Certo Mm13 Tb10

Modern Management, 13e (Certo/Certo)Chapter 10 Fundamentals of Organizing

1) Organizing is the process of establishing orderly uses for all resources within the management system. Answer: TRUE

2) Henri Fayol recommends that businesses avoid red tape, regulations, and paperwork when organizing resources.Answer: TRUE

3) Henri Fayol recommends that businesses establish multiple guiding authorities when organizing resources.Answer: FALSE

4) The final step in the organization process is to allocate resources and directives for subtasks.Answer: FALSE

5) Bureaucracy can be characterized as a management system with detailed procedures, rules, and a clearly outlined organizational hierarchy with impersonal relationships among organization members. Answer: TRUE

6) It is recognized today that the bureaucratic approach without an appropriate emphasis on the human variable is almost certainly a formula for organizational failure.Answer: TRUE

7) According to Mary Parker Follett, coordination can be attained with the least difficulty through direct horizontal relationships and personal communications.Answer: TRUE

8) Traditionally, individuals at the top of a pyramid-shaped organizational structure have more authority but less responsibility than individuals at the bottom of the pyramid. Answer: FALSE

9) The formal structure of an organization evolves naturally and tends to be molded by individual norms and values and social relationships.Answer: FALSE

10) A company's informal organizational structure is represented primarily by the organizational chart. Answer: TRUE

11) Vertical dimensioning is directly related to the concept of the scalar relationship — that is, the chain of command.Answer: TRUE

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12) Span of management refers to the number of organizational levels below that of a particular manager.Answer: FALSE

13) In general, the closer the subordinates are, physically, the more of them managers can supervise effectively.Answer: TRUE

14) V. A. Graicunas developed a formula for determining the number of actual relationships between a manager and subordinates when the number of subordinates is known.Answer: FALSE

15) Normally, the greater the height of the organization chart, the smaller the span of management.Answer: TRUE

16) The most widely used basis for establishing departments within the formal structure is by type of product. Answer: FALSE

17) Within a matrix structure, workers are responsible for their original activities along with project activities.Answer: TRUE

18) The matrix structure is contradictory to the principle of unity of command.Answer: TRUE

19) Four primary forces influence the evolution of formal organizational structure: forces in the manager, forces in the task, forces in the environment, and forces in the subordinates.Answer: TRUE

20) Fayol has indicated that strict adherence to a particular chain of command is always advisable when seeking information.Answer: FALSE

21) ________ is the process of establishing orderly uses for resources within the management system.A) OrganizingB) CommunicationC) Planning D) Controlling E) MotivationAnswer: A


22) ________ skill is the ability to establish orderly uses for resources within the management system.A) OrganizingB) CommunicationC) Planning D) Controlling E) MarketingAnswer: A

23) According to Fayol's guidelines for organizing resources, you should avoid ________.A) formulating precise decisionsB) using sanctions against faults and errorsC) instituting and effecting controlsD) regulations, redtape, and paperworkE) defining dutiesAnswer: D

24) According to Fayol's guidelines for organizing resources, you should do all of the following, EXCEPT ________.A) establish multiple guiding authoritiesB) define dutiesC) use sanctions against faults and errorsD) encourage initiative and responsibilityE) offer suitable rewards for services renderedAnswer: A

25) According to Fayol's guidelines for organizing resources, you should ________.A) establish multiple guiding authoritiesB) make extensive use of regulations and paperworkC) not use sanctions against faults and errorsD) recognize the unity of commandE) not link rewards to performanceAnswer: D

26) Which of the following is the first step in the organizing process?A) establish major tasksB) reflect on plans and objectivesC) allocate resources and directives for subtasksD) evaluate results of organizing strategyE) divide major tasks into subtasksAnswer: B

27) The second and third steps of the organizing process focus on the ________.A) results of the organizing strategyB) organizational plans C) organizational goals and objectivesD) tasks to be performed within the management system


E) allocation of resources and directivesAnswer: D

28) Which of the following is the last step in the organizing process?A) Allocate resources and directives for subtasks.B) Evaluate results of organizing strategy.C) Establish major tasks.D) Reflect on plans and objectives.E) Divide major tasks into subtasks.Answer: B

