Chapter 07 - Organization, Teamwork, and Communication
Chapter 07
Organization, Teamwork, and Communication
True / False Questions
1. Organizational culture cannot be expressed informally through its mission statement or
code of ethics.
True False
2. Organizational structures are always explicitly defined.
True False
3. An organization's structure develops as managers assign tasks to work groups and specific
individuals and coordinate the diverse activities required to attain organizational objectives.
True False
4. Organizational growth requires organizing different resources.
True False
5. The more complex organizations become, the more they need to develop formal structures
to function efficiently.
True False
Multiple Choice Questions
6. Which of the following is not part of organizational culture?
A. Values
B. Beliefs
C. Role models
D. Religion
E. Traditions
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Chapter 07 - Organization, Teamwork, and Communication
7. Which is not a means of formally expressing an organization's culture?
A. Ceremonies
B. Code of ethics
C. Mission statement
D. Manuals
E. Employee dress codes
8. Dress codes, work habits, extracurricular activities, and stories are informal expressions of
an organization's
A. grapevine.
B. lack of organization.
C. informality.
D. culture.
E. formality.
9. Organizational structure is defined as
A. the arrangement or relationship of positions within an organization.
B. a group of people working together to achieve an objective.
C. the division of labor into small specific tasks.
D. the grouping of jobs into working units.
E. the grouping of working units into departments or divisions.
10. When managers assign work activities to groups and individuals and coordinate the
diverse activities required to attain organizational objectives, they contribute to the
development of organizational
A. structure.
B. informality.
C. spontaneity.
D. growth.
E. accountability.
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Chapter 07 - Organization, Teamwork, and Communication
11. A department store's organizational structure defines the relationships between
A. salespersons and merchandise buyers.
B. credit managers and maintenance people.
C. department managers and customers.
D. maintenance people and salespersons.
E. all the individuals working together to achieve its objectives.
12. Which of the following requires an increasing degree of organizing within an
organization?
A. Profits
B. Sales
C. Growth
D. Decline
E. Aging
13. The more people an organization has and the greater its specialization, the greater is its
need for
A. profits.
B. sales.
C. growth.
D. structure.
E. all of the above.
14. An organization's shared values, beliefs, traditions, philosophies, rules, and role models
for behavior represent its
A. formal organization.
B. information organization.
C. organizational culture.
D. grapevine.
E. organizational manual.
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Chapter 07 - Organization, Teamwork, and Communication
Essay Questions
15. What is organizational culture and how is it expressed?
16. What is organizational structure? How does it develop?
True / False Questions
17. The rationalization for specialization is that people can perform several tasks more
efficiently than just one.
True False
18. Departmentalization is the division of labor into small, specialized tasks and the
assignment of single tasks to employees.
True False
19. An advantage of functional departmentalization is that managers need only the skills that
apply to their department's function.
True False
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Chapter 07 - Organization, Teamwork, and Communication
20. Disadvantages of product departmentalization is that it duplicates functions and does not
focus on the organization's overall objectives.
True False
21. Product departmentalization allows the coordination of all activities related to a product or
product group and simplifies decision-making.
True False
Multiple Choice Questions
22. The rationale for job specialization is that
A. it is more efficient.
B. workers become bored and leave.
C. workers shift from one job to another.
D. it adversely affects costs.
E. it adversely affects quality.
23. The benefits of division of labor were described in The Wealth of Nations by
A. Henry Ford.
B. John Adams.
C. Adam Smith.
D. Cyrus McCormick.
E. Sam Walton.
24. Adam Smith illustrated improvements in efficiency through the application of
A. departmentalization.
B. specialization.
C. generalization.
D. registration.
E. delegation.
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Chapter 07 - Organization, Teamwork, and Communication
25. Many experts believe people can perform most efficiently if they master just one task
rather than all tasks. A famous book that supports this point was published in 1776 and is
titled
A. The Wealth of Nations.
B. Magna Carta.
C. Declaration of Independence.
D. A Country's Prosperity.
E. To Be or Not to Be.
26. Small businesses commonly employ
A. line departmentalization.
B. customer departmentalization.
C. functional departmentalization.
D. product departmentalization.
E. geographical departmentalization.
27. All of the following are approaches to departmentalization except
A. function.
B. product.
C. geographic region.
D. customer.
E. line.
28. 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.
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Chapter 07 - Organization, Teamwork, and Communication
29. If the type of departmentalization used by an organization tends to emphasize
departmental units rather than the organization as a whole and decision-making is slow, then
these would be weaknesses indicative of _______ departmentalization.
A. territorial
B. functional
C. product
D. customer
E. process
30. _____ departmentalization arranges jobs around the needs of various types of customers.
A. Product
B. Functional
C. Geographical
D. Customer
E. Matrix
Essay Questions
31. What are some of the advantages of specialization? What are some of its disadvantages?
32. What are the different means of organizational departmentalization? Be sure to give an
illustrative example of each.
