46. Ford and Xerox are two companies that have begun moving away from strict job specialization to alleviate
employee motivation problems. Each company has adopted a job design alternative that involves workers in a wider
variety of tasks. The method they have employed is known as job
a. enlargement.
b. enrichment.
c. generalization.
d. rotation.
e. substitution.
47. If a new company desires to departmentalize in a way that will simplify supervision and facilitate coordination, it will
most likely departmentalize by
a. product.
b. location.
c. worker skill level.
d. customer.
e. function.
48. Grouping jobs into manageable units according to some reasonable scheme is known as
a. job description.
b. departmentalization.
c. centralized organization.
d. bureaucratic structuring.
e. informal organizing.
49. The Morgan Company, a small furniture manufacturer, divides its organization into marketing, human resources,
accounting, and production departments. This is an example of departmentalization by
a. location.
b. specialty.
c. product.
d. taste.
e. function.
50. Location, product, function, and customer are common bases for a firm’s
a. span of management.
b. job design.
c. job specialization.
d. chain of command.
e. departmentalization.
51. A computer manufacturer is first divided into the following groups: Home Office/Personal Use, Small Business,
Large Business, and Educational Institutions. Within each of these divisions, management is organized into finance,
operations, marketing, and human resources. This company is organized first by , then by .
a. function; customer
b. customer; function
c. product; function
d. product; customer
e. customer; location
52. Which of the following is a disadvantage of departmentalization by function?
a. Supervision is very difficult because workers are involved in different types of activities.
b. This method tends to emphasize the department rather than the organization as a whole.
c. It causes duplication of the same specialized activities throughout the organization.
d. This method requires an extremely large administrative staff.
e. Coordination is very complex because of the way job duties are distributed.
53. General Motors has separate divisions for Chevrolet, Pontiac, Oldsmobile, Buick, and Cadillac. This is an example
of departmentalization by
a. function.
b. location.
c. customer.
d. product.
e. model.
54. Most large organizations use
a. departmentalization by product.
b. departmentalization by location.
c. departmentalization by customer.
d. a combination of departmentalization bases.
e. no departmentalization.
55. The president of Digital Equipment Corporation discovered that his company was having a problem with
counterproductive product groups who were working selfishly rather than cooperating with one another. To solve
the problem, he combined the company‘s twelve U.S. product groups into three regional management centers. This
solution is referred to as departmentalization by
a. location.
b. function.
c. product.
d. customer.
e. objective.
56. Grouping the United States into the Northeast Region, the Northwest Region, the Southeast Region, and the
Southwest Region would be departmentalization by
a. location.
b. customer.
c. function.
d. product.
e. task.
57. Citibank has one group of loan officers who handle consumer loans and another group who work in the commercial
loan area. Grouping work units this way is known as departmentalization by
a. function.
b. customer.
c. product.
d. specialty.
e. location.
58. A firm organized on the basis of retail customers and wholesale customers utilizes the concept of
departmentalization by
a. location.
b. function.
c. customer.
d. product.
e. task.
59. If First National Bank were to assign one of its bank tellers to business merchants and two others to individual
accounts, it would be departmentalizing on the basis of
a. location.
b. population.
c. customer.
d. function.
e. service.
60. Although departmentalization may be determined within an organization on the basis of one criterion, such as
location, most organizations find to be a more efficient means of conducting business.
a. decentralization
b. more than one basis for departmentalization
c. delegation of authority
d. centralization
e. managerial decision making
61. The assignment of part of a manager’s work and authority to a worker is called
a. delegation.
b. responsibility.
c. authorization.
d. accountability.
e. relegation.
62. Amy, an administrative assistant in the business division of a university, is assigned the responsibility of serving the
needs of the division’s professors. However, Amy often reads books and looks at catalogs during working hours
because she has plenty of free time. It appears that the professors in the division have failed to
a. delegate.
b. work hard.
c. teach class.
d. prioritize.
e. be held accountable.
63. Delegation consists of giving a subordinate all of the following except
a. responsibility.
b. authority.
c. accountability.
d. a line position.
e. both accountability and a line position.
64. Dana is assigned to create a training program for newly hired mortgage loan officers. She has the to
complete this assignment.
a. authority
b. delegation
c. network
d. responsibility
e. accountability
65. One’s duty to do a job or perform a task is called
a. authority.
b. accountability.
c. responsibility.
d. delegation.
e. obligation.
66. Which of the following statements about accountability is false?
a. Managers create accountability.
b. Managers delegate accountability.
c. Accountability is the obligation of the worker.
d. Creating accountability is a step in the delegation process.
e. Managers are accountable for tasks they assign.
