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Mid-term review 4


Mid-Term Overview Management
Prof. Chen Yin

Part 4 I. True or False
1. Organizational design is the process in which managers change or develop an organization's stru

cture. T 2. There are four basic elements in organizational structure. T 3. The original ideas about organizational design formulated by Fayol and Weber are now largely obsolete. F 4. When work specialization originally began to be implemented early in the twentieth century, employee productivity initially rose. T 5. Today, most managers see work specialization as a source of ever-increasing productivity. F 6. The advantage of work specialization is that it tends to result in high employee motivation and high productivity. F 7. Departmentalization is a how jobs are grouped. T 8. Grouping jobs on the basis of major product areas is termed customer departmentalization. F 9. Unity of command prevents an employee from trying to follow two conflicting commands at once. T 10. Power is a right that a manager has when he or she has a higher rank in an organization. T 11. When decisions tend to be made at lower levels in an organization, the organization is said to be centralized. F 12. Traditional organizations are structured in a pyramid, with the power and authority located in the pyramid's broad base. F 13. The two prevalent organization structure models in today's world are the organic organization and the inorganic organization. T 14. A mechanistic organization is bureaucratic and hierarchical. T 15. An organic organization tends to be flexible and have few formal rules. T 16. Innovators need the efficiency, stability, and tight controls of a mechanistic structure rather than an organic structure. T 17. The stability of a mechanistic structure seems to work best in today's dynamic and uncertain business environment. F 18. The strength of a simple system is that everything depends on a single person. F 19. A strength of a functional structure is that it avoids duplication. T 20. A weakness of the divisional structure is that duplication tends to occur. T 21. In a team structure, team members are not held responsible for their decisions. F 22. In a team structure there is a clear line of managerial authority from top to bottom.

T 23. When an employee in a matrix structure finishes a project, she goes back to her functional department. T 24. Employees in an organization with a matrix design can have two bosses for the same job. T 25. A significant advantage of the matrix structure is the clear chain of command from top to bottom of the organization. F 26. When an employee in a project structure finishes a project, he goes back to his original department. T 27. A virtual organization relies on freelancers who have no permanent status or position in the organization. T 28. Managers want to eliminate boundaries in organizations primarily to increase stability and reduce flexibility. F 29. A virtual organization may disintegrate after it finishes its task. T 30. A company's organizational culture refers to a system of shared political beliefs. F 31. Employees learn organizational culture by reading official organization documents and histories. T 32. Employees learn organizational culture by reading official organization documents and histories. 33. Strong organizational culture can eliminate the need for rules and bylaws. F

II. Multiple Choices
1. Organizational design requires a manager to ________. C A) organize groups within an organization B) change the culture of an organization C) change or develop the structure of an organization D) change the logo of an organization 2. All of the following are part of the process of organizational design EXCEPT ________. D A) decide how specialized jobs should be B) determine rules for employee behavior C) determine the level at which decisions are made D) determine goals for the organization 3. Which of the following are NOT basic elements of organizational structure? B A) work specialization, span of control B) chain of command, line authority C) centralization, decentralization D) departmentalization, formalization 4. Which of the following is synonymous with work specialization? A A) division of labor B) job discrimination C) chain of command

D) job preference 5. Which statement accurately defines work specialization? B A) It is the degree to which tasks are grouped together. B) Individual employees specialize in doing part of an activity rather than the entire activity. C) Jobs are ranked relative only to their worth or value to the businesses. D) Work specialization clarifies who reports to whom. 6. Early supporters of work specialization saw it as ________. A A) a reliable way to increase productivity B) a good way to increase employee morale C) a source of innovation D) an immoral way to coerce workers into greater productivity 7. Early users of work specialization early in the twentieth century found that the practice ultimately resulted in ________. A A) higher profits and better employee morale B) bored workers with low morale C) huge and permanent productivity gains D) better communication among employees 8. Today, managers favor this approach instead of work specialization. C A) All tasks are performed by all employees. B) Partners switch jobs every half hour. C) Employees perform a broad range of tasks. D) Monotonous tasks are shared by all employees. 9. Functional departmentalization groups jobs by ________. A A) tasks they perform B) territories they serve C) products or services they manufacture or produce D) type of customer they serve 10. ________ departmentalization is based on territory or the physical location of employees or customers. C A) Functional B) Product C) Geographic D) Matrix 11. A soap company that features a bath soap department, a laundry detergent department, and a dish soap department is using which of the following? C A) process departmentalization B) functional departmentalization C) product departmentalization D) customer departmentalization 12. What kind of departmentalization would be in place in a government agency in which there are separate departments that provide services for employers, employed workers, unemployed workers, and the disabled? D A) product

