Foundations of Business 5th Edition Pride

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Chapter 07 Creating a Flexible Organization

ESSAY

1. Define an organization. Relate that definition to a local eating establishment by showing how this
organization fits the definition.

Graders Info :

Answers will vary. An organization is a group of two or more people working together to achieve a
common set of goals. A local Mexican restaurant, for example, may be owned by a husband and wife
and they may employ servers, prep cooks, chefs, and dishwashers. This restaurant is an example of
an organization.

2. Identify and briefly describe the decisions involved that management must make in organizing a
business.

Graders Info :

Hiring people, deciding what each employee will do, and determining who will report to whom are
important decisions involved in organizing a business. Deciding upon positions and chain of
command and then creating an organization chart, a diagram that represents the positions and
relationships within an organization, is also part of organizing a business.

3. Why is job specialization needed?

Graders Info :

Job specialization is the separation of all organizational activities into distinct tasks and the
assignment of different tasks to different people. It is needed because the tasks that need to be
accomplished in any one organization are typically too large for one person to handle. Also, when a
worker specializes in certain tasks, that employee is likely to become quite efficient and will save the
organization money. Also, repeating the same job reduces time in changing tasks as well as the
additional ease of designing specialized equipment when jobs are more specialized.
4. What are the benefits of job rotation?

Graders Info :

Job rotation provides a variety of tasks for employees so boredom is less likely. Also, job rotation
helps workers stay interested in their jobs, develop new skills, and identify new roles where they
may like to focus their energies in the future.
5. A firm may be departmentalized by function, product, location, and customer. Explain how each
method groups jobs into units.

Graders Info :

Departmentalization by function organizes and groups jobs that relate to the same organizational
activity. Departmentalization by product organizes and groups activities related to a particular good
or service of the organization. Departmentalization by location organizes and groups activities
according to the defined geographic area in which they are performed; and departmentalization by
customer groups activities according to the needs of various customer populations.

6. Select a local organization and discuss the basis on which it is organized.

Graders Info :

Answers will vary. A local or regional retail restaurant chain may be organized by location as well as
by product. Ten or 12 restaurants may be divided up by state or metropolitan area. The restaurant
may also have a large retail portion but with a catering section of the business. Since these two
aspects are quite different, the restaurant organization may divide activities into retail operations
and catering operations.

7. Identify and discuss the major steps in the delegation process.

Graders Info :

Delegating generally involves three steps: (1) the manager assigns responsibility for completing of
the job or task; (2) the manager grants authority, or power, to accomplish the job or task; and (3) the
manager creates accountability, or the obligation of the worker to accomplish the assigned job or
task.

8. How does delegation impact decentralization or centralization of a firm?

Graders Info :

The pattern of delegation--assigning parts of a manager's work and power to other workers-
-throughout an organization determines the extent to which that organization is decentralized or
centralized. Management attempts to delegate task widely in a decentralized organization but
concentrates tasks and chooses not to delegate to any great extent in a centralized organization.

9. What does it mean for a manager to have a wide span of control? Would you expect the span of
control to be wide or narrow when subordinates are highly trained professionals? Support your
answer.
Graders Info :

A wide span of management (or span of control) exists when a manager has a large number of
subordinates. A wide span of management does not require excessive supervision of oversight which
would be the case for highly trained professionals. A wide span of control--one manager for many,
competent professionals--is often adequate when managing highly-trained staff.

10. What are some of the primary differences between a line structure and a line-and-staff
structure?

Graders Info :

A line structure is a chain of command that goes directly from person to person throughout an
organization. A straight line can be drawn down through the levels of management. A line-and-staff
structure is similar in that it uses the chain of command from a line structure. However, a line-an-
-staff structure also provides line managers with specialists and staff positions. A line structure is
quite common for very small organizations whereas a line-and-staff structure is often better for
medium- and large-sized organizations.

11. What are some of the primary advantages of a network structure?

Graders Info :

The primary strength of a network structure is its flexibility. A network structure has a few
permanent employees with the flexibility in increasing or decreasing its workforce in often leased
facilities with often leased equipment. An organization set up as a network structure can easily and
quickly ramp up or contract based on business requirements.

12. What are the advantages and disadvantages of a matrix structure?

Graders Info :

Answers will vary. Disadvantages include the complication of information flows, the challenge of
having employees report to more than one supervisor, and the lengthy process that is usually
involved for team decision making. Personality clashes, poor communication, undefined individual
roles, unclear responsibilities, and difficulties in finding ways to reward individual and team
performance simultaneously are also disadvantages.

13. What is an informal organization? Where is it shown on the organization chart? Explain.

Graders Info :

An informal organization displays a pattern of behavior and interaction that stems from personal
rather than official relationships. The informal organization is not shown nor visible on an
organization chart. Informal groups and the grapevine are a part of an informal organization and
these, of course, would not be part of an organization chart.

14. Why is it important that owners and managers pay close attention to corporate culture when
merging two organizations?

Graders Info :

Business leaders often cite the role of corporate culture in the integration process as one of the
primary factors affecting the success of a merger or acquisition. Since corporate culture is the way
of conducting business both within the company and externally, merging two companies that have
different cultures will create challenges that need to be addressed.

15. Describe each of the three primary types of committees that exist in business firms. Offer one
specific example of each.

Graders Info :

An ad hoc committee is created for a specific short-term purpose, such as reviewing a firm's
employee benefits package. A standing committee is a relatively permanent committee charged with
performing a recurring task, such as evaluating quarterly statements of the firm. A task force is a
committee established to investigate a major problem or pending decision, such as determining the
best location for a new facility.

16. Discuss several advantages and disadvantages of committees over individuals. Offer examples
that you have been a part of or are aware of to emphasize your point.

Graders Info :

Committees are often able to bring information and knowledge to the task at hand and tend to make
more accurate decisions and transmit their results more effectively. However, disadvantages of
committees include a lengthier decision-making process and the challenges of dealing with
personalities when one person dominates or negates the committee process.

17. If you were a manager, how would you use the grapevine?

Graders Info :

Acknowledging the existence and even the importance of the grapevine in an organization is a good
first step. Managers should respond promptly and aggressively to inaccurate grapevine information
in order to minimize the damage that such misinformation might cause. Managers can also
effectively use communication from the grapevine in a positive manner.
MULTICHOICE

18. Dramatic Expressions

Dramatic Expressions is a home decorating company that sells many different household accessories
ranging from candles to entertainment centers. Wanda is the CEO of the company. She feels that
there is not enough specialization within the company and wants to organize the business in a
different way. Wanda thinks that the company would be more effective if it were to switch to a new
way of organization. For example, there could be a manager in charge of the candles, a different
manager in charge of the entertainment centers, and so on.

