BM I Organizational Design EC 103

Businesses use organizational design to structure their

• people, information, and technology.

• people, information, and competitors.

• information, technology, and competitors.

• technology, people, and competitors.

Because of a business’s organizational design, its employees are able to work together to come up with a brand-new product. The business’s employees are engaged in

• division of labor.

• competition.

• authority.

• innovation.

A well-planned organizational design helps a business better compete because

• competitors don’t have organizational structures.

• it cuts down on communication.

• the business is more productive.

• the business has more money.

The saying “form follows function” indicates that organizational design must fit with organizational

• image.

• objectives (purpose)

• facilities.

• income.

Mason is the vice president of marketing at his company. He directly supervises everyone who works in the department. Mason has __________ authority.

• functional

• divisional

• line

• staff

Keri works as a public relations consultant for a large corporation. She reviews issues and makes recommendations to managers. Keri has __________ authority.

• functional

• divisional

• line

• staff

Nathan is a project manager in charge of four other employees. He has divided up responsibilities and assigned them to specific team members. This is known as

• delegation.

• innovation.

• unity of command.

• the scalar principle.

At a hair salon, one employee washes customers’ hair, another employee cuts it, and another dries and styles it. This allows the employees to make the most efficient use of their time and illustrates an organizational principle known as

• span of control.

• division of labor.

• authority.

• innovation.

A business creates an organizational design in which no employee has to report to more than one manager at a time. This is following an organizational principle called

• unity of command.

• the scalar principle.

• span of control.

• line authority.

Which principle of organizational design states authority should flow in a clear, unbroken line from the top of an organization to the bottom?

• Span of control

• Staff authority

• Responsibility

• Scalar principle