B) geographic C) outcome D) customer 13. State motor vehicle offices usually use this kind of departmentalization. B A) product B) functional C) customer D) process 14. The line of authority that extends from the upper levels of management to the lowest levels of the organization is termed the ________. D A) chain of responsibility B) unity of command C) staff authority D) chain of command 15. The chain of command answers this question. D A) Where do I go for help? B) How do I know when the task is complete? C) What are the rules? D) Who reports to whom? 16. Authority gives an individual the right to do this. A A) give orders B) reprimand employees C) command respect D) obey orders 17. In the chain of command, each person above you ________. C A) has special privileges B) receives higher pay C) has line authority D) has no right to give you orders 18. Staff managers have authority over ________. A A) special support employees only B) line managers C) middle managers D) the person above them in the chain of command 19. Line authority gives a manager the ability to direct the work of ________. B A) any employee in the firm B) any subordinate C) any subordinate, after consulting with the next higher level D) only subordinates one level down 20. ________ prevents a single employee from getting conflicting orders from two different superiors. B A) Line authority B) Unity of command C) Staff authority

D) Chain of command 21. The importance of unity of command has diminished in today's workplace because of its tendency to be ________. A A) inflexible B) ethically questionable C) chauvinistic and dictatorial D) too decisive 22. Which of the following statements is true? C A) Power is a right. B) Authority is one's ability to influence decisions. C) Authority is a right. D) Both power and authority are rights. 23. ________ is the obligation or expectation to perform a duty. A A) Responsibility B) Unity of command C) Chain of command D) Span of control 24. The personal secretary of a top manager may have ________. A A) power but not authority B) authority but not power C) power and authority D) line authority but not staff authority 25. Which of the following statements is true? A A) Power is a type of authority. B) Authority and power are identical. C) Authority is a type of power. D) Power is determined by horizontal position in an organization. 26. As represented in a power cone, power is based on ________. D A) vertical position only B) horizontal position only C) distance from the center only D) vertical position and distance from the center 27. As represented in a hierarchical organization diagram, authority is based on ________. D A) vertical position only B) horizontal position only C) distance from the center only D) horizontal and vertical position 28. A construction site supervisor who sees an impending thunderstorm and tells workers to go home is demonstrating ________. A A) line authority B) staff delegation C) provisional accountability D) responsibility

29. ________

is the power that rests on the leader's ability to punish or control. B A) Reward power B) Coercive power C) Expert power D) Referent power 30. A bank manager who passes out bonuses at the end of the year is exercising this. A A) reward power B) coercive power C) expert power D) referent power 31. Your firm's attorney has ________ power when giving legal advice. C A) legitimate B) status C) expert D) coercive 32. ________ is the power that arises when a person is close to another person who has great power and authority. B A) Expert power B) Referent power C) Reward power D) Legitimate power 33. When a top manager decides to hire an individual over the objections of her staff she is exercising which kind of power? D A) referent B) expert C) coercive D) legitimate 34. The traditional view holds that managers should not directly supervise more than ________ subordinates. C A) three or four B) five or six C) seven or eight D) nine or ten 35. Modern managers find that they can ________ if their employees are experienced, well-trained, and motivated. A A) increase their span of control B) decrease their span of control C) eliminate their span of control D) fluctuate their span of control 36. A traditional "top down" organization is ________ organization. A A) a largely centralized B) a largely decentralized C) an absolutely decentralized D) an absolutely centralized

37. ________

reflects the degree to which decision making is distributed through out the hierarchy rather than concentrated at the top. D A) Centralization B) Span of Control C) Concentration D) Decentralization 38. In recent years, organizations have become more ________ to be responsive to a dynamic business environment. C A) centralized B) decentralized C) structured D) mechanistic 39. In today's decentralized business world, ________ the most important strategic decisions. A A) top managers still primarily make B) middle managers make C) lower-level managers D) nonmanagerial employees 40. All of the following are characteristics of a highly formalized organization EXCEPT ________. C A) explicit job descriptions B) little discretion for employees C) minimum number of rules D) a standardized way of doing things 41. Today's managers are moving away from formalization and trying to be this. B A) more rigorous B) more flexible C) more strict D) less permissive 42. Today's managers expect employees to ________. B A) ignore rules for the most part B) use discretion when it comes to following rules C) faithfully follow rules even when it may harm the organization D) make their own rules 43. A(n) ________ organization has a high degree of specialization, formalization, and centralization. D A) organic B) horizontal C) learning D) mechanistic 44. Which of the following would likely be found in mechanistic organizations? D A) wide span of control B) empowered employees C) decentralized responsibility

