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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.

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

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Departmentalisation by location allows an organisation to readily respond to the unique demands of each geographic area.

A) True
B) False

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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 organised into finance, operations, marketing, and human resources.This company is organised first by ____, then by ____.


A) function; customer
B) customer; function
C) product; function
D) product; customer
E) customer; location

F) C) and D)
G) B) and C)

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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

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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 organised 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 realises that she does not want to participate in these events because she does not want to seem that she is favouring 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.

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

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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 organised 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 realises that she does not want to participate in these events because she does not want to seem that she is favouring 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

F) A) and B)
G) B) and C)

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


A) location.
B) specialty.
C) product.
D) taste.
E) function.

F) A) and D)
G) A) and C)

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Through informal talks with employees, managers realised 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 rumour, 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 minimise 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.

F) B) and D)
G) B) and C)

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

A) True
B) False

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Dramatic Expressions Dramatic Expressions is a home decorating company that sells many different household accessories ranging from candles to entertainment centres.Wanda is the CEO of the company.She feels that there is not enough specialisation within the company and wants to organise 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 organisation.For example, there could be a manager in charge of the candles, a different manager in charge of the entertainment centres, 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 specialisation if negative consequences were to develop at Dramatic Expressions?


A) Organisation
B) Occupation
C) Circulation
D) Rotation
E) Generalisation

F) All of the above
G) B) and D)

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


A) specialised
B) top management
C) authoritative
D) voluntary
E) advisory

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

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Job rotation is the systematic shifting of employees from one job to another.

A) True
B) False

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Which of the following is most characteristic of a line structure in an organisation?


A) Flexibility that allows an organisation 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

F) None of the above
G) C) and D)

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Informal groups are never powerful within an organisation.

A) True
B) False

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In an organisation 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.

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

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The number of subordinates reporting directly to one manager is called


A) the chain of command.
B) a decentralised organisation.
C) a centralised organisation.
D) the span of control.
E) the management hierarchy.

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

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The number of layers in the organisational structure of Dayton Hudson Corporation indicates the company's


A) chain of command.
B) organisational height.
C) line authority.
D) organisational structure.
E) management hierarchy.

F) A) and D)
G) A) and C)

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Job specialisation is the separation of all organisational activities into distinct tasks and the assignment of different tasks to different people.

A) True
B) False

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


A) authority.
B) accountability.
C) responsibility.
D) delegation.
E) obligation.

F) A) and B)
G) B) and D)

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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

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

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