1. Define an organization. Relate that definition to a local eating establishment by showing how this organization fits
the definition.
2. Identify and briefly describe the decisions involved that management must make in organizing a business.
3. Why is job specialization needed?
4. What are the benefits of job rotation?
5. A firm may be departmentalized by function, product, location, and customer. Explain how each method groups jobs
into units.
6. Select a local organization and discuss the basis on which it is organized.
7. Identify and discuss the major steps in the delegation process.
8. How does delegation impact decentralization or centralization of a firm?
9. What does it mean for a manager to have a wide span of control? Would you expect the span of control to be wide
or narrow when subordinates are highly trained professionals? Support your answer.
10. What are some of the primary differences between a line structure and a line-and-staff structure?
11. What are some of the primary advantages of a network structure?
12. What are the advantages and disadvantages of a matrix structure?
13. What is an informal organization? Where is it shown on the organization chart? Explain.
14. Why is it important that owners and managers pay close attention to corporate culture when merging two
organizations?
15. Describe each of the three primary types of committees that exist in business firms. Offer one specific example of
each.
16. Discuss several advantages and disadvantages of committees over individuals. Offer examples that you have been
a part of or are aware of to emphasize your point.
17. If you were a manager, how would you use the grapevine?
Dramatic Expressions
Dramatic Expressions is a home decorating company that sells many different household accessories ranging from
candles to entertainment centers. Wanda is the CEO of the company. She feels that there is not enough
specialization within the company and wants to organize the business in a different way. Wanda thinks that the
company would be more effective if it were to switch to a new way of organization. For example, there could be a
manager in charge of the candles, a different manager in charge of the entertainment centers, and so on.
Another issue that Wanda wants to resolve is that of delegation. She believes that if she could improve her
delegating, employees would feel more empowered and want to go above and beyond what they are required to do.
There are certain reasons that Wanda has a hard time delegating to others, but she is confident that the problem
will be overcome if she works on it.
18. Refer to Dramatic Expressions. What type of departmentalization does Wanda want to switch to?
a. By function
b. By product
c. By location
d. By customer
e. By responsibility
19. Refer to Dramatic Expressions. What would be an alternative to specialization if negative consequences were to
develop at Dramatic Expressions?
a. Organization
b. Occupation
c. Circulation
d. Rotation
e. Generalization
20. Refer to Dramatic Expressions. Wanda should address all of the following when it comes to organizing the business
except
a. job design.
b. regulating behavior.
c. establishing a chain of command.
d. departmentalization.
e. delegation.
21. Refer to Dramatic Expressions. Wanda could best improve delegation by
a. increasing specialization.
b. explaining the purpose of each task.
c. investing the capital necessary for success.
d. changing each job station.
e. decreasing job specialization.
22. Refer to Dramatic Expressions. What could be a possible reason for Wanda not wanting to delegate work?
a. The employee was unreliable.
b. The employee was not a likable individual.
c. The employee was well-organized.
d. The work involved strict planning.
e. The work took place in an undesirable venue.
Boss Queen, Inc. (BQI)
Boss Queen, Inc. (BQI) is a business-clothing store for professional women. The owner of the company has
designed the business so that she hardly ever has to be there. There are many departmental managers who hold a
lot of responsibility. While they are organized separately by department, each manager knows enough about the
other departments to be able to fill in at any time. The department managers also delegate a lot of work further
down to their employees as a way to empower them. The owner even delegates store-management responsibilities
to a different department manager each month. Even though certain people are delegated certain tasks, everyone
pitches in, so it is sometimes hard to tell who is really in charge.
The employees are so comfortable with each other that many go out and participate in activities together on the
weekends, even when they are not working. However, the owner realizes that she does not want to participate in
these events because she does not want to seem that she is favoring certain people over others.
23. Refer to Boss Queen, Inc. BQI can best be described as a(n) organization.
a. span of management
b. decentralized
c. ad hoc
d. centralized
e. autocratic
24. Refer to Boss Queen, Inc. It seems that BQI managers could be considered all of the following except
a. line managers.
b. department managers.
c. staff managers.
d. functional managers.
e. owners.
25. Refer to Boss Queen, Inc. The group of employees that participate in outside activities on the weekend would be
considered a(n) group.
a. informal
b. inspirational
c. affirmative
d. business
e. departmental
26. An organization chart reveals
a. staff accountability.
b. committee assignments.
c. informal authority.
d. detailed duties of each manager.
e. the company’s organizational structure.