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Chapter 07 - Organization, Teamwork, and Communication
True / False Questions
33. Accountability is the obligation employees have to carry out assigned tasks.
True False
34. In decentralized organizations, lower-level managers have a good understanding of their
external environment and need to react quickly to it.
True False
35. A wide span of management is best when a manager and subordinates are not in close
proximity.
True False
36. Flat organizations have narrow spans of management.
True False
37. A company with many layers of managers is considered tall.
True False
Multiple Choice Questions
38. Which of the following concepts frees a manager to attend to matters that he or she is
especially qualified to deal with?
A. Delegation of authority
B. Responsibility
C. Accountability
D. Knowledge
E. Education
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Chapter 07 - Organization, Teamwork, and Communication
39. If Juan's manager gives him an assignment without providing Juan with the resources to
complete the assignment, Juan's manager is exhibiting improper
A. accountability.
B. organizational culture.
C. delegation of authority.
D. customer departmentalization.
E. centralization.
40. Joe is a copywriter in his company's marketing department. The copy for an ad placed in
Time magazine for his company spelled the company's name wrong. Who is ultimately
responsible for the mistake?
A. The copywriter
B. The marketing vice president
C. Time magazine
D. The customer
E. Nobody—things just happen
41. When the decisions of a company are very risky and low-level managers lack decisionmaking skills, the company will tend to
A. decentralize.
B. delegate.
C. centralize.
D. organize.
E. matricize.
42. An organization operating in a complex and unpredictable environment is likely to be
_______ in order to improve responsiveness and enhance creativity.
A. highly centralized
B. decentralized
C. informal
D. formal
E. very productive
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Chapter 07 - Organization, Teamwork, and Communication
43. One of the things to consider when determining the appropriate span of management is
A. physical distances between subordinate and supervisor, and subordinate competence.
B. responsibilities of subordinate outside the organization.
C. organizational culture.
D. the management style of the manager.
E. products that the company sells.
44. When superiors and subordinates are not in close proximity and the manager has many
responsibilities in addition to supervision, the appropriate span of management would be
A. big.
B. wide.
C. narrow.
D. flat.
E. circular.
45. Companies that have flat organizations tend also to have
A. tall spans of management.
B. minimal spans of management.
C. narrow spans of management.
D. short spans of management.
E. wide spans of management.
Essay Questions
46. What is a span of management? What are the differences between organizations with wide
versus narrow spans of management?
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Chapter 07 - Organization, Teamwork, and Communication
47. Define delegation of authority and show its relationship to responsibility.
True / False Questions
48. Line structure is based on direct lines of authority from the top executive to the lowest
level of employee.
True False
49. The line-and-staff structure divides general managing duties into functional areas, each
with a separate supervisor.
True False
50. In a line-and-staff structure, staff managers do not have direct authority over line
managers.
True False
51. Matrix structures are often complex and expensive, and can lead to problems of who has
the ultimate authority.
True False
52. Multidivisional structures are not good at allowing for delegation of authority, and
therefore do not allow divisional and departmental managers a chance to specialize.
True False
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Chapter 07 - Organization, Teamwork, and Communication
Multiple Choice Questions
53. Which of the following is not a basis for organizing using a multidivisional structure?
A. Geography
B. Project
C. Product
D. Customer
E. Function
54. An organizational form that is based on direct lines of authority from the top executive to
the lowest level of employees is called
A. line structure.
B. functional structure.
C. line-and-staff structure.
D. matrix structure.
E. a committee.
55. An advantage of line structure in organizations is
A. a clear chain of command.
B. a high level of centralization.
C. shared decision making.
D. that managers possess a wide range of knowledge.
E. there are many layers.
56. A disadvantage of line structure is
A. an unclear chain of command.
B. the speed of decision making.
C. that there are no direct lines of authority.
D. that it is very uncommon.
E. that managers must possess a wide range of knowledge and skills.
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Chapter 07 - Organization, Teamwork, and Communication
57. Which of the following organizational forms allows managers to take responsibility for
the areas in which they specialize?
A. Line structure
B. Functional structure
C. Line-and-staff structure
D. Matrix structure
E. A committee
58. Multidivisional structures
A. are temporary.
B. organize departments into larger divisions, often based on geography, product, and/or
customer.
C. bring together specialists from a variety of areas to work on a single project.
D. make slower decisions.
E. are less innovative.
59. Which of the following organizational forms is also called a project management
structure?
A. Bureaucratic structure
B. Line structure
C. Complex structure
D. Matrix structure
E. None of the above
60. Which of the following organizational forms is most likely to be complex and expensive?
A. Line structure
B. Functional structure
C. Line-and-staff structure
D. Matrix structure
E. Committee
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Chapter 07 - Organization, Teamwork, and Communication
Essay Questions
61. What are the benefits and drawbacks of using a matrix structure to organize?
62. What is the difference between line structure and line-and-staff structure?
True / False Questions
63. Regardless of how a business is organized, most of the essential work of business occurs
in individual work groups and teams.
