Decision Making and Company

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BUS1404 – Tutorial 4

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

1)

Departmentalization based on ________ groups jobs on the basis of territory or physical location.

1)

_______

A)

customer

B)

process

C)

geography

D)

product

2)

________ refers to the rights inherent in a managerial position to tell people what to do and to expect them to do it.

2)

_______

A)

Liability

B)

Bureaucracy

C)

Responsibility

D)

Authority

3)

Which one of Fayol's 14 principles of management states that a person should report to only one manager?

3)

_______

A)

division of work

B)

division of authority

C)

unity of command

D)

unity of direction

4)

________ is the degree to which decision making takes place at upper levels of the organization.

4)

_______

A)

Decentralization

B)

Formalization

C)

Functionalization

D)

Centralization

5)

A company is planning to revise its organizational structure and one of the managers, Anderson Cooper, suggests increasing employee empowerment by giving them more decision-making authority. Which of the following, if true, would support Cooper's stand?

5)

_______

A)

The firm's employees are reluctant to disrupt the status quo and are apprehensive about any change in responsibility.

B)

The company is trying to recover from an economic downturn that caused significant losses which necessitated downsizing.

C)

The company's frontline workers have first-hand knowledge of what can and cannot be done.

D)

The firm's employees are used to an authoritative structure and clearly defined job-roles.

6)

As organizations become more flexible and responsive to environmental trends, there is a distinct shift toward ________ decision making.

6)

_______

A)

centralized

B)

decentralized

C)

amalgamated

D)

concentrated

7)

In highly ________ organizations, there are explicit job descriptions, numerous organizational rules, and clearly defined procedures covering work processes.

7)

_______

A)

capitalized

B)

decentralized

C)

leveraged

D)

formalized

8)

Paul Abdul Oil Corporation (PAOC) began as a relatively small oil company. As PAOC has grown, the company has gained a highly trained group of managers and analysts at the corporate headquarters. This group is highly adaptive in its structure. Members of this group do not have standardized jobs, but are empowered to handle diverse job activities and problems. PAOC seems to have a(n) ________ structure.

8)

_______

A)

functional

B)

divisional

C)

mechanistic

D)

organic

9)

________ is a type of technology that centers on large-batch production and requires moderate levels of complexity and sophistication.

9)

_______

A)

Service production

B)

Process production

C)

Unit production

D)

Mass production

10)

A company with low departmentalization, wide spans of control, centralized authority, and little formalization possesses a ________ structure.

11)

______

A)

functional

B)

divisional

C)

simple

D)

matrix

Eric Redd (Scenario)

Eric Redd graduated from college and was hired by a company that manufactured parts for the automotive industry. Eventually, the top management noticed that the employees on the assembly line seemed bored, and their motivation was low. Eric's employer decided to try to reorganize in order to increase productivity. Eric's responsibilities are about to change from that of an engineer to a more complex one.

11)

In an attempt to reorganize, the assembly-line activity was divided into separate...
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