Mid-Term Overview

Management

Prof. Chen Yin

Part 4

I. True or False

1. Organizational design is the process in which managers change or develop an

organization's structure. T

2. There are four basic elements in organizational structure. T

3. The original ideas about organizational design formulated by Fayol and Weber

are now largely obsolete. F

4. When work specialization originally began to be implemented early in the

twentieth century, employee productivity initially rose. T

5. Today, most managers see work specialization as a source of ever-increasing

productivity. F

6. The advantage of work specialization is that it tends to result in high employee

motivation and high productivity. F

7. Departmentalization is a how jobs are grouped. T

8. Grouping jobs on the basis of major product areas is termed customer

departmentalization. F

9. Unity of command prevents an employee from trying to follow two conflicting

commands at once. T

10. Power is a right that a manager has when he or she has a higher rank in an

organization. T

11. When decisions tend to be made at lower levels in an organization, the

organization is said to be centralized. F

12. Traditional organizations are structured in a pyramid, with the power and

authority located in the pyramid's broad base. F

13. The two prevalent organization structure models in today's world are the organic

organization and the inorganic organization. T

14. A mechanistic organization is bureaucratic and hierarchical. T

15. An organic organization tends to be flexible and have few formal rules. T 16. Innovators need the efficiency, stability, and tight controls of a mechanistic

structure rather than an organic structure. T

17. The stability of a mechanistic structure seems to work best in today's dynamic

and uncertain business environment. F

18. The strength of a simple system is that everything depends on a single person. F 19. A strength of a functional structure is that it avoids duplication. T

20. A weakness of the divisional structure is that duplication tends to occur. T

21. In a team structure, team members are not held responsible for their decisions. F 22. In a team structure there is a clear line of managerial authority from top to bottom.

T

23. When an employee in a matrix structure finishes a project, she goes back to her

functional department. T

24. Employees in an organization with a matrix design can have two bosses for the

same job. T

25. A significant advantage of the matrix structure is the clear chain of command

from top to bottom of the organization. F

26. When an employee in a project structure finishes a project, he goes back to his

original department. T

27. A virtual organization relies on freelancers who have no permanent status or

position in the organization. T

28. Managers want to eliminate boundaries in organizations primarily to increase

stability and reduce flexibility. F

29. A virtual organization may disintegrate after it finishes its task. T

30. A company's organizational culture refers to a system of shared political beliefs. F 31. Employees learn organizational culture by reading official organization

documents and histories. T

32. Employees learn organizational culture by reading official organization

documents and histories.

33. Strong organizational culture can eliminate the need for rules and bylaws. F

II. Multiple Choices

1. Organizational design requires a manager to ________. C A) organize groups within an organization B) change the culture of an organization

C) change or develop the structure of an organization D) change the logo of an organization

2. All of the following are part of the process of organizational design EXCEPT ________. D

A) decide how specialized jobs should be B) determine rules for employee behavior

C) determine the level at which decisions are made D) determine goals for the organization

3. Which of the following are NOT basic elements of organizational structure? B A) work specialization, span of control B) chain of command, line authority C) centralization, decentralization D) departmentalization, formalization

4. Which of the following is synonymous with work specialization? A A) division of labor B) job discrimination C) chain of command

D) job preference

5. Which statement accurately defines work specialization? B A) It is the degree to which tasks are grouped together.

B) Individual employees specialize in doing part of an activity rather than the entire activity.

C) Jobs are ranked relative only to their worth or value to the businesses. D) Work specialization clarifies who reports to whom.

6. Early supporters of work specialization saw it as ________. A A) a reliable way to increase productivity B) a good way to increase employee morale C) a source of innovation

D) an immoral way to coerce workers into greater productivity

7. Early users of work specialization early in the twentieth century found that the practice ultimately resulted in ________. A A) higher profits and better employee morale B) bored workers with low morale

C) huge and permanent productivity gains D) better communication among employees

8. Today, managers favor this approach instead of work specialization. C A) All tasks are performed by all employees. B) Partners switch jobs every half hour.

C) Employees perform a broad range of tasks. D) Monotonous tasks are shared by all employees.

9. Functional departmentalization groups jobs by ________. A A) tasks they perform B) territories they serve

C) products or services they manufacture or produce D) type of customer they serve

10. ________ departmentalization is based on territory or the physical location of employees or customers. C A) Functional B) Product C) Geographic D) Matrix

11. A soap company that features a bath soap department, a laundry detergent department, and a dish soap department is using which of the following? C A) process departmentalization B) functional departmentalization C) product departmentalization D) customer departmentalization

12. What kind of departmentalization would be in place in a government agency in which there are separate departments that provide services for employers, employed workers, unemployed workers, and the disabled? D A) product

B) geographic C) outcome D) customer

13. State motor vehicle offices usually use this kind of departmentalization. B A) product B) functional C) customer D) process

14. The line of authority that extends from the upper levels of management to the lowest levels of the organization is termed the ________. D A) chain of responsibility B) unity of command C) staff authority D) chain of command

15. The chain of command answers this question. D A) Where do I go for help?

B) How do I know when the task is complete? C) What are the rules? D) Who reports to whom?

16. Authority gives an individual the right to do this. A A) give orders

B) reprimand employees C) command respect D) obey orders

17. In the chain of command, each person above you ________. C A) has special privileges B) receives higher pay C) has line authority

D) has no right to give you orders

18. Staff managers have authority over ________. A A) special support employees only B) line managers C) middle managers

D) the person above them in the chain of command

19. Line authority gives a manager the ability to direct the work of ________. B A) any employee in the firm B) any subordinate

C) any subordinate, after consulting with the next higher level D) only subordinates one level down

20. ________ prevents a single employee from getting conflicting orders from two different superiors. B A) Line authority B) Unity of command C) Staff authority