Introduction to Business – Chapter 7 Test Bank | Management & Leadership Exam Questions and Answers

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Chapter 7 DESIGNING ORGANIZATIONAL STRUCTURES


TRUE-FALSE QUESTIONS

Title: ANSWER: F REFERENCE: Building Organizational Structures LEARNING OUTCOME: 1 RATIONALE:
Division of labor is process of dividing work into separate jobs and assigning tasks to workers.
1. When workers in a union elect their officers to represent them, it is an example of division of labor.
a. True
b. False

Title: ANSWER: F REFERENCE: Building Organizational Structures LEARNING OUTCOME: 1 RATIONALE:
Specialization refers to the degree to which tasks are subdivided into smaller jobs.
2. The time that an employee spends on a particular job determines his or her specialization of labor.
a. True
b. False

Title: ANSWER: F REFERENCE: Building Organizational Structures LEARNING OUTCOME: 1
RATIONALE: Organization charts are visual representation among tasks and the people given the authority
to perform those tasks.
3. Organization charts show the formal and informal relationships among people, jobs, and departments.
a. True
b. False

Title: ANSWER: T REFERENCE: Building Organizational Structures LEARNING OUTCOME: 1
4. A company that uses departmentalization groups jobs under the authority of one manager for the
purposes of planning, coordination, and control.
a. True
b. False

Title: ANSWER: F REFERENCE: Building Organizational Structures LEARNING OUTCOME: 1 RATIONALE:
Process departmentalization is departmentalization based on the goods or services produced or sold by the
organizational unit.
5. Process departmentalization is a grouping of jobs by activity, such as marketing, finance, and production.
a. True
b. False

Title: ANSWER: F REFERENCE: Contemporary Structures LEARNING OUTCOME: 2
RATIONALE: The matrix structure combines functional and product departmentalization.
6. The matrix structure is a combination of a line and a staff organization.
a. True
b. False

Title: ANSWER: T REFERENCE: Using Teams to Enhance Motivation and Performance LEARNING OUTCOME:
3
7. The standards used to determine actions acceptable to the group are called norms.
a. True
b. False

,Title: ANSWER: F REFERENCE: Using Teams to Enhance Motivation and Performance LEARNING OUTCOME:
3 RATIONALE: A work team creates synergy.
8. One of the problems with setting up groups is the strong likelihood for the organization to experience
decreased productivity.
a. True
b. False

Title: ANSWER: T REFERENCE: Using Teams to Enhance Motivation and Performance LEARNING OUTCOME:
3
9. Cross-functional teams are made up of employees from about the same hierarchical level but different
functional areas within the organization.
a. True
b. False

Title: ANSWER: F REFERENCE: Authority--Establishing Organizational Relationships LEARNING OUTCOME: 4
RATIONALE: Managerial hierarchy refers to the level of management within an organization.
10. Managerial hierarchy refers to the number of subordinates overseen by each supervisor.
a. True
b. False

Title: ANSWER: T REFERENCE: Authority--Establishing Organizational Relationships LEARNING OUTCOME: 4
11. Since the McDonald's shift manager has eight subordinates reporting to him, his span of control is
eight.
a. True
b. False

Title: ANSWER: T REFERENCE: Authority--Establishing Organizational Relationships LEARNING OUTCOME: 4
12. The nature of the task and the location of the workers affect the size of a manager's span of control.
a. True
b. False

Title: ANSWER: T REFERENCE: Building Organizational Structures LEARNING OUTCOME: 1
13. The line organization is designed with direct, clear lines of authority and communication flowing from
the top managers downward.
a. True
b. False

Title: ANSWER: F REFERENCE: Building Organizational Structures LEARNING OUTCOME: 1 RATIONALE:
Managers are in line positions.
14. An example of a staff position would be the job of district sales manager with twenty people working
for him or her.
a. True
b. False

Title: ANSWER: F REFERENCE: Degree of Centralization LEARNING OUTCOME: 5 RATIONALE: A company
that is decentralized has given a great deal of decision-making authority to lower-level managers.
15. A company that is centralized has given a great deal of decision-making authority to lower-level
managers.
a. True
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, b. False

Title: ANSWER: F REFERENCE: Degree of Centralization LEARNING OUTCOME: 5 RATIONALE: In a
centralized organization, top-level managers tend to assume all authority and make all decisions.
16. A manager in a centralized organization tends to allow subordinates to assume authority and to make
most of the decisions.
a. True
b. False

Title: ANSWER: T REFERENCE: Organizational Design Considerations LEARNING OUTCOME: 6
17. A tall organization structure has many managerial levels and a long chain of command.
a. True
b. False

Title: ANSWER: F REFERENCE: The Informal Organization LEARNING OUTCOME: 7
RATIONALE: Unsanctioned work slowdowns are an example of how informal groups can slow productivity.
18. Though the informal organization may be a force in an organization, it has no real power; so managers
don't need to worry much about it.
a. True
b. False

Title: ANSWER: T REFERENCE: The Informal Organization LEARNING OUTCOME: 7
19. The informal channels of communication of an organization are often referred to as the grapevine, the
rumor mill, or the intelligence network.
a. True
b. False

Title: ANSWER: T REFERENCE: The Informal Organization LEARNING OUTCOME: 7
20. The informal organization can help the formal organization to achieve its goals.
a. True
b. False

Title: ANSWER: T REFERENCE: The Informal Organization LEARNING OUTCOME: 7
21. An excellent way of putting the informal organization to work for the good of the company is to bring
informal leaders into the decision-making process.
a. True
b. False

Title: ANSWER: T REFERENCE: Trends in Organizational Culture LEARNING OUTCOME: 8
22. An organization that has undergone reengineering has completely redesigned its business structures
and processes in order to improve operations.
a. True
b. False

Title: ANSWER: F REFERENCE: Trends in Organizational Culture LEARNING OUTCOME: 8
RATIONALE: The purpose of reengineering is to improve production operations.
23. The primary purpose for any reengineering is to make an organization compliant with changes in its
external environment.
a. True
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