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WorksheetsBusiness Organization Quiz
Total questions: 100
Worksheet time: 50mins
Organizing a business begins with:
determining the work to be done
hiring employees
setting up departments
creating a marketing plan
Dividing the required work among a group of employees is called:
job specialization
departmentalization
division of labor
job rotation
Dividing tasks into smaller jobs is called:
job rotation
job specialization
division of labor
departmentalization
The process of setting up individual functional units of the business to do specialized tasks is called:
job specialization
division of labor
departmentalization
job rotation
Job specialization is known to:
reduce costs
improve job performance
increase employee turnover
decrease efficiency
Which of the following is an example of a move to reorganize?
Increasing employee benefits
Reducing the labor force within your business
Expanding product lines
Hiring more managers
The proven success of job specialization lies in the fact that:
it increases the number of employees
it adds efficiency to the business's operation by identifying tasks that some do better than others
it reduces the need for training
it eliminates the need for managers
Which statement best expresses the theme of the discussion in the "Making Ethical Decisions" box titled "Would You Sacrifice Safety for Profit?"
The corporate culture you create as you begin your service will last a long time. Your workers will adopt your values.
Safety should always be sacrificed for profit.
Profit is the only important factor in business.
Workers will never adopt the values of their leaders.
What does Brett's identification of tasks and assignment of employees to each task illustrate?
Division of labor
Economies of scale
Unity of command
Organization theory
Which of the following should you NOT advise your friend to do when structuring a graphic design business idea?
Prepare the nonchangeable marketing plan for the next three years, including marketing analysis and marketing strategy
Assign tasks to employees
Develop a flexible business strategy
Analyze market trends regularly
The concept of __________ suggests that as a firm produces more, the average cost of goods produced goes down.
Economies of scale
Division of labor
Unity of command
Organization theory
Henri Fayol and Max Weber are best known for their contributions to:
Organization theory
Economies of scale
Division of labor
Unity of command
What does it mean that organization theorists emerged during the era of mass production?
The development of ways to produce a large quantity of product efficiently
The focus on individual craftsmanship
The reduction of worker specialization
The elimination of management roles
Fayol's __________ principle states that each worker should report to one, and only one, boss.
Unity of command
Division of labor
Economies of scale
Organization theory
Fayol's __________ principle says that tasks should be divided into areas of specialization.
Division of labor
Unity of command
Economies of scale
Organization theory
Fayol's __________ principle says that workers' attitudes can create an environment of pride and loyalty within an organization.
esprit de corps
division of labor
unity of command
scalar chain
__________ believed that managers were trustworthy and companies would do well if employees simply did what they were told.
Henri Fayol
Max Weber
Frederick Taylor
Elton Mayo
Max Weber used the term ________ to describe middle managers whose job was to implement the orders of top management.
supervisors
bureaucrats
directors
coordinators
A(n) ________________ is a visual device which shows relationships among people and divides the organization's work.
flowchart
organization chart
pie chart
Gantt chart
In Weber's view of a bureaucratic organization, the role of top management is to
supervise employees
make decisions
train staff
handle finances
In Weber's view of a bureaucratic organization, the organization demands
flexible rules
clearly established rules and guidelines that to be precisely followed
informal communication
creative freedom
The line of authority that moves from the top of a hierarchy to the lowest level is called the
reporting line
chain of command
management chain
authority line
A(n) __________ consists of one person at the top of the organization and many levels of managers who are responsible to that person.
network
hierarchy
team
committee
A(n) ________ is used by an organization to show who is accountable for the completion of specific work and who reports to whom.
organization chart
financial statement
marketing plan
job description
In a bureaucratic organization, what do employees typically do?
follow strict rules and regulations
work independently without supervision
make all major decisions
ignore company policies
One advantage of a bureaucratic organization is that:
employees know they are expected to follow the rules and regulations
employees have complete freedom in decision-making
there are no formal procedures
management is absent
__________ organizations are characterized by many layers of management and function with well-defined rules and procedures.
Bureaucratic
Entrepreneurial
Informal
Flexible
What does the term "economies of scale" refer to?
are achieved when a firm reduces its average cost of production as it produces more
are achieved when a firm increases its prices
are achieved when a firm hires more employees
are achieved when a firm expands into new markets
Max Weber favored which of the following?
