54. The people with authority and responsibility are subject to reporting and justifying task outcomes to those above
them in the chain of command. This is called .
a. delegation
b. line authority
c. staff authority
d. accountability
e. hierarchy
55. Which of the following characteristics distinguishes authority?
a. It is vested in people, not positions.
b. Subordinates accept it.
c. It flows across the horizontal hierarchy.
d. It emerges from the organizational values.
e. Individuals are born with this power.
56. Gina wishes to transfer authority and responsibility to her subordinates. This process is known as:
a. accountability.
b. coordination.
c. delegation.
d. departmentalization.
e. passing the buck.
57. Which of the following typically is NOT considered a staff department?
a. Strategic planning
b. Accounting
c. Manufacturing
d. Human resources
e. Research and development
58. Which department performs tasks that reflect the organization‘s primary goals and mission?
a. Line
b. Staff
c. Primary
d. Functional
e. Strategic planning
59. departments include all of those that provide specialized skills in support of departments.
a. Line; staff
b. Staff; line
c. Primary; functional
d. Functional; primary
e. Line; functional
60. Carly‘s Clothes, Inc. manufactures children’s clothes. Which of the following departments for Carly’s Clothes can
be considered a line department?
a. Finance department
b. Human Resources department
c. Research and development department
d. Manufacturing department
e. Marketing department
61. Which of the following refers to the number of employees reporting to a supervisor?
a. The line of authority
b. The span of management
c. The chain of command
d. The management chain
e. Delegation
62. Traditionally, a span of management of about has been recommended.
a. three
b. five
c. fifteen
d. seven
e. twenty
63. Shoshanna is manager of a customer service firm where she oversees five subordinates. To help her subordinates
learn more about the different roles within the company, Shoshanna regularly assigns them tasks that are not part of
their normal routine. This is an example of:
a. responsibility
b. delegation
c. authority
d. chain of command
e. irrational decision making
64. Dustin’s subordinates are highly trained and all perform similar tasks. Brittany‘s subordinates are spread over two
locations and she has little available in the way of support systems. Which of the following statements is most
correct?
a. Nichole’s span of management can be larger than Kevin‘s.
b. Nichole will have problems with unity of command.
c. Kevin‘s span of management can be larger than Nichole‘s.
d. Kevin has more problems with work specialization.
e. None of these
65. Which of the following organizations have a flat structure compared to others?
a. Organization A with eleven hierarchical levels
b. Organization B with three hierarchical levels
c. Organization C with eight hierarchical levels
d. Organization D with six hierarchical levels
e. Organization E with seven hierarchical levels
66. Which of the following factors is NOT associated with larger span of control?
a. Work performed by subordinates is stable and routine.
b. Subordinates perform similar work tasks.
c. Subordinates are located at various different locations.
d. Subordinates are highly trained and need little direction.
e. Rules and procedures defining task activities are available.
67. Relative to a flat organizational structure, a tall structure has a span of management and hierarchical
levels.
a. wide; fewer
b. narrow; fewer
c. narrow; wider
d. narrow; more
e. wide; more
68. Barney and Betty work at Mountain Peak, Inc. Although they both work on the assembly line, they have the
authority to make many decisions about their job. Mountain Peak can be said to have:
a. a high degree of decentralization.
b. a wide span of management.
c. a high degree of centralization.
d. a narrow span of management.
e. no management.
69. means that decision authority is located near the of the organization.
a. Centralization; bottom
b. Decentralization; top
c. Centralization; top
d. Centralization; middle
e. None of these
70. Change and uncertainty in the environment are usually associated with .
a. work specialization
b. decentralization
c. centralization
d. tight vertical control
e. division of labor
71. Which of the following is the basis for grouping positions into departments and departments into the total
organization?
a. Departmentalization
b. Centralization
c. Decentralization
d. Formalization
e. Specialization
72. Jacob, a customer service representative for AB Retailers, has seven levels of management between himself and
the company’s CEO. In contrast, his friend Rhonda, a customer service representative for YZ Retailers, has only
four levels of management between her and the company CEO. Compared to YZ, Jacob’s company has what type
of organizational structure?
a. Narrow
b. Wide
c. Flat
d. Tall
e. Identical
73. The functional, , and are traditional approaches that rely on the chain of command to define
departmental groupings and reporting relationships along the hierarchy.
a. divisional, teams
b. divisional, matrix
c. matrix, teams
d. matrix, networks
e. teams, networks
74. When departments are grouped together on the basis of organizational outputs, the organization is using a:
a. functional structure.
b. matrix structure.
c. divisional structure.
d. virtual network structure.
e. team-based structure.