True False
64. All groups are teams, but not all teams are groups.
True False
65. Teams can create more solutions for solving problems than individuals.
True False
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Chapter 07 - Organization, Teamwork, and Communication
66. Product-development teams are a special type of task force formed to devise, design, and
implement a new product.
True False
67. Quality assurance teams are groups of employees brought together to solve specific
quality, productivity, or service problems.
True False
Multiple Choice Questions
68. Which of the following is formed to solve specific quality, service or productivity
problems?
A. Self-directed work team
B. Product-development team
C. Work group
D. Quality-assurance team
E. Task force
69. Which of the following is a temporary group of employees, usually chosen for their
expertise, responsible for bringing out a specific change?
A. Self-directed work team
B. Product-development team
C. Work group
D. Quality-assurance team
E. Task force
70. Work groups
A. have shared leadership roles.
B. have a specific purpose that the group itself delivers.
C. create collective work products.
D. have individual accountability.
E. encourage open-ended discussion.
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Chapter 07 - Organization, Teamwork, and Communication
71. Teams
A. have a strong, clearly focused leader.
B. have individual accountability.
C. share leadership and create collective work products.
D. run efficient meetings.
E. measure effectiveness indirectly.
72. A permanent, formal group that performs a specific task is a
A. task force.
B. product-development team.
C. project team.
D. committee.
E. self-directed work team.
73. A temporary group of employees responsible for bringing about a particular change is a
A. task force.
B. product-development team.
C. project team.
D. committee.
E. self-directed work team.
74. Project teams
A. are permanent, formal groups.
B. are composed of individuals from one functional area.
C. never last for more than six months.
D. run their operation and have control of a specific work project.
E. solve specific quality problems.
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Chapter 07 - Organization, Teamwork, and Communication
75. A special type of project team formed to devise, design, and implement a new product is
a
A. product-development team.
B. committee.
C. task force.
D. coalition.
E. quality-assurance team.
Essay Questions
76. What is a self-directed work team?
True / False Questions
77. Horizontal communication involves the traditional flow of information from upper
organizational levels downward.
True False
78. Downward communication typically involves directions, the assignment of tasks and
responsibilities, performance feedback, and certain details about the organization's strategies
and goals.
True False
79. The most significant informal communication occurs while playing golf.
True False
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Chapter 07 - Organization, Teamwork, and Communication
80. Communication flows within an organization are always formal.
True False
81. When individuals from different units and organizational levels communicate, it is
diagonal communication.
True False
Multiple Choice Questions
82. Diagonal communication
A. is the traditional flow of communication from higher to lower levels of the organization.
B. occurs when individuals from different units and departments within an organization
communicate.
C. flows from lower organizational levels to higher ones.
D. communication between peers and colleagues.
E. not a term used in your textbook.
83. The increased use of electronic communication in the workplace has caused many
organizations to implement all but which of the following?
A. Formal policies on appropriate Internet use
B. Software programs to monitor employee Internet use
C. Most companies simply let employees do what they want on the Internet
D. Requiring employees to use corporate computers while at work
E. Consulting online resources on how to handle employee Internet usage
84. Which of the following is an informal communication channel?
A. Leaflets
B. Telecommunications
C. Job descriptions
D. Grievances
E. The grapevine
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Chapter 07 - Organization, Teamwork, and Communication
85. Which of the following is not typically part of downward communication?
A. Performance feedback
B. Assignment of tasks
C. Details on organizational strategy
D. Gossip
E. Directions
86. What is upward communication?
A. Is the traditional flow of communication from higher to lower levels of the organization
B. Occurs when individuals from different units and departments within an organization
communicate
C. Flows from lower organizational levels to higher ones
D. Communication between peers and colleagues
E. Not a term used in your textbook
87. Downward communication conveys
A. information about procedures and methods.
B. explanations of decisions and orders.
C. complaints.
D. status reports.
E. policy questions.
88. Upward communication conveys
A. orders.
B. explanation of decisions.
C. requests for information.
D. progress reports and complaints.
E. information about procedures and methods.
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Chapter 07 - Organization, Teamwork, and Communication
89. When managers recognize that a grapevine exists, they should
A. eliminate it.
B. use it to their advantage by feeding it facts.
C. find out if its goals are contrary to the organization's goals.
D. send incorrect information through it.
E. none of the above.
Essay Questions
90. How can managers use the "grapevine" to their advantage?
Multiple Choice Questions
Solve the Dilemma Quest Star in Transition
91. What did Quest Star do, structurally, to help it become more competitive with Japanese
firms?