67. Ann delegated work to an employee who mismanaged public funds. Ann, rather than the employee, was
reprimanded for this mismanagement. Ann is now reluctant to delegate because she
a. does not care whether the work is properly done.
b. knows the person who delegates remains accountable for the work.
c. does not trust any of her subordinates.
d. fears a subordinate will do the work so well that he or she will attract the approval of top management.
e. is so disorganized that she simply cannot plan and assign work effectively.
68. Mark left his position as a manager for JCPenney after two years. He complained of being burned out from having
to fulfill too many roles and tasks for one position. Mark probably never learned to use the tool of
a. segmentation.
b. decentralization.
c. control.
d. delegation.
e. centralization.
69. Janet is a runner for a large law firm. Her duties include purchasing supplies for the copy room. Janet was given
permission by the office manager to sign credit-card receipts when making purchases. Janet has been given
to use the firm’s credit card.
a. responsibility
b. obligation
c. authority
d. staff centrality
e. accountability
70. Susan was given the responsibility for chairing a campus committee. To complete the delegation process, she
should be given the to carry out this responsibility.
a. duty
b. subordinates
c. authority
d. skills
e. salary
71. As a new manager for Sears, Peter is unwilling to delegate work. He realizes that, although he can delegate
assignments to others, he cannot delegate his
a. power to carry them out.
b. authority.
c. obligation to see that tasks are completed.
d. responsibility to carry out assignments.
e. function to complete tasks.
72. Jason assigns responsibility to a subordinate for preparing a sales presentation for an important potential client and
authorizes the necessary expenditures of money and human resources, but he still requires a dress rehearsal to be
presented to him before the actual presentation. Jason realizes that accountability cannot be
a. created.
b. delegated.
c. assigned.
d. expected.
e. accepted.
73. Authority and are synonymous terms.
a. power
b. responsibility
c. duty
d. delegation
e. accountability
74. The degree of centralization of an organization is based on the
a. degree of departmentalization.
b. level of bureaucracy.
c. organization chart.
d. delegation of authority.
e. degree of job specialization.
75. The more complex and uncertain a company’s environment, the more likely it is that the company will
a. decentralize the organization.
b. have a split between decentralized and centralized decision making.
c. centralize the organization.
d. increase the span of control, thus increasing the number of employees on board.
e. decrease the span of control, thus decreasing the workforce.
76. Since Sears operates in a complex and dynamic environment, its store managers are given significant freedom to
run their stores. This indicates that top leaders at Sears
a. centralize decision making.
b. deemphasize lower-level management training.
c. control their managers tightly.
d. deemphasize lower-level management accountability.
e. decentralize authority.
77. A common characteristic of a centralized organization is
a. democratic decision making.
b. decision making by a few top–level managers.
c. a flat span of management.
d. placing decision making near the workplace.
e. authority placed at lower levels.
78. Rockwood International needs to make risky decisions on a daily basis. Therefore, its managers are likely to
a. centralize decision making.
b. let lower-level managers make important decisions.
c. train lower-level managers to make more decisions.
d. decentralize authority.
e. centralize rare skills.
79. Which of the following does not prevent managers from delegating?
a. They are so disorganized that they cannot assign work effectively.
b. They want to make sure the work gets done properly.
c. They usually have few responsibilities and therefore little to delegate.
d. They fear that the subordinate will do excellent work and become a threat to the manager.
e. They know that they are still ultimately responsible for the work.
80. A biotechnology company is constantly faced with important decisions that are likely to have severe consequences
on the future of the company. The top managers should
a. decentralize decision-making authority.
b. appoint lawyers to make business decisions.
c. train first-line managers to make these decisions.
d. exercise centralized decision-making authority.
e. consult investors when making important daily decisions.
81. The head of the marketing department at CBS Environmental, Inc. supervises twelve people in her department.
This represents her
a. chain of command.
b. degree of specialization.
c. level of authority.
d. span of management.
e. nature and degree of departmentalization.
82. The number of workers who report directly to one manager is called
a. authority.
b. accountability.
c. responsibility.
d. the span of management.
e. centralization.
83. Determining how many subordinates will report to each manager gives an organization its
a. chain of command.
b. span of management.
c. degree of centralization.
d. nature and degree of departmentalization.
e. degree of specialization.
84. The number of subordinates reporting directly to one manager is called
a. the chain of command.
b. a decentralized organization.
c. a centralized organization.
d. the span of control.
e. the management hierarchy.
85. Wesley is a manager in an organization where a great deal of interaction is required between himself and his
workers and new problems arise frequently. Wesley is likely to have
a. a wide span of management.
b. little authority to delegate.
c. decentralized power.
d. departmentalization by consumer.
e. a narrow span of control.