Professional Documents
Culture Documents
Business A Changing World 10th Edition Ferrell Test Bank 1
Business A Changing World 10th Edition Ferrell Test Bank 1
Chapter 07
Organization, Teamwork, and Communication
1. The more complex organizations become, the less they need to develop formal structures to
function efficiently.
FALSE
With more people and greater specialization, an organization needs to develop a formal
structure to function efficiently. Growth requires organizing—the structuring of human,
physical, and financial resources to achieve objectives in an effective and efficient manner.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 07-01 Define organizational structure and relate how organizational structures develop.
Topic: Organizational Structure
7-1
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 07 - Organization, Teamwork, and Communication
2. Disadvantages of product departmentalization are that it duplicates functions and does not
focus on an organization's overall objectives.
TRUE
Organizing by products duplicates functions and resources and emphasizes the product rather
than achievement of an organization's overall objectives. Each division develops and
implements its own product plans, monitors the results, and takes corrective action as
necessary.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Describe how specialization and departmentalization help an organization achieve its goals.
Topic: Organizational Structure
7-2
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 07 - Organization, Teamwork, and Communication
3. A wide span of management works best when a manager and subordinates are not in close
proximity.
FALSE
A narrow span of management is appropriate when superiors and subordinates are not in close
proximity, the manager has many responsibilities in addition to the supervision, the
interaction between superiors and subordinates is frequent, and problems are common.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 07-03 Determine how organizations assign responsibility for tasks and delegate authority.
Topic: Delegation and Authority
4. Multidivisional structure is the simplest organizational structure that is based on direct lines
of authority extending from the top executive to the lowest level employees of an
organization.
FALSE
Line structure, with its direct lines of authority that extend from the top manager to employees
at the lowest level of an organization, is the simplest organizational structure. A
multidivisional structure organizes departments into larger groups called divisions.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 07-04 Compare and contrast some common forms of organizational structure.
Topic: Organizational Structure
7-3
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 07 - Organization, Teamwork, and Communication
Horizontal communication involves the exchange of information among colleagues and peers
on the same organizational level, such as across or within departments. Horizontal
information informs, supports, and coordinates activities both within the department and with
other departments.
AACSB: Communication
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 07-06 Describe how communication occurs in organizations.
Topic: Communication in Organizations
6. _____ refers to a firm's shared values, beliefs, traditions, philosophies, rules, and role
models for behavior.
A. Organizational chart
B. Centralization
C. Organizational culture
D. Organizational structure
E. Business record
Organizational culture is a firm's shared values, beliefs, traditions, philosophies, rules, and
role models for behavior. An organizational culture exists in every organization, regardless of
size, organizational type, product, or profit objective.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 07-01 Define organizational structure and relate how organizational structures develop.
Topic: Culture in Organizations
7-4
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 07 - Organization, Teamwork, and Communication
A firm's culture may be expressed formally through its mission statement, codes of ethics,
memos, manuals, and ceremonies, but it is more commonly expressed informally.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 07-01 Define organizational structure and relate how organizational structures develop.
Topic: Culture in Organizations
Informal expressions of culture include dress codes (or the lack thereof), work habits,
extracurricular activities, and stories. A firm's culture may be expressed formally through its
mission statement, codes of ethics, memos, manuals, and ceremonies, but it is more
commonly expressed informally.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 07-01 Define organizational structure and relate how organizational structures develop.
Topic: Culture in Organizations
7-5
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 07 - Organization, Teamwork, and Communication
A firm's culture may be expressed formally through its mission statement, codes of ethics,
memos, manuals, and ceremonies, but it is more commonly expressed informally. Examples
of informal expressions of culture include dress codes (or the lack thereof), work habits,
extracurricular activities, and stories.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 07-01 Define organizational structure and relate how organizational structures develop.
Topic: Culture in Organizations
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 07-01 Define organizational structure and relate how organizational structures develop.
Topic: Culture in Organizations
7-6
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 07 - Organization, Teamwork, and Communication
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 07-01 Define organizational structure and relate how organizational structures develop.