A. It increased the number of management layers
B. It flattened its layers of management
C. It reduced the emphasis on teams in the organization
D. It decided that its employees could not be trusted to make decisions
E. It did nothing
7-20
Chapter 07 - Organization, Teamwork, and Communication
92. Why are upper level managers facing frustration and increased stress as QS transitions to
a new organizational structure?
A. They do not like their jobs
B. They are faced with training employees to supervise themselves
C. They miss the old system
D. Management is not stressed—they like the new system
E. Management does not trust employees to make decisions for themselves
Essay Questions
93. What techniques or skills should an employee have to assume a leadership role within a
work group?
94. If each work group has a team representative, what problems will be faced in supervising
these representatives?
95. Evaluate the pros and cons of the system developed by QS.
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Chapter 07 - Organization, Teamwork, and Communication
Chapter 07 Organization, Teamwork, and Communication Answer Key
True / False Questions
1. (p. 209) Organizational culture cannot be expressed informally through its mission statement
or code of ethics.
FALSE
Examples of informal expressions of culture include dress codes (or the lack thereof), work
habits, extracurricular activities, and stories.
AACSB: Communication
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 07-01 Define organizational structure; and relate how organizational structures develop.
Topic: Organizational Culture
2. (p. 211) Organizational structures are always explicitly defined.
FALSE
An organizational structure can be explicitly defined or implied.
AACSB: Reflective Thinking
Bloom's: Comprehension
Difficulty: Easy
Learning Objective: 07-01 Define organizational structure; and relate how organizational structures develop.
Topic: Developing Organizational Structure
7-22
Chapter 07 - Organization, Teamwork, and Communication
3. (p. 211) An organization's structure develops as managers assign tasks to work groups and
specific individuals and coordinate the diverse activities required to attain organizational
objectives.
TRUE
An organization's structure is created when managers assign work activities to work groups
and individuals, along with coordinating many different activities that are needed to reach the
organizational objectives.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 07-01 Define organizational structure; and relate how organizational structures develop.
Topic: Developing Organizational Structure
4. (p. 211) Organizational growth requires organizing different resources.
TRUE
Growth requires organizing—the structuring of human, physical, and financial resources to
achieve objectives in an effective and efficient manner.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 07-01 Define organizational structure; and relate how organizational structures develop.
Topic: Developing Organizational Structure
5. (p. 212) The more complex organizations become, the more they need to develop formal
structures to function efficiently.
TRUE
With more people and greater specialization, the organization needs to develop a formal
structure to function efficiently.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 07-01 Define organizational structure; and relate how organizational structures develop.
Topic: Developing Organizational Structure
7-23
Chapter 07 - Organization, Teamwork, and Communication
Multiple Choice Questions
6. (p. 208) Which of the following is not part of organizational culture?
A. Values
B. Beliefs
C. Role models
D. Religion
E. Traditions
Organizational culture is a firm's shared values, beliefs, traditions, philosophies, rules, and
role models for behavior.
AACSB: Diversity
Bloom's: Comprehension
Difficulty: Easy
Learning Objective: 07-01 Define organizational structure; and relate how organizational structures develop.
Topic: Organizational Culture
7. (p. 210) Which is not a means of formally expressing an organization's culture?
A. Ceremonies
B. Code of ethics
C. Mission statement
D. Manuals
E. Employee dress codes
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: Diversity
Bloom's: Comprehension
Difficulty: Easy
Learning Objective: 07-01 Define organizational structure; and relate how organizational structures develop.
Topic: Organizational Culture
7-24
Chapter 07 - Organization, Teamwork, and Communication
8. (p. 209) Dress codes, work habits, extracurricular activities, and stories are informal
expressions of an organization's
A. grapevine.
B. lack of organization.
C. informality.
D. culture.
E. formality.
Examples of informal expressions of culture include dress codes (or the lack thereof), work
habits, extracurricular activities, and stories.
AACSB: Diversity
Bloom's: Comprehension
Difficulty: Medium
Learning Objective: 07-01 Define organizational structure; and relate how organizational structures develop.
Topic: Organizational Culture
9. (p. 211) Organizational structure is defined as
A. the arrangement or relationship of positions within an organization.
B. a group of people working together to achieve an objective.
C. the division of labor into small specific tasks.
D. the grouping of jobs into working units.
E. the grouping of working units into departments or divisions.
Structure is the arrangement or relationship of positions within an organization.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 07-01 Define organizational structure; and relate how organizational structures develop.
Topic: Developing Organizational Structure
7-25
Chapter 07 - Organization, Teamwork, and Communication
10. (p. 211) When managers assign work activities to groups and individuals and coordinate the
diverse activities required to attain organizational objectives, they contribute to the
development of organizational
A. structure.
B. informality.
C. spontaneity.
D. growth.
E. accountability.
An organization's structure develops when managers assign work tasks and activities to
specific individuals or work groups and coordinate the diverse activities required to reach the
firm's objectives.
