Fundamentals of Management, 10e (Robbins) Chapter 6 PDF

Preview

Summary

Fundamentals of Management, 10e (Robbins) study guide for Chapter 6 tests.
FYI: I got an A in this class with this material....

Description

Fundamentals of Management, 10e (Robbins) Chapter 6 Organizational Structure and Design 1) Organizational design requires a manager to ________. A) decide who leads a group within an organization B) change the culture of an organization C) change or develop the structure of an organization D) change the logo of an organization Answer: C Explanation: By definition, organizational design requires that an individual develop or change an organization's structure. Changing organizational culture or deciding who leads a group may influence structure in only minor ways, so those choices are incorrect. Changing the logo of the organization also does not constitute creating or significantly modifying the organization's structure. Diff: 1 LO: 6.1: Describe six key elements in organizational design. 2) All of the following are part of the process of organizational design EXCEPT ________. A) deciding how specialized jobs should be B) determining rules for employee behavior C) determining the level at which decisions are made D) determining goals for the organization Answer: D Explanation: Organizing jobs, formulating rules, or clarifying a decision-making process are clearly examples of developing an organization's structure. Determining goals is part of establishing an organization's mission, not creating its structure that will help carry out that mission. Diff: 2 LO: 6.1: Describe six key elements in organizational design. 3) Which of the following are NOT basic elements of organizational design? A) work specialization, span of control B) chain of command, line authority C) centralization, decentralization D) departmentalization, formalization Answer: B Explanation: The six elements of organizational structure are given in the three incorrect choices: work specialization, span of control, centralization, decentralization, departmentalization and formalization. Chain of command and line authority are not included as basic elements of organizational structure, so "chain of command, line authority" is the correct response. Diff: 2 LO: 6.1: Describe six key elements in organizational design.

1 Copyright © 2017 Pearson Education, Inc.

4) Which of the following is synonymous with work specialization? A) division of labor B) job discrimination C) chain of command D) job preference Answer: A Explanation: Division of labor is the only term among the four choices that describes how work is specialized. Job discrimination describes how employees are mistreated in the job market. Job preference describes how employees select jobs. Chain of command describes authority relationships in organizations. Diff: 2 LO: 6.1: Describe six key elements in organizational design. 5) Which statement accurately defines work specialization? A) It is the degree to which tasks are grouped together. B) Individual employees specialize in doing part of an activity rather than the entire activity. C) Jobs are ranked relative only to their worth or value to the businesses. D) Work specialization clarifies who reports to whom. Answer: B Explanation: The choice regarding the degree to which tasks are grouped together describes departmentalization, not specialization. The choices regarding ranking jobs and work specialization both describe a power relationship in an organization, so they are incorrect. The choice regarding individual employees accurately identifies the idea that work specialization requires dividing a task into parts, so it is the correct response. Diff: 3 LO: 6.1: Describe six key elements in organizational design. 6) Early supporters of work specialization saw it as ________. A) a reliable way to increase productivity B) a good way to increase employee morale C) a source of innovation D) an immoral way to coerce workers into greater productivity Answer: A Explanation: Work specialization has never been seen as a way to increase productivity or innovation. Work specialization was seen as an excellent but ultimately limited way to increase productivity, so "a reliable way to increase productivity" is the correct response. Diff: 2 LO: 6.1: Describe six key elements in organizational design.

