38) What is the main difference between a vertical hierarchy of authority and a horizontal
specialization?
A) Vertical hierarchy shows the different jobs and horizontal specialization shows the tasks for
each person.
B) Horizontal specialization shows the chain of command and vertical hierarchy shows the
communication network.
C) Vertical hierarchy shows who reports to whom and horizontal specialization shows the
different jobs.
D) Vertical hierarchy has different people for each task and the horizontal specialization shows the
chain of command.
E) Horizontal specialization shows the communication network and the vertical hierarchy shows
the different jobs.
39) ________ in an organization is the division of labor. For example, in a publishing company,
there are people who acquire manuscripts (sponsoring editors), people who edit manuscripts
(developmental editors), and people who turn manuscripts into printed books (production editors).
A) The coordination of individual efforts into a group or organization-wide effort
B) The common purpose that unifies employees
C) An organizational structure with few or no levels of middle management
D) A structure where employees report to no more than one manager
E) The arrangement of having discrete parts of a task done by different people
40) ________ is also known as division of labor.
A) A task chart
B) A horizontal hierarchy
C) An organizational graph
D) Work specialization
E) Chain of command
41) A hierarchy of authority is ________. Most military organizations are known for having a
strong hierarchy of authority.
A) also known as a division of labor
B) a control mechanism for making sure the right people do the right things at the right time
C) a diversity structure used in planning with recruiting, selection, and hiring
D) also known as work specialization
E) the arrangement of having discrete parts of a task done by different people
42) Andrea, a sales associate in the fine china department of the David’s Department Store, reports
to Chris, the home furnishings department manager. This morning, Chris asked Andrea to change
the price tags on the crystal wine glasses. While working on this task, Pietro, the bedding
department manager, told Andrea that he wanted her to unload some comforters. To solve this
conflict, Andrea turns to the principle of unity of command under which
A) employees should report to no more than one manager.
B) Andrea will need to determine how she can multitask.
C) employees can report to two managers, so Andrea needs to decide whose directions to follow.
D) Andrea can refuse to do both tasks.
E) Andrea needs to decide which manager has more power.
43) Willis, the produce department manager at Shop More, has eight employees in his department,
also known as his ________. All eight of these employees report directly to him.
A) area of responsibility
B) span of direction
C) span of control
D) hierarchy of authority
E) management depth
44) ________ are the two kinds of spans of control.
A) Tall and short
B) Flat and broad
C) Tall and hollow
D) Hierarchy and nonhierarchy
E) Narrow and wide
45) Bianca, the CEO of Solar Tiles, has only three people reporting to her: the vice president of
marketing, vice president of HR, and vice president of accounting. Bianca has a
A) narrow span of control.
B) small unity of command.
C) wide span of control.
D) focused span of control.
E) broad span of influence.
46) During weekly conference calls, Zeke, a sales manager for a national chain of clothing stores,
and the other managers in his district explain to their district manager the reasons for different
decisions; they also explain why certain costs and sales were higher or lower than they were the
previous week. ________ is the explanation of their decisions and work results.
A) Accountability
B) A stepped decision
C) A hierarchy of authority
D) Touching
E) Power
47) ________ enables a manager to make decisions, give orders, and utilize resources. For
example, the manager of a local coffee shop has the right to hire and fire baristas based on their
punctuality, performance, and customer-service ratings.
A) Power
B) A clan culture
C) A hierarchy of power
D) Touching
E) Authority
48) Antwan was recently promoted to the position of shift supervisor at If The Shoe Fits, and he is
now responsible for making decisions on numerous matters in the store and giving orders to the
floor staff. At the same time, Antwan has the obligation to perform the many new tasks assigned to
him as a supervisor, such as overseeing the closing work and the cleaning of the store. Antwan’s
obligations are known as his
A) hierarchy.
B) power.
C) beliefs.
D) authority.
E) responsibility.
49) Bekah, the manager of Fit and Trim Nutrition Services, was telling her new nutritionist that “I
have many decisions to make in a day, and as the manager, during the course of a week, I have to
give orders to most of the 35 employees. Then there is my budget and the clinic’s resources, which
I oversee.” Bekah’s ________ gives her the right to make decisions, give orders, and utilize
resources.
A) responsibility
B) authority
C) power
D) delegation
E) work specialization
50) Rondelle, the manager of a busy hair salon, knows that she needs to entrust many of her tasks
to supervisors and other employees. ________ is this process of assigning tasks to lower-level
supervisors and employees. Rondelle follows the 70 percent rule, which states that she should
assign tasks to employees who can perform each task at least 70 percent as well as Rondelle can.
