Chapter 10 Fundamentals of Organizing
1) Organizing is the process of establishing orderly uses for all resources within the management
system.
Answer: True
Rationale:
Organizing involves arranging resources such as people, materials, and equipment in a structured
way to achieve organizational goals efficiently.
2) Henri Fayol recommends that businesses avoid red tape, regulations, and paperwork when
organizing resources.
Answer: True
Rationale:
Fayol emphasized the importance of minimizing bureaucratic processes and promoting
efficiency in organizing resources.
3) Henri Fayol recommends that businesses establish multiple guiding authorities when
organizing resources.
Answer: False
Rationale:
Fayol advocated for a clear hierarchy with a single chain of command to avoid confusion and
ensure unity of direction.
4) The final step in the organization process is to allocate resources and directives for subtasks.
Answer: False
Rationale:
The final step in the organizing process is to establish relationships among tasks, people, and
resources to achieve organizational goals.
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
Rationale:
Bureaucracy is characterized by its emphasis on formal rules and procedures, a clear hierarchy,
and impersonal relationships.
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
Rationale:
Modern management thinking emphasizes the importance of considering human factors
alongside bureaucratic structures to achieve organizational success.
7) According to Mary Parker Follett, coordination can be attained with the least difficulty
through direct horizontal relationships and personal communications.
Answer: True
Rationale:
Follett believed that coordination is best achieved through direct relationships and open
communication, which promote understanding and collaboration.
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
Rationale:
In traditional hierarchical structures, individuals at the top typically have more authority and
responsibility compared to those at lower levels.
9) The formal structure of an organization evolves naturally and tends to be molded by
individual norms and values and social relationships.
Answer: False
Rationale:
The formal structure of an organization is intentionally designed and implemented to achieve
specific goals and objectives.
10) A company's informal organizational structure is represented primarily by the organizational
chart.
Answer: True
Rationale:
The informal structure of an organization includes unofficial relationships, communication
networks, and social interactions that are not typically represented in the formal organizational
chart.
11) Vertical dimensioning is directly related to the concept of the scalar relationship — that is,
the chain of command.
Answer: True
Rationale:
The vertical dimension in organizational structure refers to the levels of hierarchy, which are
directly linked to the scalar relationship and the chain of command.
12) Span of management refers to the number of organizational levels below that of a particular
manager.
Answer: False
Rationale:
Span of management refers to the number of subordinates a manager can effectively supervise,
not the number of levels below the manager.
13) In general, the closer the subordinates are, physically, the more of them managers can
supervise effectively.
Answer: True
Rationale:
Physical proximity can facilitate communication and supervision, making it easier for managers
to supervise more subordinates effectively.
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
Rationale:
V. A. Graicunas is known for developing a formula to calculate the number of potential
communication channels in a group, not the actual relationships between a manager and
subordinates.
15) Normally, the greater the height of the organization chart, the smaller the span of
management.
Answer: True
Rationale:
As the organizational hierarchy becomes taller (more levels), the span of management tends to
decrease, as there are more layers of supervision between top management and front-line
employees.
16) The most widely used basis for establishing departments within the formal structure is by
type of product.
Answer: False
Rationale:
The most widely used basis for establishing departments is by function (e.g., marketing, finance,
operations), not by type of product.
17) Within a matrix structure, workers are responsible for their original activities along with
project activities.
Answer: True
Rationale:
In a matrix structure, employees report to both a functional manager and a project manager, so
they are responsible for both their regular functional duties and any project-related tasks.
18) The matrix structure is contradictory to the principle of unity of command.
Answer: True
Rationale:
The matrix structure violates the principle of unity of command, as employees report to multiple
managers, which can lead to conflicts and confusion regarding priorities.
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
Rationale:
Various factors related to managers, tasks, environment, and subordinates can influence the
development and evolution of the formal organizational structure.
20) Fayol has indicated that strict adherence to a particular chain of command is always
advisable when seeking information.
