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Due to more emphasis on empowerment and more talented and better-educated lower-level management, span of control in organizations has ________.


A) increased
B) decreased
C) become an obsolete term in organization design
D) led to tall organizations

E) All of the above
F) A) and B)

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One advantage of a bureaucratic organization is that


A) it is very responsive to the wants and needs of customers.
B) there are very few layers of management.
C) it encourages cooperation among different departments within the organization.
D) employees know they are expected to follow the rules and regulations.

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

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An organization's core competencies are those functions that the firm performs as well as or better than anyone else in the world.

A) True
B) False

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Most businesses adopt a bureaucratic organization in order to speed up their decision-making process.

A) True
B) False

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________ refers to companies headquartered abroad who elect to bring production and manufacturing to domestic subsidiaries.


A) Outsourcing
B) Insourcing
C) Production transition
D) Production transformation

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

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When management structures the organization, it clarifies who gets to make decisions, how many people report to one manager, and how many different departments the company needs in order to operate effectively.

A) True
B) False

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The functions that a company can perform as well as or better than anyone else in the world are known as that firm's optimized capabilities.

A) True
B) False

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According to Fayol's principle of authority, if you have authority you also have responsibility.

A) True
B) False

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________ believed that managers were trustworthy and companies would do well if employees simply did what they were told.


A) John Keynes
B) Adam Smith
C) Peter Drucker
D) Max Weber

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

Correct Answer

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Dividing the required work among a group of employees is called


A) departmentalization.
B) delegation of responsibility.
C) division of labor.
D) separation of control.

E) A) and B)
F) All of the above

Correct Answer

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In large businesses, a line organization provides firms the ability to respond quickly to a changing environment.

A) True
B) False

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Matrix organizational structures were first developed in


A) Japan.
B) the aerospace industry.
C) the dot-com Internet industry.
D) the chemicals industry.

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

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________ refer to those functions that an organization does as well as, or better than, any other organization in the world.


A) Primary functions
B) Comparative strengths
C) Residual functions
D) Core competencies

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

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The very best organizations have cultures that emphasize service to others, especially customers.

A) True
B) False

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Fayol's ________ principle says that workers' attitudes can create an environment of pride and loyalty within an organization.


A) esprit de corps
B) hierarchy of loyalty
C) unity of command
D) equity

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

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Line organizations clearly define the lines of authority and responsibility.

A) True
B) False

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Max Weber's organizational theories require an educated workforce to operate efficiently.

A) True
B) False

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Holden just learned that several people in New Hampshire needed to be treated for food poisoning after eating peanut butter that was produced and jarred in his plant. As he walks the back stairs at the plant, he thinks to himself, "It's time to get the informal organization in on this. We've got to stop this in its tracks!" Holden is taking the right approach to solving this serious problem.

A) True
B) False

Correct Answer

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Brady developed two VR games. However, he didn't do it all on his own. He hired two programmers, a marketing specialist, and created a small company. He considers himself a pioneer and wants to position his company the same way. He solicits your advice as to how he should structure his organization as he moves forward, and you suggest that he hire a few potential customers to join his team of employees as beta testers. You also suggest that maybe he should solicit globally. You are suggesting to Brady that he put together a


A) line organization model.
B) line-and-staff organization model.
C) matrix organization model.
D) cross-functional team.

E) B) and D)
F) A) and C)

Correct Answer

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In a ________ organization, specialists from different parts of the organization are brought together on a temporary basis to work on specific projects.


A) matrix
B) line
C) line-and-staff
D) centralized

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

Correct Answer

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