Testbank of fundamental of management 7e by robin ch 05

Diff: 1 Page Ref: 124 Objective: 5.1 44 All of the following are part of the process of organizational design EXCEPT ________.A decide how specialized jobs should be B determine rules fo

Fundamentals of Management, 7e (Robbins/DeCenzo/Coulter)

Chapter 5 Organizational Structure and Culture

1) Organizational design is the process in which managers change or develop an organization's structure

Diff: 2 Page Ref: 125

Monotonous assembly-line work seems to have diminishing returns

Diff: 2 Page Ref: 125

Objective: 5.1

6) The advantage of work specialization is that it tends to result in high employee motivation andhigh productivity.

Diff: 2 Page Ref: 126

AACSB: Analytic Skills

12) Power is a right that a manager has when he or she has a higher rank in an organization.Answer: FALSE

Explanation: Power can arise from rank, but it also can arise from a particular skill, knowledge,

or access within the organization The boss's secretary has power to gain access to the boss without having a high rank in the organization

Diff: 2 Page Ref: 130

15) The two prevalent organization structure models in today's world are the organic

organization and the inorganic organization

Answer: FALSE

Explanation: The two structures are termed organic and mechanistic.

Diff: 1 Page Ref: 134

18) Innovators need the efficiency, stability, and tight controls of a mechanistic structure rather than an organic structure.

Answer: FALSE

Explanation: Innovators usually do better in a flexible organic structure where they are given leeway to think creatively

Diff: 2 Page Ref: 135

AACSB: Analytic Skills

Diff: 3 Page Ref: 135-136

AACSB: Analytic Skills

23) The strength of a simple system is that everything depends on a single person.

Answer: FALSE

Explanation: Having a single person be the repository of all organizational knowledge and power is a liability rather than a strength in many cases, if the person suddenly becomes

unavailable or unwilling to perform his or her duties

Diff: 2 Page Ref: 137

Diff: 2 Page Ref: 138

Objective: 5.3

25) A weakness of the divisional structure is that duplication tends to occur

Answer: TRUE

Explanation: A divisional structure can duplicate entire departments whose tasks could

otherwise be carried out by a single, centrally located department

Diff: 2 Page Ref: 138

29) Employees in an organization with a matrix design can have two bosses for the same job.Answer: TRUE

Explanation: An employee in a project group can have a project manager in addition to a manager from his or her functional department

Diff: 2 Page Ref: 140

Objective: 5.3

30) A significant advantage of the matrix structure is the clear chain of command from top to bottom of the organization

Answer: FALSE

Explanation: In a matrix structure in which employees can have multiple supervisors, the chain

of command can become confused and conflicts can arise

Diff: 2 Page Ref: 140

Explanation: Vertical boundaries refer to the classic corporate pyramid in which rank is

measured by how high vertically you are on the pyramid

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Diff: 2 Page Ref: 141

AACSB: Analytic Skills

35) Managers want to eliminate boundaries in organizations primarily to increase stability and reduce flexibility.

Diff: 2 Page Ref: 141

AACSB: Analytic Skills

41) An organization's founder has little influence on its culture.

Diff: 3 Page Ref: 147

AACSB: Ethical Understanding and Reasoning Abilities

Objective: 5.4

43) Organizational design requires a manager to

A) organize groups within an organization

B) change the culture of an organization

C) change or develop the structure of an organization

D) change the logo of an organization

Answer: C

Explanation: C) By definition, organizational design requires that an individual develop or change an organization's structure Changing organizational culture or organizing groups may influence structure in minor ways, so those choices are incorrect Changing the logo of the organization also does not constitute creating or significantly modifying the organization's structure

Diff: 1 Page Ref: 124

Objective: 5.1

44) All of the following are part of the process of organizational design EXCEPT .A) decide how specialized jobs should be

B) determine rules for employee behavior

C) determine the level at which decisions are made

D) determine goals for the organization

Answer: D

Explanation: D) Organizing jobs, formulating rules, or clarifying a decision-making process are all clearly examples of developing an organization's structure Determining goals is part of establishing an organization's mission, not creating its structure that will help carry out that mission

Diff: 2 Page Ref: 124

Objective: 5.1

45) Which of the following are NOT basic elements of organizational structure?

