BMGT 110F Final UPDATED Exam
Questions and CORRECT Answers
Organizing - CORRECT ANSWER - (structuring) begins with determining what needs to
be done and then dividing up the tasks among the group (division of labor)
Job Specialization - CORRECT ANSWER - dividing tasks into smaller jobs
Departmentalization - CORRECT ANSWER - the process of setting up individual
departments to do specialized tasks
EX: production, marketing, accounting, and maintenance
Economies of Scale - CORRECT ANSWER - the situation in which companies can reduce
their production costs if they can purchase raw materials in bulk; the average cost of goods goes
down as production levels increase
Fayol's Principles of Organization - CORRECT ANSWER - 1. Unity of command
2. Hierarchy of authority
3. Division of labor
4. Subordination of individual interests to the general interest
5. Authority
6. Degree of Centralization
7. Clear communication channels
8. Order
9. Equity
10. Esprit de corps
Unity of Command - CORRECT ANSWER - Each worker is to report to one and only one
boss (prevents confusion)
,Hierarchy of Authority - CORRECT ANSWER - All workers should know to whom they
report
Subordination of individual interest to general interest - CORRECT ANSWER - Workers
are to think of themselves as a coordinated team. The goals of the team are more important than
the goals of the individual worker
Authority - CORRECT ANSWER - Managers have the right to give orders and the power
to enforce obedience. Whenever authority is exercised, responsibility arises
Degree of Centralization - CORRECT ANSWER - the amount of decision-making power
vested in top management should vary by circumstances
Order - CORRECT ANSWER - materials and people should be placed and maintained in
the proper location
Equity - CORRECT ANSWER - a manager should treat employees and peers with respect
and justice
esprit de corps - CORRECT ANSWER - a spirit of pride and loyalty should be created
among people in the firm
Max Weber and Organizational Theory - CORRECT ANSWER - - Prompted the pyramid-
shaped organizational structure
- Put trust in managers and felt the firm would do well if employees simply did as they were told
(the less decision making they had to do, the better)
Organizational Theory - CORRECT ANSWER - Principles of organization resembled
Fayol's
, - Additionally emphasized: job description; written rules, decision guidelines, and detailed
records; consistent procedures, regulations, and policies; staffing and promotion based on
qualifications
Bureacracy - CORRECT ANSWER - an organization with many layers of managers who
set rules and regulations and oversee all decisions
Hierarchy - CORRECT ANSWER - a system in which one person is at the top of the
organization and there is a ranked or sequential ordering from the top down of managers who are
responsible to that person
Chain of Command - CORRECT ANSWER - the line of authority that moves from the top
of a hierarchy to the lowest level
Organization Chart - CORRECT ANSWER - a visual devices that shows relationships
among people and divides the organization's work; it shows who is accountable for the
completion of specific work and who reports to whom
Centralized Authority - CORRECT ANSWER - when decision making is concentrated at
the top level of management
Decentralized Authority - CORRECT ANSWER - when decision making is delegated to
lower-level managers and employees more familiar with local conditions that headquarters
management could be
Span of Control - CORRECT ANSWER - the optimum # of subordinates a managers
supervises or should supervise
Tall Organizational Structure - CORRECT ANSWER - the pyramidal organization chart
would be quit tall because of the various levels of management
Questions and CORRECT Answers
Organizing - CORRECT ANSWER - (structuring) begins with determining what needs to
be done and then dividing up the tasks among the group (division of labor)
Job Specialization - CORRECT ANSWER - dividing tasks into smaller jobs
Departmentalization - CORRECT ANSWER - the process of setting up individual
departments to do specialized tasks
EX: production, marketing, accounting, and maintenance
Economies of Scale - CORRECT ANSWER - the situation in which companies can reduce
their production costs if they can purchase raw materials in bulk; the average cost of goods goes
down as production levels increase
Fayol's Principles of Organization - CORRECT ANSWER - 1. Unity of command
2. Hierarchy of authority
3. Division of labor
4. Subordination of individual interests to the general interest
5. Authority
6. Degree of Centralization
7. Clear communication channels
8. Order
9. Equity
10. Esprit de corps
Unity of Command - CORRECT ANSWER - Each worker is to report to one and only one
boss (prevents confusion)
,Hierarchy of Authority - CORRECT ANSWER - All workers should know to whom they
report
Subordination of individual interest to general interest - CORRECT ANSWER - Workers
are to think of themselves as a coordinated team. The goals of the team are more important than
the goals of the individual worker
Authority - CORRECT ANSWER - Managers have the right to give orders and the power
to enforce obedience. Whenever authority is exercised, responsibility arises
Degree of Centralization - CORRECT ANSWER - the amount of decision-making power
vested in top management should vary by circumstances
Order - CORRECT ANSWER - materials and people should be placed and maintained in
the proper location
Equity - CORRECT ANSWER - a manager should treat employees and peers with respect
and justice
esprit de corps - CORRECT ANSWER - a spirit of pride and loyalty should be created
among people in the firm
Max Weber and Organizational Theory - CORRECT ANSWER - - Prompted the pyramid-
shaped organizational structure
- Put trust in managers and felt the firm would do well if employees simply did as they were told
(the less decision making they had to do, the better)
Organizational Theory - CORRECT ANSWER - Principles of organization resembled
Fayol's
, - Additionally emphasized: job description; written rules, decision guidelines, and detailed
records; consistent procedures, regulations, and policies; staffing and promotion based on
qualifications
Bureacracy - CORRECT ANSWER - an organization with many layers of managers who
set rules and regulations and oversee all decisions
Hierarchy - CORRECT ANSWER - a system in which one person is at the top of the
organization and there is a ranked or sequential ordering from the top down of managers who are
responsible to that person
Chain of Command - CORRECT ANSWER - the line of authority that moves from the top
of a hierarchy to the lowest level
Organization Chart - CORRECT ANSWER - a visual devices that shows relationships
among people and divides the organization's work; it shows who is accountable for the
completion of specific work and who reports to whom
Centralized Authority - CORRECT ANSWER - when decision making is concentrated at
the top level of management
Decentralized Authority - CORRECT ANSWER - when decision making is delegated to
lower-level managers and employees more familiar with local conditions that headquarters
management could be
Span of Control - CORRECT ANSWER - the optimum # of subordinates a managers
supervises or should supervise
Tall Organizational Structure - CORRECT ANSWER - the pyramidal organization chart
would be quit tall because of the various levels of management
