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Chapter 8 Bus 101
1. Which of the following was created as an answer to the temporary nature of the matrix structure?
A. line organizations
B. cross-functional self-managed teams
C. line-and-staff organizations
D. network organizations
2. __________ believed that managers were to be trusted and the firm would do well if employees simply did
what they were told.
A. John Keynes
B. Adam Smith
C. Peter Drucker
D. Max Weber
3. Which of the following positions would be classified as a staff position?
A. an assembly line worker for a major auto manufacturer
B. the chief executive officer of a small corporation
C. a sales manager for a chain of clothing stores
D. a lawyer employed in the legal department of a manufacturing corporation
4. Which of the following determines the degree of decentralization a firm might use?
A. the degree to which lower level management is empowered to make decisions
B. the chain of command used to follow the flow of authority from top of the hierarchy to the lowest levels
C. the geographical area served by the firm's operations
D. the degree of product standardization desired by the marketplace
5. Which of the following is considered to be an advantage of functional departmentalization?
A. Employees begin to identify with their department and its goals rather than with the goals of the entire
organization.
B. People in the same department tend to think very differently.
C. Departments are isolated from one another.
D. Employee skills can be developed in depth.
6. Henri Fayol and Max Weber are best known for their contributions to:
A. production theory.
B. marketing theory.
C. organization theory.
D. finance theory.
7. A ____________ organization is characterized by direct two-way lines of responsibility, authority, and
communication running from the top to the bottom of the organization, with all people reporting to only one
supervisor.
A. matrix
B. cross-functional
C. line
D. line-and-staff
8. In a(n) __________ organization, there are many layers of management who set rules and regulations that
everyone in the organization is expected to follow.
A. matrix
B. inverted
C. ordered
D. bureaucratic
9. Which of the following is true of cross-functional teams?
A. Cross-functional teams are required not to share information across national boundaries.
B. Employees on the teams are frustrated by organizational rules and regulations.
C. Cross-functional teams work best when the voice of the customer is brought into the organization.
D. Cross-functional teams are disbanded once the current project is complete.
10. In an inverted organization, the job of management is to:
A. closely monitor employee performance. B. establish rules and regulations to guide worker behavior.
C. make all of the basic decisions.
D. assist and support front-line people.
11. The optimum number of subordinates a manager can supervise is referred to as the:
A. manager-subordinate ratio.
B. chain of command.
C. employee quota.
D. span of control.
12. In a bureaucratic organization:
A. departments communicate with each other on a regular basis.
B. employees follow strict rules and regulations.
C. customer satisfaction is the number one priority.
D. the first-line workers are empowered to respond to the needs of customers.
13. An organization that consists of many layers of management is referred to as a(n) ____________
organization.
A. flat
B. wide
C. tall
D. deep
14. Which of the following statements would best summarize Max Weber's views on the role of workers in an
organization?
A. Workers should be empowered to do whatever it takes to satisfy the needs of customers.
B. Workers are the part of an organization that is responsible for establishing rules and procedures needed to
carry out the decisions of top management.
C. Workers should simply do as they are told.
D. Although top managers must ultimately make the decisions, workers are an important creative resource for a
firm, and top management should listen to their ideas.
15. Which term describes a company being so open to other companies working with it that electronic
information is shared as if the companies were one?
A. web-based corporations
B. webworking
C. transparency
D. e-connected
16. Which of the following describes a temporary networked organization made up of replaceable firms that
join and leave as needed?
A. web-based corporation
B. benchmark outsourcing system C. network system
D. virtual corporation
17. The widely shared values within an organization that provide unity and cooperation to achieve common
goals are together known as the:
A. normative matrix. B. predefined group values. C. ethical system.
D. organizational culture.
18. The ___________ is the nerve system of the informal organization.
A. organizational database B. intranet
C. grapevine
D. company newsletter
19. Compared to the decentralized management structure, which of the following is a disadvantage of the
centralized management structure?
A. potential for interorganizational conflict
B. less top management control
C. less efficient
D. complex distribution system
20. __________ 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
21. Staff positions in an organization:
A. strengthen the line positions.
C. are less well-paid than line positions.
B. are inferior to line positions.
D. are ways to employ past CEOs until they retire.
22. Which of the following describes an environment in which data is instantly available via the Internet to
organizational partners?
A. networking
B. real time C. virtual business
D. e-commerce
23. The term mass production refers to:
A. producing large specialized items. B. efficiently producing large quantities of goods.
C. the production of religious icons.
D. two or more firms combined to better meet the needs of customers.