BM Exam Review

Jill’s company just took on a new project, and she knows that she needs to decide which staff members will be in charge of each aspect of the project. Jill is

• staffing

• organizing

• planning

• controlling

When managers are grouping related tasks into departments or teams, they are

• instructing employees about how to spend their time

• allocating the company’s resources

• determining the organizational structure

• analyzing the external business environment

Nick is the CEO of a business. The vice presidents of marketing, product development, finance, and operations all report to him, and they each have their own teams made up of several employees. This is a _________ structure.

• matrix

• divisional

• functional

• specialized

An organization with a wide span of control usually. Mark only one oval.

• does not give managers enough direct reports

• uses a divisional organizational structure

• gives little control to the CEO

• has a lack of middle managers

A chain of command must have unity of command, which means that.

• authority should flow from the top of the organization down

• employees should only report to one supervisor.

• the company should be related to one skill

• the company should be organized in functional departments

Larissa tells her employees to spend one-third of their time on sales reports, one-third on answering emails, and one-third on generating new leads. This is an example of which step of the organizing process? Mark only one oval.

• evaluating results

• group tasks into structures

• delegating authority

• allocating resources

Yabbie’s BBQ just hired several new staff members, so it decides to increase the number of managers working at once. This is an example of how...

• employees’ competence affects organizing decisions

• the size of an organization affects organizing decisions

• organizing must be done before staffing decisions are made

• organizing keeps a business cohesive and coordinated

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. Mark only one oval.

• span of control

• division of labor

• authority

• innovation

A manufacturing company is well-suited for a divisional organizational structure broken down by...

• job function

• customer type

• product

• process

A banking institution is well-suited for a divisional organizational structure broken down by. Mark only one oval.

• job function

• customer type

• product

• process