Another issue that Wanda wants to resolve is that of delegation. She believes that if she could
improve her delegating, employees would feel more empowered and want to go above and beyond
what they are required to do. There are certain reasons that Wanda has a hard time delegating to
others, but she is confident that the problem will be overcome if she works on it.

Refer to Dramatic Expressions. What type of departmentalization does Wanda want to switch to?

(A) By function

(B) By product

(C) By location

(D) By customer

(E) By responsibility

Answer : (B)

19. Dramatic Expressions

Dramatic Expressions is a home decorating company that sells many different household accessories
ranging from candles to entertainment centers. Wanda is the CEO of the company. She feels that
there is not enough specialization within the company and wants to organize the business in a
different way. Wanda thinks that the company would be more effective if it were to switch to a new
way of organization. For example, there could be a manager in charge of the candles, a different
manager in charge of the entertainment centers, and so on.

Another issue that Wanda wants to resolve is that of delegation. She believes that if she could
improve her delegating, employees would feel more empowered and want to go above and beyond
what they are required to do. There are certain reasons that Wanda has a hard time delegating to
others, but she is confident that the problem will be overcome if she works on it.

Refer to Dramatic Expressions. What would be an alternative to specialization if negative

consequences were to develop at Dramatic Expressions?

(A) Organization

(B) Occupation
(C) Circulation

(D) Rotation

(E) Generalization

Answer : (D)

20. Dramatic Expressions

Dramatic Expressions is a home decorating company that sells many different household accessories
ranging from candles to entertainment centers. Wanda is the CEO of the company. She feels that
there is not enough specialization within the company and wants to organize the business in a
different way. Wanda thinks that the company would be more effective if it were to switch to a new
way of organization. For example, there could be a manager in charge of the candles, a different
manager in charge of the entertainment centers, and so on.

Another issue that Wanda wants to resolve is that of delegation. She believes that if she could
improve her delegating, employees would feel more empowered and want to go above and beyond
what they are required to do. There are certain reasons that Wanda has a hard time delegating to
others, but she is confident that the problem will be overcome if she works on it.

Refer to Dramatic Expressions. Wanda should address all of the following when it comes to
organizing the business except

(A) job design.

(B) regulating behavior.

(C) establishing a chain of command.

(D) departmentalization.

(E) delegation.

Answer : (B)

21. Dramatic Expressions

Dramatic Expressions is a home decorating company that sells many different household accessories
ranging from candles to entertainment centers. Wanda is the CEO of the company. She feels that
there is not enough specialization within the company and wants to organize the business in a
different way. Wanda thinks that the company would be more effective if it were to switch to a new
way of organization. For example, there could be a manager in charge of the candles, a different
manager in charge of the entertainment centers, and so on.

Another issue that Wanda wants to resolve is that of delegation. She believes that if she could
improve her delegating, employees would feel more empowered and want to go above and beyond
what they are required to do. There are certain reasons that Wanda has a hard time delegating to
others, but she is confident that the problem will be overcome if she works on it.
Refer to Dramatic Expressions. Wanda could best improve delegation by

(A) increasing specialization.

(B) explaining the purpose of each task.

(C) investing the capital necessary for success.

(D) changing each job station.

(E) decreasing job specialization.

Answer : (B)

22. Dramatic Expressions

Dramatic Expressions is a home decorating company that sells many different household accessories
ranging from candles to entertainment centers. Wanda is the CEO of the company. She feels that
there is not enough specialization within the company and wants to organize the business in a
different way. Wanda thinks that the company would be more effective if it were to switch to a new
way of organization. For example, there could be a manager in charge of the candles, a different
manager in charge of the entertainment centers, and so on.

Another issue that Wanda wants to resolve is that of delegation. She believes that if she could
improve her delegating, employees would feel more empowered and want to go above and beyond
what they are required to do. There are certain reasons that Wanda has a hard time delegating to
others, but she is confident that the problem will be overcome if she works on it.

Refer to Dramatic Expressions. What could be a possible reason for Wanda not wanting to delegate
work?

(A) The employee was unreliable.

(B) The employee was not a likable individual.

(C) The employee was well-organized.

(D) The work involved strict planning.

(E) The work took place in an undesirable venue.

Answer : (A)

23. Boss Queen, Inc. (BQI)

Boss Queen, Inc. (BQI) is a business-clothing store for professional women. The owner of the
company has designed the business so that she hardly ever has to be there. There are many
departmental managers who hold a lot of responsibility. While they are organized separately by
department, each manager knows enough about the other departments to be able to fill in at any
time. The department managers also delegate a lot of work further down to their employees as a way
to empower them. The owner even delegates store-management responsibilities to a different
department manager each month. Even though certain people are delegated certain tasks, everyone
pitches in, so it is sometimes hard to tell who is really in charge.

The employees are so comfortable with each other that many go out and participate in activities
together on the weekends, even when they are not working. However, the owner realizes that she
does not want to participate in these events because she does not want to seem that she is favoring
certain people over others.

Refer to Boss Queen, Inc. BQI can best be described as a(n) organization.

(A) span of management

(B) decentralized

(C) ad hoc

(D) centralized

(E) autocratic

Answer : (B)

24. Boss Queen, Inc. (BQI)

Boss Queen, Inc. (BQI) is a business-clothing store for professional women. The owner of the
company has designed the business so that she hardly ever has to be there. There are many
departmental managers who hold a lot of responsibility. While they are organized separately by
department, each manager knows enough about the other departments to be able to fill in at any
time. The department managers also delegate a lot of work further down to their employees as a way
to empower them. The owner even delegates store-management responsibilities to a different
department manager each month. Even though certain people are delegated certain tasks, everyone
pitches in, so it is sometimes hard to tell who is really in charge.

The employees are so comfortable with each other that many go out and participate in activities
together on the weekends, even when they are not working. However, the owner realizes that she
does not want to participate in these events because she does not want to seem that she is favoring
certain people over others.

Refer to Boss Queen, Inc. It seems that BQI managers could be considered all of the following except

(A) line managers.

(B) department managers.

(C) staff managers.

(D) functional managers.

(E) owners.