A) Handing
B) Outputting
C) Span of control
D) Delegation
E) Accountability
51) ________ is the process of assigning managerial authority and responsibility to lower-level
managers and employees.
A) Authority
B) Planning
C) Delegation
D) A power trip
E) Control
52) During a meeting, Tyrone, a branch manager for Fishers Credit Union, pointed to the corporate
organization chart on the wall. Tyrone remarked that “These people provide advice,
recommendations, and research for us, and they are indicated with a dotted line. Leona (our CEO)
and the vice presidents of our organization are up here, indicated on the organization chart by a
solid line vertical line.” ________ are indicated on the organization chart by a solid line, and
________ are indicated by a dotted line.
A) Line managers; temporary personnel
B) Line managers; personnel in training
C) Staff personnel; vital personnel
D) Line managers; part-time personnel
E) Line managers; staff personnel
53) Typhanie, a customer service representative with WestComm Wireless Services, was asked by
one of her customers if WestComm would be interested in joining the chamber of commerce to
meet potential customers and increase its contacts in the local business community. Typhanie
believes this is a very good idea and approached her manager, Deondre, about becoming a
chamber member. Deondre said to Typhanie, “Because the cost of membership is over $500 and
you will have to leave the office to attend meetings, I will have to get approval from management
above me.” WestComm is an example of an organization with
A) decentralized authority.
B) unity of command.
C) work specialization.
D) centralized authority.
E) line managers.
54) With ________, important decisions are made by middle-level and supervisory-level
managers.
A) decentralized authority
B) upper authority
C) focused power
D) centralized authority
E) higher-management influence
55) Niall, the president of Tutors For Hire, told one of his new hires that “Managers at this
company are encouraged to solve their own problems rather than buck the decision to a higher
level, and decisions are made more quickly, which increases our organization’s flexibility and
efficiency.” The key benefits of ________ are the advantages that Niall related to his new hires.
A) centralized authority
B) management accountability
C) management responsibility
D) decentralized authority
E) work specialization
56) Organizational design is concerned with an organization developing
A) the best structures of costs and efficiency that an organization uses to meet goals.
B) optimal structures of accountability and responsibility to execute its strategies.
C) important decisions that are suggested by employees.
D) new MBO goals.
E) the most favorable methods of accomplishing both the diversity and synergy plans.
57) Mow and Trim, a sole proprietorship that uses contract labor, has all of its authority centralized
in a single person (the owner), a flat hierarchy, few rules, and low work specialization. Mow and
Trim is an organization with a
A) team-based design.
B) simple structure.
C) hollow structure.
D) functional structure.
E) horizontal design.
58) The structure of Cakes and Such consists of people with similar specialties put together in
formal groups, such as the marketing, accounting, and human resource departments. Cakes and
Such has a ________ structure.
A) simple
B) focused
C) hollow
D) functional
E) centralized
59) Disney has different divisions for movies, cable television, stores, theme parks, and so on. The
Disney theme parks part of the empire alone has divisions spanning restaurants, entertainment,
cruises, and hotels. Disney is an example of an organization with ________ divisions.
A) geographic
B) common
C) product
D) merchandise
E) customer
60) Global IT has designed its corporate structure with divisions based on their location. For
example, there are the Southern and Northern Divisions, and globally there are the European
Division and the Asian Division. Global IT is an example of a structure with
A) geographic divisions.
B) matrix partitions.
C) customer divisions.
D) common area divisions.
E) product divisions.
61) Ford Motor Co. has separate divisions for passenger cars, for large trucks, and for farm
products. Ford uses ________ in its organization.
A) geographic divisions
B) customer divisions
C) matrix partitions
D) a decentralized management structure
E) a global corporate culture
62) Organizations using a matrix structure
A) contain multiple overlapping command structures, in which all employees report to three or
more managers.
B) centralize authority into a single person.
C) contain two command structures, in which some people report to two bosses.
D) establish a hierarchy in which employees report to only one supervisor.
E) utilize teams or workgroups with few lines of authority.
63) Business Designs utilizes a structure that includes functional divisions, such as accounting and
production, and a divisional chain of command, such as the home products and office divisions.
For example, Janett, a salesperson, reported to both her sales manager and the office products
manager when she first started working on the city of Springfield account. Business Designs has a
A) geographic-divisional structure.