Answer: False
Rationale:
While Fayol emphasized the importance of a clear chain of command, he also recognized the
value of informal communication channels for obtaining information quickly and effectively.
21) ________ is the process of establishing orderly uses for resources within the management
system.
A) Organizing
B) Communication
C) Planning
D) Controlling
E) Motivation
Answer: A
Rationale:
Organizing involves arranging resources such as people, materials, and equipment in a structured
way to achieve organizational goals efficiently.
22) ________ skill is the ability to establish orderly uses for resources within the management
system.
A) Organizing
B) Communication
C) Planning
D) Controlling
E) Marketing
Answer: A
Rationale:
Organizing skill involves the ability to arrange resources effectively to achieve organizational
objectives.
23) According to Fayol's guidelines for organizing resources, you should avoid ________.
A) formulating precise decisions
B) using sanctions against faults and errors
C) instituting and effecting controls
D) regulations, redtape, and paperwork
E) defining duties
Answer: D
Rationale:
Fayol emphasized avoiding excessive regulations, red tape, and paperwork to ensure efficient
organizing of resources.
24) According to Fayol's guidelines for organizing resources, you should do all of the following,
EXCEPT ________.
A) establish multiple guiding authorities
B) define duties
C) use sanctions against faults and errors
D) encourage initiative and responsibility
E) offer suitable rewards for services rendered
Answer: A
Rationale:
Fayol emphasized a clear chain of command and single guiding authority to avoid confusion and
ensure unity of direction.
25) According to Fayol's guidelines for organizing resources, you should ________.
A) establish multiple guiding authorities
B) make extensive use of regulations and paperwork
C) not use sanctions against faults and errors
D) recognize the unity of command
E) not link rewards to performance
Answer: D
Rationale:
Fayol stressed the importance of the unity of command, where each employee receives orders
from only one superior, to avoid confusion and conflicts.
26) Which of the following is the first step in the organizing process?
A) establish major tasks
B) reflect on plans and objectives
C) allocate resources and directives for subtasks
D) evaluate results of organizing strategy
E) divide major tasks into subtasks
Answer: B
Rationale:
The first step in organizing is to reflect on plans and objectives to determine the resources
needed and how to arrange them effectively.
27) The second and third steps of the organizing process focus on the ________.
A) results of the organizing strategy
B) organizational plans
C) organizational goals and objectives
D) tasks to be performed within the management system
E) allocation of resources and directives
Answer: D
Rationale:
The second and third steps involve dividing major tasks into subtasks and establishing
relationships among tasks, people, and resources to achieve organizational goals.
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
Rationale:
The last step in organizing is to evaluate the results of the organizing strategy to ensure it is
achieving the desired outcomes.
29) The bureaucracy model of organizing was proposed by ________.
A) V. A. Graicunas
B) Henri Fayol
C) Albert Einstein
D) Mary Parker Follett
E) Max Weber
Answer: E
Rationale:
Max Weber proposed the bureaucracy model of organizing, which emphasizes hierarchical
authority, rules and procedures, and impersonal relationships.
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 paperwork
B) close, personal relations among organization members
C) emphasis on the human variable
D) detailed procedures and rules
E) a loosely defined organizational hierarchy
Answer: D
Rationale:
Weber's bureaucracy model includes detailed procedures and rules as one of its key components,
along with hierarchical authority and impersonal relationships.
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
Rationale:
Critics argue that Weber's bureaucracy model focuses too much on formal rules and structures,
neglecting the importance of human factors such as motivation, creativity, and individual needs
within organizations.
32) ________ is the assignment of various portions of a particular task among a number of
organization members.
A) Participation
B) Job enlargement
C) Division of labor
D) Job rotation
E) Work sharing
Answer: C
Rationale:
Division of labor involves breaking down a task into smaller, specialized parts and assigning
them to different individuals or groups to improve efficiency and productivity.