Staffing and promotions based on qualifications
Promotions based on seniority only
Hiring based on personal relationships
Staffing based on random selection
According to Fayol, where should decision-making authority remain in small organizations?
in the hands of top management
with all employees
with external consultants
with customers
Which of the following statements explains the unity of command principle of management?
Workers can become frustrated and confused if they have more than one boss
Workers should always work in teams
Workers should report to multiple managers
Workers should make decisions independently
If companies follow the theories of Fayol and Weber, which of the following scenarios is likely to result?
Organizations that grow will develop several layers of management and the time that it takes to make and carry out a decision will increase
Organizations will become more flexible and decisions will be made quickly
Organizations will eliminate all management layers
Organizations will allow employees to make all decisions
Which of the following statements most closely identifies the problem with adopting Fayol's principles of organization design for contemporary businesses?
The rule making that develops from these principles creates organizations that don't respond quickly to customer needs
These principles encourage innovation and flexibility
Fayol's principles are only applicable to small businesses
The principles focus solely on financial management
According to Max Weber's views on bureaucratic organizations, Campbell's function as a middle manager within the organization is to:
Implement the decisions of top management
Develop new marketing strategies
Oversee product development
Handle customer complaints directly
At Green Acres Fencing Company, eight employees perform various aspects of the company's work. One person does sales; four perform installation; one purchases materials; one does billing. This is an example of:
Division of labor
Centralization
Decentralization
Job rotation
Sarah is a designer for a business that installs underground sprinkler systems for residential and commercial customers. Tom and Bill share the ownership responsibilities of the business. Tom is in:
Unity of command
Division of labor
Decentralization
Specialization
Bill, a financial manager at Carlyle Bank and Trust, always strives to treat each subordinate with respect and fairness. Bill's treatment of employees is an example of Fayol's principle of:
Equity
Centralization
Authority
Discipline
John recently accepted a job in the marketing department with the Burbank Bagel Boys. After just a few days on the job, John learned that the company has many layers of management, and seems to have:
Bureaucratic organization
Flat organization
Informal organization
Decentralized organization
When Brian started his auto mechanic shop, his business plan included a(n) ________________ that showed the relationships among employees in his organization and the lines of authority and responsibility.
organization chart
business license
marketing plan
financial statement
Fairview Community College is a multi-district college with four campuses. Each campus has one president, two vice presidents, five deans, 12 department chairs, over 100 faculty members, and several other staff. What term best describes the structure that shows who reports to whom?
chain of command
organizational culture
job rotation
team structure
Andrew's company is a bureaucratic organization. Andrew is likely to encounter which of the following conditions?
Many layers of management
Flexible job roles
Minimal supervision
Informal communication
The management at Patriot Mills works hard to ensure that no one in its organization has more than one boss and all workers are treated with fairness and respect. Additionally, the firm divides the work among employees. Which management theorist's principles does this reflect?
Henri Fayol
Max Weber
Peter Drucker
Elton Mayo
As a manager of a retail-clothing store, Lance favors detailed job descriptions, formal rules and regulations, detailed records, and standardized procedures. He also believes that staffing and promotions should be based on qualifications. Which management theorist's ideas does Lance follow?
Max Weber
Henri Fayol
Frederick Taylor
Mary Parker Follett
Which of the following statements would best summarize Max Weber's views on the role of workers in an organization?
Workers should simply follow well-defined procedures
Workers should be creative and innovative
Workers should make all major decisions
Workers should avoid formal rules
Which of the following determines the degree of decentralization of a firm?
The degree to which lower-level management is empowered to make decisions
The number of employees in the firm
The amount of profit generated
The location of the headquarters
In a(n) __________ organization, decision-making authority is concentrated at the top level of management.
decentralized
centralized
flat
tall
What does it mean when decision-making authority is delegated to lower-level managers and employees?