Topic: Organizational Structure
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 07-01 Define organizational structure and relate how organizational structures develop.
Topic: Organizational Structure
7-7
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 07 - Organization, Teamwork, and Communication
13. Which of the following statements is true about an organizational chart in the context of
organizational structure?
A. It only lists the financial assets of an organization.
B. It is essentially designed for the customers of an organization.
C. It can only be accessed by the owners of an organization.
D. It gives information about an organization's chain of command.
E. It cannot represent the evolution or growth of an organization.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 07-01 Define organizational structure and relate how organizational structures develop.
Topic: Organizational Structure
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 07-01 Define organizational structure and relate how organizational structures develop.
Topic: Organizational Structure
7-8
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 07 - Organization, Teamwork, and Communication
15. _____ is the division of labor into small, specific tasks and the assignment of employees
to do a single task.
A. Specialization
B. Job rotation
C. Crowdsourcing
D. Outsourcing
E. Centralization
Specialization is the division of labor into small, specific tasks and the assignment of
employees to do a single task. The rationale for specialization is efficiency.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Describe how specialization and departmentalization help an organization achieve its goals.
Topic: Delegation and Authority
Specialization is the division of labor into small, specific tasks and the assignment of
employees to do a single task. The rationale for specialization is efficiency.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Describe how specialization and departmentalization help an organization achieve its goals.
Topic: Delegation and Authority
7-9
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 07 - Organization, Teamwork, and Communication
Specialization means workers do not waste time shifting from one job to another, and training
is easier. By dividing work into smaller specialized tasks, employees can perform their work
more quickly and efficiently.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 07-02 Describe how specialization and departmentalization help an organization achieve its goals.
Topic: Delegation and Authority
Overspecialization can have negative consequences. Employees may become bored and
dissatisfied with their jobs, and the result of their unhappiness is likely to be poor quality
work, more injuries, and high employee turnover.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 07-02 Describe how specialization and departmentalization help an organization achieve its goals.
Topic: Delegation and Authority
7-10
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 07 - Organization, Teamwork, and Communication
The rationale for specialization is efficiency. Adam Smith used the concept of specialization
to illustrate improvements in efficiency.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Describe how specialization and departmentalization help an organization achieve its goals.
Topic: Delegation and Authority
20. _____ is the grouping of jobs into working units usually called units, groups, or divisions.
A. Downsizing
B. Specialization
C. Nearshoring
D. Departmentalization
E. Centralization
Departmentalization is the grouping of jobs into working units usually called departments,
units, groups, or divisions. Departments are commonly organized by function, product,
geographic region, or customer.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Describe how specialization and departmentalization help an organization achieve its goals.
Topic: Delegation and Authority
7-11
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 07 - Organization, Teamwork, and Communication
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Describe how specialization and departmentalization help an organization achieve its goals.
Topic: Delegation and Authority
22. A company that has departments for marketing, finance, personnel, and production is
organized by:
A. product.
B. function.
C. territory.
D. customer.
E. geographic region.
Functional departmentalization groups jobs that perform similar functional activities, such as
finance, manufacturing, marketing, and human resources. This approach is common in small
organizations.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Describe how specialization and departmentalization help an organization achieve its goals.
Topic: Delegation and Authority
7-12
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 07 - Organization, Teamwork, and Communication
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 07-02 Describe how specialization and departmentalization help an organization achieve its goals.
Topic: Delegation and Authority
24. An airlines company having different departments for frequent travelers and occasional
travelers illustrates _____ departmentalization.
A. product
B. functional
C. geographical
D. seniority
E. customer
Customer departmentalization arranges jobs around the needs of various types of customers.
Airlines provide prices and services customized for either business/frequent travelers or
infrequent/vacationing customers.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 1 Easy
Learning Objective: 07-02 Describe how specialization and departmentalization help an organization achieve its goals.
Topic: Delegation and Authority
7-13
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 07 - Organization, Teamwork, and Communication
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 07-02 Describe how specialization and departmentalization help an organization achieve its goals.