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 rotation
B) job enlargement
C) participative management
D) division of labor
E) job enrichment
Answer: D
Rationale:
The scenario describes the division of labor, where different groups of workers specialize in
specific tasks within the assembly-line production process.
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
Rationale:
Division of labor leads to specialization, allowing employees to develop higher levels of skill
and expertise in their specific tasks.
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
Rationale:
One disadvantage of division of labor is that it can lead to worker boredom and dissatisfaction
due to repetitive, specialized tasks.
36) ________ is defined as the orderly arrangement of group effort to provide unity of action in
the pursuit of a common purpose.
A) Justification
B) Combination
C) Amalgamation
D) Coordination
E) Rationalization
Answer: D
Rationale:
Coordination involves organizing group efforts to ensure that activities are harmonized and
aligned toward achieving a common goal.
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
Rationale:
Follett emphasized that managers should actively plan for coordination to ensure that activities
are synchronized and aligned toward common objectives.
38) According to Follett, coordination can be attained with the least difficulty through ________.
A) a bureaucratic structure
B) a strict adherence to the chain of command
C) minimizing the human element
D) direct horizontal relationships and personal communications
E) discussions with people higher up the organization hierarchy
Answer: D
Rationale:
Follett believed that coordination is most effectively achieved through direct horizontal
relationships and personal communications, which facilitate understanding and collaboration
among individuals.
39) Formal structure is ________.
A) molded by individual norms and values and social relationships
B) defined as the relationships that evolve naturally among organization members
C) represented primarily by the organization chart
D) usually drawn directly from an organization's informal structure
E) usually identical to an organization's informal structure
Answer: C
Rationale:
Formal structure refers to the official organizational hierarchy, roles, responsibilities, and
communication channels as represented in the organization chart.
40) Informal structure is ________.
A) molded by individual norms and values and social relationships
B) defined as the relationships among organizational resources as outlined by management
C) represented primarily by the organization chart
D) usually represented in a pyramid form
E) usually identical to an organization's formal structure
Answer: A
Rationale:
Informal structure refers to the unofficial, emergent relationships, norms, and social networks
that exist within an organization based on personal interactions and social connections.
41) Organization structure is represented primarily by means of a graphic illustration called a(n)
________.
A) semantic network
B) executive dashboard
C) directed graph
D) organization chart
E) critical path
Answer: D
Rationale:
An organization chart is a visual representation of the structure of an organization, showing the
relationships and relative ranks of its parts and positions/jobs.
42) Traditionally, an organization chart is constructed in a ________ form.
A) radial tree
B) spider diagram
C) pyramid
D) hyperbolic tree
E) pie-diagram
Answer: C
Rationale:
A traditional organization chart is typically constructed in a pyramid form, with the highest
levels of authority at the top and the lower levels of authority at the bottom, representing the
hierarchical nature of most organizations.
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
Rationale:
In a traditional pyramid-shaped organization chart, individuals at the top typically have more
authority than those at the bottom, reflecting the hierarchical structure of authority in most
organizations.
44) ________ is directly related to the concept of the scalar relationship — that is, the chain of
command.
A) Matrix structuring
B) Departmentalizing
C) Vertical dimensioning
D) Horizontal dimensioning
E) Lateralizing
Answer: C
Rationale:
Vertical dimensioning refers to the levels of hierarchy in an organization, which are directly
related to the scalar relationship and the chain of command.
45) Unity of command is the management principle that recommends that ________.
A) all managers share the same goals
B) all employees should accept their formal leader or leaders
C) an individual have only one boss
D) organizational plans be consistent with organizational goals
E) the organizing system be consistent with organizational plans
Answer: C
Rationale:
Unity of command suggests that an individual should have only one direct supervisor to avoid
conflicting priorities and instructions.
46) Span of management refers to the number of ________.
A) levels in an organization
B) organizational levels above an individual
C) organizational levels below an individual
D) bosses an individual has
E) individuals a manager supervises
Answer: E
Rationale:
Span of management refers to the number of subordinates a manager can effectively supervise.