B) matrix structure.
C) team-based approach.
D) modular structure.
E) hollow structure.
64) The Safety Committee, a temporary team at Quantum Mechanics, was established to make the
factory floor a safer place. Members of the committee still work in their departments full-time, but
they meet twice a month for a few hours as a committee. The Safety Committee is an example of a
________ within an organization.
A) vertical design
B) modular design
C) multipurpose design
D) common purpose
E) horizontal design
65) With a hollow structure, the organization
A) is a rigid nonadaptive structure.
B) groups activities around similar products or services.
C) has a central core of key functions and outsources others to vendors who are less expensive or
faster.
D) is often called a horizontal organization.
E) assembles product chunks, or modules, provided by outside contractors.
66) With a modular structure, a firm ________. An example of the modular structure is the
massive 787 Dreamliner project, in which Boeing contracted with many suppliers, each
responsible for one component or assembly, which were then integrated to make the aircraft.
A) is a company outside a company that is created specifically to respond to an exceptional market
opportunity
B) assembles pieces that are provided by outside contractors to build a product
C) is an organization whose members are geographically apart, usually working via e-mail
D) has a central core of key functions and outsources production
E) consists of a company with many divisions
67) Sandra, George, Jose, and Antwan are working on a project for a customer that is aimed at
cutting the client’s utility costs. The four members of this workgroup are located throughout the
Southeast, and they are utilizing the phone, e-mail, and collaborative computing to complete this
project. This workgroup is an example of a
A) modular group.
B) cross-focus group.
C) geographic team.
D) matrix team.
E) virtual organization.
68) Raheem, a salesperson for the Fine Dining catering company, is working with a longtime
customer who is interested in either cutting back on their annual catered events or getting a better
price due to the tight economy. Raheem tells his manager, “I want to take care of the customer with
the best value. So what do you think is the best package to offer in this situation?” Raheem and his
manager are trying to utilize the
A) contingency design.
B) streamlined design.
C) focused spending approach.
D) boundaryless approach.
E) mechanistic design.
69) Marco, the owner of Spaghetti Factory, is involved in the company’s daily decisions and has
established procedures for every task. The company rules are clearly specified in the handbook,
and Marco also believes in close supervision of all employees. Spaghetti Factory is a(n) ________
organization.
A) informal
B) mechanistic
C) organic
D) decentralized
E) nonhierarchical
70) Phones R Us, a global phone company, frequently needs to respond quickly to fast-changing
consumer tastes with its smartphones. Therefore, Phones R Us has fewer rules and procedures than
most organizations, and networks of employees are encouraged to cooperate and respond quickly
to unexpected tasks and changes in technology. Phones R Us is utilizing a(n) ________ structure.
A) organic
B) inflexible
C) mechanistic
D) hierarchical
E) inelastic
71) According to Lawrence and Lorsch, the stability of an organization’s environment determines
the degree of
A) synergy needed in an organization.
B) differentiation and efficiency needed.
C) differentiation or integration that is appropriate.
D) profitability that is vital.
E) marketing and integration that is profitable.
72) The more subunits into which an organization breaks down, the
A) more unified it becomes.
B) less differentiated it becomes.
C) lower the productivity.
D) higher the costs.
E) more highly differentiated it becomes.
73) Specialists work together to achieve ________ in a highly integrated organization.
A) assimilation
B) a common goal
C) differentiation
D) decentralization
E) centralization
74) The nutritionists, chefs, and taste testers who work for Healthy Foods, an organization that
creates health foods that taste good and are good for you, work together for a common goal of
ending obesity and diabetes. This shows how Healthy Foods uses ________ in its organization.
A) diversity
B) contingency design
C) differentiation
D) integration
E) autocratic structure
75) A formal chain of command, the standardization of rules and procedures, and the use of
cross-functional teams and computer networks so that there is frequent communication and
coordination of the parts are the means for achieving
A) higher sales through analytics.
B) a common goal through integration.
C) lower costs through efficiency.
D) higher profits through goal setting.
E) differentiation through specialization.
76) Some say the office culture today has become “too nice.” Which statement would not be heard
in that type of setting?
A) “No need to go out of your way; I’ll get it later.”
B) “Did you see the new menu in the cafeteria? There goes my diet.”
C) “Can you believe that the boss expects us to stay late and does not even ask.”
D) “How was your weekend? Were you able to get up to the lake house?”
E) “Did Joe get into the college of his choice? I know you hoped it also came with a good financial
package.”