Answer : (E)
25. Boss Queen, Inc. (BQI)

Boss Queen, Inc. (BQI) is a business-clothing store for professional women. The owner of the
company has designed the business so that she hardly ever has to be there. There are many
departmental managers who hold a lot of responsibility. While they are organized separately by
department, each manager knows enough about the other departments to be able to fill in at any
time. The department managers also delegate a lot of work further down to their employees as a way
to empower them. The owner even delegates store-management responsibilities to a different
department manager each month. Even though certain people are delegated certain tasks, everyone
pitches in, so it is sometimes hard to tell who is really in charge.

The employees are so comfortable with each other that many go out and participate in activities
together on the weekends, even when they are not working. However, the owner realizes that she
does not want to participate in these events because she does not want to seem that she is favoring
certain people over others.

Refer to Boss Queen, Inc. The group of employees that participate in outside activities on the
weekend would be considered a(n) group.

(A) informal

(B) inspirational

(C) affirmative

(D) business

(E) departmental

Answer : (A)

26. An organization chart reveals

(A) staff accountability.

(B) committee assignments.

(C) informal authority.

(D) detailed duties of each manager.

(E) the company's organizational structure.

Answer : (E)

27. Joel Green has been working at The Bicycle Superstore for about two weeks. This morning he
noticed that the store's inventory on bicycle tire repair kits is out, but he is unsure of whom he
should report to for approval to place an order for more kits. Joel is unclear about the

(A) chain of command.

(B) degree of specialization.

(C) level of authority.

(D) span of management.

(E) nature and degree of departmentalization.

Answer : (A)

28. Cory is at the top of her company's organization chart. Which of the following is most likely to be
her job title?

(A) Executive manager

(B) President

(C) Manager

(D) Vice president, operations

(E) Organization leader

Answer : (B)

29. Vice president, marketing⎯Regional sales manager⎯District manager⎯Sales supervisor

represents a(n)

(A) organization chart.

(B) command hierarchy.

(C) corporate organization.

(D) chain of command.

(E) departmentalization.

Answer : (D)

30. Upon beginning her career at Davidson Inc., a small consulting firm, Stephanie Benjamin
receives a copy of the firm's organization chart, which will

(A) demonstrate the firm's informal network of communication.

(B) clarify positions and report relationships within the firm.

(C) not be very useful because small firms don't usually adhere to a formal structure.

(D) probably be outdated because small firms are always changing.

(E) indicate the short-, medium-, and long-term goals of the company.
Answer : (B)

31. Distinguishing between positions with direct authority and those that are support positions
establishes an organization's

(A) chain of command.

(B) span of management.

(C) degree of centralization or decentralization.

(D) nature and degree of departmentalization.

(E) degree of specialization.

Answer : (A)

32. A locally owned and operated bakery with just one location is likely to have

(A) a short chain of command.

(B) a complex chain of command.

(C) an extensive advisory staff.

(D) a highly departmentalized structure.

(E) no organization chart.

Answer : (A)

33. Legal services and public affairs are types of jobs, so they do not fit directly into the chain of
command.

(A) specialized

(B) top management

(C) authoritative

(D) voluntary

(E) advisory

Answer : (E)

34. Human resources is a(n) type of job, so it does not fit directly into the chain of command.

(A) line

(B) staff
(C) advisory

(D) top management

(E) authoritative

Answer : (B)

35. The legal affairs attorney working for Intel would most likely occupy a(n)

(A) vice president position.

(B) high position in the chain of command.

(C) staff position.

(D) nonessential position.

(E) authoritarian position.

Answer : (C)

36. The various tasks in IBM's manufacturing plant are arranged so that one worker draws the
wiring, another strengthens the wires, a third cuts them, a fourth inserts them, and a fifth seals
them together. This is an example of job

(A) rotation.

(B) redesign.

(C) specialization.

(D) enrichment.

(E) enlargement.

Answer : (C)

37. The separation of all organizational activities into distinct tasks and the assignment of different
tasks to different people is called job

(A) rotation.

(B) specialization.

(C) enlargement.

(D) enrichment.

(E) organization.

Answer : (B)
38. In a furniture factory, one worker cuts the wood according to the design, another glues the
furniture together, and another stains and finishes the furniture. This is an example of

(A) departmentalization.

(B) decentralization.

(C) job specialization.

(D) job rotation.

(E) an automated assembly line.

Answer : (C)

39. The book, The Wealth of Nations, published in the eighteenth century, emphasizes the power of

(A) job rotation.

(B) technical job training.

(C) job specialization.

(D) job design.

(E) assembly-line production.

Answer : (C)

40. Ted Landry finds he has less and less energy to go to work each day. On average he misses two
days a week. Ted may be suffering from boredom, which is one negative side effect of job

(A) rotation.

(B) enrichment.

(C) specialization.

(D) enlargement.

(E) enhancement.

Answer : (C)

41. A benefit of job specialization is that it

(A) is more difficult to design equipment.

(B) is easier to train new employees.

(C) is more time-consuming to change from one operation to another.

(D) eliminates boredom.

(E) enriches the job.

Answer : (B)

42. When a worker has to learn only a specific, highly specialized task, that individual should be able
to learn to do it very efficiently. However, this efficiency could eventually become inhibited by job
monotony and boredom. This situation could be alleviated through

(A) job rotation.

(B) technical job training.

(C) job specialization.

(D) job design.

(E) assembly-line production.

Answer : (A)

43. In a recent task force meeting, the human resources manager gave many reasons why the
organization needed some specialization. In so doing, she stated that

(A) a worker who learns only a specific, highly specialized task becomes inefficient at that task.

(B) a worker who does the same job over and over loses time changing from one operation to
another.

(C) the more specialized the job, the harder it may be to design specialized equipment for those
doing it.

(D) the more specialized the job, the easier it is to train new employees when an employee quits or is
absent.

(E) the job of most organizations is simply too large for one person to handle. Several people
carrying out different functions are needed.

Answer : (D)

44. Employees at a chemical factory are systematically moved every two weeks among three
different departments in the organization. This is called

(A) job trading.

(B) specialization.

(C) departmentalization by function.

(D) job enlargement.

(E) job rotation.

Answer : (E)

45. Workers at the pharmaceutical company, Eli Lilly are less likely to become bored or dissatisfied
with their jobs because Eli Lilly practices job

(A) enlargement.

(B) rotation.

(C) enrichment.

(D) generalization.

(E) substitution.

Answer : (B)

46. Ford and Xerox are two companies that have begun moving away from strict job specialization to
alleviate employee motivation problems. Each company has adopted a job design alternative that
involves workers in a wider variety of tasks. The method they have employed is known as job

(A) enlargement.