29) The bureaucracy model of organizing was proposed by ________.A) V. A. GraicunasB) Henri FayolC) Albert EinsteinD) Mary Parker FollettE) Max WeberAnswer: E

30) Which of the following is one of the three main components of the management system that Weber termed a bureaucracy?A) minimum regulations and paperworkB) close, personal relations among organization membersC) emphasis on the human variableD) detailed procedures and rulesE) a loosely defined organizational hierarchyAnswer: D

31) Which of the following is the main criticism of Weber's bureaucracy model?A) It fails to emphasize setting detailed procedures and rules.B) It gives short shrift to the human variable within organizations.C) It does not emphasize a clearly defined organizational structure.D) It overemphasizes positive relationships among organization members.E) It attempts to eliminate paperwork and regulations.Answer: B

32) ________ is the assignment of various portions of a particular task among a number of organization members.A) ParticipationB) Job enlargementC) Division of laborD) Job rotationE) Work sharingAnswer: C


33) Alistair Fashions, a clothing manufacturer, uses an assembly-line to manufacture clothes whereby different groups of workers specialize in particular tasks — cutting fabric, finishing sleeves, making collars, fixing zippers, sewing buttons, etc. Identify the organizing system being used here.A) job rotationB) job enlargementC) participative managementD) division of laborE) job enrichmentAnswer: D

34) Which of the following is an advantage of division of labor?A) It emphasizes the human variable in organizations.B) It results in high levels of employee motivation.C) It results in specialization and higher skill levels.D) It makes work more interesting.E) It broadens the scope of work.Answer: C

35) Which of the following is a disadvantage of division of labor?A) It makes the work more difficult.B) It makes work more time-consuming and inefficient.C) It can result in workers getting bored of their work.D) It prevents workers from specializing at a task.E) It requires workers to know about the entire process and not just one task.Answer: C

36) ________ is defined as the orderly arrangement of group effort to provide unity of action in the pursuit of a common purpose.A) JustificationB) CombinationC) AmalgamationD) CoordinationE) RationalizationAnswer: D

37) Which of the following is one of Follett's guidelines on coordination?A) Personal communication should be minimized in coordination.B) Managers can assume that if their system shows coordination now, it will show coordination in the future.C) The human element should be minimized in coordination.D) Managers should plan for coordination.E) Coordination can be achieved with least difficulty through vertical relationships.Answer: D


38) According to Follett, coordination can be attained with the least difficulty through ________.A) a bureaucratic structureB) a strict adherence to the chain of commandC) minimizing the human elementD) direct horizontal relationships and personal communicationsE) discussions with people higher up the organization hierarchyAnswer: D

39) Formal structure is ________.A) molded by individual norms and values and social relationshipsB) defined as the relationships that evolve naturally among organization membersC) represented primarily by the organization chartD) usually drawn directly from an organization's informal structureE) usually identical to an organization's informal structureAnswer: C

40) Informal structure is ________.A) molded by individual norms and values and social relationshipsB) defined as the relationships among organizational resources as outlined by managementC) represented primarily by the organization chartD) usually represented in a pyramid formE) usually identical to an organization's formal structureAnswer: A

41) Organization structure is represented primarily by means of a graphic illustration called a(n) ________.A) semantic networkB) executive dashboardC) directed graphD) organization chartE) critical pathAnswer: D

42) Traditionally, an organization chart is constructed in a ________ form.A) radial treeB) spider diagramC) pyramidD) hyperbolic treeE) pie-diagramAnswer: C

43) Which of the following is true about the traditional organization chart constructed in pyramid form?A) Lines between boxes designate informal lines of communication between individuals.B) Relative positioning of individuals within boxes on the chart indicates broad social relationships.C) Individuals toward the top of the pyramid have more authority than those toward the bottom.


