Chapter 7 - ORGANIZING THE BUSINESS ENTERPRISE

What best describes job specialization in an organization?

• The process of grouping jobs into logical units

• The process of breaking down activities into specific jobs

• The process of establishing reporting relationships

• The process of delegating authority to managers

In a centralized organization:

• Decision-making authority is pushed down to lower levels

• There are very few layers of management

• Top management retains most decision-making rights

• Authority is equally distributed among all levels

Which type of departmentalization would be most appropriate for a large retail store that serves different customer segments?

• Functional departmentalization

• Geographic departmentalization

• Customer departmentalization

• Process departmentalization

Line authority refers to:

• The power to advise other managers

• The authority given to temporary project teams

• The power to make decisions needed to achieve organizational goals

• The authority based on special expertise

Which organizational structure divides the organization into semi-autonomous divisions that act as profit centers?

• Functional structure

• Matrix structure

• Divisional structure

• Team structure

What is the span of control?

• The number of departments in an organization

• The number of subordinates a manager can effectively supervise

• The total number of employees in an organization

• The number of management levels in an organization

In a matrix organization:

• Employees report to only one manager

• There is a strict hierarchical structure

• Employees report to both functional and project managers

• All authority is centralized

A virtual organization is characterized by:

• Having many layers of management

• Having a large number of permanent employees

• Having a rigid organizational structure

• Having minimal permanent structure and outsourcing work as needed

Which of the following is a characteristic of a learning organization?

• Strict adherence to traditional hierarchies

• Resistance to change

• Facilitation of lifelong learning and development

• Focus on short-term results only

The informal organization refers to:

• The official organizational chart

• The everyday social interactions among employees

• The formal chain of command

• The written company policies