Topic: Delegation and Authority
7-14
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 07 - Organization, Teamwork, and Communication
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 07-02 Describe how specialization and departmentalization help an organization achieve its goals.
Topic: Delegation and Authority
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Describe how specialization and departmentalization help an organization achieve its goals.
Topic: Delegation and Authority
7-15
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 07 - Organization, Teamwork, and Communication
29. Red Finch Products Inc. groups employees based on whether they are going to handle the
sales account of a wholesale customer, regular consumer, first-time buyer, or a one-time
buyer. Which of the following methods of departmentalization is the company using?
A. Product departmentalization
B. Geographical departmentalization
C. Functional departmentalization
D. Customer departmentalization
E. Process departmentalization
30. Razor Automobiles Inc. has slightly different versions of the same car for the American,
European, and Asian markets. Its employees are grouped into divisions based on the market
they have been assigned. This is an example of _____.
A. demographic departmentalization
B. geographical departmentalization
C. functional departmentalization
D. customer departmentalization
E. process departmentalization
7-16
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 07 - Organization, Teamwork, and Communication
31. A software company that has different representatives to assist business clients and
individual clients is organized by _____.
A. processes
B. products
C. geographical regions
D. functions
E. customers
Customer departmentalization arranges jobs around the needs of various types of customers.
This allows the company to address the unique requirements of each group.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 07-02 Describe how specialization and departmentalization help an organization achieve its goals.
Topic: Delegation and Authority
Organizing by geographic region requires a large administrative staff and control system to
coordinate operations, and tasks are duplicated among the different regions.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 07-02 Describe how specialization and departmentalization help an organization achieve its goals.
Topic: Delegation and Authority
7-17
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 07 - Organization, Teamwork, and Communication
33. Which of the following concepts deals with giving employees the power to make
commitments and use resources to accomplish the assigned tasks?
A. Delegation of authority
B. Accountability
C. Downsizing
D. Centralization
E. Specialization of tasks
Delegation of authority means not only giving tasks to employees but also empowering them
to make commitments, use resources, and take whatever actions are necessary to carry out
those tasks.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 07-03 Determine how organizations assign responsibility for tasks and delegate authority.
Topic: Delegation and Authority
34. _____ is the obligation placed on employees through delegation to perform assigned tasks
satisfactorily.
A. Hierarchy
B. Specialization
C. Transparency
D. Responsibility
E. Bureaucracy
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 07-03 Determine how organizations assign responsibility for tasks and delegate authority.
Topic: Delegation and Authority
7-18
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 07 - Organization, Teamwork, and Communication
35. _____ is the principle that employees who accept an assignment and the authority to carry
it out are answerable to a superior for the outcome.
A. Accountability
B. Specialization
C. Decentralization
D. Bureaucracy
E. Enforceability
The principle of accountability means that employees who accept an assignment and the
authority to carry it out are answerable to a superior for the outcome.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 07-03 Determine how organizations assign responsibility for tasks and delegate authority.
Topic: Delegation and Authority
36. Which of the following statements is true about delegation of authority in the context of
an organization?
A. It does not relieve a superior of accountability for a delegated job.
B. It does not give employees the power to make decisions about using resources to
accomplish assigned tasks.
C. It does not hold an employee to whom the authority was delegated accountable for the
results of a task.
D. It is meant to put additional pressure and burden on managers who are delegating tasks to
subordinates.
E. It is a concept popular only in small businesses and sole proprietorships.
The act of delegating authority to a subordinate does not relieve a superior of accountability
for a delegated job. Even though the vice president of marketing delegates work to
subordinates, he or she is still ultimately accountable to the president for all marketing
activities.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 07-03 Determine how organizations assign responsibility for tasks and delegate authority.
Topic: Delegation and Authority
7-19
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 07 - Organization, Teamwork, and Communication
37. The extent to which authority is delegated throughout an organization determines its:
A. unity of command.
B. degree of centralization.
C. locus of control.
D. economies of scale.
E. level of standardization.
The extent to which authority is delegated throughout an organization determines its degree of
centralization.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 07-03 Determine how organizations assign responsibility for tasks and delegate authority.
