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Chapter 08 Organization Structure Answer Key
True / False Questions
1.
When there are many subunits and many kinds of specialists who think differently in an
organization, differentiation is high.
2.
It is generally accepted that having fewer hierarchical levels creates greater operating
efficiency.
3.
Vic works on an automobile assembly line. His job is to complete the final installation of
the GPS for each automobile that is on the line. The job is quite defined, and he has been
highly trained. Vic is most likely supervised using a wide span of control.
4.
If Svetlana, a manager at Texas Two-Step Cowboy Boots, delegates responsibility for
reorganizing the stockroom to a subordinate, she is relieved of the responsibility and
accountability for that task. Svetlana's manager has no right to hold her accountable for
her subordinate's actions.
5.
One disadvantage of delegation is that it usually results in the manager losing touch with
the status of the work to be accomplished.
6.
In a centralized organization, most of the decisions are made at lower levels.
7.
A disadvantage of the functional form of departmentalization is that technical specialists
spend too much time on administrative work.
8.
Cambridge Networking Solutions has its global headquarters in Chicago, where
companywide departments, such as marketing, accounting, and research, are housed.
Cambridge is thus a divisional organization.
9.
Employees who function poorly in ambiguous, and sometimes conflict-ridden,
circumstances may not thrive in a matrix organization.
10.
Coordination by mutual adjustment involves feedback and discussions to jointly figure out
how to approach problems and devise solutions that are agreeable to everyone.
Multiple Choice Questions
11.
Which of the following provides a clear picture of the reporting structure of a firm and the
various activities carried out by individuals?
12.
If an organization is composed of many separate units that work on different kinds of
tasks by using skills and work methods that vary from each other, that organization is
characterized by _____.
13.
The numerous tasks that must be carried out in a large organization make _____ a
necessity.
14.
Bond Incorporated has developed a set of procedures to link the various subunits and
departments of the corporation in order to carry out the organization's overall mission. The
procedures that fulfill this function are referred to as _____.
15.
Reporting relationships between bosses and subordinates is a function that relates to the
_____ dimension of a firm's structure.
16.
Which of the following statements about stockholders is the most accurate?
17.
Corporate governance is a term describing the oversight of a firm by its
18.
Span of control refers to
19.
Anita is one of three managers at Lovely Landscaping, and she supervises 32 full- and
part-time employees who perform landscaping maintenance services. She reports to the
owner. Lovely Landscaping would be considered a _____ organization.
20.
Madison wants to open a restaurant and plans to employ a staff of about 10 people,
including wait staff and cooks. What type of organization is Madison planning to create?
21.
A narrow span of control will be appropriate when
22.
The assignment of authority and responsibility to a subordinate at a lower level is known
as _____.
23.
Enrique delegates an important project to Harriet, but he tells her that he expects regular
reports and that he will take over the work if she falls behind or does not produce quality
results. Enrique is referring to the principle known as _____.
24.
Which of the following is an advantage of delegation?
25.
What is the first step in effective delegation?
26.
In a decentralized organization, more of the decisions are made by
27.
Patrick is a new product designer for a cookware manufacturer. Patrick therefore works in
a _____ department.
28.
Research, accounting, and human resources are considered _____ departments.
29.
What are the three basic approaches to departmentalization?
30.
The functional structure may be most appropriate in _____ environments.
31.
A(n) _____ organization is a hybrid form of organization in which functional and divisional
forms overlap.
32.
Which principle states that a person should have only one boss to avoid confusion?
33.
A(n) _____ organization is a collection of independent, mostly single-function firms that
collaborate to produce a good or service.
34.
Chuck, the operations manager of Wentworth Publishing, requires all seven branch offices
to use the same type of computer and operating system. This simplifies both the
communication and training processes for employees who frequently transfer between
offices. Here Chuck can best be described as coordinating the offices by _____.
35.
Which of the following depicts the positions in a firm and how they are arranged?