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) 15
B) 60
C) 52
D) 8
E) 11
Answer: D
Rationale:
Fred's span of management is the number of individuals he directly supervises, which is 8 in this
case.
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 similar
B) subordinates are carrying out complex functions
C) the manager needs to spend a lot of time on planning activities
D) subordinates' activities need to be synchronized carefully
E) subordinates are widely physically separated
Answer: A
Rationale:
When the activities performed by supervised individuals are similar, it is easier for a manager to
supervise a larger number of subordinates, leading to a wider span of management.
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 similar
B) subordinates are carrying out simple functions
C) the manager spends little time on planning activities
D) subordinates' activities need to be synchronized carefully
E) subordinates are physically located close to one another
Answer: D
Rationale:
When subordinates' activities need to be synchronized carefully, it is more challenging for a
manager to supervise a large number of subordinates, leading to a narrower span of management.
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 work
B) supervising a team of factory workers sewing buttons onto shirts
C) managing a virtual team of engineers spread across several countries
D) managing a highly interdependent production team
E) managing and coordinating the activities of a marketing team
Answer: B
Rationale:
When subordinates are carrying out relatively simple functions, a manager can effectively
supervise a larger number of subordinates, leading to a wider span of management.
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 Follett
B) Henri Fayol
C) F. W. Taylor
D) Max Weber
E) V. A. Graicunas
Answer: E
Rationale:
V. A. Graicunas developed a formula to calculate the number of possible relationships between a
manager and subordinates, based on the number of subordinates.
52) Graicunas's formula is as follows: C = n(2n/2 + n - 1). What does C stand for in this formula?
A) the total number of departments possible in an organization
B) the appropriate number of subordinates a manager can have
C) the appropriate number of levels an organization can have
D) the total number of possible relationships between manager and subordinates
E) the degree of the difficulty in coordinating a certain number of subordinates
Answer: D
Rationale:
In Graicunas's formula, C represents the total number of possible relationships between a
manager and subordinates.
53) Graicunas's formula is as follows: C= n(2n/2 + n - 1). What does n stand for in this formula?
A) the total number of departments in an organization
B) the appropriate number of subordinates a manager can have
C) the total number of levels an organization can have
D) the known number of subordinates for a particular manager
E) the appropriate number of possible relationships between manager and subordinates
Answer: D
Rationale:
In Graicunas's formula, n represents the known number of subordinates for a particular manager.
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) 4
B) 16
C) 44
D) 56
E) 64
Answer: C
Rationale:
Using Graicunas's formula, C = n(2n/2 + n - 1), where n = 4 (the number of subordinates).
Substituting n = 4, we get C = 4(2*4/2 + 4 - 1) = 4(4 + 4 - 1) = 4(7) = 28. So, the total number of
possible relationships is 28.
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 proportionately
B) decreases proportionately
C) increases geometrically
D) increases arithmetically, too
E) decreases geometrically
Answer: C
Rationale:
Graicunas's formula shows that as the number of subordinates (n) increases, the total number of
possible relationships (C) increases geometrically.
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
Rationale:
One criticism of Graicunas's work is that it focuses on the potential relationships between a
manager and subordinates, rather than the actual relationships that exist.
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
Rationale:
The height of an organization chart refers to the number of levels in the hierarchy. Normally, the
greater the height of the organization chart (more levels), the smaller the span of management.
58) The ________ of an organization refers to the extent to which firms use lateral subdivisions
or specialties within an organization.
A) laddering
B) horizontal dimensioning
C) vertical integration
D) vertical dimensioning
E) backward integration
Answer: B
Rationale:
Horizontal dimensioning refers to the extent to which firms use lateral subdivisions or specialties
within an organization.
59) Which of the following is the most widely used basis for departmentalization?
A) customer
B) work functions
C) geography
D) matrix
E) product or service
Answer: B
Rationale:
The most widely used basis for departmentalization is by work functions, such as marketing,
finance, production, and human resources.
