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Each rectangle in an organization chart represents a relationship within the organization.

A) True
B) False

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A corporate culture is generally defined as the


A) manner in which employees interact with each other and with management.
B) incorporation of company policies and procedures into employee activities.
C) inner rites, rituals, heroes, and values of a firm.
D) management philosophy pertaining to customer service.
E) informal interaction of employees outside work during nonbusiness hours.

F) A) and E)
G) A) and D)

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Why is it important that owners and managers pay close attention to corporate culture when merging two organizations?

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Business leaders often cite the role of ...

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When line managers in an organization encounter issues that a staff member with specialized expertise can assist with, the staff member they consult with has ___ authority.


A) advisory
B) centralized
C) functional
D) line
E) decentralized

F) A) and D)
G) C) and D)

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A committee created for a specific short-term purpose is called a(n)


A) task force.
B) standing committee.
C) ad hoc committee.
D) informal group.
E) organic structure.

F) A) and B)
G) A) and C)

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A small restaurant with wait staff that reports to staff manager who reports to a floor manager who reports to the restaurant manager is a clear example of a(n) ____ organizational structure.


A) matrix
B) line
C) line-and-staff
D) informal
E) network

F) A) and D)
G) B) and E)

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Dramatic Expressions Dramatic Expressions is a home decorating company that sells many different household accessories ranging from candles to entertainment centers. Wanda is the CEO of the company. She feels that there is not enough specialization within the company and wants to organize the business in a different way. Wanda thinks that the company would be more effective if it were to switch to a new way of organization. For example, there could be a manager in charge of the candles, a different manager in charge of the entertainment centers, and so on. Another issue that Wanda wants to resolve is that of delegation. She believes that if she could improve her delegating, employees would feel more empowered and want to go above and beyond what they are required to do. There are certain reasons that Wanda has a hard time delegating to others, but she is confident that the problem will be overcome if she works on it. -Refer to Dramatic Expressions. What type of departmentalization does Wanda want to switch to?


A) By function
B) By product
C) By location
D) By customer
E) By responsibility

F) A) and C)
G) C) and E)

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Delegation consists of giving a subordinate all of the following except


A) responsibility.
B) authority.
C) accountability.
D) a line position.
E) both accountability and a line position.

F) C) and E)
G) C) and D)

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Departmentalization by location allows an organization to readily respond to the unique demands of each geographic area.

A) True
B) False

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Wesley is a manager in an organization where a great deal of interaction is required between himself and his workers and new problems arise frequently. Wesley is likely to have


A) a wide span of management.
B) little authority to delegate.
C) decentralized power.
D) departmentalization by consumer.
E) a narrow span of control.

F) A) and B)
G) C) and E)

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Ford and Xerox are two companies that have begun moving away from strict job specialization to alleviate employee motivation problems. Each company has adopted a job design alternative that involves workers in a wider variety of tasks. The method they have employed is known as job


A) enlargement.
B) enrichment.
C) generalization.
D) rotation.
E) substitution.

F) None of the above
G) All of the above

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​When a manager hears that inaccurate information that may be harmful to the company is being spread through the grapevine, the manager should


A) ​immediately take action to correct the inaccurate grapevine information to minimize damage.
B) ​ignore the rumors and hope they die out on their own.
C) ​start rumors of his or her own.
D) ​start a company newsletter.

E) None of the above
F) A) and B)

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When managers attempt to spread authority widely in the lower levels of an organization, they are attempting to centralize authority.

A) True
B) False

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Susan was given the responsibility for chairing a campus committee. To complete the delegation process, she should be given the ____ to carry out this responsibility.


A) duty
B) subordinates
C) authority
D) skills
E) salary

F) A) and E)
G) B) and C)

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A computer manufacturer is first divided into the following groups: Home Office/Personal Use, Small Business, Large Business, and Educational Institutions. Within each of these divisions, management is organized into finance, operations, marketing, and human resources. This company is organized first by ____, then by ____.


A) function; customer
B) customer; function
C) product; function
D) product; customer
E) customer; location

F) A) and B)
G) A) and C)

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An organization chart reveals


A) staff accountability.
B) committee assignments.
C) informal authority.
D) detailed duties of each manager.
E) the company's organizational structure.

F) All of the above
G) A) and B)

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Grouping the United States into the Northeast Region, the Northwest Region, the Southeast Region, and the Southwest Region would be departmentalization by


A) location.
B) customer.
C) function.
D) product.
E) task.

F) C) and D)
G) A) and B)

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Ann delegated work to an employee who mismanaged public funds. Ann, rather than the employee, was reprimanded for this mismanagement. Ann is now reluctant to delegate because she


A) does not care whether the work is properly done.
B) knows the person who delegates remains accountable for the work.
C) does not trust any of her subordinates.
D) fears a subordinate will do the work so well that he or she will attract the approval of top management.
E) is so disorganized that she simply cannot plan and assign work effectively.

F) B) and D)
G) B) and C)

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Sherry, a sales representative, is placed in a group with an engineer from operations, a human resource specialist, and a financial manager to develop new uses for one of the company's existing products in order to increase sales. This group is a


A) standing committee.
B) task force.
C) special project team.
D) cross-functional team.
E) multifaceted work group.

F) None of the above
G) A) and C)

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One's duty to do a job or perform a task is called


A) authority.
B) accountability.
C) responsibility.
D) delegation.
E) obligation.

F) A) and B)
G) All of the above

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