A) work specialization, span of control

B) chain of command, line authority

organizational structure, so "chain of command, line authority" is the correct response

Diff: 2 Page Ref: 124

Diff: 2 Page Ref: 124

Objective: 5.1

47) Which statement accurately defines work specialization?

A) It is the degree to which tasks are grouped together

B) Individual employees specialize in doing part of an activity rather than the entire activity.C) Jobs are ranked relative only to their worth or value to the businesses

D) Work specialization clarifies who reports to whom

Diff: 3 Page Ref: 124

AACSB: Analytic Skills

Objective: 5.1

48) Early supporters of work specialization saw it as .

A) a reliable way to increase productivity

B) a good way to increase employee morale

Diff: 2 Page Ref: 125

AACSB: Analytic Skills

Objective: 5.1

49) Early users of work specialization early in the twentieth century found that the practice ultimately resulted in

A) higher profits and better employee morale

B) bored workers with low morale

C) huge and permanent productivity gains

D) better communication among employees

Answer: B

Explanation: B) While managers initially saw profit and productivity gains in work

specialization, the gains were not huge, not permanent, and not accompanied by increases in morale, so these choices are incorrect Better communication was never observed by managers

so that choice is incorrect After initial gains, managers did see an inevitable drop in morale of employees as they contended with drudgery, making "bored workers with low morale" the correct response

Diff: 3 Page Ref: 125

AACSB: Ethical Understanding and Reasoning Abilities

Objective: 5.1

50) Today, managers favor this approach instead of work specialization

A) All tasks are performed by all employees

B) Partners switch jobs every half hour

C) Employees perform a broad range of tasks

D) Monotonous tasks are shared by all employees

Answer: C

Explanation: C) Today's managers prefer an approach in which employees perform many tasks, eliminating monotony The other choices given here have been tried in isolated cases, but none constitute a prevalent approach of today's managers

Diff: 2 Page Ref: 125

AACSB: Analytic Skills

Objective: 5.1

51) Functional departmentalization groups jobs by .

A) tasks they perform

B) territories they serve

C) products or services they manufacture or produce

D) type of customer they serve

Answer: A

Explanation: A) The choice regarding territories describes geographic departmentalization, while the choice regarding products or services describes product departmentalization, and the choice regarding type of customer describes customer departmentalization That makes "tasks they perform" the correct response, as functional departmentalization groups employees by the jobs they perform

Diff: 2 Page Ref: 126

Diff: 2 Page Ref: 126

AACSB: Analytic Skills

Objective: 5.1

54) What kind of departmentalization would be in place in a government agency in which there are separate departments that provide services for employers, employed workers, unemployed workers, and the disabled?

is correct and the other choices incorrect

Diff: 2 Page Ref: 126

AACSB: Analytic Skills

on This makes "process" correct

Diff: 2 Page Ref: 126

Objective: 5.1

56) The line of authority that extends from the upper levels of management to the lowest levels

of the organization is termed the

Diff: 1 Page Ref: 127

Objective: 5.1

57) The chain of command answers this question.

A) Where do I go for help?

B) How do I know when the task is complete?

C) What are the rules?

D) Who reports to whom?

Answer: D

Explanation: D) The classic description of the chain of command is that it determines who reports to whom The other questions given here—asking for help, knowing when work is complete, and learning the rulesdo not explicitly involve authority, so they are incorrect.Diff: 2 Page Ref: 128

Diff: 1 Page Ref: 128

Objective: 5.1

59) In the chain of command, each person above you

A) has special privileges

B) receives higher pay

C) has line authority

D) has no right to give you orders

Answer: C

Explanation: C) Line authority is the explicit right to issue orders to a subordinate People of higher rank may or may not receive special privileges or more pay than people below, so those choices are incorrect Finally having no right to give you orders can be eliminated because it is the opposite of the correct answer

Diff: 2 Page Ref: 128

Objective: 5.1

60) Staff managers have authority over .