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) product
B) geographic
C) functional
D) customer
E) matrix
Answer: C
Rationale:
The organization structure at Kinetic Machines is departmentalized by function, as it is divided
into departments based on specialized functions like marketing, finance, production, and R&D.
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
Rationale:
Functional departmentalization promotes consistency in how functions are carried out because
each department specializes in a specific function, leading to expertise and efficiency in that
area.
62) Which of the following is a potential disadvantage of functional departmentalizing?
A) difficulty for employees to prioritize responsibilities
B) lack of unity of command
C) difficulty in coordinating between various functions
D) difficulty in assigning blame or credit for the performance of a function
E) lack of consistency in carrying out functions
Answer: C
Rationale:
A potential disadvantage of functional departmentalizing is the difficulty in coordinating
between various functions, as each function may focus primarily on its own objectives and
priorities.
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) matrix
B) customer
C) product or service
D) geographic
E) functional
Answer: C
Rationale:
The departmentalization mode used at Sinclair Funds is based on product or service, as the
departments are organized around different financial products/services offered by the company.
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
Rationale:
Departmentalizing by matrix allows firms to pool human resources for short-term and long-term
projects, as employees can be assigned to projects based on their expertise and availability.
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) products
B) projects
C) customers
D) territories
E) functions
Answer: D
Rationale:
Gizmo Sales has departmentalized based on territories, as the departments are organized around
different geographic regions within Atlanta, GA.
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) geography
B) products
C) functional
D) customers
E) matrix
Answer: D
Rationale:
Pixel Technologies has departmentalized based on customers, as the divisions are organized
around different types of retailers (electronics retailers and cell phone retailers).
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) customer
B) matrix
C) product
D) geographic
E) functional
Answer: B
Rationale:
Landmark Constructions is using matrix departmentalization, where project managers have the
authority to pull together resources from different functional areas to work on projects.
68) ________ organizations are also called project organizations.
A) Silo
B) Functional
C) Radial
D) Pyramid
E) Matrix
Answer: E
Rationale:
Matrix organizations are also called project organizations because projects are managed across
functional departments.
69) Which of the following modes of departmentalization contradicts the principle of the unity of
command?
A) customer
B) functional
C) geographic
D) matrix
E) product or service
Answer: D
Rationale:
Matrix departmentalization contradicts the principle of unity of command because employees in
a matrix organization report to both a functional manager and a project manager, leading to
potential conflicts and confusion.
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
Rationale:
One disadvantage of departmentalizing by matrix is that it can be confusing for employees, as
they may have to report to multiple managers and navigate complex reporting relationships.
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
Rationale:
In a matrix organization, project managers typically report directly to the company CEO or other
top-level executives, bypassing middle management. This direct reporting relationship is one of
the key features of matrix organization structure.
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) subordinates
B) market
C) shareholders
D) economy
E) community
Answer: A
Rationale:
The four primary forces that influence the evolution of a formal structure are forces in the
manager, forces in the task, forces in the environment, and forces in the subordinates. These
forces shape how an organization's structure develops and changes over time.
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) manager
B) task
C) environment
D) subordinates
E) activity
Answer: C
Rationale:
The forces in the environment include customers, suppliers, competitors, regulatory bodies, and
other external factors that influence the organization's structure. These forces shape how the
organization interacts with its external environment.
74) Fayol indicated that strict adherence to a particular chain of command is ________.
A) a must
B) the first order of business
C) not always advisable
D) always advisable
E) never advisable
Answer: C
Rationale:
Fayol did not advocate for strict adherence to a particular chain of command. Instead, he
emphasized the importance of flexibility and adaptation to changing circumstances in
organizational management.
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.
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.
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, and frustration
— a sure recipe for ineffectiveness and inefficiency in an organization.
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.
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.
Test Bank for Modern Management: Concepts and Skills
Samuel C. Certo, S. Trevis Certo
9780133059922, 9780133254105, 9780135983546
