The two basic building blocks of all business organizations are

• functional and divisional departmentalization.

• specialization and departmentalization.

• centralization and decentralization

• profit centres and divisions.

Departmentalization refers to

• the grouping of specialized jobs into logical units.

• the technique of measuring employee performance
• the strategy of increasing sales through marketing
• the method of hiring new employees for a company

Jessica has set up a team within her company that manages its own budget, generates its own income, and is evaluated based on its profitability. This team is considered a:

• service centre

• revenue center
• cost center
• profit center

Sunnyvale Tech has distinct divisions for software development and hardware production. The company is departmentalized by:

• geography

• product

• customer

• function

Delegation is

• the process of micromanaging every detail of a project
• a method of avoiding accountability in a team
• the act of taking responsibility for someone else's tasks
• the process of assigning responsibility or authority to another person to carry out specific activities.

Accountability is

• a measure of financial performance.
• the obligation to explain, justify, and take responsibility for actions and decisions.
• the ability to delegate tasks to others.
• the process of setting goals and objectives.

The power to make decisions necessary to complete a task is called

• responsibility
• delegation
• supervision
• authority

True or false

Delegating authority includes checking up on subordinates frequently to ensure that they do not make mistakes.

• True
• false

Which of the following best describes a centralized organization?

• A) Decision-making authority is distributed among various levels of management.

• B) Most decisions are made by a small group of top executives.

• C) Employees have significant autonomy in their roles.

• D) Communication flows freely in all directions within the organization.

Span of control refers to

• the level of authority a manager has
• the duration of a manager's employment in a company
• the total number of employees in a company
• the number of subordinates a manager supervises