(B) enrichment.

(C) generalization.

(D) rotation.

(E) substitution.

Answer : (D)

47. If a new company desires to departmentalize in a way that will simplify supervision and facilitate
coordination, it will most likely departmentalize by

(A) product.

(B) location.

(C) worker skill level.

(D) customer.

(E) function.

Answer : (E)
48. Grouping jobs into manageable units according to some reasonable scheme is known as

(A) job description.

(B) departmentalization.

(C) centralized organization.

(D) bureaucratic structuring.

(E) informal organizing.

Answer : (B)

49. The Morgan Company, a small furniture manufacturer, divides its organization into marketing,
human resources, accounting, and production departments. This is an example of
departmentalization by

(A) location.

(B) specialty.

(C) product.

(D) taste.

(E) function.

Answer : (E)

50. Location, product, function, and customer are common bases for a firm's

(A) span of management.

(B) job design.

(C) job specialization.

(D) chain of command.

(E) departmentalization.

Answer : (E)

51. A computer manufacturer is first divided into the following groups: Home Office/Personal Use,
Small Business, Large Business, and Educational Institutions. Within each of these divisions,
management is organized into finance, operations, marketing, and human resources. This company
is organized first by , then by .

(A) function; customer

(B) customer; function

(C) product; function

(D) product; customer

(E) customer; location

Answer : (B)

52. Which of the following is a disadvantage of departmentalization by function?

(A) Supervision is very difficult because workers are involved in different types of activities.

(B) This method tends to emphasize the department rather than the organization as a whole.

(C) It causes duplication of the same specialized activities throughout the organization.

(D) This method requires an extremely large administrative staff.

(E) Coordination is very complex because of the way job duties are distributed.

Answer : (B)

53. General Motors has separate divisions for Chevrolet, Pontiac, Oldsmobile, Buick, and Cadillac.
This is an example of departmentalization by

(A) function.

(B) location.

(C) customer.

(D) product.

(E) model.

Answer : (D)

54. Most large organizations use

(A) departmentalization by product.

(B) departmentalization by location.

(C) departmentalization by customer.

(D) a combination of departmentalization bases.

(E) no departmentalization.

Answer : (D)
55. The president of Digital Equipment Corporation discovered that his company was having a
problem with counterproductive product groups who were working selfishly rather than cooperating
with one another. To solve the problem, he combined the company's twelve U.S. product groups into
three regional management centers. This solution is referred to as departmentalization by

(A) location.

(B) function.

(C) product.

(D) customer.

(E) objective.

Answer : (A)

56. Grouping the United States into the Northeast Region, the Northwest Region, the Southeast
Region, and the Southwest Region would be departmentalization by

(A) location.

(B) customer.

(C) function.

(D) product.

(E) task.

Answer : (A)

57. Citibank has one group of loan officers who handle consumer loans and another group who work
in the commercial loan area. Grouping work units this way is known as departmentalization by

(A) function.

(B) customer.

(C) product.

(D) specialty.

(E) location.

Answer : (B)

58. A firm organized on the basis of retail customers and wholesale customers utilizes the concept of
departmentalization by

(A) location.
(B) function.

(C) customer.

(D) product.

(E) task.

Answer : (C)

59. If First National Bank were to assign one of its bank tellers to business merchants and two
others to individual accounts, it would be departmentalizing on the basis of

(A) location.

(B) population.

(C) customer.

(D) function.

(E) service.

Answer : (C)

60. Although departmentalization may be determined within an organization on the basis of one
criterion, such as location, most organizations find to be a more efficient means of conducting
business.

(A) decentralization

(B) more than one basis for departmentalization

(C) delegation of authority

(D) centralization

(E) managerial decision making

Answer : (B)

61. The assignment of part of a manager's work and authority to a worker is called

(A) delegation.

(B) responsibility.

(C) authorization.

(D) accountability.

(E) relegation.
Answer : (A)

62. Amy, an administrative assistant in the business division of a university, is assigned the
responsibility of serving the needs of the division's professors. However, Amy often reads books and
looks at catalogs during working hours because she has plenty of free time. It appears that the
professors in the division have failed to

(A) delegate.

(B) work hard.

(C) teach class.

(D) prioritize.

(E) be held accountable.

Answer : (A)

63. Delegation consists of giving a subordinate all of the following except

(A) responsibility.

(B) authority.

(C) accountability.

(D) a line position.

(E) both accountability and a line position.

Answer : (D)

64. Dana is assigned to create a training program for newly hired mortgage loan officers. She has
the to complete this assignment.

(A) authority

(B) delegation

(C) network

(D) responsibility

(E) accountability

Answer : (D)

65. One's duty to do a job or perform a task is called

(A) authority.

(B) accountability.

(C) responsibility.

(D) delegation.

(E) obligation.

Answer : (C)

66. Which of the following statements about accountability is false?

(A) Managers create accountability.

(B) Managers delegate accountability.

(C) Accountability is the obligation of the worker.

(D) Creating accountability is a step in the delegation process.

(E) Managers are accountable for tasks they assign.

Answer : (B)

67. Ann delegated work to an employee who mismanaged public funds. Ann, rather than the
employee, was reprimanded for this mismanagement. Ann is now reluctant to delegate because she

(A) does not care whether the work is properly done.

(B) knows the person who delegates remains accountable for the work.

(C) does not trust any of her subordinates.

(D) fears a subordinate will do the work so well that he or she will attract the approval of top
management.

(E) is so disorganized that she simply cannot plan and assign work effectively.

Answer : (B)

68. Mark left his position as a manager for JCPenney after two years. He complained of being
burned out from having to fulfill too many roles and tasks for one position. Mark probably never
learned to use the tool of

(A) segmentation.

(B) decentralization.

(C) control.
(D) delegation.

(E) centralization.

Answer : (D)

69. Janet is a runner for a large law firm. Her duties include purchasing supplies for the copy room.
Janet was given permission by the office manager to sign credit-card receipts when making
purchases. Janet has been given to use the firm's credit card.

(A) responsibility

(B) obligation

(C) authority

(D) staff centrality

(E) accountability

Answer : (C)

70. Susan was given the responsibility for chairing a campus committee. To complete the delegation
process, she should be given the to carry out this responsibility.

(A) duty

(B) subordinates

(C) authority

(D) skills (E)

salary

Answer : (C)

71. As a new manager for Sears, Peter is unwilling to delegate work. He realizes that, although he
can delegate assignments to others, he cannot delegate his

(A) power to carry them out.