A) special support employees only

Diff: 2 Page Ref: 128

Objective: 5.1

61) Line authority gives a manager the ability to direct the work of

A) any employee in the firm

B) any subordinate

C) any subordinate, after consulting with the next higher level

D) only subordinates one level down

Answer: B

Explanation: B) Line authority is the explicit right to issue orders or direct the activities of any subordinate Line authority confers this right to a manager without any prior consultation with higher-ups This makes "any subordinate" the correct response "Any subordinate after

consulting with the next higher level" is incorrect because line authority extends only downward,not up to higher-ranking individuals

Diff: 2 Page Ref: 128

AACSB: Analytic Skills

Diff: 2 Page Ref: 128

AACSB: Analytic Skills

Objective: 5.1

63) The importance of unity of command has diminished in today's workplace because of its tendency to be .

command is not ethically questionable, so that choice can be eliminated Similarly, though there may be an element of veracity in the remaining two choices, they can both be ruled out since being dictatorial or overly decisive are not causes of the diminution of unity of command

Diff: 2 Page Ref: 129

Diff: 2 Page Ref: 130

AACSB: Analytic Skills

to the number of employees who report to a manager, so it is also an incorrect choice

Diff: 1 Page Ref: 130

Objective: 5.1

66) The personal secretary of a top manager may have .

A) power but not authority

B) authority but not power

C) power and authority

D) line authority but not staff authority

Answer: A

Explanation: A) A secretary who controls access to the boss wields power in his ability to grant people entrance, but he does not have authority to issue orders or assignments Therefore the secretary has power without authority This makes "power but not authority" the correct choice and renders the other three choices all incorrect

Diff: 3 Page Ref: 131

AACSB: Analytic Skills

Objective: 5.1

67) Which of the following statements is true?

A) Power is a type of authority

B) Authority and power are identical

C) Authority is a type of power

D) Power is determined by horizontal position in an organization

Answer: C

Explanation: C) Authority is a subset of power Authority is the power to give orders and make assignments This makes authority as a type of power the correct choice and causes power as a type of authority and authority and power being identical to be incorrect because neither one of them identifies authority as a type of power Finally, power being determined by horizontal position in an organization is incorrect because power is determined by both the horizontal and vertical position of a person in an organization

Diff: 3 Page Ref: 130

AACSB: Analytic Skills

Objective: 5.1

68) As represented in a power cone, power is based on

A) vertical position only

B) horizontal position only

C) distance from the center only

D) vertical position and distance from the center

Answer: D

Explanation: D) Vertical position by itself determines authority, not power, so vertical position only is incorrect Horizontal position on its own determines neither power nor authority, so horizontal position only is incorrect Distance from the center only partly defines power, so that choice is incorrect The remaining choice gives the correct relationship: power is determined by both vertical position and the horizontal distance from the center power core of the diagram.Diff: 3 Page Ref: 130-131

AACSB: Analytic Skills

Objective: 5.1

69) As represented in a hierarchical organization diagram, authority is based on .A) vertical position only

B) horizontal position only

C) distance from the center only

D) horizontal and vertical position

Answer: A

Explanation: A) In a hierarchical organization diagram, vertical position is a measure of

authority The person at the top therefore has the most authority and the person on the bottom theleast, making vertical position only the correct choice All three other possibilities listed feature ahorizontal dimension so all three are incorrect

Diff: 3 Page Ref: 130-131

AACSB: Analytic Skills

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72) A bank manager who passes out bonuses at the end of the year is exercising this.

Diff: 2 Page Ref: 131

AACSB: Analytic Skills

Explanation: C) Legal advice is a type of expertise so expert is the correct response The

attorney's power is not based on fear, so coercive is incorrect Legitimate and status are both incorrect because both refer to a type of hierarchical power, not power that comes from

expertise

Diff: 2 Page Ref: 131

AACSB: Analytic Skills

Diff: 2 Page Ref: 131

Objective: 5.1

75) When a top manager decides to hire an individual over the objections of her staff she is exercising which kind of power?