AACSB: Communication
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 07-01 Define organizational structure; and relate how organizational structures develop.
Topic: Developing Organizational Structure
11. (p. 211) A department store's organizational structure defines the relationships between
A. salespersons and merchandise buyers.
B. credit managers and maintenance people.
C. department managers and customers.
D. maintenance people and salespersons.
E. all the individuals working together to achieve its objectives.
All the people occupying positions in the department store must work together to achieve the
store's objectives. The ways that they work together are defined by the store's organizational
structure.
AACSB: Communication
Bloom's: Application
Difficulty: Medium
Learning Objective: 07-01 Define organizational structure; and relate how organizational structures develop.
Topic: Developing Organizational Structure
7-26
Chapter 07 - Organization, Teamwork, and Communication
12. (p. 211) Which of the following requires an increasing degree of organizing within an
organization?
A. Profits
B. Sales
C. Growth
D. Decline
E. Aging
Growth requires organizing.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 07-01 Define organizational structure; and relate how organizational structures develop.
Topic: Developing Organizational Structure
13. (p. 212) The more people an organization has and the greater its specialization, the greater is
its need for
A. profits.
B. sales.
C. growth.
D. structure.
E. all of the above.
With more people and greater specialization, the organization needs to develop a formal
structure to function efficiently.
AACSB: Reflective Thinking
Bloom's: Comprehension
Difficulty: Hard
Learning Objective: 07-01 Define organizational structure; and relate how organizational structures develop.
Topic: Developing Organizational Structure
7-27
Chapter 07 - Organization, Teamwork, and Communication
14. (p. 208) An organization's shared values, beliefs, traditions, philosophies, rules, and role
models for behavior represent its
A. formal organization.
B. information organization.
C. organizational culture.
D. grapevine.
E. organizational manual.
A firm's organizational culture is its shared values, beliefs, traditions, philosophies, rules, and
role models for behavior.
AACSB: Diversity
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 07-01 Define organizational structure; and relate how organizational structures develop.
Topic: Organizational Culture
Essay Questions
15. (p. 209-210) What is organizational culture and how is it expressed?
Organizational culture is a firm's shared values, beliefs, traditions, philosophies, rules, and
role models for behavior. It can be expressed formally through an organization's 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. Employees often learn the
accepted standards through discussions with co-workers.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 07-01 Define organizational structure; and relate how organizational structures develop.
Topic: Developing Organizational Structure
7-28
Chapter 07 - Organization, Teamwork, and Communication
16. (p. 211) What is organizational structure? How does it develop?
Organizational structure refers to the arrangement or relationship of positions within an
organization. This structure develops when managers assign work tasks and activities to
specific individuals or work groups and coordinate the diverse activities required to reach the
firm's objectives.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 07-01 Define organizational structure; and relate how organizational structures develop.
Topic: Developing Organizational Structure
True / False Questions
17. (p. 212-213) The rationalization for specialization is that people can perform several tasks
more efficiently than just one.
FALSE
The rationale for specialization is efficiency; people can perform more efficiently if they
master just one task rather than all the tasks.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 07-02 Describe how specialization and departmentalization help an organization achieve its goals.
Topic: Assigning Tasks
18. (p. 213) Departmentalization is the division of labor into small, specialized tasks and the
assignment of single tasks to employees.
FALSE
Departmentalization is the grouping of jobs into working units usually called departments,
units, groups, or divisions.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 07-02 Describe how specialization and departmentalization help an organization achieve its goals.
Topic: Assigning Tasks
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Chapter 07 - Organization, Teamwork, and Communication
19. (p. 214) An advantage of functional departmentalization is that managers need only the skills
that apply to their department's function.
TRUE
Each of these functions is managed by an expert in the work done by the department—an
engineer supervises the production department; a financial executive supervises the finance
department, etc.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 07-02 Describe how specialization and departmentalization help an organization achieve its goals.
Topic: Assigning Tasks
20. (p. 216) Disadvantages of product departmentalization is that it duplicates functions and does
not focus on the organization's overall objectives.
TRUE
Organizing by products duplicates functions and resources and emphasizes the product rather
than achievement of the organization's overall objectives.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 07-02 Describe how specialization and departmentalization help an organization achieve its goals.
Topic: Assigning Tasks
21. (p. 216) Product departmentalization allows the coordination of all activities related to a
product or product group and simplifies decision-making.
TRUE
Product departmentalization organizes jobs around the products of the firm, simplifies
decision making, and helps coordinate all activities related to a product or product group.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 07-02 Describe how specialization and departmentalization help an organization achieve its goals.
Topic: Assigning Tasks
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Chapter 07 - Organization, Teamwork, and Communication
Multiple Choice Questions
22. (p. 212) The rationale for job specialization is that
A. it is more efficient.
B. workers become bored and leave.
C. workers shift from one job to another.
D. it adversely affects costs.
E. it adversely affects quality.
The rationale for specialization is efficiency.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 07-02 Describe how specialization and departmentalization help an organization achieve its goals.