(B) authority.

(C) obligation to see that tasks are completed.

(D) responsibility to carry out assignments.

(E) function to complete tasks.

Answer : (C)
72. Jason assigns responsibility to a subordinate for preparing a sales presentation for an important
potential client and authorizes the necessary expenditures of money and human resources, but he
still requires a dress rehearsal to be presented to him before the actual presentation. Jason realizes
that accountability cannot be

(A) created.

(B) delegated.

(C) assigned.

(D) expected.

(E) accepted.

Answer : (B)

73. Authority and are synonymous terms.

(A) power

(B) responsibility

(C) duty

(D) delegation

(E) accountability

Answer : (A)

74. The degree of centralization of an organization is based on the

(A) degree of departmentalization.

(B) level of bureaucracy.

(C) organization chart.

(D) delegation of authority.

(E) degree of job specialization.

Answer : (D)

75. The more complex and uncertain a company's environment, the more likely it is that the
company will

(A) decentralize the organization.

(B) have a split between decentralized and centralized decision making.

(C) centralize the organization.

(D) increase the span of control, thus increasing the number of employees on board.

(E) decrease the span of control, thus decreasing the workforce.

Answer : (A)

76. Since Sears operates in a complex and dynamic environment, its store managers are given
significant freedom to run their stores. This indicates that top leaders at Sears

(A) centralize decision making.

(B) deemphasize lower-level management training.

(C) control their managers tightly.

(D) deemphasize lower-level management accountability.

(E) decentralize authority.

Answer : (E)

77. A common characteristic of a centralized organization is

(A) democratic decision making.

(B) decision making by a few top-level managers.

(C) a flat span of management.

(D) placing decision making near the workplace.

(E) authority placed at lower levels.

Answer : (B)

78. Rockwood International needs to make risky decisions on a daily basis. Therefore, its managers
are likely to

(A) centralize decision making.

(B) let lower-level managers make important decisions.

(C) train lower-level managers to make more decisions.

(D) decentralize authority.

(E) centralize rare skills.

Answer : (A)
79. Which of the following does not prevent managers from delegating?

(A) They are so disorganized that they cannot assign work effectively.

(B) They want to make sure the work gets done properly.

(C) They usually have few responsibilities and therefore little to delegate.

(D) They fear that the subordinate will do excellent work and become a threat to the manager.

(E) They know that they are still ultimately responsible for the work.

Answer : (C)

80. A biotechnology company is constantly faced with important decisions that are likely to have
severe consequences on the future of the company. The top managers should

(A) decentralize decision-making authority.

(B) appoint lawyers to make business decisions.

(C) train first-line managers to make these decisions.

(D) exercise centralized decision-making authority.

(E) consult investors when making important daily decisions.

Answer : (D)

81. The head of the marketing department at CBS Environmental, Inc. supervises twelve people in
her department. This represents her

(A) chain of command.

(B) degree of specialization.

(C) level of authority.

(D) span of management.

(E) nature and degree of departmentalization.

Answer : (D)

82. The number of workers who report directly to one manager is called

(A) authority.

(B) accountability.

(C) responsibility.
(D) the span of management.

(E) centralization.

Answer : (D)

83. Determining how many subordinates will report to each manager gives an organization its

(A) chain of command.

(B) span of management.

(C) degree of centralization.

(D) nature and degree of departmentalization.

(E) degree of specialization.

Answer : (B)

84. The number of subordinates reporting directly to one manager is called

(A) the chain of command.

(B) a decentralized organization.

(C) a centralized organization.

(D) the span of control.

(E) the management hierarchy.

Answer : (D)

85. Wesley is a manager in an organization where a great deal of interaction is required between
himself and his workers and new problems arise frequently. Wesley is likely to have

(A) a wide span of management.

(B) little authority to delegate.

(C) decentralized power.

(D) departmentalization by consumer.

(E) a narrow span of control.

Answer : (E)

86. A manager with few subordinates is said to have a

(A) narrow span of control.

(B) flat organizational structure.

(C) managerial hierarchy.

(D) matrix structure.

(E) wide span of control.

Answer : (A)

87. A span of control may be wide when

(A) managers and workers are located far from one another.

(B) a great deal of interaction among levels is needed.

(C) few new problems are expected to arise.

(D) the manager has a lot of work other than managing.

(E) new problems arise frequently.

Answer : (C)

88. Mr. Kerr will manage employees throughout the northwestern region of the United States. His
employees will consist of most major nationalities and both males and females. In determining his
span of control, you should consider which of the following span factors?

(A) The percentage of females

(B) The percentage of minorities

(C) The percentage with college degrees

(D) The percentage who do not have college degrees

(E) Whether the subordinates are physically located far from one another

Answer : (E)

89. George Brown is a regional sales manager for Unisys, a large manufacturer of computer
systems. As such, George is responsible for salespeople throughout the region, and he must interact
with them frequently to solve problems. Which of the following descriptions is most characteristic of
Unisys and its sales managers?

(A) Wide span of management control and flat organizational height

(B) Narrow span of management control and flat organizational height

(C) Wide span of management control and tall organizational height

(D) Narrow span of management control and tall organizational height

(E) Low administrative costs and clear communication

Answer : (D)

90. All of the following are reasons for a narrow span of management except

(A) workers are located far from one another.

(B) few new problems are expected.

(C) the manager must do a lot of work other than managing.

(D) a great deal of interaction between management and workers is needed.

(E) new problems arise frequently.

Answer : (B)

91. A consulting manager at SAP America has a very wide span of control. This is probably because
the

(A) firm has a very loose, informal organizational structure.

(B) consulting manager has a low level of accountability.

(C) consulting manager is expected to delegate authority.

(D) manager's subordinates aren't given much responsibility.

(E) manager and his or her subordinates are very competent.

Answer : (E)

92. A manager with many subordinates is said to have a

(A) tall organizational structure.

(B) narrow span of control.

(C) managerial hierarchy.

(D) wide span of control.

(E) matrix structure.

Answer : (D)
93. The number of layers in the organizational structure of Dayton Hudson Corporation indicates the
company's

(A) chain of command.

(B) organizational height.

(C) line authority.

(D) organizational structure.

(E) management hierarchy.

Answer : (B)

94. In an organization with a , a manager is most likely to spend considerable time supervising
and working with employees.