Topic: Delegation and Authority
Overcentralization can cause serious problems for a company, in part because it may take
longer for the organization as a whole to implement decisions and to respond to changes and
problems on a regional scale.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 07-03 Determine how organizations assign responsibility for tasks and delegate authority.
Topic: Delegation and Authority
7-20
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 07 - Organization, Teamwork, and Communication
39. _____ is usually preferred when the decisions of a company are very risky and low-level
managers lack decision-making skills.
A. Liberalization
B. Delegation of authority
C. Centralization
D. Employee empowerment
E. Specialization
Businesses tend to be more centralized when the decisions to be made are risky and when
low-level managers are not highly skilled in decision making. In a centralized organization,
authority is concentrated at the top, and very little decision-making authority is delegated to
lower levels.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 07-03 Determine how organizations assign responsibility for tasks and delegate authority.
Topic: Delegation and Authority
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 07-03 Determine how organizations assign responsibility for tasks and delegate authority.
Topic: Delegation and Authority
7-21
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 07 - Organization, Teamwork, and Communication
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 07-03 Determine how organizations assign responsibility for tasks and delegate authority.
Topic: Delegation and Authority
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 07-03 Determine how organizations assign responsibility for tasks and delegate authority.
Topic: Delegation and Authority
7-22
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 07 - Organization, Teamwork, and Communication
Span of management refers to the number of subordinates who report to a particular manager.
A wide span of management exists when a manager directly supervises a very large number
of employees. A narrow span of management exists when a manager directly supervises only
a few subordinates.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 07-03 Determine how organizations assign responsibility for tasks and delegate authority.
Topic: Delegation and Authority
When superiors and subordinates are located close to one another, a manager has few
responsibilities other than supervision, the level of interaction between superiors and
subordinates is low, few problems arise, subordinates are highly competent, and a set of
specific operating procedures governs the activities of managers and their subordinates, a
wide span of management will be more appropriate.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 07-03 Determine how organizations assign responsibility for tasks and delegate authority.
Topic: Delegation and Authority
7-23
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 07 - Organization, Teamwork, and Communication
A narrow span of management is appropriate when superiors and subordinates are not in close
proximity, a manager has many responsibilities in addition to the supervision, the interaction
between superiors and subordinates is frequent, and problems are common.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 07-03 Determine how organizations assign responsibility for tasks and delegate authority.
Topic: Delegation and Authority
Narrow spans of management are typical in centralized organizations, while wide spans of
management are more common in decentralized firms.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 07-03 Determine how organizations assign responsibility for tasks and delegate authority.
Topic: Delegation and Authority
7-24
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 07 - Organization, Teamwork, and Communication
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 07-03 Determine how organizations assign responsibility for tasks and delegate authority.
Topic: Delegation and Authority
48. Which of the following statements accurately describes the difference between tall and
flat organizations?
A. Tall organizations have lower administrative costs when compared to flat organizations.
B. Tall organizations have a narrow span of management, whereas in flat organizations the
span of management is wide.
C. Communication is faster in tall organizations when compared to flat organizations.
D. Flat organizations employ more number of managers compared to tall organizations.
E. Managers in tall organizations spend more time supervising and working with subordinates
when compared to managers in flat organizations.
A company with many layers of managers is considered tall; in a tall organization, the span of
management is narrow. Organizations with few layers are flat and have wide spans of
management.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 07-03 Determine how organizations assign responsibility for tasks and delegate authority.
Topic: Delegation and Authority
7-25
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 07 - Organization, Teamwork, and Communication
A company with many layers of managers is considered a tall organization. Because there are
more managers in tall organizations than in flat organizations, administrative costs are usually
higher. Communication is slower because information must pass through many layers.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 07-03 Determine how organizations assign responsibility for tasks and delegate authority.
Topic: Delegation and Authority
50. In the context of different forms of organizational structure, which of the following is true
of line structure?
