66. How does managerial authority flow through the organizational hierarchy?
a.
Vertically
b.
Sporadically
c.
Horizontally
d.
In a circular fashion
e.
Authority is static – it does not flow
a
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67. 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
311
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68. 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.
311
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69. 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.
c
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70. Which of the following typically is NOT considered a staff department?
a.
b.
c.
d.
e.
c
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71. Which department performs tasks that reflect the organization’s primary goals and mission?
a.
Line
b.
Staff
c.
Primary
d.
Functional
e.
Strategic planning
a
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72. _____ 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
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73. 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
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74. 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
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75. Traditionally, a span of management of about _____ has been recommended.
a.
three
b.
five
c.
fifteen
d.
seven
e.
twenty
314
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76. 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
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77. 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
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78. 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
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79. 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.
314
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80. 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
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81. _____ is the trend in recent years.
a.
Greater work specialization
b.
Less delegation
c.
Wider spans of management
d.
Narrower spans of management
e.
Tall structure
314
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82. 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.
314-315
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83. _____ 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
c
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84. 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
314-315
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85. 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
a
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86. 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
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87. 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
316
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88. The use of teams may lead to too much:
a.
division of labor.
b.
decentralization.
c.
authority and responsibility in top management’s hands.
d.
formalization.
e.
narrow span of management.
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89. In times of crisis or risk of company failure, authority should be:
a.
decentralized.
b.
centralized at the bottom.
c.
centralized at the top.
d.
spread through a wide span of management.
e.
flat.
c
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90. 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.
c
318-319
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91. 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.
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92. 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.
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93. 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
United States – BUSPROG: Analytic
United States – LA – DISC: Strategy
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94. 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
c
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95. 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
c
321
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96. 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
a
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97. 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
321
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98. Disadvantages of the virtual network approach include:
a.
a lack of hands-on control.
b.
the possibility of losing an important part of the organization.
c.
weakened employee loyalty.
d.
all of these.
e.
a lack of hands-on control and weakened employee loyalty.
322
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99. 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
e
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100. 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
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101. 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.
e
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102. 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
e
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103. 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
a
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104. _____ teams are brought together as a formal department in the organization.
a.
Cross-functional
b.
Permanent
c.
Formal
d.
Ad–hoc
e.
Task
323
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United States – LA – DISC: Strategy
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105. 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
324
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106. 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
c
325
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United States – LA – DISC: Strategy
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107. 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
c
325
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United States – LA – DISC: Strategy
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108. 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
a
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109. According to MANAGER’S SHOPTALK in Chapter 10, all of the following are effective ways for a manager to
delegate EXCEPT:
a.
delegate the whole task.
b.
select the right person.
c.
save feedback for completion of the project.
d.
evaluate and reward performance.
e.
give thorough instruction.
c
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United States – LA – DISC: Strategy
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110. 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
327
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111. 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
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112. 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.
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113. An advantage of functional structures is the:
a.
resulting economies of scale.
b.
enlarged tasks for employees.
c.
easy pinpointing of responsibility for product problems.
d.
development of general management skills.
e.
flexibility in an unstable environment.
328
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114. Which of the following structures is the leanest of all organization forms because little supervision is required?
a.
Functional approach
b.
Virtual network approach
c.
Team approach
d.
Matrix approach
e.
Divisional approach
328
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115. Shooting Star, Inc. has slow response to external changes, centralized decision making, and poor coordination across
departments. It is likely structured:
a.
along divisional lines.
b.
along functional lines.
c.
based on the team approach.
d.
based on the virtual network approach.
e.
none of these.
328
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116. Organ Rentals Corporation has been having numerous problems. Communication across departments is poor and
decisions are backing up at the top of the organization. Organ Rentals uses a _____ structure.
a.
geographic
b.
product
c.
functional
d.
matrix
e.
team-based
c
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117. All of the following are advantages of a divisional structure EXCEPT:
a.
high concern for customers’ needs.
b.
fast response, flexibility in an unstable environment.
c.
emphasis on overall product and division goals.
d.
development of general management skills.
e.
there is little duplication of services across divisions.
e
328
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118. Which is an advantage of the divisional structure?
a.
Concern for customers’ needs is high.
b.
There is little duplication of services across divisions.
c.
There is good coordination across divisions.
d.
Top management retains tight control of the organization.
e.
There is no competition for corporate resources.
a
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119. Advantages of the matrix structure include:
a.
it increases employee participation.
b.
it makes efficient use of human resources.
c.
it works well in a changing environment.
d.
it develops both general and specialist management skills.
e.
all of these.
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120. Which of the following is(are) an advantage of team structure?
a.
Increased barriers among departments
b.
Unplanned decentralization
c.
Time and resources spent on meetings
d.
Less response time, quicker decisions
e.
All of these
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121. Stephanie works in one of seven research and development departments at Tara’s Terrace, Inc. This would suggest
that Tara’s Terrace has a:
a.
functional structure.
b.
divisional structure.
c.
wide span of control.
d.
high degree of centralization.
e.
matrix structure.
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