Topic: Assigning Tasks
23. (p. 212-213) The benefits of division of labor were described in The Wealth of Nations by
A. Henry Ford.
B. John Adams.
C. Adam Smith.
D. Cyrus McCormick.
E. Sam Walton.
In The Wealth of Nations, 18th-century economist Adam Smith discussed specialization, using
the manufacture of straight pins as an example.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 07-02 Describe how specialization and departmentalization help an organization achieve its goals.
Topic: Assigning Tasks
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Chapter 07 - Organization, Teamwork, and Communication
24. (p. 212-213) Adam Smith illustrated improvements in efficiency through the application of
A. departmentalization.
B. specialization.
C. generalization.
D. registration.
E. delegation.
Adam Smith used the concept of specialization to illustrate improvements in efficiency.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Hard
Learning Objective: 07-02 Describe how specialization and departmentalization help an organization achieve its goals.
Topic: Assigning Tasks
25. (p. 212-213) Many experts believe people can perform most efficiently if they master just one
task rather than all tasks. A famous book that supports this point was published in 1776 and is
titled
A. The Wealth of Nations.
B. Magna Carta.
C. Declaration of Independence.
D. A Country's Prosperity.
E. To Be or Not to Be.
Adam Smith wrote The Wealth of Nations to demonstrate specialization, the idea that people
can perform most efficiently if they master just one task rather than all tasks.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 07-02 Describe how specialization and departmentalization help an organization achieve its goals.
Topic: Assigning Tasks
7-32
Chapter 07 - Organization, Teamwork, and Communication
26. (p. 214) Small businesses commonly employ
A. line departmentalization.
B. customer departmentalization.
C. functional departmentalization.
D. product departmentalization.
E. geographical departmentalization.
Functional departmentalization is common in small organizations.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 07-02 Describe how specialization and departmentalization help an organization achieve its goals.
Topic: Assigning Tasks
27. (p. 213-216) All of the following are approaches to departmentalization except
A. function.
B. product.
C. geographic region.
D. customer.
E. line.
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: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 07-02 Describe how specialization and departmentalization help an organization achieve its goals.
Topic: Assigning Tasks
7-33
Chapter 07 - Organization, Teamwork, and Communication
28. (p. 215-216) 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.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 07-02 Describe how specialization and departmentalization help an organization achieve its goals.
Topic: Assigning Tasks
29. (p. 214-215) If the type of departmentalization used by an organization tends to emphasize
departmental units rather than the organization as a whole and decision-making is slow, then
these would be weaknesses indicative of _______ departmentalization.
A. territorial
B. functional
C. product
D. customer
E. process
A weakness of functional departmentalization is that because it tends to emphasize
departmental units rather than the organization as a whole, decision making that involves
more than one department may be slow, and it requires greater coordination.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Hard
Learning Objective: 07-02 Describe how specialization and departmentalization help an organization achieve its goals.
Topic: Assigning Tasks
7-34
Chapter 07 - Organization, Teamwork, and Communication
30. (p. 216) _____ departmentalization arranges jobs around the needs of various types of
customers.
A. Product
B. Functional
C. Geographical
D. Customer
E. Matrix
Customer departmentalization arranges jobs around the needs of various types of customers.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 07-02 Describe how specialization and departmentalization help an organization achieve its goals.
Topic: Assigning Tasks
Essay Questions
31. (p. 213) What are some of the advantages of specialization? What are some of its
disadvantages?
Specialization, or division of labor, allows a company to divide work into small, specialized
tasks and assign employees to do each task. The advantage of specialization is that it
minimizes the time lost from workers shifting from one task to another. Thus, it improves
efficiency and quality.
However, overspecialization can result in bored and dissatisfied employees, poor quality
work, more injuries, and high employee turnover.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 07-02 Describe how specialization and departmentalization help an organization achieve its goals.
Topic: Assigning Tasks
7-35
Chapter 07 - Organization, Teamwork, and Communication
32. (p. 214-216) What are the different means of organizational departmentalization? Be sure to
give an illustrative example of each.
The four means of departmentalization are functional, geographic, product, and customer.
Student's examples should vary, but be sure that they provide enough information to support
their example.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Hard
Learning Objective: 07-02 Describe how specialization and departmentalization help an organization achieve its goals.
Topic: Assigning Tasks
True / False Questions
33. (p. 217) Accountability is the obligation employees have to carry out assigned tasks.
FALSE
Accountability means that employees who accept an assignment have the authority to carry it
out and are answerable to a superior for the outcome.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 07-03 Determine how organizations assign responsibility for tasks and delegate authority.
Topic: Assigning Responsibility
34. (p. 218) In decentralized organizations, lower-level managers have a good understanding of
their external environment and need to react quickly to it.
