PRINCIPLES OF MANAGEMENT
CHAPTERS 9-12, EXAM 3 QUESTIONS
& VERIFIED CORRECT ANSWERS
Four Characteristics Common to all organizations - Correct Answer ✔✔ 1. Coordination
of effort; individual contribution > individual working alone
2. Common Goal or purpose; Focus to strive for a common interest
3. Division of Labor; dividing jobs determined by special tasks
4. Hierarchy of authority; Chain of command
Vertical Hierarchy - Correct Answer ✔✔ Establishes the chain of command
Horizontal specializations - Correct Answer ✔✔ denotes the division of labor
Open System Model of business - Correct Answer ✔✔ (Interaction with external
environment)
- Technical (production) defines transformation process, build machines, transforms raw
material into finished goods
-Boundary Spanning (recruit, sell, buying raw material) org. interfere with the external
environment
- Managing (control and direct) the tech and boundary spanning systems
Time Deminision - Correct Answer ✔✔ -Prevailing societal expectations in the near
future
- Adapting demand and developing as learning org. in immediate future
-Surviving effectively in a distant future
Contingency Design - Correct Answer ✔✔ Determining the degree of environmental
uncertainty and adapting the org. and it's sub-units to the situation, What structural
combo is situational appropriate
Ways to determine Contingency Design of Enviornment - Correct Answer ✔✔ 1. Strong
pressure of society, politics, and the economy that is put on the org
2. Frequency of technological breakthroughs
3. Reliable resources and supplies
4. Stable demand of org. services /product
Mechanistic Organizations - Correct Answer ✔✔ Rigid, formal communication,
operating stable, certain environment, knowledge is narrow
, Organic Organiations - Correct Answer ✔✔ Flexible, participate communication, high
adapting to change in unstable environment, high individual, low loyalty, broad
knowledge
4 Basic Departmentalization - Correct Answer ✔✔ 1. Functional - categorizes jobs
according to the activity performed (Finance<-X -Y, Market<- X- Y)
2. Product Service- grouping jobs around a specific product (Big corp. has multiple
products X< -Finance -Marketing, Y< - Finance - Marketing)
3. Geographic Location- adapting a structural formal based on the physical desperation
of assets, resources, and costumers ( Different tastes in different countries)
4. Costumer Classification - Centered on carious costumer categories (Banks have
govt. accounts and personal accounts)
Span of Control - Correct Answer ✔✔ Number of people that report to the manager
Narrow (span of control) - Correct Answer ✔✔ Foster tall org. with many layers
(christmas tree)
Flat/Wide (span of control) - Correct Answer ✔✔ Wide span on control
Span of control situational factors - Correct Answer ✔✔ 1. Similarity of work
2. Desperation of Subordinates
3. complexity
4. Time spent coordination
6. Time spend for planning
Centralized (span of control) - Correct Answer ✔✔ retention (use, control) of decision-
making authority by top management
Decentralized (span of control) - Correct Answer ✔✔ Sharing of Decision-making with
lower levels
Factors to determine is a org. is Centralized or Decentralized - Correct Answer ✔✔ 1.
Importance of decisions
2. How many decisions made at lower level
3. How many different functions rely on lower level
4. How often top management monitors lower levels
Effective Delegation - Correct Answer ✔✔ Assigning various degrees of decision
making authority to lower level employees
Advantages of Delegations - Correct Answer ✔✔ - Frees up time, serves as training
and development tool for lower level managers, High commitment by challenging
assignments
CHAPTERS 9-12, EXAM 3 QUESTIONS
& VERIFIED CORRECT ANSWERS
Four Characteristics Common to all organizations - Correct Answer ✔✔ 1. Coordination
of effort; individual contribution > individual working alone
2. Common Goal or purpose; Focus to strive for a common interest
3. Division of Labor; dividing jobs determined by special tasks
4. Hierarchy of authority; Chain of command
Vertical Hierarchy - Correct Answer ✔✔ Establishes the chain of command
Horizontal specializations - Correct Answer ✔✔ denotes the division of labor
Open System Model of business - Correct Answer ✔✔ (Interaction with external
environment)
- Technical (production) defines transformation process, build machines, transforms raw
material into finished goods
-Boundary Spanning (recruit, sell, buying raw material) org. interfere with the external
environment
- Managing (control and direct) the tech and boundary spanning systems
Time Deminision - Correct Answer ✔✔ -Prevailing societal expectations in the near
future
- Adapting demand and developing as learning org. in immediate future
-Surviving effectively in a distant future
Contingency Design - Correct Answer ✔✔ Determining the degree of environmental
uncertainty and adapting the org. and it's sub-units to the situation, What structural
combo is situational appropriate
Ways to determine Contingency Design of Enviornment - Correct Answer ✔✔ 1. Strong
pressure of society, politics, and the economy that is put on the org
2. Frequency of technological breakthroughs
3. Reliable resources and supplies
4. Stable demand of org. services /product
Mechanistic Organizations - Correct Answer ✔✔ Rigid, formal communication,
operating stable, certain environment, knowledge is narrow
, Organic Organiations - Correct Answer ✔✔ Flexible, participate communication, high
adapting to change in unstable environment, high individual, low loyalty, broad
knowledge
4 Basic Departmentalization - Correct Answer ✔✔ 1. Functional - categorizes jobs
according to the activity performed (Finance<-X -Y, Market<- X- Y)
2. Product Service- grouping jobs around a specific product (Big corp. has multiple
products X< -Finance -Marketing, Y< - Finance - Marketing)
3. Geographic Location- adapting a structural formal based on the physical desperation
of assets, resources, and costumers ( Different tastes in different countries)
4. Costumer Classification - Centered on carious costumer categories (Banks have
govt. accounts and personal accounts)
Span of Control - Correct Answer ✔✔ Number of people that report to the manager
Narrow (span of control) - Correct Answer ✔✔ Foster tall org. with many layers
(christmas tree)
Flat/Wide (span of control) - Correct Answer ✔✔ Wide span on control
Span of control situational factors - Correct Answer ✔✔ 1. Similarity of work
2. Desperation of Subordinates
3. complexity
4. Time spent coordination
6. Time spend for planning
Centralized (span of control) - Correct Answer ✔✔ retention (use, control) of decision-
making authority by top management
Decentralized (span of control) - Correct Answer ✔✔ Sharing of Decision-making with
lower levels
Factors to determine is a org. is Centralized or Decentralized - Correct Answer ✔✔ 1.
Importance of decisions
2. How many decisions made at lower level
3. How many different functions rely on lower level
4. How often top management monitors lower levels
Effective Delegation - Correct Answer ✔✔ Assigning various degrees of decision
making authority to lower level employees
Advantages of Delegations - Correct Answer ✔✔ - Frees up time, serves as training
and development tool for lower level managers, High commitment by challenging
assignments