(A) flat organizational width and a wide height span

(B) narrow span of control and a tall organizational height

(C) flat organizational height and a wide span of control

(D) wide span of control and a tall organizational height

(E) narrow span of control and a flat organizational height

Answer : (C)

95. The number of layers, or levels, in a firm is referred to as the firm's

(A) organizational structure.

(B) managerial hierarchy.

(C) cluster structure.

(D) organizational height.

(E) bureaucratic structure.

Answer : (D)

96. Generally speaking, a narrow span of management implies that the height of the organization
will be ; a wide span of management implies that the height of the organization will be .

(A) tall; flat

(B) tall; sloped

(C) flat; tall

(D) short; tall

(E) long; short

Answer : (A)

97. Which of the following is not one of the four basic forms of organizational structure?

(A) Informal

(B) Network

(C) Line

(D) Line-and-staff

(E) Matrix

Answer : (A)

98. A small restaurant with wait staff that reports to staff manager who reports to a floor manager
who reports to the restaurant manager is a clear example of a(n) organizational structure.

(A) matrix

(B) line

(C) line-and-staff

(D) informal

(E) network

Answer : (B)

99. Which of the following is most characteristic of a line structure in an organization?

(A) Flexibility that allows an organization to adjust quickly

(B) Raises moral and nurtures creativity

(C) Teams that may be temporary or disbanded upon an accomplished mission

(D) Education decision-making with expert advice from outside sources

(E) Quick decision-making and direct accountability

Answer : (E)

100. Which of the following is considered a downside of a line structure for an organization?
(A) The vast array of expertise brings a wide array of knowledge to a line structure.

(B) Slow decision-making by managers is typical of a line structure.

(C) Confusion about who is in charge causes grave drawbacks for this structure.

(D) Boredom and dissatisfaction is commonplace for managers in a line structure organization.

(E) Managers are responsible for a wide range of activities and, therefore, must have vast
knowledge about all of these activities.

Answer : (E)

101. The structure is considered the simplest and the oldest form of organizational structure.

(A) cross-functional team

(B) matrix

(C) formal

(D) line-and-staff

(E) line

Answer : (E)

102. A line-and-staff structure tends to work best for organizations.

(A) medium and large size

(B) small to medium size

(C) informal

(D) flat (E)

tall Answer :

(A)

103. A basic difference between line managers and staff managers is that line managers have
which staff managers rarely have.

(A) authority

(B) expertise

(C) decision-making skills

(D) experience
(E) responsibility

Answer : (A)

104. When line managers in an organization encounter issues that a staff member with specialized
expertise can assist with, the staff member they consult with has authority.

(A) advisory

(B) centralized

(C) functional

(D) line

(E) decentralized

Answer : (A)

105. In an organization with a matrix structure, authority flows both

(A) down and across.

(B) up and down.

(C) up and across.

(D) in lines and in circles.

(E) through groups and individuals.

Answer : (A)

106. Sherry, a sales representative, is placed in a group with an engineer from operations, a human
resource specialist, and a financial manager to develop new uses for one of the company's existing
products in order to increase sales. This group is a

(A) standing committee.

(B) task force.

(C) special project team.

(D) cross-functional team.

(E) multifaceted work group.

Answer : (D)

107. Airo Corporation has a traditional structure. It wants to change to a project structure that will
allow more interaction among functional groups. Which structure would you suggest?

(A) Network

(B) Formal

(C) Matrix

(D) Informal

(E) Line

Answer : (C)

108. When a functional structure is combined with a project structure, the resulting structure is
called a(n) structure.

(A) line-and-staff

(B) network

(C) integrated

(D) matrix

(E) hybrid

Answer : (D)

109. An analyst in the corporate finance department at Chase Manhattan Bank has been assigned to
an interdepartmental project involving a major client. He must report to two different
supervisors⎯the project manager and the manager of his department. This sort of organizational
structure is called a structure.

(A) network

(B) matrix

(C) line

(D) functional

(E) hybrid

Answer : (B)

110. Probably the most obvious advantage of a matrix structure is that of

(A) added flexibility.

(B) improved motivation.

(C) improved communication within the organization.

(D) more personal growth and development of employees.

(E) lower salary expenses; because people are doing more work, the organization does not need to
hire as many people.

Answer : (A)

111. A disadvantage of the matrix structure is that

(A) people have more work to do because they are assigned to special projects in addition to their
regular tasks.

(B) the quality of work decreases due to project teams' lack of attention to regular job duties.

(C) employees' supervisors change, which can cause confusion.

(D) teams may be too decentralized and incapable of making a decision.

(E) employees have to report to more than one supervisor, which can cause confusion about who is
in charge of certain situations.

Answer : (E)

112. Which organizational structure is also called a virtual organization?

(A) Matrix

(B) Informal

(C) Line-and-staff

(D) Network

(E) Line

Answer : (D)

113. Galvin Corporation provides institutional food facilities with bread and other baked goods. The
company does not actually produce or market the bread, and it has very few employees, most of
whom are top executives or clerical workers. Galvin Corporation has a(n) organizational
structure.

(A) matrix

(B) line-and-staff

(C) network

(D) informal
(E) line

Answer : (C)

114. A corporate culture is generally defined as the

(A) manner in which employees interact with each other and with management.

(B) incorporation of company policies and procedures into employee activities.

(C) inner rites, rituals, heroes, and values of a firm.

(D) management philosophy pertaining to customer service.

(E) informal interaction of employees outside work during nonbusiness hours.

Answer : (C)

115. Many online companies strive to have a corporate culture based on trust and friendship among
employees, a strong commitment to the company, and a relaxed and informal atmosphere. This is a
culture.

(A) communal

(B) fragmented

(C) networked

(D) family

(E) mercenary

Answer : (C)

116. The two types of corporate culture that have low levels of sociability among employees are

(A) networked and communal.

(B) fragmented and networked.

(C) family and communal.

(D) mercenary and networked.

(E) fragmented and mercenary.

Answer : (E)

117. An organization with a(n) culture is characterized by employees not becoming friends and
having a high degree of autonomy and flexibility.
(A) communal

(B) networked

(C) informal

(D) mercenary

(E) fragmented

Answer : (E)

118. When you encounter an organization where employees are quite intense, focused, and
determined to win, you have encountered an organization with a(n) culture.

(A) fragmented

(B) networked

(C) informal

(D) mercenary

(E) communal

Answer : (D)

119. culture is represented by friendship, commitment, and high focus on performance.

(A) Corporate

(B) Mercenary

(C) Networked

(D) Fragmented

(E) Communal

Answer : (E)

120. A committee created for a specific short-term purpose is called a(n)

(A) task force.