TRUE
In decentralized business environments, lower-level managers who interact with the external
environment often develop a good understanding of it and thus are able to react quickly to
change.
AACSB: Reflective Thinking
Bloom's: Comprehension
Difficulty: Medium
Learning Objective: 07-03 Determine how organizations assign responsibility for tasks and delegate authority.
Topic: Assigning Responsibility
7-36
Chapter 07 - Organization, Teamwork, and Communication
35. (p. 219) A wide span of management is 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: Communication
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 07-03 Determine how organizations assign responsibility for tasks and delegate authority.
Topic: Assigning Responsibility
36. (p. 220) Flat organizations have narrow spans of management.
FALSE
Organizations with few layers are flat and have wide spans of management.
AACSB: Communication
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 07-03 Determine how organizations assign responsibility for tasks and delegate authority.
Topic: Assigning Responsibility
37. (p. 219) A company with many layers of managers is considered tall.
TRUE
A company with many layers of managers is considered tall, and the span of management is
narrow.
AACSB: Communication
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 07-03 Determine how organizations assign responsibility for tasks and delegate authority.
Topic: Assigning Responsibility
7-37
Chapter 07 - Organization, Teamwork, and Communication
Multiple Choice Questions
38. (p. 217) Which of the following concepts frees a manager to attend to matters that he or she
is especially qualified to deal with?
A. Delegation of authority
B. Responsibility
C. Accountability
D. Knowledge
E. Education
Delegation of authority frees a manager to concentrate on larger issues, such as planning and
dealing with problems and opportunities, that managers are more qualified to address.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 07-03 Determine how organizations assign responsibility for tasks and delegate authority.
Topic: Assigning Responsibility
39. (p. 216-217) If Juan's manager gives him an assignment without providing Juan with the
resources to complete the assignment, Juan's manager is exhibiting improper
A. accountability.
B. organizational culture.
C. delegation of authority.
D. customer departmentalization.
E. centralization.
Delegation of authority involves giving employees not only tasks, but also the power to make
commitments, use resources, and take whatever actions are necessary to carry out those tasks.
AACSB: Reflective Thinking
Bloom's: Comprehension
Difficulty: Medium
Learning Objective: 07-03 Determine how organizations assign responsibility for tasks and delegate authority.
Topic: Assigning Responsibility
7-38
Chapter 07 - Organization, Teamwork, and Communication
40. (p. 217) Joe is a copywriter in his company's marketing department. The copy for an ad
placed in Time magazine for his company spelled the company's name wrong. Who is
ultimately responsible for the mistake?
A. The copywriter
B. The marketing vice president
C. Time magazine
D. The customer
E. Nobody—things just happen
The act of delegating authority to a subordinate does not relieve the superior of accountability
for the 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: Reflective Thinking
Bloom's: Application
Difficulty: Hard
Learning Objective: 07-03 Determine how organizations assign responsibility for tasks and delegate authority.
Topic: Assigning Responsibility
41. (p. 217) When the decisions of a company are very risky and low-level managers lack
decision-making skills, the company will tend to
A. decentralize.
B. delegate.
C. centralize.
D. organize.
E. matricize.
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.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Hard
Learning Objective: 07-03 Determine how organizations assign responsibility for tasks and delegate authority.
Topic: Assigning Responsibility
7-39
Chapter 07 - Organization, Teamwork, and Communication
42. (p. 218) An organization operating in a complex and unpredictable environment is likely to
be _______ in order to improve responsiveness and enhance creativity.
A. highly centralized
B. decentralized
C. informal
D. formal
E. very productive
Decentralization is characteristic of organizations that operate in complex, unpredictable
environments.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 07-03 Determine how organizations assign responsibility for tasks and delegate authority.
Topic: Assigning Responsibility
43. (p. 219) One of the things to consider when determining the appropriate span of management
is
A. physical distances between subordinate and supervisor, and subordinate competence.
B. responsibilities of subordinate outside the organization.
C. organizational culture.
D. the management style of the manager.
E. products that the company sells.
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.
However, when superiors and subordinates are located close to one another, the 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: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 07-03 Determine how organizations assign responsibility for tasks and delegate authority.
Topic: Assigning Responsibility
7-40
Chapter 07 - Organization, Teamwork, and Communication
44. (p. 219) When superiors and subordinates are not in close proximity and the manager has
many responsibilities in addition to supervision, the appropriate span of management would
be
A. big.
B. wide.
C. narrow.
D. flat.
E. circular.
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: Reflective Thinking
Bloom's: Comprehension
Difficulty: Hard
Learning Objective: 07-03 Determine how organizations assign responsibility for tasks and delegate authority.
