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Organizational culture refers to the widely shared values within a corporation that foster unity and cooperation.

A) True
B) False

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The proven success of job specialization lies in the fact that


A) it leads to groupthink.
B) it avoids the pitfalls of division of labor, where workers become removed from thinking conceptually about the business.
C) it is a detractor to others who are thinking about entering your industry because it successfully creates barriers to entry.
D) it adds efficiency to the business's operation by identifying tasks that some do better than others.

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

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As indicated in the Making Ethical Decisions box, "Would You Sacrifice Safety for Profit?" organizational decisions that affect profits in a negative way should be avoided at all cost.

A) True
B) False

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Max Weber favored which of the following?


A) inverted organizations
B) worker participation in decision making
C) staffing and promotions based on qualifications
D) flat organizations

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

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Departmentalization by function groups employees based on similar skills, expertise, or resource use.

A) True
B) False

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Cross-functional teams work best when the voice of the customer is brought into organizations.

A) True
B) False

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True

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

A) True
B) False

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True

Which of the following is true of cross-functional teams?


A) Cross-functional teams are required not to share information across national boundaries.
B) Employees on the teams are frustrated by organizational rules and regulations.
C) Cross-functional teams work best when the voice of the customer is brought into the organization.
D) Cross-functional teams are disbanded once the current project is complete.

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

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Which of the following statements most closely identifies the problem with adopting Fayol's principles of organization design for contemporary businesses?


A) Leaving some decision-making power to middle management has the effect of minimizing the effort and results that management would put into the other historical principles of organization.
B) These principles create organizations that don't respond quickly to customer needs.
C) The principles of Fayol and Weber hamper a firm's ability to determine if it is profitable.
D) Authority and responsibility quickly become unrelated.

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

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Staff personnel perform functions such as production and sales that contribute directly to the primary goals of the organization.

A) True
B) False

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Sage is an experienced manager with excellent communications skills. The workers in her team are highly skilled and capable of doing their work with very little direct supervision. Sage's span of control is likely to be quite broad.

A) True
B) False

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Job descriptions are an important part of Max Weber's organizational theory.

A) True
B) False

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The management of Entertainment Electronics sees itself as a topnotch producer of components used in DVD and Blu-ray players. The outstanding performance of the production department indicates that this activity is one of the firm's


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

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

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B

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


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

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

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Younger people today are often called ________ because they have never known life without the Internet and cell phones.


A) the high-tech heroes
B) social networkers
C) digital natives
D) electronic eggheads

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

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When management structures the organization, it clarifies who gets to make decisions, how many people report to one manager, and how many different departments the company needs in order to operate effectively.

A) True
B) False

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Which of the following is considered to be an advantage of functional departmentalization?


A) Employees begin to identify with their department and its goals rather than with the goals of the entire organization.
B) People in the same department tend to think very differently.
C) Departments are isolated from one another.
D) Employee skills can be developed in depth.

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

Correct Answer

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Organizing a business begins with


A) acquiring the necessary resources.
B) choosing the best qualified employees.
C) developing an efficient plan of action.
D) determining the work to be done.

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

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According to Fayol's principle of authority, if you have authority you also have responsibility.

A) True
B) False

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The trend today is for large organizations to improve their efficiency in communication and decision making by


A) creating specific rules for everyone to follow.
B) eliminating several layers of management.
C) restructuring into a bureaucratic organization.
D) reducing the span of control for managers.

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

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