(B) standing committee.

(C) ad hoc committee.

(D) informal group.

(E) organic structure.

Answer : (C)

121. A committee was organized at Xerox to study the company's hiring, promotion, and
compensation policies. The group will review corporate procedures in these areas for the next six
months and disband thereafter. This type of committee is referred to as a(n)

(A) standing committee.

(B) task force.

(C) ad hoc committee.

(D) integrative team.

(E) liaison committee.

Answer : (C)

122. A relatively permanent committee charged with performing some recurring task is called a(n)

(A) cluster structure.

(B) ad hoc committee.

(C) informal group.

(D) task force.

(E) standing committee.

Answer : (E)

123. A group of managers from various departments is in charge of evaluating the performance of
the staff employees every year. This is a(n)

(A) ad hoc committee.

(B) permanent committee.

(C) task force.

(D) standing committee.

(E) organizational review committee.

Answer : (D)

124. A committee created to investigate a major problem or pending decision is called a(n)

(A) ad hoc committee.

(B) standing committee.

(C) task force.

(D) work team.

(E) venture committee.

Answer : (C)

125. A(n) has been appointed to investigate the pending merger of your company and the Tandy
Corporation.

(A) standing committee

(B) task force

(C) standing force

(D) ad hoc committee

(E) grievance committee

Answer : (B)

126. Executives from several departments at Ford Motor Company were brought together recently
to discuss the advantages and disadvantages of acquiring Jaguar. This type of committee is known as
a(n)

(A) task force.

(B) standing committee.

(C) liaison committee.

(D) ad hoc committee.

(E) matrix team.

Answer : (A)

127. Committees and task forces represent groups within an organization, whereas employee
bowling teams and gatherings represent groups.

(A) staff; line

(B) formal; informal

(C) staff; staff

(D) informal; formal

(E) line; staff

Answer : (B)

128. Personal rather than formal relationships among employees are known as the

(A) span of management.

(B) chain of command.

(C) informal organization.

(D) bureaucratic structure.

(E) grapevine.

Answer : (C)

129. An informal communications network is known as a

(A) memo.

(B) company newspaper.

(C) chain of command.

(D) grapevine.

(E) bulletin board.

Answer : (D)

130. Carl Smith overheard that Joe Dunn was blowing the whistle on managers at XYZ Company and
that a full story would appear in Sunday's paper. Carl quickly alerted the managers, who were able
to stop the newspaper from printing the article. This is an example of managers'

(A) ignoring the grapevine.

(B) involving the grapevine as a useless communication network.

(C) trying to eliminate the grapevine.

(D) using the grapevine as a managerial tool.

(E) reducing the credibility of information from the grapevine.

Answer : (D)

131. Angered by the informal discussions among employees, a supervisor has posted rules against
rumors, gossip, and discussions about the company's financial situation as well as other company
matters. Your managerial know-how tells you that this supervisor is

(A) trying to support employees' First Amendment rights.

(B) trying to eliminate inaccurate information.

(C) making a big mistake by trying to eliminate the grapevine.

(D) recognizing the need for a grapevine.

(E) attempting to use the grapevine as a managerial tool.

Answer : (C)

132. Through informal talks with employees, managers realized employees thought their plant
would close, resulting in massive layoffs. A few were already seeking other employment. The
managers responded promptly and aggressively to this rumor, assuring employees of the health of
the corporation and the reasonable security of their jobs. Your managerial know-how tells you that
these managers are attempting to

(A) ignore inaccurate information because they know the truth eventually will become known.

(B) respond to inaccurate grapevine information to minimize the damage such misinformation might
cause.

(C) eliminate the grapevine.

(D) use the grapevine as a managerial tool.

(E) reduce the credibility of information from the grapevine.

Answer : (B)

TRUEFALSE

133. An organization is a group of two or more people working together to achieve common goals.

(A) True

(B) False

Answer : (A)

134. Each rectangle in an organization chart represents a relationship within the organization.

(A) True

(B) False

Answer : (B)
135. All large firms maintain complete and detailed organization charts because it is important to
maintain a clear line of authority.

(A) True (B)

False

Answer : (B)

136. Job specialization is the separation of all organizational activities into distinct tasks and the
assignment of different tasks to different people.

(A) True (B)

False

Answer : (A)

137. The employees at the Ford production facility in Michigan work on an assembly line where
each employee performs a specific task. This method of assembly-line production is a good example
of job specialization.

(A) True (B)

False

Answer : (A)

138. Adam Smith, author of The Wealth of Nations, is widely credited with being the first person to
emphasize the power of specialization.

(A) True (B)

False

Answer : (A)

139. The human resource manager of one of Hershey Foods' production facilities has been noticing
an increase in absenteeism among assembly-line workers in the chocolate bar plant. Switching to a
job rotation system would probably significantly decrease the amount of absenteeism.

(A) True (B)

False

Answer : (A)

140. Job rotation is the systematic shifting of employees from one job to another.
(A) True (B)

False

Answer : (A)

141. The most common bases for departmentalization are by function, by product, by location, and
by customer.

(A) True (B)

False

Answer : (A)

142. Older, larger firms producing and selling various products base departmentalization on
function.

(A) True (B)

False

Answer : (B)

143. Green Sports Incorporated is a small start-up company that manufactures and markets sports
equipment made from recycled materials. Green Sports is best suited to base its departmentalization
on product.

(A) True (B)

False

Answer : (B)

144. Ford Motor Company's marketing department has recently been restructured to implement a
brand management strategy. This is an example of departmentalization by product.

(A) True (B)

False

Answer : (A)

145. Departmentalization by location allows an organization to readily respond to the unique

demands of each geographic area.

(A) True

(B) False
Answer : (A)

146. Using more than one basis for departmentalization is the rule rather than the exception for
larger firms.

(A) True (B)

False

Answer : (A)

147. It is important that every company use only one departmentalization basis.

(A) True

(B) False

Answer : (B)

148. Delegation is the act of distributing work and power to subordinates.

(A) True

(B) False

Answer : (A)

149. Accountability is the power within an organization to accomplish an assigned job or task.

(A) True

(B) False

Answer : (B)

150. A supervisor may delegate all accountability to subordinates.

(A) True

(B) False

Answer : (B)

151. An organization in which management consciously attempts to spread authority to the lower
organizational levels is said to be centralized.

(A) True
(B) False

Answer : (B)

152. When managers attempt to spread authority widely in the lower levels of an organization, they
are attempting to centralize authority.

