2nd Quarter – Organizing

QUIZ 1

I – Modified True of False. Write the word TRUE if the statement is correct, and change the
underline incorrect word to make it true.

True 1. In the management process of organizing, the strategic leadership challenge is to choose the
best organizational form to fit the strategy and other situational demands.
True 2. The purpose of an organization structure is to design titles for different workers and to assign
daily work tasks to them.
False 3. Informal structures can breed resistance to change, be susceptible to rumors, overcome gaps in
formal
structures, or satisfy social needs.
True 4. A functional structure is a form of organization in which people who have similar skills and
who perform
similar tasks are grouped together in work units.
True 5. Divisional structures can create healthy rivalries as divisions compete for available resources.
True 6. Delegation is the act of making employees accountable for their own actions.
True 7. The matrix structure makes use of permanent cross-functional teams to integrate functional
expertise in
support of a clear divisional focus on a product, project, or program.
True 8. Workers in a matrix structure belong to at least two formal groups at the same time. These two
groups are a
functional group and a product, project, or program group.
True 9. Team structures improve communication and decision making as well as help to break down
barriers between operating departments.
True 10. Team based organizational structure is the latest approach to organizational design that
takes advantage of the latest advances in information and communication technology.
False 11. Network structures consist of a central business core that that is linked through networks of
relationships with outside contractors and suppliers of essential services.
False 12. Empowerment allows subordinates to do tasks or responsibilities outside of their regular
work enabling them to exercise a certain level of authority beyond their position.
True 13. Systems theory recognizes that there is no single best way of managing an organization
False 14. An Organic Structure is a rigid and tightly controlled structure that resembles a bureaucracy.
True 15. Decentralized authority, fewer rules and procedures, and personal means of coordination are
characteristics of organic designs.

II – Multiple Choice. Write the CAPITAL LETTERS for your correct response.

A 1. Given a clear mission, core values, objectives and strategy, __________ begins the process of
implementation by clarifying jobs and working relationships.
A. Planning
B. Controlling
C. Organizing
D. Coordinating
C 2. Positions and job titles, lines of authority, and formal communication channels are often
demonstrated for a company by drawing a special diagram. This diagram is called __________.
A. A flow chart
B. a PERT diagram
C. An organization chart
D. an input/output diagram
C 3. When an organization chart shows vice presidents of marketing, manufacturing, finance, and
human resources reporting directly to the president of a company, the top management group is
organized as a __________ structure.
A. Horizontal
B. Vertical
C. Functional
D. Divisional
A 4. A(n) _________ groups together people who work on the same product or process, serve similar
customers, or work in the same area or geographic region.
A. Divisional structure
B. Informal Structure
C. Matrix Structure
D. Functional Structure
A 5. A matrix structure basically combines elements of __________and __________ structures.
A. Horizontal … vertical.
B. Horizontal.....Divisional
C. Functional...Divisional
D. Vertical...Divisional
B 6. Which structural approach makes use of permanent cross-functional teams to integrate functional
expertise in support of a clear divisional focus on a product, project, or program?
A. Hybrid
B. Matrix
C. Divisional
D. Functional
E. Individual
D 7. Network organizations own only the __________ and outsource __________.
A. Information technology … actual production work.
B. Essential core functions … the support functions.
C. Support functions … core functions.
D. Intellectual property … the manufacturing of products.
E. Essential core functions … all customer contacts.
A 8. A __________ organization eliminates internal boundaries among parts and external boundaries
linking with the external environment.
A. Divisional
B. Boundaryless
C. Functional
D. Geographical
E. Matrix
B 9. A(n) __________ is a special form of a boundaryless organization.
A. Functional organization
B. B. Divisional organization
C. C. Virtual organization

E 10. As an “ideal organizational form,” bureaucracy is characterized by all of the following EXCEPT:
A. A clear-cut division of labor.
B. Positions arranged in a strict hierarchy of authority.
C. Orderliness, fairness, and efficiency.
D. A system of formal rules and procedures.
E. Promotions based on seniority.
A 11. The line of authority that vertically links all persons with successively higher levels of management
is the ___
A. Unity-of-command principle
B. Span-of-control principle
C. Channel-of-communication principle
D. Chain of command
E. Line of authority
B 12. The number of persons reporting directly to a single manager is an organizational issue relating to
_____
A. Functional authority
B. Centralization
C. Line & Staff relationship
D. Span of control
B 13. The process of entrusting work to others in the organization by giving them the right to make
decisions and take action is __________.
A. What the manager should do
B. Delegation
C. Empowerment
D. Decentralization
C 14. The __________ principle states: “authority should equal responsibility when work is delegated
from a supervisor to a subordinate.”
A. Scalar
B. Span of Control
C. Responsible Management
D. Authority-and-Responsibility
C 15. When decision-making authority is concentrated at the top levels of an organization, the
organization is said to be __________.
A. Vertically coordinated
B. Decentralized
C. Centralized
D. Horizontally coordinated
E. Control oriented