Centralized authority
Decentralized authority
Flat organization
Tall organization
The optimum number of subordinates a manager can supervise is referred to as the:
management level
span of control
organizational structure
chain of command
The span of control for a manager:
is always the same for every manager
depends on a number of factors, and can vary from one manager to another
is determined by the number of departments
is fixed by company policy
Due to more emphasis on empowerment and more talented and better-educated lower-level management, span of control in organizations has __________.
decreased
increased
remained the same
disappeared
An organization that consists of many layers of management is referred to as a(n) __________ organization.
flat
tall
centralized
decentralized
The ________ an organization's structure, the ________ the span of control.
taller; narrower
flatter; wider
taller; wider
flatter; narrower
An organization with only a few layers of management is known as a(n) __________.
tall organization
flat organization
centralized organization
decentralized organization
In recent years, large organizations have tried to improve their efficiency in communication and decision making by:
Adding more layers of management
Eliminating several layers of management
Increasing departmental meetings
Expanding the workforce
What term refers to the process of dividing organizational functions (such as sales, production, accounting/bookkeeping) into separate units?
Centralization
Departmentalization
Delegation
Specialization
The traditional technique used to departmentalize an organization is by:
Product
Location
Function
Customer type
Which of the following is considered to be a disadvantage of functional departmentalization?
Employee skills can be developed in depth
There may be a lack of communication among the different departments
Increased flexibility in job roles
Enhanced teamwork across departments
Which of the following is considered to be an advantage of functional departmentalization?
Employee skills can be developed in depth
There may be a lack of communication among the different departments
Increased job rotation
Reduced specialization
Within its production department, Sooner Manufacturing has shift leaders, supervisors, assistant plant managers, plant managers, product group managers, assistant division managers, and division managers. This structure is best described as:
Flat
Tall
Decentralized
Matrix
Which of the following factors help determine a manager's span of control?
The level of standardization of the work to be done
The number of employees in the organization
The location of the organization
The age of the manager
Organizations that require consistent production standards to help create a high-quality public image would tend to favor:
Decentralized authority
Centralized authority
Informal authority
Shared authority
What is the main reason for today's preference for flat rather than tall organization structures?
To increase bureaucracy
To respond readily to customer demands
To create more management levels
To slow down decision-making
Greenwave Garden Centers adapts its management style to different regions due to varying climates and soil conditions. What type of organizational structure does this represent?
Centralized
Decentralized
Functional
Product-based
HipHop Music Company assigns workers to departments based on similar skills, such as marketing, production, finance, and human resources. What type of departmentalization is this?
Product
Customer type
Function
Geographic
Lockdown Industries sells products like burglar alarms and smoke detectors to households and businesses. What type of departmentalization does this represent?
Product
Customer type
Function
Geographic
Jody, as the head of engineering, works on complex projects that require a significant amount of detail. What type of span of control does Jody likely have?
Wide
Narrow
Decentralized
Functional
Vaughn Studios organizes its operations by activity, such as production, marketing, accounting, and finance. What type of departmentalization does Vaughn utilize?
Product
Customer type
Functional
Geographic
Springfield National Bank organizes its loan operations based on the market served, such as consumer, small business, and nonprofit organizations. Departmentalization based on ________ allows Springfield National Bank to focus on specific market needs. What is the correct term to fill in the blank?
customer group
product
location
function
JayLo Corporation has experienced rapid growth during its five years of existence. While still relatively small, JayLo is now big enough that Jessa, the firm's CEO, has decided to organize the firm to provide what opportunity for employees?
Opportunities for employees to work remotely
Opportunities for employees to develop their skills in depth
Opportunities for employees to travel internationally
Opportunities for employees to receive bonuses
International Inns and Conference Centers (IICC), a national chain of professional event centers, utilizes a centralized authority structure. Which of the following provides the most likely explanation for this choice?
Top management desires to maintain a uniform image and high-quality service
Top management wants to encourage local decision-making
Top management prefers a flexible organizational structure
Top management wants to reduce costs by decentralizing authority
As a response to a rapidly changing marketplace, Idea Electronics found it necessary to reorganize, including a significant downsize of its middle management. This action will likely result in ________.
increasing bureaucracy and slowing decision-making
flattening the organization and empowering employees, allowing them to get closer to the customer
reducing employee morale and increasing turnover
centralizing authority and limiting employee input
During the past six years, the marketing department manager at Creative Concepts International made a strong push to hire mover/shaker professionals that had superior performance records prior to joining. What is a potential risk associated with this approach?
groupthink
increased innovation
higher employee turnover
decentralized authority
Management at Hottie Potatee, a nationwide potato bar chain, believes that its customers value a predictable and consistent level of service and quality. When customers stop at one of its potato bars, what type of authority structure is most likely in place?
decentralized authority
team-based authority
centralized authority
customer-based authority
A __________ organization is characterized by direct two-way lines of responsibility, authority, and communication running from the top to the bottom of the organization, with all people reporting to only one supervisor.
line
matrix
staff
network
__________ are responsible for directly achieving organizational goals.
Line personnel
Staff personnel
Matrix specialists
Project managers
Employees who perform functions that advise and assist line personnel are known as __________.
staff personnel
line personnel
matrix personnel
executive personnel
Which of the organization models follows all of Fayol's traditional management rules?
