126. Executives from several departments at Ford Motor Company were brought together recently to discuss the
advantages and disadvantages of acquiring Jaguar. This type of committee is known as a(n)
a. task force.
b. standing committee.
c. liaison committee.
d. ad hoc committee.
e. matrix team.
127. Committees and task forces represent groups within an organization, whereas employee bowling teams and
gatherings represent
a. staff; line
b. formal; informal
c. staff; staff
d. informal; formal
e. line; staff
groups.
128. Personal rather than formal relationships among employees are known as the
a. span of management.
b. chain of command.
c. informal organization.
d. bureaucratic structure.
e. grapevine.
129. An informal communications network is known as a
a. memo.
b. company newspaper.
c. chain of command.
d. grapevine.
e. bulletin board.
130. Carl Smith overheard that Joe Dunn was blowing the whistle on managers at XYZ Company and that a full story
would appear in Sunday’s paper. Carl quickly alerted the managers, who were able to stop the newspaper from
printing the article. This is an example of managers’
a. ignoring the grapevine.
b. involving the grapevine as a useless communication network.
c. trying to eliminate the grapevine.
d. using the grapevine as a managerial tool.
e. reducing the credibility of information from the grapevine.
131. Angered by the informal discussions among employees, a supervisor has posted rules against rumors, gossip, and
discussions about the company’s financial situation as well as other company matters. Your managerial know-how
tells you that this supervisor is
a. trying to support employees’ First Amendment rights.
b. trying to eliminate inaccurate information.
c. making a big mistake by trying to eliminate the grapevine.
d. recognizing the need for a grapevine.
e. attempting to use the grapevine as a managerial tool.
132. Through informal talks with employees, managers realized employees thought their plant would close, resulting in
massive layoffs. A few were already seeking other employment. The managers responded promptly and
aggressively to this rumor, assuring employees of the health of the corporation and the reasonable security of their
jobs. Your managerial know-how tells you that these managers are attempting to
a. ignore inaccurate information because they know the truth eventually will become known.
b. respond to inaccurate grapevine information to minimize the damage such misinformation might cause.
c. eliminate the grapevine.
d. use the grapevine as a managerial tool.
e. reduce the credibility of information from the grapevine.
133. An organization is a group of two or more people working together to achieve common goals.
a. True
b. False
134. Each rectangle in an organization chart represents a relationship within the organization.
a. True
b. False
135. All large firms maintain complete and detailed organization charts because it is important to maintain a clear line of
authority.
a. True
b. False
136. Job specialization is the separation of all organizational activities into distinct tasks and the assignment of different
tasks to different people.
a. True
b. False
137. The employees at the Ford production facility in Michigan work on an assembly line where each employee
performs a specific task. This method of assembly-line production is a good example of job specialization.
a. True
b. False
138. Adam Smith, author of The Wealth of Nations, is widely credited with being the first person to emphasize the
power of specialization.
a. True
b. False
139. The human resource manager of one of Hershey Foods’ production facilities has been noticing an increase in
absenteeism among assembly-line workers in the chocolate bar plant. Switching to a job rotation system would
probably significantly decrease the amount of absenteeism.
a. True
b. False
140. Job rotation is the systematic shifting of employees from one job to another.
a. True
b. False
141. The most common bases for departmentalization are by function, by product, by location, and by customer.
a. True
b. False
142. Older, larger firms producing and selling various products base departmentalization on function.
a. True
b. False
143. Green Sports Incorporated is a small start-up company that manufactures and markets sports equipment made from
recycled materials. Green Sports is best suited to base its departmentalization on product.
a. True
b. False
144. Ford Motor Company‘s marketing department has recently been restructured to implement a brand management
strategy. This is an example of departmentalization by product.
a. True
b. False
145. Departmentalization by location allows an organization to readily respond to the unique demands of each geographic
area.
a. True
b. False
146. Using more than one basis for departmentalization is the rule rather than the exception for larger firms.
a. True
b. False
147. It is important that every company use only one departmentalization basis.
a. True
b. False
148. Delegation is the act of distributing work and power to subordinates.
a. True
b. False
149. Accountability is the power within an organization to accomplish an assigned job or task.
a. True
b. False
150. A supervisor may delegate all accountability to subordinates.
a. True
b. False
151. An organization in which management consciously attempts to spread authority to the lower organizational levels is
said to be centralized.
a. True
b. False
152. When managers attempt to spread authority widely in the lower levels of an organization, they are attempting to
centralize authority.
a. True
b. False
153. A manager‘s reluctance to delegate may stem from his or her belief that the subordinate will do the work too well.
a. True
b. False
154. A highly centralized organization usually means that lower-level employees have the opportunity to make decisions
regarding the best way to accomplish their assigned tasks.
a. True
b. False
155. When authority is concentrated at the top level of management, the organization is said to be decentralized.
a. True
b. False
156. After years of research, theorists have decided that the optimal span of management is one manager per twenty
employees.
a. True
b. False
157. The span of control is the number of subordinates who report directly to one manager.
a. True
b. False
158. When a manager has few subordinates, a narrow span of management exists.
a. True
b. False
159. In a flat organization, administrative costs are higher because more managers are needed.
a. True
b. False
160. The span of management plays a direct role in determining the organization’s height.
a. True
b. False
161. Target has several layers of management in between the entry-level management position and CEO. This implies
that the span of management for each manager is relatively narrow and the organizational height of Target is tall.
a. True
b. False
162. Managers within a line structure are typically known as staff managers.
a. True
b. False
163. Functional authority allows line managers to make decisions and issue directive relating to the goals of the
organization.
a. True
b. False
164. Cross-functional teams are not very effective structures to use when developing a new product or service.
a. True
b. False
165. Staff managers are part of the chain of command of an organization.
a. True
b. False
166. The matrix organizational structure facilitates greater communication between employees.
a. True
b. False
167. When the matrix structure is used, employees report to more than one supervisor.
a. True
b. False
168. The inner rites, rituals, heroes, and values of a firm make up its corporate culture.
a. True
b. False
169. Companies like Southwest Airlines and Saturn attribute a great deal of their success to their strong corporate
cultures, which is inaccurate. In reality, research has determined that, over time, corporate culture has only a
marginal influence on firm performance.
a. True
b. False
170. Corporate culture has little real influence on the performance of a firm.
a. True
b. False
171. Among an ad hoc committee, a standing committee, and a task force, only a standing committee is relatively
permanent.
a. True
b. False
172. A task force is a committee responsible for investigating a major problem or pending decision.
a. True
b. False
173. An informal organization can be shown on a formal organization chart.
a. True
b. False
174. Another term used to refer to a formal organization’s network of communication is grapevine.
a. True
b. False
175. The most appropriate, short-term committee to provide a recommendation for a health care benefit plan for a
medium size corporation would be a task force.
a. True
b. False
176. Committees are necessary in an organization but do not offer any advantages over individual decisions and actions.
a. True
b. False
177. An advantage of decision-making by a committee in lieu of an individual is that committee deliberations are always
faster than individual decisions.
a. True
b. False
178. An informal group in an organization is formed by the line managers of that organization.
a. True
b. False
179. Informal groups are never powerful within an organization.
a. True
b. False
180. It is important for managers to be aware of the informal groups that exist in an organization.
a. True
b. False