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An informal group in an organization is formed by the line managers of that organization.

A) True
B) False

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A common characteristic of a centralized organization is


A) democratic decision making.
B) decision making by a few top-level managers.
C) a flat span of management.
D) placing decision making near the workplace.
E) authority placed at lower levels.

F) B) and D)
G) A) and B)

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Green Sports Incorporated is a small start-up company that manufactures and markets sports equipment made from recycled materials. Green Sports is best suited to base its departmentalization on product.

A) True
B) False

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Susan was given the responsibility for chairing a campus committee. To complete the delegation process, she should be given the ____ to carry out this responsibility.


A) duty
B) subordinates
C) authority
D) skills
E) salary

F) B) and D)
G) A) and D)

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Many online companies strive to have a corporate culture based on trust and friendship among employees, a strong commitment to the company, and a relaxed and informal atmosphere. This is a ____ culture.


A) communal
B) fragmented
C) networked
D) family
E) mercenary

F) A) and E)
G) B) and C)

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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.

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There are several advantages and disadva...

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Older, larger firms producing and selling various products base departmentalization on function.

A) True
B) False

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Authority and ____ are synonymous terms.


A) power
B) responsibility
C) duty
D) delegation
E) accountability

F) None of the above
G) A) and B)

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One's duty to do a job or perform a task is called


A) authority.
B) accountability.
C) responsibility.
D) delegation.
E) obligation.

F) A) and D)
G) B) and E)

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A biotechnology company is constantly faced with important decisions that are likely to have severe consequences on the future of the company. The top managers should


A) decentralize decision-making authority.
B) appoint lawyers to make business decisions.
C) train first-line managers to make these decisions.
D) exercise centralized decision-making authority.
E) consult investors when making important daily decisions.

F) None of the above
G) C) and D)

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What are some of the primary advantages of a network structure? Compare and contrast a network structure to a line structure.

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Some of the primary advantages of a netw...

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Location, product, function, and customer are common bases for a firm's


A) span of management.
B) job design.
C) job specialization.
D) chain of command.
E) departmentalization.

F) C) and E)
G) C) and D)

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Staff managers are part of the chain of command of an organization.

A) True
B) False

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In an organization with a ____, a manager is most likely to spend considerable time supervising and working with employees.


A) flat organizational width and wide height span
B) narrow span of control and tall organizational height
C) flat organizational height and a wide span of control
D) wide span of control and a tall organizational height
E) narrow span of control and flat organizational height

F) A) and D)
G) C) and E)

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Many organizations today are moving toward a(n) ____ organization in an effort to get decisions made more quickly and action plans implemented more rapidly.


A) taller
B) wider
C) flatter
D) narrower
E) efficient

F) B) and E)
G) A) and E)

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Using more than one basis for departmentalization is the rule rather than the exception for larger firms.

A) True
B) False

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Companies like Southwest Airlines and Saturn attribute a great deal of their success to their strong corporate cultures, which is inaccurate. In reality, research has determined that, over time, corporate culture has only a marginal influence on firm performance.

A) True
B) False

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Corporate culture has little real influence on the performance of a firm.

A) True
B) False

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A disadvantage of the matrix structure is that


A) people have more work to do because they are assigned to special projects in addition to their regular tasks.
B) the quality of work decreases due to project teams' lack of attention to regular job duties.
C) employees' supervisors change, which can cause confusion.
D) teams may be too decentralized and incapable of making a decision.
E) employees have to report to more than one supervisor, which can cause confusion about who is in charge of certain situations.

F) A) and C)
G) C) and D)

Correct Answer

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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.

F) C) and E)
G) B) and D)

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