A. It has an ambiguous chain of command.
B. It slows down decision making.
C. It is the simplest organizational structure.
D. It requires managers to specialize in any one particular skill.
E. It is common in large, multinational organizations.
The simplest organizational structure, line structure, has direct lines of authority that extend
from the top manager to employees at the lowest level of an organization.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 07-04 Compare and contrast some common forms of organizational structure.
Topic: Organizational Structure
7-26
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 07 - Organization, Teamwork, and Communication
51. An organizational form that is based on direct lines of authority from the top executive to
the lowest level of employees is called a:
A. line structure.
B. web structure.
C. line-and-staff structure.
D. matrix structure.
E. multidivisional structure.
A line structure has direct lines of authority that extend from the top manager to employees at
the lowest level of an organization.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 07-04 Compare and contrast some common forms of organizational structure.
Topic: Organizational Structure
52. Gerald is the owner of a popular restaurant. He has appointed a manager who takes care of
the day-to-day operations of the restaurant and reports to Gerald at the end of a week. The
manager is assisted by a junior manager, who supervises the rest of the staff in the restaurant.
Thus, Gerald's restaurant is using a _____.
A. matrix structure.
B. line structure.
C. line-and-staff structure.
D. multidivisional structure.
E. web structure.
Gerald's restaurant is using a line structure. The simplest organizational structure, line
structure, has direct lines of authority that extend from the top manager to employees at the
lowest level of an organization.
7-27
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 07 - Organization, Teamwork, and Communication
A line structure has direct lines of authority that extend from the top manager to employees at
the lowest level of an organization. This structure has a clear chain of command, which
enables managers to make decisions quickly.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 07-04 Compare and contrast some common forms of organizational structure.
Topic: Organizational Structure
Line structure requires that managers possess a wide range of knowledge and skills. They are
responsible for a variety of activities and must be knowledgeable about them all.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 07-04 Compare and contrast some common forms of organizational structure.
Topic: Organizational Structure
7-28
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 07 - Organization, Teamwork, and Communication
55. Which of the following statements is true about the line-and-staff structure?
A. It allows line managers to focus on their expertise in the business operation.
B. It creates work duplication.
C. It eliminates the problem of overstaffing.
D. It provides clear and unambiguous lines of communication.
E. It gives staff managers direct authority over line managers.
In a line-and-staff structure, line managers can focus on their area of expertise in the operation
of the business, while staff managers provide advice and support to line departments on
specialized matters such as finance, engineering, human resources, and the law.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 07-04 Compare and contrast some common forms of organizational structure.
Topic: Organizational Structure
Line-and-staff organizations may experience problems with overstaffing and ambiguous lines
of communication. Additionally, employees may become frustrated because they lack the
authority to carry out certain decisions.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 07-04 Compare and contrast some common forms of organizational structure.
Topic: Organizational Structure
7-29
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 07 - Organization, Teamwork, and Communication
A multidivisional structure organizes departments into larger groups called divisions. Just as
departments might be formed on the basis of geography, customer, product, or a combination
of these, so too divisions can be formed based on any of these methods of organizing.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 07-04 Compare and contrast some common forms of organizational structure.
Topic: Organizational Structure
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 07-04 Compare and contrast some common forms of organizational structure.
Topic: Organizational Structure
7-30
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 07 - Organization, Teamwork, and Communication
A multidivisional structure inevitably creates work duplication, which makes it more difficult
to realize the economies of scale that result from grouping functions together.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 07-04 Compare and contrast some common forms of organizational structure.
Topic: Organizational Structure
60. In Red Bridge Infrastructure, specialists from different departments are deployed together
to form a project team and work on a single project, such as building a bridge or restoring a
road. As a result, employees have to report to their functional managers as well the concerned
project managers. Thus, Red Bridge Infrastructure is using a _____.
A. multidivisional structure
B. line structure
C. line-and-staff structure
D. matrix structure
E. web structure
Red Bridge Infrastructure is using a matrix structure. In matrix structures, project teams bring
together specialists from a variety of areas to work together on a single project, such as
developing a new fighter jet. In this arrangement, employees are responsible to two
managers—functional managers and project managers.