D) standardized jobs 45. A(n) ________ organization is able to change rapidly as needs require. A A) organic B) hierarchical C) vertical D) mechanistic 46. Which term best describes an organic organization? C A) hierarchical B) pyramid-shaped C) flexible D) fixed 47. Which word best characterizes a mechanistic organization? A A) hierarchical B) collaborative C) adaptable D) informal 48. A company that is pursuing a cost leadership strategy would be most likely to have this kind of structure. A A) mechanistic B) virtual C) team D) matrix-project 49. A company that is trying to be a leader in innovation within its industry would be most likely to have this kind of structure. B A) mechanistic B) organic C) simple D) functional 50. Larger organizations tend to have ________ than smaller organizations. A A) more specialization B) less departmentalization C) less centralization D) fewer rules and regulations 51. As an organization grows to a size of over 2,000 employees, it finds it hard to avoid becoming more ________. A A) mechanistic B) organic C) informal D) adaptable 52. Traditional organizational designs tend to be more mechanistic and include ________. C A) simple, complex, and divisional structures B) simple, functional, and dysfunctional structures C) functional, divisional, and vertical structures

D) simple, functional, and divisional structures 53. A simple structure is ________ like a mechanistic organization, but ________ like an organic organization. A A) centralized; informal B) informal; decentralized C) decentralized; formal D) centralized; formal 54. This is a key characteristic in an organization with a functional structure. B A) adaptability B) departmentalization C) flexibility D) little specialization 55. This is a weakness of a functional structure. A A) favoring functional goals over organizational goals B) favoring organizational goals over functional goals C) failing to attain functional goals D) overemphasizing organizational goals 56. Avoiding redundancy is a strength of which structure? C A) simple B) divisional C) functional D) corporate 57. In a ________ structure each business unit has complete autonomy to reach its goals. C A) simple B) functional C) divisional D) matrix 58. A media company that has separate, autonomous companies for movies, TV, Internet, and print journalism is most likely a ________ structure. A A) divisional B) functional C) simple D) matrix 59. Having separate payroll departments in each division of a divisional structure is an example of which of the following? A A) efficiency, because payroll departments compete B) duplication, because a single payroll department could do the job C) effectiveness, because separate payroll departments create jobs D) efficiency, because separate payroll departments can share methods of operation 60. Looking for ways to make their organization more flexible and innovative, today's managers may choose this kind of structure. D A) simple B) divisional

C) functional D) team 61. In a team structure, ________. A A) there is a clear line of managerial authority B) there is no clear line of managerial authority C) authority comes from top managers only D) no one has the authority to make decisions 62. In a team structure, team members ________. C A) are subject to decisions made by their supervisors B) can influence decisions made by top managers C) make decisions and are accountable for their decisions D) make decisions only after first checking with management 63. All of the following are necessary for successful team structure EXCEPT ________. C A) well-trained team members B) team members with cross-functional skills C) team members with years of management experience D) a fair and well-run team-based pay plan 64. In a ________, employees are recruited from functional departments to work on a specific project for a limited time period. D A) team structure B) divisional structure C) product structure D) matrix structure 65. In a matrix structure, a group member will typically report to ________. B A) a project manager only B) both a project manager and functional department head C) a functional department head only D) Group members are fully autonomous in a matrix structure, so they don't report to anyone. 66. When a group member in a matrix structure finishes a project, she ________. A A) returns to her functional department B) stays with the group to take on a new project C) enters a pool of available employees from the entire organization D) starts looking for a new job 67. By giving employees two direct superiors, a matrix structure violates this key element of organizational design. A A) unity of command B) chain of command C) span of management D) decentralization 68. A key difference between a team structure and a matrix structure is that a team structure ________ while a matrix structure does not. C A) empowers group members