D) Such organizational charts cannot communicate the complexity of the organization.E) Individuals toward the bottom of the pyramid have more responsibility than those toward the top.Answer: C

44) ________ is directly related to the concept of the scalar relationship — that is, the chain of command.A) Matrix structuringB) DepartmentalizingC) Vertical dimensioningD) Horizontal dimensioningE) LateralizingAnswer: C

45) Unity of command is the management principle that recommends that ________.A) all managers share the same goalsB) all employees should accept their formal leader or leadersC) an individual have only one bossD) organizational plans be consistent with organizational goalsE) the organizing system be consistent with organizational plansAnswer: C

46) Span of management refers to the number of ________.A) levels in an organizationB) organizational levels above an individualC) organizational levels below an individualD) bosses an individual hasE) individuals a manager supervisesAnswer: E

47) Fred is a Grade D manager in Lighthouse Infrastructure and manages a small team of eight engineers. The company has 15 Grade D managers. He worked his way up from the lowest grade, Grade E, where he was one of 52 line managers and hopes to be promoted to Grade C soon, which would make him one of the six vice-presidents in the company. However, breaking into Grade B, comprising three presidents, will be a challenge. Only the CEO and COO occupy Grade A. Which of the following numbers represents Fred's span of management? A) 15B) 60C) 52D) 8E) 11Answer: D

48) According to the contingency viewpoint to designing span of management, the appropriate span of management widens when ________.A) the activities performed by supervised individuals are similarB) subordinates are carrying out complex functions


C) the manager needs to spend a lot of time on planning activitiesD) subordinates' activities need to be synchronized carefullyE) subordinates are widely physically separatedAnswer: A

49) According to the contingency viewpoint to designing span of management, the appropriate span of management narrows when ________.A) the activities performed by supervised individuals are similarB) subordinates are carrying out simple functionsC) the manager spends little time on planning activitiesD) subordinates' activities need to be synchronized carefullyE) subordinates are physically located close to one anotherAnswer: D

50) According to the contingency viewpoint to designing span of management, which of the following situations would warrant a relatively wide span of control?A) supervising a team of scientists engaged in complex research workB) supervising a team of factory workers sewing buttons onto shirtsC) managing a virtual team of engineers spread across several countriesD) managing a highly interdependent production teamE) managing and coordinating the activities of a marketing teamAnswer: B

51) ________ developed a formula for determining the number of possible relationships between a manager and subordinates when the number of subordinates is known.A) Mary Parker FollettB) Henri FayolC) F. W. TaylorD) Max WeberE) V. A. GraicunasAnswer: E

52) Graicunas's formula is as follows: C = n( + n- 1). What does C stand for in this formula?

A) the total number of departments possible in an organizationB) the appropriate number of subordinates a manager can haveC) the appropriate number of levels an organization can haveD) the total number of possible relationships between manager and subordinatesE) the degree of the difficulty in coordinating a certain number of subordinatesAnswer: D

53) Graicunas's formula is as follows: C = n( + n- 1). What does n stand for in this formula?

A) the total number of departments in an organizationB) the appropriate number of subordinates a manager can haveC) the total number of levels an organization can haveD) the known number of subordinates for a particular managerE) the appropriate number of possible relationships between manager and subordinatesAnswer: D


54) Andrew is a mid-level manager with three organizational levels above him and two below him. He has four analysts reporting directly to him. Using Graicunas's formula, calculate the total number of possible relationships between Andrew and his subordinates.A) 4B) 16C) 44D) 56E) 64Answer: C

55) According to Graicunas's formula for determining the number of possible relationships between a manager and subordinates, as the number of subordinates increases arithmetically, the number of possible relationships between the manager and those subordinates ________.A) increases proportionatelyB) decreases proportionatelyC) increases geometricallyD) increases arithmetically, tooE) decreases geometricallyAnswer: C

56) Which of the following is a criticism of Graicunas's work in span of management?A) He failed to emphasize the importance of span of management on the organization.B) He does not recognize the principle of unity of command.C) He does not consider the number of actual relationships among superiors and subordinates.D) He fails to specify what will happen if the number of subordinates increases or decreases.E) He takes into account managers' relationships outside the organization.Answer: C

57) Which of the following is true about the height of an organization chart?A) An organization's structure should be built from bottom to top to ensure that appropriate spans of management are achieved at all levels.B) Span of management usually has no influence on the height of an organization chart.C) Increasing spans of management to eliminate certain management positions and thereby reducing salary expenses will help the organization achieve long-term success.D) Normally, the greater the height of the organization chart, the smaller the span of management.E) Overall, managers seem to be using taller organizational structures now than in the past.Answer: D

58) The ________ of an organization refers to the extent to which firms use lateral subdivisions or specialties within an organization.A) ladderingB) horizontal dimensioningC) vertical integrationD) vertical dimensioningE) backward integrationAnswer: B


