Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
Chapter 7: Organizing and Delegating Work
Test Bank
Multiple Choice
1. The structure of an organization must be aligned with its ______.
a. ethics
b. profitability
c. culture
d. environment
2. Organic organizations ______.
a. are flexible
b. focus on following procedures and rules
c. have specialized jobs
d. have top-level managers making decisions
3. Mechanistic organizations ______.
a. define jobs broadly
b. tend to work well in stable environments
c. have decisions made at lower levels
d. are flexible
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
2
4. Which of the following is NOT a principle of organization?
a. coordination
b. span of management
c. creativity and innovation
d. flexibility
5. Chain of command is also known as the ______.
a. scope principle
b. scalar principle
c. span principle
d. string principle
6. Responsibility is ______.
a. the obligation to achieve objectives by performing required activities
b. the right to make decisions, issue orders, and use resources
c. how well individuals meet their objectives
d. the clear line of authority from the top to the bottom of an organization, forming a
hierarchy
7. Sarah is the manager of a store. As the holiday season approaches, Sarah decides
that the store needs to be decorated. She knows Stephanie is creative, so she assigns
Stephanie the task of decorating the store. This is an example of ______.
a. authority
b. responsibility
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
c. flexibility
d. delegation
8. When Karen works the night shift, both Felice and Torsten are the managers in
charge and both have the authority to direct Karen’s work during the shift. Which
principle is being violated in this situation?
a. division of labor
b. unity of command
c. Scalar Principle
d. span of management
9. Which of the following is considered to be generally easier in mechanistic
organizations?
a. coordination
b. delegating
c. authority
d. flexibility
10. The grouping of related activities into units is called ______.
a. division of labor
b. coordination
c. departmentalization
d. unity of command and direction
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
11. A balance of ______ and ______ lead to a clear definition of each individual’s
responsibilities.
a. command; direction
b. division of labor; flexibility
c. responsibility; authority
d. authority; direction
12. Arjun ensures that all of the departments and employees under him work together to
accomplish strategic and operational objectives. As a manager, Arjun focuses on
integration of department activities. Which concept is Arjun utilizing?
a. coordination
b. authority
c. differentiation
d. flexibility
13. Authority is different from power. Power is ______.
a. broader in scope
b. narrower in scope
c. always formal
d. always informal
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
5
AACSB Standard: Analytical thinking
14. The ______ of authority is a hierarchy that narrows as it flows from the top down the
organization.
a. span
b. width
c. scope
d. breadth
15. In terms of their direction of flow in organizations, which is correct?
a. Responsibility flows down; authority flows up; accountability flows down.
b. Responsibility flows up; authority flows up; accountability flows down.
c. Responsibility flows down; authority flows up; accountability flows up.
d. Responsibility flows down; authority flows down; accountability flows up.
16. Formal authority ______.
a. arises from the patterns of relationships and communication that evolve as
employees interact and communicate
b. is always more effective than informal authority
c. is the unsanctioned way of getting things accomplished
d. is based on the specified relationships among employees
17. What authority arises from patterns of relationships and communication that evolve
as employees interact and communicate?
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
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a. formal authority
b. informal authority
c. relational authority
d. personal authority
18. Which form of authority is the unsanctioned way of getting the job done?
a. formal authority
b. informal authority
c. line authority
d. staff authority
19. Which of the following is NOT a level of authority?
a. authority to inform
b. authority to recommend
c. authority to report
d. authority to delegate
20. Patricia is a first-line manager who makes important decisions with middle
managers and other first-line managers. What type of authority best describes Patricia’s
decision making?
a. informal authority
b. authority to inform
c. centralized authority
d. decentralized authority
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
21. Which type of authority is more common in organic organizations?
a. decentralized
b. centralized
c. bureaucratic
d. Organic organizations are not more likely to use one or the other.