B) works on projects C) has fairly permanent groups or teams D) holds group members accountable 69. In a project structure, when employees finish a project they ________. D A) return to their department B) return to a different division C) move on to another project D) return to their regular work 70. A virtual organization is essentially ________ who come together for a particular project. B A) a group of employees from a single company B) a group of free agents C) a team of employees from different departments of a company D) a group of top managers and CEOs 71. How does a virtual organization save on costs? D A) by hiring people who specialize in what they do B) by hiring fewer people than they need and making them work much longer hours C) by eliminating all administrative duties D) by keeping only a small permanent staff for administrative purposes only 72. A ________ subcontracts part of a project out to outside suppliers. D A) virtual organization B) boundary organization C) matrix structure D) network organization 73. A building contractor follows the network organization model when he does which of the following? D A) does the framing and tiling by himself B) hires three workers to help with framing C) gives orders to workers D) farms out the plumbing to a plumbing firm 74. A learning organization develops the capability to ________. C A) add new training programs to keep employees up to date B) accept the conventional wisdom of the industry C) continuously learn, adapt, and change D) attract new employees who have special knowledge 75. A learning organization requires employees to ________. D A) encode information to prevent competitors from stealing ideas B) collaborate with competitors C) make all ideas public D) share information and collaborate with one another 76. All of the following are characteristic of learning organizations EXCEPT ________. D A) a strong sense of community B) a collaborative environment

C) managers who serve as facilitators D) fear of making mistakes 77. The culture of an organization is analogous to the ________ of an individual. B A) skills B) personality C) motivation D) ability 78. Which of the following phrases best characterizes the culture of an organization? B A) our official code of conduct B) how things are done around here C) the most efficient way to do things D) guidelines for where this organization is going 79. Sony Corporation's focus on product innovation is an example of which of the following dimensions of organizational culture? B A) member identity B) people focus C) risk tolerance D) conflict tolerance 80. Which of the following is NOT considered to be a characteristic of organizational culture? C A) attitudes about taking risks B) aggressiveness and competitiveness C) purchasing policies D) attention to detail 81. The original source of an organization's culture usually reflects the vision and attitudes of ________. D A) the current president or CEO of the organization B) the organization's original employees C) contemporaries who are admired by the organization D) the organization's founders 82. What does the story of 3M employee Art Fry inventing the Post-It Note to make church hymns communicate to 3M employees? B A) that church is important B) that creativity is important C) that workers need to take a day off D) that workers never stop working 83. ll of the following show why corporate rituals can be valuable in a corporate culture EXCEPT ________. D A) rituals help initiate new employees into the culture B) rituals reinforce corporate values C) rituals symbolize key ideas that are important in the culture D) rituals intimidate and silence critics of the corporate culture. 84. Which of the following most accurately reflects the difference between strong cultures and weak cultures? D

A) Strong cultures tend to encourage employee innovation, while weak cultures do not. B) Weak cultures are found in most successful organizations, whereas strong cultures are relatively rare. C) Strong cultures have less of an influence on employee behavior than do weak cultures. D) Company values are more deeply held and widely shared in strong cultures than in weak cultures.

III. Scenarios
Eric the Redd (Scenario) Eric Redd graduated from college and was hired by a corporation that manufactured parts for the automotive industry. The employees on the assembly line seemed bored, and their motivation was low. Eric's employer decided to try to reorganize to increase productivity. During his career, Eric will see his job change from an engineer to a more complex job assignment. 1. The jobs of assembly-line employees are to be changed to allow more tasks to be done by individual workers. This is a reduction in ________. A A) work specialization B) departmentalization C) chain of command D) centralization 2. Eric, who is trained as an engineer, is now in a group with production workers and marketing specialists from different departments designing a new product that the company plans to offer. This situation could be described as a(n) ________. B A) alternative assignment B) collective assignment C) advanced assignment D) project assignment 3. Eric is offered a chance to help direct the efforts of some employees assigned to his work group. This is a chance for Eric to experience ________. D A) functional structure B) divisional structure C) responsibility D) authority 4. Eric sees this new assignment as an increase in ________, or an obligation or expectation for him to perform at a new level. C A) functional structure B) divisional structure C) responsibility D) authority

IV. Short Answer Questions
1. In a short essay, list and explain the three key elements in designing an organization's structure. 2. In a short essay, list and discuss the three common forms of departmentalization, and give examples. 3. In a short essay, describe the matrix structure. What are its advantages and disadvantages? 4. In a short essay, define organizational culture.


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