True / False
1. The deployment of organizational resources to achieve strategic goals refers to organizing.
a. True
b. False
2. Organizing defines what to do while strategy defines how to do it.
a. True
b. False
3. The framework in which the organization defines how tasks are divided, resources are deployed and departments
are coordinated is called organizational structure.
a. True
b. False
4. A organizational map is a visual representation of an organization‘s structure, showing communication and lines of
power.
a. True
b. False
5. The principle of unity of command suggests that managers within an organization should reach agreement on the
goals and objectives of the organization.
a. True
b. False
6. Authority is the right to use resources, make decisions and issue orders in an organization.
a. True
b. False
7. The duty to perform the task or activity an employee has been assigned is called accountability.
a. True
b. False
8. The acceptance theory of authority argues that managers have authority because employees do not have a choice
in choosing to accept their commands.
a. True
b. False
9. Line departments perform tasks that reflect the organization’s primary goal and mission.
a. True
b. False
10. The right to advise, recommend, and counsel in the staff specialists‘ area of expertise is included in staff authority.
a. True
b. False
11. The number of employees reporting to a supervisor is his or her span of management.
a. True
b. False
12. Traditional views of organizational design recommend a span of management of about 7 to 10 subordinates per
manager.
a. True
b. False
13. Many hierarchical levels and a correspondingly narrow span of management refers to a flat structure.
a. True
b. False
14. The trend in recent years has been toward narrower spans of control as a way to facilitate delegation.
a. True
b. False
15. A tall structure is a management structure characterized by an overall narrow span of management and a relatively
large number of hierarchical levels.
a. True
b. False
16. Certainty in the environment is usually associated with decentralization.
a. True
b. False
17. For companies to operate effectively, the amount of centralization or decentralization should fit the firm’s strategy.
a. True
b. False
18. At Fox End, people are grouped together in departments by common skills and work activities, including a sales
department and a production department. This is an example of vertical functional approach.
a. True
b. False
19. The functional structure offers a way to decentralize decision making and provide direction from the teams in the
field.
a. True
b. False
20. Because the chain of command converges at the top, the functional structure provides a way to decentralize
decision making and provide unified direction from all managers.
a. True
b. False
21. Quick response to external changes is an advantage of vertical functional structure.
a. True
b. False
22. Divisions are created, in functional structures, as self-contained units with separate functional departments for each
division.
a. True
b. False
23. In a geographic-based structure, all functions in a specific country or region report to the same division manager.
a. True
b. False
24. With a matix structure, the entire organization is made up of horizontal teams that coordinate their work and work
directly with customers to accomplish the organization’s goals.
a. True
b. False
25. Aspects of both functional and divisional structures simultaneously in the same part of the organization are
combined in the virtual network approach.
a. True
b. False
26. The horizontal structure provides traditional control within functional departments, and the vertical structure
provides coordination across departments.
a. True
b. False
27. The confusion and frustration caused by the dual chain of command is a major problem of the matrix structure.
a. True
b. False
28. The overseer of both the product and functional chains of command, responsible for the entire matrix is the matrix
boss.
a. True
b. False
29. The divisional structure fosters excellent coordination within divisions, but coordination across divisions is often
poor.
a. True
b. False
30. In the divisional approach, coordination across divisions is great whereas coordination within divisions is often poor.
a. True
b. False
31. The matrix approach can be highly effective in a complex, rapidly changing environment in which the organization
needs to be flexible and adaptable.
a. True
b. False
32. One major disadvantage of the virtual network approach is the lack of hands-on control.
a. True
b. False
33. A project manager is a person responsible for coordinating the activities of several departments for the completion
of a specific project.
a. True
b. False
34. Reengineering basically means preserving the past by establishing the sequence of activities by how work was
done.
a. True
b. False
35. The radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed is
called reengineering.
a. True
b. False
36. The distinctive feature of the project manager position is that the person is not a member of one of the departments
begin coordinated.
a. True
b. False
37. When an organization uses a differentiation strategy, it strives for internal efficiency.
a. True
b. False
38. The pure functional structure is appropriate for achieving internal efficiency goals.
a. True
b. False
39. The functional structure is appropriate when the primary goal is innovation and flexibility.
a. True
b. False
40. Small-batch production is distinguished by standardized production runs.
a. True
b. False
Multiple Choice
41. Which of the following refers to the deployment of organizational resources to achieve strategic goals?
a. Planning
b. Controlling
c. Organizing
d. Leading
e. Strategic management
42. Strategy defines to do (it) while organizing defines to do (it).
a. how; what
b. how; why
c. what; how
d. what; why
e. when; what
43. Organization structure is defined as the:
a. visual representation of the organization.
b. framework in which the organization defined how tasks are divided, resources are deployed, and
departments are coordinated.
c. division of labor.
d. unbroken line of authority that links all individuals in the organization.
e. none of these.
44. The delineates the chain of command, indicates departmental tasks and how they fit together, and provides
order and logic for the organization.
a. management chart
b. employee directory
c. structural table
d. administrative chart
e. organizational chart
45. Which of the following refers to the degree to which organizational tasks are subdivided into individual jobs?
a. Multitasking
b. Lines of authority
c. Work specialization
d. Autonomy
e. Team structure
46. When work specialization is extensive:
a. employees perform a single task.
b. employees perform many tasks.
c. employees are often highly challenged.
d. employees are often inefficient.
e. jobs tend to be large.
47. Louise works in the manufacturing department at Ice Sculptures. The work in Louise’s department is low in task
specialization. As a result, Louise:
a. usually performs a single task.
b. does a variety of tasks and activities.
c. is often bored.
d. is rarely challenged.
e. generally goofs-off.
48. Jacob was recently looking at his company’s organization chart in an attempt to discover who reports to whom.
Jacob is studying his organization’s:
a. degree of formalization.
b. amount of differentiation.
c. degree of centralization.
d. chain of command.
e. division of labor.
49. Unity of command and the scalar principle are both closely related to the:
a. amount of work specialization in an organization.
b. degree of formalization.
c. chain of command.
d. amount of bureaucracy in the organization.
e. matrix structure.
50. means that each employee is held accountable to only one supervisor.
a. Scalar principle
b. Unity of command
c. Work specialization
d. Division of labor
e. Span of management
51. The formal and legitimate right of a manager to make decisions is .
a. delegation
b. responsibility
c. authority
d. span of management
e. leadership
52. refers to a clearly defined line of authority in the organization that includes all employees.
a. Scalar principle
b. Unity of command
c. Work specialization
d. Division of labor
e. Span of management
53. Rebecca works for a company that has clearly defined lines of authority. Each employee knows that he or she has
authority and responsibility for a distinct set of tasks. Employees are also aware of the company’s reporting
structure as well as successive management levels all the way to the top. Rebecca’s company follows which
principle?
a. Specialization principle
b. Unity of command principle
c. Scalar principle
d. Authority principle
e. Responsibility principle