Topic 8

________ refers to the rights inherent in a managerial position to tell people what to do and to expect them to do it.

• A) Responsibility

• B) Liability

• C) Bureaucracy

• D) Authority

In the early 20th century, automobiles were made one at a time by craftsmen who could perform every operation necessary to build the car. Henry Ford decided to limit the number of tasks each worker performed so each person could become expert in his position. With this practice, Ford introduced ________.

• A) departmentalization

• B) work specialization

• C) centralization

• D) formalization

________ is the degree to which decision making takes place at upper levels of the organization.

• A) Centralization

• B) Decentralization

• C) Formalization

• D) Departmentalization

A(n) ________ organization is highly specialized and rigidly departmentalized.

• A) organic

• B) complex

• C) learning

• D) mechanistic

Organizational design is a process that involves decisions about ________.

• A) work specialization and cost-leadership

• B) chain of command and span of control

• C) centralization and differentiation

• D) departmentalization and diversification

Which of the following traditional organizational designs focuses on results by holding division managers responsible for what happens to their products and services?

• A) Simple structure.

• B) Functional structure.

• C) Divisional structure.

• D) Matrix structure.

A ________ is an organizational design that groups similar or related occupational specialties together.

• A) matrix structure

• B) functional structure

• C) divisional structure

• D) simple structure

In stable and simple environments, ________.

• A) organic designs are most effective

• B) mechanistic designs are most effective

• C) low formalization is necessary

• D) decentralization is necessary

Peter works in a mid-sized organization with other skilled workers who all pitch in to do what needs to be done to satisfy the customer. It is likely Peter works in a ________ organization.

• A) formalized

• B) decentralized

• C) departmentalized

• D) cross-functional

Michelle is very concerned about the formal framework by which job tasks are divided, grouped, and coordinated within her unit. This implies that she is concerned about ________.

• A) the chain of command

• B) the organizational structure

• C) the organizational design

• D) decentralization