75. Self-contained unit structure is a term used for:
a. divisional structure.
b. functional structure.
c. term structure.
d. matrix structure.
e. virtual network structure.
76. Relative to the functional structure, the divisional structure:
a. encourages decentralization.
b. has a higher degree of work specialization.
c. has a more pronounced division of labor.
d. has excellent coordination across departments.
e. results in an efficient use of resources.
77. Theresa works in an organization where coordination across organizational units is poor and the units perceived
themselves to be in competition with one another for organizational resources. These characteristics are consistent
with which of the following structures?
a. A matrix structure
b. A functional structure
c. A divisional structure
d. A team-based structure
e. A virtual network structure
78. All functions in a specific country or region report to the same division manager in divisions.
a. functional
b. matrix
c. geographic-based
d. teams
e. networks
79. Global companies often use a structure to achieve simultaneous coordination of products across countries.
a. functional
b. divisional
c. matrix
d. product-based
e. process-based
80. A formal chain of command for both functional and divisional relationships is provided by the approach to
structure.
a. matrix
b. vertical functional
c. divisional
d. product
e. team-based
81. Kent works at the Tick Tock, Inc. He has two bosses, one a functional manager and the other a divisional
manager. Tick Tock, Inc. has a structure.
a. functional
b. divisional
c. geographic
d. matrix
e. product
82. Salta Communications is a global telecommunications company that has operations on four continents. The CEO’s
direct supervisors include VPs for the North American South American, European, and the Asian divisions. Salta
can best be described as using what organizational structure?
a. Network
b. Matrix
c. Functional
d. Divisional
e. Geographic
83. The matrix structure violates which of the following principles of management?
a. Unity of direction
b. Unity of command
c. Work specialization
d. Division of labor
e. Span of management
84. All of the following are the major disadvantages of the matrix structure EXCEPT:
a. it generates a large amount of conflict.
b. managers spend much time resolving conflict.
c. the confusion caused by the dual chain of command.
d. the power imbalance that can result between the sides of the matrix.
e. enlarged tasks for employees.
85. Juan is a top manager at I.F.L., a matrix organization. He oversees both the product and functional chains of
command, and is responsible for maintaining a power balance between the two sides of the matrix. Juan is a
_____.
a. political leader
b. functional leader
c. divisional leader
d. matrix leader
e. top leader
86. The is the product or functional boss, who is responsible for one side of the matrix.
a. matrix boss
b. production supervisor
c. department boss
d. top leader
e. two–boss employee
87. Walt works for a large company. Recently, his organization began to contract out such functions as training,
engineering, and computer service. This approach is consistent with a structure.
a. functional
b. team
c. divisional
d. virtual network
e. service
88. The is an organization structure that divides the major functions of the organization into separate companies.
a. diversification approach
b. team approach
c. virtual network approach
d. BCG approach
e. functional approach
89. The is an organization structure that divides the major functions of the organization into separate companies
and coordinates their activities from a small headquarters organization.
a. diversification approach
b. team approach
c. virtual network approach
d. BCG approach
e. functional approach
90. In the structure, the organization is viewed as a central hub surrounded by a network of outside specialists
which are sometimes spread all over the world.
a. virtual network
b. matrix
c. functional
d. divisional
e. geographic
91. In the approach, a manufacturing company uses outside suppliers to provide entire chunks of a product,
which are then assembled into a final product by a handful of workers.
a. virtual network
b. modular
c. virtual organization
d. team
e. matrix
92. The biggest advantage to a virtual network approach is and on a global scale.
a. flexibility; competitiveness
b. coordination; organization
c. communication; organization
d. communication; no cost
e. flexibility; coordination
93. All of the following are advantages of a functional structure EXCEPT:
a. economies of scale.
b. excellent coordination between functions.
c. in–depth skill specialization and development.
d. high quality technical problem solving.
e. career progress within functional departments.