of variables identified in Likert’s internal systems model? How are they related?