7-31
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 07 - Organization, Teamwork, and Communication
61. Which of the following is a basis for using a matrix structure within an organization?
A. Geographic region
B. Projects
C. Products
D. Customers
E. Revenue
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 07-04 Compare and contrast some common forms of organizational structure.
Topic: Organizational Structure
62. Which of the following organizational structures is also called a project management
structure?
A. Web structure
B. Line structure
C. Matrix structure
D. Multidivisional structure
E. Line-and-staff structure
A matrix structure, also called a project management structure, sets up teams from different
departments, thereby creating two or more intersecting lines of authority. It superimposes the
project structure on functional structures.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 07-04 Compare and contrast some common forms of organizational structure.
Topic: Organizational Structure
7-32
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 07 - Organization, Teamwork, and Communication
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 07-04 Compare and contrast some common forms of organizational structure.
Topic: Organizational Structure
Matrix structures provide flexibility, enhanced cooperation, and creativity, and they enable a
company to respond quickly to changes in the environment by giving special attention to
specific projects or problems.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 07-04 Compare and contrast some common forms of organizational structure.
Topic: Organizational Structure
7-33
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 07 - Organization, Teamwork, and Communication
Matrix structures are generally expensive and quite complex, and employees may be confused
as to whose authority has priority—the project manager's or the immediate supervisor's.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 07-04 Compare and contrast some common forms of organizational structure.
Topic: Organizational Structure
66. A _____ sets up teams from different departments, thereby creating two or more
intersecting lines of authority.
A. line structure
B. multidivisional structure
C. matrix structure
D. line-and-staff structure
E. traditional structure
A matrix structure, also called a project management structure, sets up teams from different
departments, thereby creating two or more intersecting lines of authority. The matrix structure
superimposes project-based departments on the more traditional, function-based departments.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 07-04 Compare and contrast some common forms of organizational structure.
Topic: Organizational Structure
7-34
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 07 - Organization, Teamwork, and Communication
Work groups emphasize individual work products, individual accountability, and even
individual leadership. In contrast, work teams share leadership roles, have both individual and
mutual accountability, and create collective work products.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 07-05 Distinguish between groups and teams and identify the types of groups that exist in organizations.
Topic: The Types and Functions of Teams
Work teams share leadership roles, have both individual and mutual accountability, and create
collective work products. In contrast, work groups emphasize individual work products,
individual accountability, and even individual leadership.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 07-05 Distinguish between groups and teams and identify the types of groups that exist in organizations.
Topic: The Types and Functions of Teams
7-35
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 07 - Organization, Teamwork, and Communication
Work teams measure performance directly by assessing collective work products. A work
group's performance depends on what its members do as individuals, while a team's
performance is based on creating a knowledge center and a competency to work together to
accomplish a goal.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 07-05 Distinguish between groups and teams and identify the types of groups that exist in organizations.
Topic: The Types and Functions of Teams
Work groups emphasize individual work products, individual accountability, and even
individual leadership. Salespeople working independently for the same company could be a
work group.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 07-05 Distinguish between groups and teams and identify the types of groups that exist in organizations.
Topic: The Types and Functions of Teams
7-36
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 07 - Organization, Teamwork, and Communication
A committee is usually a permanent, formal group that does some specific task. For example,
many firms have a compensation or finance committee to examine the effectiveness of these
areas of operation as well as the need for possible changes.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 07-05 Distinguish between groups and teams and identify the types of groups that exist in organizations.
Topic: The Types and Functions of Teams
72. MB Inc. has an independent, permanent work group that develops and revises codes of
ethics, suggests ways the organization can contribute toward the environment, and regularly
reviews other specific issues and concerns within the organization. This is an example of a
_____.
A. cooperative
B. labor union
C. committee
D. task force
E. project team
7-37
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 07 - Organization, Teamwork, and Communication
73. Which of the following is a temporary group of employees, usually chosen for their
expertise, responsible for bringing out a particular change?