Line organization
Matrix organization
Network organization
Team-based organization
Staff positions in an organization __________.
support and assist the line positions
directly achieve organizational goals
manage cross-functional teams
create temporary project groups
In a __________ organization, specialists from different parts of the organization are brought together on a temporary basis to work on specific projects.
matrix
line
staff
network
Line-and-staff organizations work well in organizations with __________.
a relatively unchanging environment
frequent project changes
high employee turnover
decentralized management
Matrix organizational structures were first developed in __________.
the aerospace industry
the retail industry
the education sector
the healthcare industry
Which of the following was created as a solution to the temporary nature of the matrix structure?
Cross-functional self-managed teams
Line organization
Staff personnel
Project-based teams
Which of the following describes a group of employees from different departments working together on a long-term basis?
Cross-functional self-managed teams
Line organization teams
Temporary project teams
Departmental task forces
Cross-functional self-managed teams work best when ____________.
leadership is shared
one person leads all decisions
there is no communication
only one department is involved
Which of the following is an advantage of a line organization in a large business?
Responsibility and authority are clearly defined
Employees have flexible roles
Decision-making is decentralized
Teams are temporary
Which of the following positions would be classified as a staff position?
An attorney in the legal department of a manufacturing corporation
A production line supervisor
A sales manager
A warehouse worker
Which of the following is an advantage of a matrix organization structure?
It provides for efficient use of organizational resources
It eliminates the need for managers
It reduces communication between departments
It creates rigid hierarchies
Which of the following is true of cross-functional teams?
Cross-functional teams work best when the voice of the customer is brought into the organization.
Cross-functional teams are always temporary
Cross-functional teams do not require collaboration
Cross-functional teams only include managers
The main difference between a matrix-style organization model and a cross-functional team is:
The matrix model is a temporary arrangement, whereas the cross-functional team is a more permanent arrangement
The matrix model is always permanent
Cross-functional teams never work together
Matrix organizations do not use teams
Which one of the following would be the least likely to serve on a cross-functional team for the Discovery Corporation?
A production manager for one of Discovery's main competitors
A marketing manager from Discovery
An engineer from Discovery
A finance analyst from Discovery
Which type of organizational structure provides direct two-way lines of responsibility, authority, and communication running from the top to the bottom?
line organization
matrix organization model
cross-functional team
Networking
Eileen works in the human resources department of a corporation with several hundred employees. Her main function is to advise and assist managers in other departments, such as marketing and production. What is her role classified as?
staff
Networking
cross-functional self-managed team
line organization
Joe, a production engineer, joined a team of specialists from other areas, such as marketing and finance, to work on long-term assignments. What type of team is this?
cross-functional self-managed team
staff
matrix organization model
line organization
Barclay started a small company and hired two programmers and a marketing graduate to help develop interactive computer games. What type of team does Barclay consider himself part of?
cross-functional team
Networking
line organization
staff
Chang is a project manager who borrows specialists from the organization on a regular basis to assist in major projects, and the specialists return to their departments after the project ends. What organizational model is this?
matrix organization model
cross-functional team
line organization
staff
What term describes using communications technology and other means to link organizations and allow them to work together on common objectives?
Networking
line organization
staff
cross-functional team
Which of the following describes an environment in which data is instantly available via the Internet to organizational partners?
Real time
Outsourcing
Benchmarking
Transparency
Which term describes a company being so open to other companies working with it that electronic information is shared as if the companies were one?
Transparency
Insourcing
Core competencies
Virtual corporation
Which of the following describes a temporary networked organization made up of replaceable firms that join and leave as needed?
Virtual corporation
Real time
Outsourcing
Benchmarking
The process of rating an organization's practices, processes, and products against the best of the world is known as:
Benchmarking
Transparency
Insourcing
Core competencies