22. Where on the spectrum of authority seems to be the “key to success”?
a. centralized
b. decentralized
c. the right balance between the two extremes
d. alternating between centralized and decentralized with each decision
23. Georgios has been directed by his supervisor to immediately put together a list of
five possible venues for the company’s annual shareholder gathering. Based on this,
what Level of authority has Georgios been given for this task?
a. authority to inform
b. authority to recommend
c. authority to report
d. full authority
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
24. Being able to freely select and carry out a course of action but being required to
discuss the action with one’s supervisor afterward describes ______.
a. authority to inform
b. authority to recommend
c. authority to report
d. full authority
25. Beryl has been asked to look over several different logo designs developed by the
marketing firm her boss hired. Her boss has asked Beryl to put together a brief memo
for him describing which logo she thinks is best. He has promised to take her input into
consideration when he makes his final decision. In this situation, Beryl has ______.
a. authority to inform
b. authority to recommend
c. authority to report
d. full authority
26. Angela is a new faculty member at a small university. She recently encountered two
students cheating on an exam and asked her department chair how she should handle
the situation. Her chair told her to use her best judgement, but to see him to discuss
how she handled it after she meets with the students. In this situation, Angela has
______.
a. authority to inform
b. authority to recommend
c. authority to report
d. full authority
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
27. Ruiz has recently been promoted to management position in customer service for
an online retailer. His boss informed him that he is free to decide how to handle all
customer complaints, within the limits of corporate policy, and that he does not have tell
his boss how he handles each customer. In this situation, Ruiz has ______.
a. authority to inform
b. authority to recommend
c. authority to report
d. full authority
28. Zoe’s supervisor requires her to consult with him before every decision. Even
though Zoe is an experienced and high-performing employee, her manager closely
watches her work and double-checks all of her reports. Based on this, it is likely that
Zoe’s manager could be described as a ______.
a. authoritarian
b. macromanager
c. micromanager
d. contrarian
29. Which of the following is usually considered a line department?
a. public relations
b. operations
c. human resources
d. data processing
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
30. As a benefits specialist in her company’s human resources department, Charlotte
has the responsibility to advise and assist other personnel with regard to their various
benefit options. Charlotte’s authority to help her company’s other employees is best
described as ______.
a. authority to recommend
b. authority to report
c. line authority
d. staff authority
31. Which of the following would most likely be categorized as general staff?
a. the CEO’s personal assistant
b. the individual in the maintenance department that fixes office air conditioning
problems
c. the human resources benefits manager
d. the individual in the marketing department responsible for issuing press releases
32. ______ is the grouping of related activities into units.
a. Job design
b. Departmentalization
c. Organizational design
d. Coordination
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
11
33. An organization chart illustrates all of the following, EXCEPT ______.
a. the level of the management hierarchy
b. departmentalization
c. chain of command
d. specified tasks
34. The arrangement of positions in the organization into work units or departments and
the interrelationships among these units or departments is known as ______.
a. organizational charting
b. organizational engineering
c. organizational design
d. organizational management
35. What determines the type of organizational design an organization falls under?
a. type of departmentalization
b. type of functionalities
c. structure of the organization chart
d. the chain of command
36. The vertical lines on an organization chart show ______.
a. which departments interact
b. the method of departmentalization
c. the chain of command
d. the relative importance of each employee
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
37. An organization chart is a graphic illustration of the organization’s management
hierarchy and departments and their ______.
a. functionality
b. size
c. working relationships
d. relative importance to the organization
38. Which of the following forms of departmentalization has an internal focus?
a. customer departmentalization
b. product departmentalization
c. functional departmentalization
d. territory departmentalization
39. General Motors groups related activities into units based on the type of automobile
that is produced: Buick, Cadillac, Chevrolet, and GMC (trucks). Which type of
departmentalization does this portray?
a. functional departmentalization
b. territory departmentalization
c. customer departmentalization
d. product departmentalization
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
40. Functional departmentalization involves organizing departments around ______.
a. essential input activities
b. goods and services
c. essential output activities
d. whatever arrangement functions best in the current environment
41. Which type of departmentalization is most widely used in small organizations?
a. territory
b. customer
c. divisional
d. functional
42. Beverley wants to sign up for Time Warner Cable Internet online. She has the option
to choose residential or business services. Which method of departmentalization is
Time Warner Cable probably using?
