Foundations of Management Exam 2
MAN 320F – FOUNDATIONS OF MANAGEMENT AND ORGANIZATIONAL
BEHAVIOR | EXAM 2 AROIAN | QUESTIONS AND CORRECT ANSWERS
LATEST 2026/2027
Man 320F Exam 2 Aroian
1. Which element of organizational structure refers to the degree to
which tasks are subdivided into separate jobs?
A. Span of control
B. Formalization
C. Work specialization
D. Chain of command
ANSWER : C. Work specialization
Work specialization (division of labor) breaks work into narrow, repeated
tasks so each worker does one part of the whole.
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, Foundations of Management Exam 2
2. A manager who supervises 25 employees directly has a:
A. Matrix reporting line
B. Wide span of control
C. Narrow span of control
D. Tall structure
ANSWER : B. Wide span of control
Span of control is the number of direct reports; 25 people is a wide span that
usually goes with a flatter structure.
3. The unbroken line of authority that runs from the top of the
organization to the lowest level is called the:
A. Span of control
B. Chain of command
C. Departmental boundary
D. Line of formalization
ANSWER : B. Chain of command
The chain of command clarifies who reports to whom and connects every
position back to the top.
4. An organization in which decision making is pushed down to lower-
level employees is described as:
A. Decentralized
B. Centralized
C. Formalized
D. Mechanistic
ANSWER : A. Decentralized
Decentralization places decision authority closer to the people doing the
work.
5. The degree to which jobs are standardized and guided by rules and
procedures is known as:
A. Formalization
B. Specialization
C. Departmentalization
D. Centralization
ANSWER : A. Formalization
High formalization means written rules dictate how jobs are done, leaving
little discretion.
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, Foundations of Management Exam 2
6. Grouping employees by the products or services they produce is
called:
A. Process departmentalization
B. Product departmentalization
C. Functional departmentalization
D. Geographic departmentalization
ANSWER : B. Product departmentalization
Product departmentalization organizes units around product lines, each with
its own functions.
7. A structure in which employees report to both a functional manager
and a project manager is a:
A. Functional structure
B. Divisional structure
C. Simple structure
D. Matrix structure
ANSWER : D. Matrix structure
The matrix structure creates dual authority, which violates unity of
command but improves coordination across projects.
8. Which principle states that each employee should report to only one
supervisor?
A. Span of control
B. Scalar principle
C. Line authority
D. Unity of command
ANSWER : D. Unity of command
Unity of command avoids conflicting orders by giving every worker a single
boss.
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, Foundations of Management Exam 2
9. A mechanistic organization is best characterized by:
A. Low specialization and wide spans
B. Decentralized decisions and few rules
C. Rigid hierarchy, high formalization, and centralized control
D. Cross-functional teams and free-flowing information
ANSWER : C. Rigid hierarchy, high formalization, and centralized
control
Mechanistic designs are bureaucratic and fit stable, predictable
environments.
10. An organic organization is most suitable when the environment is:
A. Dominated by a single customer
B. Stable and simple
C. Highly regulated and predictable
D. Dynamic and uncertain
ANSWER : D. Dynamic and uncertain
Organic structures are flexible and adaptive, matching fast-changing
conditions.
11. According to Burns and Stalker, firms facing rapid technological
change tend to perform better with:
A. Tall hierarchies
B. Organic structures
C. Mechanistic structures
D. Functional silos
ANSWER : B. Organic structures
Burns and Stalker found that organic designs outperformed mechanistic
ones in changing industries.
12. A small business owned and run by one entrepreneur who makes
nearly all decisions most likely has a:
A. Network structure
B. Simple structure
C. Divisional structure
D. Matrix structure
ANSWER : B. Simple structure
A simple structure has low departmentalization, wide spans, and authority
centralized in one person.
Page 4 of 51
MAN 320F – FOUNDATIONS OF MANAGEMENT AND ORGANIZATIONAL
BEHAVIOR | EXAM 2 AROIAN | QUESTIONS AND CORRECT ANSWERS
LATEST 2026/2027
Man 320F Exam 2 Aroian
1. Which element of organizational structure refers to the degree to
which tasks are subdivided into separate jobs?
A. Span of control
B. Formalization
C. Work specialization
D. Chain of command
ANSWER : C. Work specialization
Work specialization (division of labor) breaks work into narrow, repeated
tasks so each worker does one part of the whole.
Page 1 of 51
, Foundations of Management Exam 2
2. A manager who supervises 25 employees directly has a:
A. Matrix reporting line
B. Wide span of control
C. Narrow span of control
D. Tall structure
ANSWER : B. Wide span of control
Span of control is the number of direct reports; 25 people is a wide span that
usually goes with a flatter structure.
3. The unbroken line of authority that runs from the top of the
organization to the lowest level is called the:
A. Span of control
B. Chain of command
C. Departmental boundary
D. Line of formalization
ANSWER : B. Chain of command
The chain of command clarifies who reports to whom and connects every
position back to the top.
4. An organization in which decision making is pushed down to lower-
level employees is described as:
A. Decentralized
B. Centralized
C. Formalized
D. Mechanistic
ANSWER : A. Decentralized
Decentralization places decision authority closer to the people doing the
work.
5. The degree to which jobs are standardized and guided by rules and
procedures is known as:
A. Formalization
B. Specialization
C. Departmentalization
D. Centralization
ANSWER : A. Formalization
High formalization means written rules dictate how jobs are done, leaving
little discretion.
Page 2 of 51
, Foundations of Management Exam 2
6. Grouping employees by the products or services they produce is
called:
A. Process departmentalization
B. Product departmentalization
C. Functional departmentalization
D. Geographic departmentalization
ANSWER : B. Product departmentalization
Product departmentalization organizes units around product lines, each with
its own functions.
7. A structure in which employees report to both a functional manager
and a project manager is a:
A. Functional structure
B. Divisional structure
C. Simple structure
D. Matrix structure
ANSWER : D. Matrix structure
The matrix structure creates dual authority, which violates unity of
command but improves coordination across projects.
8. Which principle states that each employee should report to only one
supervisor?
A. Span of control
B. Scalar principle
C. Line authority
D. Unity of command
ANSWER : D. Unity of command
Unity of command avoids conflicting orders by giving every worker a single
boss.
Page 3 of 51
, Foundations of Management Exam 2
9. A mechanistic organization is best characterized by:
A. Low specialization and wide spans
B. Decentralized decisions and few rules
C. Rigid hierarchy, high formalization, and centralized control
D. Cross-functional teams and free-flowing information
ANSWER : C. Rigid hierarchy, high formalization, and centralized
control
Mechanistic designs are bureaucratic and fit stable, predictable
environments.
10. An organic organization is most suitable when the environment is:
A. Dominated by a single customer
B. Stable and simple
C. Highly regulated and predictable
D. Dynamic and uncertain
ANSWER : D. Dynamic and uncertain
Organic structures are flexible and adaptive, matching fast-changing
conditions.
11. According to Burns and Stalker, firms facing rapid technological
change tend to perform better with:
A. Tall hierarchies
B. Organic structures
C. Mechanistic structures
D. Functional silos
ANSWER : B. Organic structures
Burns and Stalker found that organic designs outperformed mechanistic
ones in changing industries.
12. A small business owned and run by one entrepreneur who makes
nearly all decisions most likely has a:
A. Network structure
B. Simple structure
C. Divisional structure
D. Matrix structure
ANSWER : B. Simple structure
A simple structure has low departmentalization, wide spans, and authority
centralized in one person.
Page 4 of 51