Explanation: D) When the manager does what she wants over the objection of subordinates she

is exploiting her position of authority in the vertical organizational hierarchy—in other words, she is using legitimate power None of the other choices refers to the vertical power that comes from one's position in the corporate pyramid

Diff: 3 Page Ref: 131

AACSB: Analytic Skills

organizations become more sophisticated and workers become better trained and more

accountable, the span of control has increased in size

Diff: 1 Page Ref: 132

Objective: 5.1

77) Modern managers find that they can if their employees are experienced, trained, and motivated

well-A) increase their span of control

B) decrease their span of control

C) eliminate their span of control

D) fluctuate their span of control

Diff: 2 Page Ref: 133

Objective: 5.1

78) A traditional "top down" organization is organization.

AACSB: Analytic Skills

Objective: 5.1

79) reflects the degree to which decision making is distributed through out the

hierarchy rather than concentrated at the top

Diff: 2 Page Ref: 133

81) In today's decentralized business world, the most important strategic decisions.A) top managers still primarily make

B) middle managers make

Diff: 2 Page Ref: 133

Objective: 5.1

82) All of the following are characteristics of a highly formalized organization EXCEPT

A) explicit job descriptions

B) little discretion for employees

C) minimum number of rules

D) a standardized way of doing things

Answer: C

Explanation: C) A formalized organization is very precise and bureaucratic Jobs are precisely defined; employees are given little leeway in how they carry out tasks, rules are given great emphasis, and most activities are routinized and standardized Since rules are important in this kind of an organization, you would not expect a minimum of rules, making it the correct

response for this question

Diff: 2 Page Ref: 134

Diff: 2 Page Ref: 134

Objective: 5.1

84) Today's managers expect employees to .

A) ignore rules for the most part

B) use discretion when it comes to following rules

C) faithfully follow rules even when it may harm the organization

D) make their own rules

Answer: B

Explanation: B) Rules have been de-emphasized in today's business environment, but not forgotten This rules out ignoring rules and faithfully following rules as the correct answer Managers don't want to go so far as having employees make their own rules, which eliminates that choice The correct response is using discretion, which reflects a decentralized view of management in which employees participate in decision making—including the decision to interpret rules

Diff: 2 Page Ref: 134

AACSB: Ethical Understanding and Reasoning Abilities

featuring highly empowered employees, few rules, and flexible, decentralized decision making Horizontal is incorrect because it does not describe a recognized organizational model

Diff: 1 Page Ref: 134

Objective: 5.2

86) Which of the following would likely be found in mechanistic organizations?

A) wide span of control

Diff: 2 Page Ref: 134

Objective: 5.2

87) A(n) organization is able to change rapidly as needs require.

Explanation: A) The hallmark of an organic organization is its ability to be flexible and change

in response to a dynamic business environment Hierarchical, vertical, and mechanistic

organizations are entities that do not adapt well to new situations, so these choices are incorrect.Diff: 1 Page Ref: 134

Explanation: C) Flexibility is the key to an organic organization, making that choice correct

The terms hierarchical, pyramid-shaped, and fixed all correlate with a mechanistic organization,

so each of these choices is incorrect

Diff: 2 Page Ref: 134

AACSB: Analytic Skills

organization is hierarchical, depending on vertical relationships for the way business is

conducted, so hierarchical is correct

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AACSB: Analytic Skills

Objective: 5.2

90) Strategy, size, technology, and the degree of uncertainty in the environment together make

up what are called

Diff: 1 Page Ref: 135

typically changes to become more nimble and adaptable so it can change quickly Since degree

of uncertainty is a contingency variable, this makes structure of an organization the correct response and renders the other terms incorrect

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typically work better for innovation and creativity rather than the cost-cutting measures needed for a cost-leadership strategy

Diff: 2 Page Ref: 135

AACSB: Analytic Skills