2 Copyright © 2017 Pearson Education, Inc.

7) Early users of work specialization in the early twentieth century found that the practice ultimately resulted in ________. A) higher profits and better employee morale B) bored workers with low morale C) huge and permanent productivity gains D) better communication among employees Answer: B Explanation: While managers initially saw profit and productivity gains in work specialization, the gains were not huge, not permanent, and not accompanied by increases in morale, so these choices are incorrect. Better communication was never observed by managers so that choice is incorrect. After initial gains, managers did see an inevitable drop in morale of employees as they contended with drudgery, making "bored workers with low morale" the correct response. Diff: 3 AACSB: Ethical understanding and reasoning LO: 6.1: Describe six key elements in organizational design. 8) Today, managers favor this approach with regard to work specialization. A) All tasks are performed by all employees to promote fairness. B) Partners switch jobs every half hour to overcome boredom. C) Employees specialize to maintain efficiency. D) Monotonous tasks are shared by all employees to prevent perceived favoritism. Answer: C Explanation: Most managers today see work specialization as an important organizing mechanism because it helps employees be more efficient. The other choices given here have been tried in isolated cases, but none constitutes a prevalent approach of today's managers. Diff: 2 LO: 6.1: Describe six key elements in organizational design. 9) Functional departmentalization groups jobs by ________. A) tasks they perform B) territories they serve C) products or services they manufacture or produce D) type of customer they serve Answer: A Explanation: The choice regarding territories describes geographic departmentalization, while the choice regarding products or services describes product departmentalization, and the choice regarding type of customer describes customer departmentalization. That makes "tasks they perform" the correct response, as functional departmentalization groups employees by the jobs they perform. Diff: 2 LO: 6.1: Describe six key elements in organizational design.

3 Copyright © 2017 Pearson Education, Inc.

10) ________ departmentalization is based on territory or the physical location of employees or customers. A) Functional B) Product C) Geographic D) Matrix Answer: C Explanation: Among the four choices, only "geographic" refers to territory, so "geographic" is the correct choice. Diff: 1 LO: 6.1: Describe six key elements in organizational design. 11) A soap company that features a bath soap department, a laundry detergent department, and a dish soap department is using which of the following? A) process departmentalization B) functional departmentalization C) product departmentalization D) customer departmentalization Answer: C Explanation: The soap company clearly is organizing by product, not a particular process, the job people do, or the customer that is served. That makes "product departmentalization" the correct response. Diff: 2 AACSB: Application of knowledge LO: 6.1: Describe six key elements in organizational design. 12) What kind of departmentalization would be in place in a government agency in which there are separate departments that provide services for employers, employed workers, unemployed workers, and the disabled? A) product B) geographic C) outcome D) customer Answer: D Explanation: Employed workers, unemployed workers, employers, and disabled workers are categories of people who will use the agency's services–its customers. Therefore, "customer" is correct and the other choices incorrect. Diff: 2 AACSB: Application of knowledge LO: 6.1: Describe six key elements in organizational design.

4 Copyright © 2017 Pearson Education, Inc.

13) State motor vehicle offices usually use this kind of departmentalization. A) product B) functional C) customer D) process Answer: D Explanation: Motor vehicle offices organize, for example, by the process of getting a driver's license. First the customer fills out forms, then takes an eye test, then takes a written test, and so on. This makes "process" correct. Diff: 2 AACSB: Application of knowledge LO: 6.1: Describe six key elements in organizational design. 14) The line of authority that extends from the upper levels of management to the lowest levels of the organization is termed the ________. A) chain of responsibility B) unity of command C) staff authority D) chain of command Answer: D Explanation: Unity of command refers to a single authority prevailing when organizational conflicts arise rather than a hierarchical authority. Staff authority refers to the authority that staff managers have over support personnel. Only the chain of command describes the hierarchical relationship between levels of an organization with respect to authority, so that is the correct response. "Chain of responsibility" is incorrect because it is not a recognized term. Diff: 1 LO: 6.1: Describe six key elements in organizational design. 15) The chain of command answers this question. A) Where do I go for help? B) How do I know when the task is complete? C) What are the rules? D) Who reports to whom? Answer: D Explanation: The classic description of the chain of command is that it determines who reports to whom. The other questions given here–asking for help, knowing when work is complete, and learning the rules–do not explicitly involve authority, so they are incorrect. Diff: 2 LO: 6.1: Describe six key elements in organizational design.