A. Interest group
B. Committee
C. Union
D. Cooperative
E. Task force
A task force is a temporary group of employees responsible for bringing about a particular
change. Task force membership is usually based on expertise rather than organizational
position.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 07-05 Distinguish between groups and teams and identify the types of groups that exist in organizations.
Topic: The Types and Functions of Teams
Task force membership is usually based on expertise rather than organizational position.
Occasionally, a task force may be formed from individuals outside a company.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 07-05 Distinguish between groups and teams and identify the types of groups that exist in organizations.
Topic: The Types and Functions of Teams
7-38
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 07 - Organization, Teamwork, and Communication
A task force is a temporary group of employees responsible for bringing about a particular
change. Task force membership is usually based on expertise rather than organizational
position.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 07-05 Distinguish between groups and teams and identify the types of groups that exist in organizations.
Topic: The Types and Functions of Teams
Project teams are similar to task forces, but they normally run their operation and have total
control of a specific work project. Like task forces, their membership is likely to cut across a
firm's hierarchy and be composed of people from different functional areas.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 07-05 Distinguish between groups and teams and identify the types of groups that exist in organizations.
Topic: The Types and Functions of Teams
7-39
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 07 - Organization, Teamwork, and Communication
77. A special type of project team that focuses on devising, designing, and implementing a
new product is a:
A. product-development team.
B. committee.
C. cooperative.
D. focus group.
E. quality-assurance team.
A product-development team is a special type of project team formed to devise, design, and
implement a new product. Sometimes product-development teams exist within a functional
area—research and development—but now they more frequently include people from
numerous functional areas and may even include customers to help ensure that an end product
meets customers' needs.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 07-05 Distinguish between groups and teams and identify the types of groups that exist in organizations.
Topic: The Types and Functions of Teams
78. To meet the competition in the mobile phone industry, Vibgyor Electronics Inc. has
created a new project team to conceive, design, and implement a smart phone that will have
some breakthrough features. The team includes specialists from various divisions, such as the
computer division, software division, and television division. This project team is an example
of a _____.
A. committee
B. focus group
C. quality circle
D. functional team
E. product-development team
7-40
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 07 - Organization, Teamwork, and Communication
79. Which of the following teams consists of fairly small groups of workers brought together
to address specific quality, service, or productivity problems within an organization?
A. Project teams
B. Product-development teams
C. Focus groups
D. Quality-assurance teams
E. Service providers
Quality-assurance teams, sometimes called quality circles, are fairly small groups of workers
brought together from throughout an organization to solve specific quality, productivity, or
service problems.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 07-05 Distinguish between groups and teams and identify the types of groups that exist in organizations.
Topic: The Types and Functions of Teams
80. A _____ is a group of employees responsible for an entire work process or segment that
delivers a product to an internal or external customer.
A. labor union
B. focus group
C. functional group
D. committee
E. self-directed work team
A self-directed work team (SDWT) is a group of employees responsible for an entire work
process or segment that delivers a product to an internal or external customer. SDWTs permit
the flexibility to change rapidly to meet the competition or respond to customer needs.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 07-05 Distinguish between groups and teams and identify the types of groups that exist in organizations.
Topic: The Types and Functions of Teams
7-41
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 07 - Organization, Teamwork, and Communication
The defining characteristic of a self-directed work team (SDWT) is the extent to which it is
empowered or given authority to make and implement work decisions. Thus, SDWTs are
designed to give employees a feeling of ownership of a whole job.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 07-05 Distinguish between groups and teams and identify the types of groups that exist in organizations.
Topic: The Types and Functions of Teams
Upward communication flows from lower to higher levels of an organization and includes
information such as progress reports, suggestions for improvement inquiries, and grievances.
AACSB: Communication
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 07-06 Describe how communication occurs in organizations.
Topic: Communication in Organizations
7-42
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 07 - Organization, Teamwork, and Communication
Upward communication flows from lower to higher levels of an organization and includes
information such as progress reports, suggestions for improvement, inquiries, and grievances.