(A) True (B)

False

Answer : (B)

153. A manager's reluctance to delegate may stem from his or her belief that the subordinate will do
the work too well.

(A) True (B)

False

Answer : (A)

154. A highly centralized organization usually means that lower-level employees have the
opportunity to make decisions regarding the best way to accomplish their assigned tasks.

(A) True (B)

False

Answer : (B)

155. When authority is concentrated at the top level of management, the organization is said to be
decentralized.

(A) True (B)

False

Answer : (B)

156. After years of research, theorists have decided that the optimal span of management is one
manager per twenty employees.

(A) True (B)

False

Answer : (B)
157. The span of control is the number of subordinates who report directly to one manager.

(A) True

(B) False

Answer : (A)

158. When a manager has few subordinates, a narrow span of management exists.

(A) True

(B) False

Answer : (A)

159. In a flat organization, administrative costs are higher because more managers are needed.

(A) True

(B) False

Answer : (B)

160. The span of management plays a direct role in determining the organization's height.

(A) True

(B) False

Answer : (A)

161. Target has several layers of management in between the entry-level management position and
CEO. This implies that the span of management for each manager is relatively narrow and the
organizational height of Target is tall.

(A) True (B)

False

Answer : (A)

162. Managers within a line structure are typically known as staff managers.

(A) True

(B) False

Answer : (B)
163. Functional authority allows line managers to make decisions and issue directive relating to the
goals of the organization.

(A) True (B)

False

Answer : (B)

164. Cross-functional teams are not very effective structures to use when developing a new product
or service.

(A) True (B)

False

Answer : (B)

165. Staff managers are part of the chain of command of an organization.

(A) True

(B) False

Answer : (B)

166. The matrix organizational structure facilitates greater communication between employees.

(A) True

(B) False

Answer : (A)

167. When the matrix structure is used, employees report to more than one supervisor.

(A) True

(B) False

Answer : (A)

168. The inner rites, rituals, heroes, and values of a firm make up its corporate culture.

(A) True

(B) False

Answer : (A)
169. Companies like Southwest Airlines and Saturn attribute a great deal of their success to their
strong corporate cultures, which is inaccurate. In reality, research has determined that, over time,
corporate culture has only a marginal influence on firm performance.

(A) True (B)

False

Answer : (B)

170. Corporate culture has little real influence on the performance of a firm.

(A) True

(B) False

Answer : (B)

171. Among an ad hoc committee, a standing committee, and a task force, only a standing
committee is relatively permanent.

(A) True (B)

False

Answer : (A)

172. A task force is a committee responsible for investigating a major problem or pending decision.

(A) True

(B) False

Answer : (A)

173. An informal organization can be shown on a formal organization chart.

(A) True

(B) False

Answer : (B)

174. Another term used to refer to a formal organization's network of communication is grapevine.

(A) True

(B) False
Answer : (B)

175. The most appropriate, short-term committee to provide a recommendation for a health care
benefit plan for a medium size corporation would be a task force.

(A) True (B)

False

Answer : (B)

176. Committees are necessary in an organization but do not offer any advantages over individual
decisions and actions.

(A) True (B)

False

Answer : (B)

177. An advantage of decision-making by a committee in lieu of an individual is that committee

deliberations are always faster than individual decisions.

(A) True (B)

False

Answer : (B)

178. An informal group in an organization is formed by the line managers of that organization.

(A) True

(B) False

Answer : (B)

179. Informal groups are never powerful within an organization.

(A) True

(B) False

Answer : (B)

180. It is important for managers to be aware of the informal groups that exist in an organization.

(A) True
(B) False

Answer : (A)

MULTICHOICE

181. A manager who hears employees gossiping about him and attempts to stop the gossip by
enacting rules against spreading rumors, gossip, and discussions about the company will

(A) most likely fail.

(B) terminate the company grapevine.

(C) increase employees' freedom of speech.

(D) make employees happy.

Answer : (A)

182. A business grapevine is best defined as

(A) an informal communications network.

(B) a vine that produces grapes.

(C) an electronic bulletin board.

(D) a formal means of disseminating information throughout the company.

Answer : (A)

183. When a manager hears that inaccurate information that may be harmful to the company is
being spread through the grapevine, the manager should

(A) immediately take action to correct the inaccurate grapevine information to minimize damage.

(B) ignore the rumors and hope they die out on their own.

(C) start rumors of his or her own.

(D) start a company newsletter.

Answer : (A)

184. The is the line of authority that extends from the highest to the lowest levels of the
organization.

(A) chain of command

(B) organizational chart

(C) organization

(D) departmental conundrum

Answer : (A)

185. The name given to a diagram that represents the positions and relationships within an
organization is a(n)

(A) organizational chart.

(B) organizational outline.

(C) chain of command.

(D) organizational identification.

Answer : (A)

186. Lamar and two of his friends are starting a new tech business and are meeting to decide the
firm's organizational structure. During the meeting they will most likely discuss issues related to

(A) job design, departmentalization, delegation, span of management, and chain of command.

(B) departmentalization, delegation, and span of control.

(C) flexibility, notoriety, delegation, and span of control.

(D) chain of command, span of management, and advisory control.

Answer : (A)

187. Wilber started a tech business in his garage. During the start-up, Wilber and all of the starting
employees did any tasks needed. The company has now moved from Wilber's garage and into a
building and employs 50 people. Wilber is now separating all of the organizational activities into
distinct tasks and assigning different tasks to different people. Wilber is engaged in creating

(A) job specialization.

(B) job design.

(C) employee differential.

(D) natural selection.

Answer : (A)

188. The author of the book, The Wealth of Nations, which emphasized the power of specialization,
was

(A) Adam Smith

(B) John Smith

(C) Fred Smith

(D) Wilber Smith

Answer : (A)

189. Jenna is giving a speech on job specialization for her business class. She will most likely tell the
class that one of the reasons for job specialization is

(A) the organization is too large for one person to do everything.

(B) special skills are not needed to complete specialized tasks.

(C) a worker repeating the same job becomes bored and slows down the operation.

(D) not everyone wants to do the same thing.

Answer : (A)

190. Marek, a manager for a computer assembly department, has toured the assembly floor where
employees are performing specialized tasks and noticed that employees seem to be bored and
dissatisfied with their work. To promote satisfaction and retain employees' interest in their jobs,
Marek may do any of the following except

(A) transfer everyone out of the department.

(B) start job rotation.

(C) institute job enlargement.

(D) cross-train employees.

Answer : (A)