59) Which of the following is the most widely used basis for departmentalization?A) customerB) work functionsC) geographyD) matrixE) product or serviceAnswer: B

60) The organization structure at Kinetic Machines is horizontally divided into Marketing, Finance, Production, and R&D departments. Identify the departmentalization mode being used here.A) productB) geographicC) functionalD) customerE) matrixAnswer: C

61) Which of the following is an advantage of functional departmentalizing?A) It facilitates coordination between various functions.B) It facilitates assigning of blame when a product performs poorly.C) It allows firms to pool human resources for both short-term and long-term projects.D) It promotes consistency in how functions are carried out.E) It facilitates differentiation of strategy across different segments.Answer: D

62) Which of the following is a potential disadvantage of functional departmentalizing?A) difficulty for employees to prioritize responsibilities B) lack of unity of commandC) difficulty in coordinating between various functionsD) difficulty in assigning blame or credit for the performance of a functionE) lack of consistency in carrying out functionsAnswer: C

63) The organization structure at Sinclair Funds, a financial services company, is divided horizontally into Insurance, Mutual Funds, and Wealth Management departments. Identify the departmentalization mode being used here.A) matrixB) customerC) product or serviceD) geographicE) functionalAnswer: C


64) Which of the following is an advantage of departmentalizing by matrix?A) It clarifies the power structure within the firm.B) It helps employees prioritize responsibilities.C) It facilitates coordination across projects.D) It allows firms to achieve unity of command.E) It allows firms to pool human resources for short-term and long-term projects.Answer: E

65) Gizmo Sales, a company that sells office supplies to companies in Atlanta, GA, has organized the business horizontally into departments named North Atlanta, South Atlanta, and Downtown Atlanta. This indicates that Gizmo has departmentalized on the basis of ________.A) productsB) projectsC) customersD) territoriesE) functionsAnswer: D

66) Pixel Technologies, a manufacturer of electronic products and cell phones, has divided the business into two divisions — Electronics Retailers and Cell Phone Retailers. This indicates that Pixel Technologies has departmentalized on the basis of ________. A) geographyB) productsC) functionalD) customersE) matrixAnswer: D

67) At Landmark Constructions, crucial projects are handled completely by project managers who are empowered to borrow marketing, sales, engineering, finance and R&D staff, and other employees from various parts of the organization to complete their projects. Identify the departmentalization mode being used in this company.A) customerB) matrixC) productD) geographicE) functionalAnswer: B

68) ________ organizations are also called project organizations.A) SiloB) FunctionalC) RadialD) PyramidE) MatrixAnswer: E


69) Which of the following modes of departmentalization contradicts the principle of the unity of command?A) customerB) functionalC) geographicD) matrixE) product or serviceAnswer: D

70) Which of the following is a disadvantage of departmentalizing by matrix?A) It results in duplication of effort.B) It can be confusing for employees.C) It does not allow firms to maintain flexibility.D) It does not allow firms to pool resources for short-term projects.E) It results in a bureaucratic organization.Answer: B

71) Which of the following is true about departmentalizing by matrix?A) It ensures unity of command.B) Project managers generally report directly to the company CEO.C) A matrix organization essentially has a bureaucratic structure.D) When on a project, workers are not responsible for their original duties.E) This mode is usually not utilized for short-term projects.Answer: B

72) Four primary forces influence the evolution of a formal structure: forces in the manager, forces in the task, forces in the environment, and forces in the ________.A) subordinatesB) marketC) shareholdersD) economyE) communityAnswer: A

73) In the context of forces influencing formal structure, the customers and suppliers of the management system, along with existing political and social structures constitute the forces in the ________.A) managerB) taskC) environmentD) subordinatesE) activityAnswer: C


74) Fayol indicated that strict adherence to a particular chain of command is ________.A) a mustB) the first order of businessC) not always advisableD) always advisableE) never advisableAnswer: C