AACSB: Communication
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 07-06 Describe how communication occurs in organizations.
Topic: Communication in Organizations
AACSB: Communication
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 07-06 Describe how communication occurs in organizations.
Topic: Communication in Organizations
7-43
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 07 - Organization, Teamwork, and Communication
Upward communication flows from lower to higher levels of an organization. This type of
communication typically involves information such as progress reports, suggestions for
improvement, inquiries, and grievances.
AACSB: Communication
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 07-06 Describe how communication occurs in organizations.
Topic: Communication in Organizations
AACSB: Communication
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 07-06 Describe how communication occurs in organizations.
Topic: Communication in Organizations
7-44
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 07 - Organization, Teamwork, and Communication
87. In an automobile company, the vice president of research and development wants to plan
and coordinate the launch of a new car with the vice president of marketing. Any related
communication between them will be referred to as _____.
A. upward communication
B. informal communication
C. horizontal communication
D. asynchronous communication
E. downward communication
Any related communication between the vice president of research and development and the
vice president of marketing is referred to as horizontal communication. Horizontal
communication involves the exchange of information among colleagues and peers on the
same organizational level, such as across or within departments.
The most significant informal communication occurs through the grapevine, an informal
channel of communication, separate from management's formal, official communication
channels. Information passed along the grapevine may relate to a job or organization, or it
may be gossip and rumors unrelated to either.
AACSB: Communication
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 07-06 Describe how communication occurs in organizations.
Topic: Communication in Organizations
7-45
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 07 - Organization, Teamwork, and Communication
89. Which of the following refers to the exchange of information among colleagues and peers
on the same organizational level?
A. Upward communication
B. Asynchronous communication
C. Horizontal communication
D. Diagonal communication
E. Downward communication
Horizontal communication involves the exchange of information among colleagues and peers
on the same organizational level, such as across or within departments. Horizontal
information informs, supports, and coordinates activities both within the department and with
other departments.
AACSB: Communication
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 07-06 Describe how communication occurs in organizations.
Topic: Communication in Organizations
90. A project manager informing his or her subordinates of the organization's new policies
and code of conduct would be an example of _____.
A. upward communication
B. informal communication
C. horizontal communication
D. diagonal communication
E. downward communication
AACSB: Communication
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 07-06 Describe how communication occurs in organizations.
Topic: Communication in Organizations
7-46
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 07 - Organization, Teamwork, and Communication
Diagonal communication occurs when individuals from different units and departments
within an organization communicate. With more and more companies downsizing and
increasing the use of self-managed work teams, many workers are being required to
communicate with others in different departments and on different levels to solve problems
and coordinate work.
AACSB: Communication
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 07-06 Describe how communication occurs in organizations.
Topic: Communication in Organizations
92. To ensure that its products best suit the needs of its customers, the head of marketing
department at Venus Electronics Inc. holds a meeting with the managers of production
department. This illustrates _____.
A. upward communication
B. asynchronous communication
C. horizontal communication
D. grapevine communication
E. diagonal communication
This scenario illustrates diagonal communication. When individuals from different units and
organizational levels communicate to coordinate work, it is diagonal communication.
7-47
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 07 - Organization, Teamwork, and Communication
The most significant informal communication occurs through the grapevine, an informal
channel of communication, separate from management's formal, official communication
channels.
AACSB: Communication
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 07-06 Describe how communication occurs in organizations.
Topic: Communication in Organizations
94. Over a coffee table discussion, two coworkers were casually discussing how the new
performance incentive policy would affect the quality of their work. This is an example of
_____.
A. upward communication
B. downward communication
C. informal communication
D. diagonal communication
E. asynchronous communication
7-48
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 07 - Organization, Teamwork, and Communication
Managers can turn the grapevine to their advantage. Using it as a "sounding device" for
possible new policies is one example. Managers can obtain valuable information from the
grapevine that could improve decision making.
AACSB: Communication
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 07-06 Describe how communication occurs in organizations.
Topic: Communication in Organizations
7-49
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.