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At Green Acres Fencing Company,eight employees each perform various aspects of the company's work.One person does sales,four perform installation;one purchases materials;one does billing;one performs after-sales inspections.This type of organization reflects Fayol's principle of:


A) division of labor.
B) equity.
C) unity of command.
D) hierarchy of authority.

E) B) and C)
F) All of the above

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One of the most difficult management challenges today is managing change.This is because:


A) change requires cooperation and an awareness of a need for change.
B) change requires a lot of bail-out money from the government.
C) change requires decentralization of decision-making.
D) change will invariably result in an inverted organization and management does not want to relinquish its position power in order to make that happen.

E) A) and D)
F) All of the above

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The optimum number of subordinates a manager can supervise is referred to as the:


A) manager-subordinate ratio.
B) chain of command.
C) employee quotA
D) span of control.

E) A) and B)
F) C) and D)

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An organization that consists of many layers of management is referred to as an) ____________ organization.


A) flat
B) wide
C) tall
D) deep

E) All of the above
F) None of the above

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Which of the following would be the least likely to serve on a cross-functional team for the Discovery Corporation?


A) A member of the Discovery marketing department
B) A production manager for a firm that is one of Discovery's major customers
C) A production manager for one of Discovery's main competitors
D) A representative of a firm that is one of Discovery's major suppliers

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

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Organizations that require consistent production standards to help create a high quality public image would tend to favor:


A) centralized authority.
B) an inverted organization.
C) a high level of employee empowerment.
D) flat organizational structures.

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

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The main difference between a matrix-style organization model and a cross-functional team is:


A) the matrix model has a limit on the number of functional units who send an expert to join the team,whereas the cross-functional team does not.
B) the matrix model is a temporary arrangement,whereas the cross-functional team is a more permanent arrangement.
C) the matrix model shares leadership responsibilities within the group,whereas the cross-functional team does not.
D) the matrix model is a more permanent arrangement,whereas the cross-functional team is a temporary arrangement.

E) All of the above
F) A) and C)

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Independence Electronics prides itself as a world-class producer of components used in CD and DVD players.The outstanding performance of the production department indicates that this activity is one of the firm's:


A) fiscal responsibilities.
B) core competencies.
C) benchmark assets.
D) target competitive advantages.

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

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The purpose of Weber's and Fayol's principles was for the benefit of management,as opposed to pleasing customers.

A) True
B) False

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Which of the following is an advantage of a line organization in a large business?


A) It does not require specialists to advise people along the line
B) Responsibility and authority are clearly defined
C) Each worker has several supervisors
D) It is very flexible

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

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Carlos is the person to see in the welding department if you are a new employee.While he is not a manager,he is the person that most of the others in the department look to for advice and assistance.Carlos is an important member of the firm's:


A) supervisory management.
B) participatory control.
C) informal organization.
D) closet cabinet.

E) A) and D)
F) All of the above

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Fayol's ____________ principle says that tasks should be divided into areas of specialization.


A) departmentalization
B) comparative advantage
C) division of labor
D) centralization

E) B) and D)
F) B) and C)

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Campbell is a middle manager for a bureaucratic organization.According to Max Weber's views on bureaucratic organizations,Campbell's function within the organization is to:


A) make key operating decisions.
B) evaluate the daily performance of first-line employees.
C) ensure the organization achieves esprit de corps.
D) implement the decisions of top management.

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

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Cross-functional teams work well when leadership of the team is shared.

A) True
B) False

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The line of authority that moves from the top of a hierarchy to the lowest level is called the:


A) chain of logic.
B) chain of command.
C) organizational design.
D) delegation of contingent authority.

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

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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 into areas of specialization so that everyone knows to whom they should report.The management of Patriot Mills reflects the ideas and principles of:


A) John M.Keynes.
B) Peter Drucker.
C) Karl Marx.
D) Henri Fayol.

E) C) and D)
F) A) and D)

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Bryce is a manager at a car seat manufacturing company.He believes that it is very important and less confusing if each worker has only one boss.Bryce's view is consistent with Fayol's unity of command principle.

A) True
B) False

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When Bret started his auto mechanic shop his business plan included an) _______________ that showed the relationship among employees in his organization and the lines of authority and responsibility.


A) business view map
B) department categorization
C) organization chart
D) operating matrix grid

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

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Matrix organizations give managers flexibility in assigning people to projects.

A) True
B) False

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The formal organization of a firm provides the lines of authority to follow in routine situations.

A) True
B) False

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