IBM160 - Final Exam - Part 1

Dividing the required work among a group of employees is called:

• division of labour.

• departmentalization.

• separation of control.

• delegation of responsibility.

The process of setting up individual departments to do specialized tasks is called:

• a division of labour.

• delegation of authority.

• job specialization.

• departmentalization.

The concept of ____________ suggests that as a firm produces more, the more efficient it becomes.

• natural growth

• survival of the fittest

• cost enhancement

• economies of scale

Bill is a financial manager at Carlyle Bank and Trust who always strives to treat each subordinate with respect and fairness. Bill's treatment of employees is an example of Fayol's principle of:

• unity of command.

• equity.

• empowerment.

• priority of assignment.

The line of authority that moves from the top of a hierarchy to the lowest level is called the:

• chain of logic.

• chain of command.

• organizational design.

• delegation of authority.

In a(n) _____________ organization, decision-making authority is maintained at the top level of management.

• bottom-up

• decentralized

• inverted

• centralized

An organization that consists of many layers of management is referred to as a ____________ organization.

• flat

• wide

• tall

• deep

An organization with only a few layers of management is known as a:

• tall organization.

• flat organization.

• leveraged organization.

• coordinated organization.

In recent years, large organizations have tried to improve their efficiency in communication and decision making by:

• creating specific rules for everyone to follow.

• eliminating several layers of management.

• restructuring into a bureaucratic organization.

• reducing the span of control for managers

Which of the following describes a networked organization made up of replaceable firms that join the network and leave it as needed?

• Web-based corporation

• Benchmark outsourcing system

• Network system

• Virtual corporation