75) Discuss the five main steps in the organizing process. Answer: The first step in the organizing process is to reflect on plans and objectives. This is an essential first step because planning involves determining how the organization will attain its objectives, and organizing involves determining how managers will use organizational resources to activate plans. The second step is to establish major tasks, or jobs, to be done within an organization to achieve the objectives established by plans. The third step is to subdivide the tasks into subtasks, which can be thought of as the elements of doing one's job. The fourth step is to allocate resources and directives for subtasks. This essentially means the manager must now determine who will do the tasks and subtasks, and the relationships between those people. The fifth step is to evaluate the results of the implemented organizational strategy. The manager must gather feedback on how well the strategy is working. Page Ref: 221-223Learning Outcome: Discuss factors influencing organizational structure decisionsObjective: 1Difficulty: EasyClassification: Conceptual


76) Describe what is meant by the term "division of labor." Also explain the advantages and disadvantages associated with division of labor. Answer: Division of labor is the assignment of various portions of a particular task among a number of organization members. Division of labor calls for specialization. Several explanations have been offered for the usefulness of division of labor. First, when workers specialize in a particular task, their skill at performing that task tends to increase. Second, workers who have one job, and one place in which to do it, do not lose valuable time changing tools or locations. Third, when workers concentrate on performing only one job, they naturally try to make the job easier and more efficient. Lastly, division of labor creates a situation in which workers need only to know how to perform their part of the work task, rather than the entire process for producing the end product. Therefore, the task of understanding their work does not become too burdensome. Arguments have also been presented against the use of an extreme division of labor. Essentially, these arguments contend that division of labor focuses solely on efficiency and economic benefit and overlooks the human variable in organizations. Work that is extremely specialized tends to be boring and therefore will eventually cause production rates to go down as workers become resentful of being treated like machines. Page Ref: 224Learning Outcome: Discuss factors influencing organizational structure decisionsObjective: 4Difficulty: ModerateClassification: Conceptual

77) Define the concepts of vertical dimensioning, scalar relationships, and unity of command and explain how they are related.Answer: Vertical dimensioning refers to the extent to which an organization uses vertical levels to separate job responsibilities. Vertical dimensioning is directly related to the concept of the scalar relationship — that is, the chain of command. Every organization is built on the premise that the individual at the top possesses the most authority and that other individuals' authority is scaled downward according to their relative position on the organization chart. The lower a person's position on the organization chart, then the less authority that person possesses. The scalar relationship, or chain of command, is related to the unity of command. Unity of command is the management principle that recommends that an individual have only one boss. If too many bosses give orders, the result will probably be confusion, contradiction, andfrustration — a sure recipe for ineffectiveness and inefficiency in an organization.Page Ref: 225-228Learning Outcome: Discuss factors influencing organizational structure decisionsObjective: 3Difficulty: EasyClassification: Conceptual


78) Explain the concept of span of management, and discuss the factors that influence the appropriateness of the size of an individual's span of management. Answer: Span of management is the number of individuals a manager supervises; the greater the number of individuals the greater the span of management. The central concern of span of management is to determine how many individuals a manager can supervise effectively. To assist in determining the appropriate span of management, Harold Koontz developed five situational factors that influence the span of management. The first factor is similarity of functions — the more that subordinates are performing similar functions, the more that the appropriate span of management widens. The next factor is geographic continuity. The closer subordinates are physically, the more the manager can supervise effectively. Complexity of functions is the next factor. The more difficult and involved the activities of the subordinates are, the more difficult it is to manage a large number of subordinates effectively. Coordination as a factor deals with the amount of time managers must spend synchronizing the activities of their subordinates. The greater amount of time spent doing so, the smaller the span of management. The final factor, planning, suggests the more time managers spend planning, the fewer individuals they can manage effectively. Page Ref: 226Learning Outcome: Discuss factors influencing organizational structure decisionsObjective: 7Difficulty: ModerateClassification: Conceptual

79) What is meant by the horizontal dimensioning of an organization? Also explain the terms "departments" and "departmentalizing," and list the various modes of departmentalizing an organization.Answer: The horizontal dimensioning of an organization refers to the extent to which firms use lateral subdivisions or specialties within an organization. Overall, to build organizations horizontally, organizations establish departments. A department is a unique group of resources established by management to perform some organizational task. Departmentalizing is the process of establishing departments within the management system.Typically, these departments are based on, or contingent on, such situational factors as the work functions being performed, the product or service being offered, the territory being covered, and the customer being targeted.Page Ref: 228-232Learning Outcome: Discuss factors influencing organizational structure decisionsObjective: 6Difficulty: EasyClassification: Conceptual


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