27. Joel Green has been working at The Bicycle Superstore for about two weeks. This morning he noticed that the
store’s inventory on bicycle tire repair kits is out, but he is unsure of whom he should report to for approval to place
an order for more kits. Joel is unclear about the
a. chain of command.
b. degree of specialization.
c. level of authority.
d. span of management.
e. nature and degree of departmentalization.
28. Cory is at the top of her company’s organization chart. Which of the following is most likely to be her job title?
a. Executive manager
b. President
c. Manager
d. Vice president, operations
e. Organization leader
29. Vice president, marketing Regional sales manager District manager Sales supervisor represents a(n)
a. organization chart.
b. command hierarchy.
c. corporate organization.
d. chain of command.
e. departmentalization.
30. Upon beginning her career at Davidson Inc., a small consulting firm, Stephanie Benjamin receives a copy of the
firm’s organization chart, which will
a. demonstrate the firm’s informal network of communication.
b. clarify positions and report relationships within the firm.
c. not be very useful because small firms don’t usually adhere to a formal structure.
d. probably be outdated because small firms are always changing.
e. indicate the short-, medium-, and long-term goals of the company.
31. Distinguishing between positions with direct authority and those that are support positions establishes an
organization’s
a. chain of command.
b. span of management.
c. degree of centralization or decentralization.
d. nature and degree of departmentalization.
e. degree of specialization.
32. A locally owned and operated bakery with just one location is likely to have
a. a short chain of command.
b. a complex chain of command.
c. an extensive advisory staff.
d. a highly departmentalized structure.
e. no organization chart.
33. Legal services and public affairs are types of jobs, so they do not fit directly into the chain of command.
a. specialized
b. top management
c. authoritative
d. voluntary
e. advisory
34. Human resources is a(n) type of job, so it does not fit directly into the chain of command.
a. line
b. staff
c. advisory
d. top management
e. authoritative
35. The legal affairs attorney working for Intel would most likely occupy a(n)
a. vice president position.
b. high position in the chain of command.
c. staff position.
d. nonessential position.
e. authoritarian position.
36. The various tasks in IBM’s manufacturing plant are arranged so that one worker draws the wiring, another
strengthens the wires, a third cuts them, a fourth inserts them, and a fifth seals them together. This is an example of
job
a. rotation.
b. redesign.
c. specialization.
d. enrichment.
e. enlargement.
37. The separation of all organizational activities into distinct tasks and the assignment of different tasks to different
people is called job
a. rotation.
b. specialization.
c. enlargement.
d. enrichment.
e. organization.
38. In a furniture factory, one worker cuts the wood according to the design, another glues the furniture together, and
another stains and finishes the furniture. This is an example of
a. departmentalization.
b. decentralization.
c. job specialization.
d. job rotation.
e. an automated assembly line.
39. The book, The Wealth of Nations, published in the eighteenth century, emphasizes the power of
a. job rotation.
b. technical job training.
c. job specialization.
d. job design.
e. assembly-line production.
40. Ted Landry finds he has less and less energy to go to work each day. On average he misses two days a week. Ted
may be suffering from boredom, which is one negative side effect of job
a. rotation.
b. enrichment.
c. specialization.
d. enlargement.
e. enhancement.
41. A benefit of job specialization is that it
a. is more difficult to design equipment.
b. is easier to train new employees.
c. is more time-consuming to change from one operation to another.
d. eliminates boredom.
e. enriches the job.
42. When a worker has to learn only a specific, highly specialized task, that individual should be able to learn to do it
very efficiently. However, this efficiency could eventually become inhibited by job monotony and boredom. This
situation could be alleviated through
a. job rotation.
b. technical job training.
c. job specialization.
d. job design.
e. assembly-line production.
43. In a recent task force meeting, the human resources manager gave many reasons why the organization needed
some specialization. In so doing, she stated that
a. a worker who learns only a specific, highly specialized task becomes inefficient at that task.
b. a worker who does the same job over and over loses time changing from one operation to another.
c. the more specialized the job, the harder it may be to design specialized equipment for those doing it.
d. the more specialized the job, the easier it is to train new employees when an employee quits or is absent.
e. the job of most organizations is simply too large for one person to handle. Several people carrying out
different functions are needed.
44. Employees at a chemical factory are systematically moved every two weeks among three different departments in
the organization. This is called
a. job trading.
b. specialization.
c. departmentalization by function.
d. job enlargement.
e. job rotation.
45. Workers at the pharmaceutical company, Eli Lilly are less likely to become bored or dissatisfied with their jobs
because Eli Lilly practices job
a. enlargement.
b. rotation.
c. enrichment.
d. generalization.
e. substitution.