5 Copyright © 2017 Pearson Education, Inc.

16) Authority gives an individual the right to do this. A) give orders B) reprimand employees C) command respect D) obey orders Answer: A Explanation: Authority confers the right to direct subordinates and, if necessary, issue commands and orders, making "give orders" the correct response. Reprimanding may be done by superiors to subordinates, but it is not an explicit part of authority. Commanding respect is completely independent of authority–although practically speaking, authority is hard to establish without it. Finally, all employees have the "right" to obey orders, not just a person with authority, making "obey orders" incorrect. Diff: 1 LO: 6.1: Describe six key elements in organizational design. 17) In the chain of command, each person above you ________. A) has special privileges B) receives higher pay C) has line authority D) has no right to give you orders Answer: C Explanation: Line authority is the explicit right to issue orders to a subordinate. People of higher rank may or may not receive special privileges or more pay than people below, so those choices are incorrect. Finally, "has no right to give you orders" can be eliminated because it is the opposite of the correct answer. Diff: 2 LO: 6.1: Describe six key elements in organizational design. 18) Staff managers have authority over ________. A) special support employees only B) line managers C) middle managers D) the person above them in the chain of command Answer: A Explanation: Staff managers have authority only over the special support staff they control. Staff managers typically do not exercise authority over other employees, even if they outrank them. This makes "special support employees only" the correct response and the other three choices incorrect because they all identify people other than support staff. Diff: 2 LO: 6.1: Describe six key elements in organizational design.

6 Copyright © 2017 Pearson Education, Inc.

19) Line authority gives a manager the ability to direct the work of ________. A) any employee in the firm B) any subordinate C) any subordinate, after consulting with the next higher level D) only subordinates one level down Answer: B Explanation: Line authority is the explicit right to issue orders or direct the activities of any subordinate. Line authority confers this right to a manager without any prior consultation with higher-ups. This makes "any subordinate" the correct response. "Any subordinate, after consulting with the next higher level" is incorrect because line authority extends only downward, not up to higher-ranking individuals. Diff: 2 LO: 6.1: Describe six key elements in organizational design. 20) ________ prevents a single employee from getting conflicting orders from two different superiors. A) Line authority B) Unity of command C) Staff authority D) Chain of command Answer: B Explanation: Chain of command, line authority, and staff authority are involved in determining how organizational orders and discipline are handled. However, only unity of command deals explicitly with resolving conflicting orders, so it is the correct response. Diff: 2 LO: 6.1: Describe six key elements in organizational design. 21) The importance of unity of command has diminished in today's workplace because of its tendency to be ________. A) inflexible and inefficient B) ethically questionable C) chauvinistic and dictatorial D) too decisive Answer: A Explanation: Unity of command is a principle that establishes absolute authority of the superior in an organization. In today's workplace, flexibility is valued over authority so unity of command has been downgraded. This makes "inflexible and inefficient" the correct response. Unity of command is not ethically questionable, so that choice can be eliminated. Similarly, though there may be an element of veracity in the remaining two choices, they can both be ruled out since being dictatorial or overly decisive are not causes of the diminution of unity of command. Diff: 2 LO: 6.1: Describe six key elements in organizational design.

7 Copyright © 2017 Pearson Education, Inc.

22) Which of the following statements is true? A) Power is a right. B) Authority is one's ability to influence decisions. C) Authority is a right. D) Both power and authority are rights. Answer: C Explanation: The choices indicating that power is a right and authority is one's ability to influence decisions have the facts reversed. Power, not authority, is the ability to influence decisions, and authority is a right. That makes the choice indicating that authority is a right the correct response and also rules out the remaining choice since authority alone is a right. Diff: 2 LO: 6.1: Describe six key elements in organizational design. 23) ________ is the obligation or expectation to perform a duty. A) Responsibility B) Unity of command C) Chain of command D) Span of control Answer: A Explanation: By definition, responsibility is the obligation to perform duties that have been assigned, so that is the correct choice. An employee's responsibility is to complete the task that he or she has been assigned. Two of the other choices here, "unity of command" and "chain of command," refer to giving and following orders, so they can be eliminated. Span of control refers to the number of employees who report to a manager, so it also is an incorrect choice. Diff: 1 LO: 6.1: Describe six key elements in organizational design. 24) The personal secretary of a top manager may have ________. A) power but not authority B) authority but not power C) power and authority D) line authority but not staff authority Answer: A Explanation: A secretary who controls access to the boss wields power in his or her ability to grant people entrance, but he or she does not have authority to issue orders or assignments. Therefore, the secretary has power without authority. This makes "power but not authority" the correct choice and renders the other three choices incorrect. Diff: 3 AACSB: Application of knowledge LO: 6.1: Describe six key elements in organizational design.