a. customer
b. territory
c. product
d. divisional
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
43. Retail stores such as Macy’s that offer a wide variety of products for customers use
______ departmentalization.
a. product
b. functional
c. customer
d. divisional
44. Divisional departmentalization ______.
a. organizes departments around the needs of customers
b. establishes separate units in each area in which the enterprise does business
c. organizes departments around goods or services
d. is based on semiautonomous strategic business units
45. Chloe works for a corporation that owns seven different fast food chains. While each
of the chains appears to customers to be an independent business, their growth
strategies are closely coordinated at the corporate Level to be sure the building of a
new restaurant for one chain doesn’t interfere with the success of other corporate–
owned chains. On the other hand, since each of the chains offers a different type of
food and targets a different demographic, each one handles its own marketing strategy
more or less independently. Given this, it seems likely that Chloe’s corporation is using
a ______ structure.
a. conglomerate
b. modular
c. matrix
d. divisional
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
46. Lito works for a business that is part of a large corporation with many diverse
business lines that operate autonomously. Lito’s group designs and manufactures
playground equipment, but the corporation also owns asphalt paving companies, a
producer of modular housing, a small amusement park, and a real estate firm. Given
this, it seems likely that the parent corporation that owns this diverse portfolio of
businesses uses a ______ structure.
a. matrix
b. divisional
c. conglomerate
d. modular
47. Which of the following is NOT a type of departmentalization?
a. functional
b. informal
c. divisional
d. matrix
48. Matrix departmentalization combines ______ and ______ departmentalization.
a. territory; customer
b. territory; product
c. functional; customer
d. functional; product
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
16
49. Under ______, the hierarchy of people is replaced by a hierarchy of purpose to
foster collaboration.
a. bureaucracy
b. meritocracy
c. autocracy
d. holacracy
50. Many companies are moving to ______ systems, which are based on teams and
networks of interdependent teams that pursue shared goals.
a. network
b. modular
c. multiteam
d. virtual
51. Which of the following is NOT a new approach to organizational design?
a. divisional
b. modular
c. virtual
d. network
52. Selena’s company has recently changed its organizational structure. She finds
herself in groups of employees that are often working to develop innovative products
and processes. Selena has also noticed within the groups of employees, all members
are viewed as leaders. Selena’s company most likely changed to a ______.
a. team organization
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
b. learning organization
c. modular organization
d. matrix organization
53. The major advantage of matrix departmentalization is ______.
a. coordination
b. unity of command
c. decreased span of management
d. flexibility
54. Which of the following contemporary organizational designs involves boundaryless
interrelationships among different organizations?
a. virtual organization
b. modular organization
c. team organization
d. network organization
55. Which of the following contemporary organizational designs involves a continually
evolving network of contingent workers and companies that unite temporarily to exploit
specific project opportunities or to attain strategic advantages?
a. team organization
b. virtual organization
c. modular organization
d. learning organization
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
56. Which of the following contemporary organizational designs everyone in the firm
being engaged in identifying and solving problems to continuously improve and achieve
the firm’s objectives through knowledge sharing within and outside the firm?
a. team organization
b. virtual organization
c. modular organization
d. learning organization
57. A(n) ______ organization is a new organizational structure that utilizes the shared
economy model to connect buyers and sellers.
a. platform
b. virtual
c. shared
d. organic
58. Job design is the process of ______.
a. determining appropriate levels of authority and responsibility
b. identifying tasks that each employee is responsible for completing
c. creating innovative routines that benefit other groups in the company
d. grouping related activates into units
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
59. Which job design approach is focused on making jobs more specialized?
a. job enlargement
b. job simplification
c. job enrichment
d. job rotation
60. Many retailers no longer require a customer signature for credit and debit card
transactions under a certain amount. For the employees of those retailers, this is a form
of ______.
a. job rotation
b. job enrichment
c. job simplification
d. job enlargement
61. ______ involves adding tasks to a single job to broaden variety but generally does
not result in a lasting increase in motivation once those tasks are mastered.
a. Job enlargement
b. Job rotation
c. Job enrichment
d. Job simplification