8 Copyright © 2017 Pearson Education, Inc.

25) Which of the following statements is true? A) Power is a type of authority. B) Authority and power are identical. C) Authority is a type of power. D) Power is determined by horizontal position in an organization. Answer: C Explanation: Authority is a subset of power. Authority is the power to give orders and make assignments. This makes "authority is a type of power" the correct choice and causes "power is a type of authority" and "authority and power are identical" to be incorrect because neither one of them identifies authority as a type of power. Finally, "power is determined by horizontal position in an organization" is incorrect because power is determined by both the horizontal and vertical position of a person in an organization. Diff: 3 LO: 6.1: Describe six key elements in organizational design. 26) As represented in a power cone, power is based on ________. A) vertical position only B) horizontal position only C) distance from the center only D) vertical position and distance from the center Answer: D Explanation: Vertical position by itself determines authority, not power, so "vertical position only" is incorrect. Horizontal position on its own determines neither power nor authority, so "horizontal position only" is incorrect. Distance from the center only partly defines power, so that choice is incorrect. The remaining choice gives the correct relationship: power is determined by both vertical position and the distance from the center power core of the diagram. Diff: 3 AACSB: Analytical thinking LO: 6.1: Describe six key elements in organizational design. 27) As represented in a hierarchical organization diagram, authority is based on ________. A) vertical position only B) horizontal position only C) distance from the center only D) horizontal and vertical position Answer: A Explanation: In a hierarchical organization diagram, vertical position is a measure of authority. The person at the top, therefore, has the most authority and the person on the bottom the least, making "vertical position only" the correct choice. The three other listed possibilities feature a horizontal dimension, so they are incorrect. Diff: 3 AACSB: Analytical thinking LO: 6.1: Describe six key elements in organizational design.

9 Copyright © 2017 Pearson Education, Inc.

28) A construction site supervisor who sees an impending thunderstorm and tells workers to go home is demonstrating ________. A) line authority B) staff delegation C) provisional accountability D) responsibility Answer: A Explanation: This is a perfect example of line authority: the supervisor is exercising the authority to make a decision and give an order to subordinates without consulting any of his superiors. This makes "line authority" correct and rules out the other three choices. Diff: 2 AACSB: Application of knowledge LO: 6.1: Describe six key elements in organizational design. 29) ________ is the power that rests on the leader's ability to punish or control. A) Reward power B) Coercive power C) Expert power D) Referent power Answer: B Explanation: Coercive power is the power that comes from fear, so the ability to punish or control is a coercive power. This makes "coercive power" correct. The leader is not using expertise, access, or some kind of premium or bonus to influence others, so these choices are incorrect. Diff: 2 LO: 6.1: Describe six key elements in organizational design. 30) A bank manager who passes out bonuses at the end of the year is exercising this. A) reward power B) coercive power C) expert power D) referent power Answer: A Explanation: A bonus is a type of reward, so the manager is exercising reward power. The power is not based on fear (coercive power), expertise, or knowing someone (referent power), so none of these choices are correct. Diff: 2 AACSB: Application of knowledge LO: 6.1: Describe six key elements in organizational design.

10 Copyright © 2017 Pearson Education, Inc.

31) Your firm's attorney has ________ power when giving legal advice. A) legitimate B) status C) expert D) coercive Answer: C Explanation: Legal advice is a type of expertise, so "expert" is the correct response. The attorney's power is not based on fear, so "coercive" is incorrect. "Legitimate" and "status" are both incorrect because they refer to a type of hierarchic...