Topic: Assigning Responsibility
45. (p. 220) Companies that have flat organizations tend also to have
A. tall spans of management.
B. minimal spans of management.
C. narrow spans of management.
D. short spans of management.
E. wide spans of management.
Organizations with few layers are flat and have wide spans of management because managers
supervise larger number of employees and there are fewer organizational layers.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Hard
Learning Objective: 07-03 Determine how organizations assign responsibility for tasks and delegate authority.
Topic: Assigning Responsibility
7-41
Chapter 07 - Organization, Teamwork, and Communication
Essay Questions
46. (p. 218-219) What is a span of management? What are the differences between organizations
with wide versus narrow spans of management?
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.
The organization must consider factors when choosing the best span of management. 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.
However, when superiors and subordinates are located close to one another, the 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. Narrow spans of management are typical
in centralized organizations, while wide spans of management are more common in
decentralized firms.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 07-03 Determine how organizations assign responsibility for tasks and delegate authority.
Topic: Assigning Responsibility
47. (p. 216-217) Define delegation of authority and show its relationship to responsibility.
The delegation of authority is the assigning of tasks to employees, giving them the power to
make commitments, use the resources, and take the actions that are necessary to accomplish
the tasks. Delegation creates a responsibility, or obligation, for the employee to carry out the
assigned task satisfactorily and makes the employee accountable for the proper execution of
the work. With many employees, this increased responsibility will lead to improved morale
and a greater drive to perform his or her job satisfactorily.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Hard
Learning Objective: 07-03 Determine how organizations assign responsibility for tasks and delegate authority.
Topic: Assigning Responsibility
7-42
Chapter 07 - Organization, Teamwork, and Communication
True / False Questions
48. (p. 220) Line structure is based on direct lines of authority from the top executive to the
lowest level of employee.
TRUE
Line structure has direct lines of authority that extend from the top manager to employees at
the lowest level of the organization.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 07-04 Compare and contrast some common forms of organizational structure.
Topic: Forms of Organizational Structure
49. (p. 220-221) The line-and-staff structure divides general managing duties into functional areas,
each with a separate supervisor.
FALSE
The line-and-staff structure has a traditional line relationship between superiors and
subordinates, and specialized managers—called staff managers—are available to assist line
managers.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 07-04 Compare and contrast some common forms of organizational structure.
Topic: Forms of Organizational Structure
7-43
Chapter 07 - Organization, Teamwork, and Communication
50. (p. 221) In a line-and-staff structure, staff managers do not have direct authority over line
managers.
TRUE
Staff managers do not have direct authority over line managers or over the line manager's
subordinates, but they do have direct authority over subordinates in their own departments.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 07-04 Compare and contrast some common forms of organizational structure.
Topic: Forms of Organizational Structure
51. (p. 223) Matrix structures are often complex and expensive, and can lead to problems of who
has the ultimate authority.
FALSE
Matrix structures are usually temporary. Team members typically go back to their functional
or line department after a project is finished.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 07-04 Compare and contrast some common forms of organizational structure.
Topic: Forms of Organizational Structure
52. (p. 222) Multidivisional structures are not good at allowing for delegation of authority, and
therefore do not allow divisional and departmental managers a chance to specialize.
FALSE
Multidivisional structures allow for delegation of authority, and therefore also allow
divisional and departmental managers a chance to specialize.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 07-04 Compare and contrast some common forms of organizational structure.
Topic: Forms of Organizational Structure
7-44
Chapter 07 - Organization, Teamwork, and Communication
Multiple Choice Questions
53. (p. 221-222) Which of the following is not a basis for organizing using a multidivisional
structure?
A. Geography
B. Project
C. Product
D. Customer
E. Function
Matrix structures are usually utilized for projects. Multidivisional structures can be organized
around geography, product, customer, function, or a combination.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 07-04 Compare and contrast some common forms of organizational structure.
Topic: Forms of Organizational Structure
54. (p. 220) An organizational form that is based on direct lines of authority from the top
executive to the lowest level of employees is called
A. line structure.
B. functional structure.
C. line-and-staff structure.
D. matrix structure.
E. a committee.
A line structure has direct lines of authority that extend from the top manager to employees at
the lowest level of the organization.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 07-04 Compare and contrast some common forms of organizational structure.
Topic: Forms of Organizational Structure
7-45
Chapter 07 - Organization, Teamwork, and Communication
55. (p. 220) An advantage of line structure in organizations is
A. a clear chain of command.
B. a high level of centralization.
C. shared decision making.
D. that managers possess a wide range of knowledge.
E. there are many layers.
Line structures have a clear chain of command, which enables managers to make decisions
quickly.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 07-04 Compare and contrast some common forms of organizational structure.
Topic: Forms of Organizational Structure
56. (p. 220) A disadvantage of line structure is
A. an unclear chain of command.
B. the speed of decision making.
C. that there are no direct lines of authority.
D. that it is very uncommon.
E. that managers must possess a wide range of knowledge and skills.
A line structure requires that managers possess a wide range of knowledge and skills.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 07-04 Compare and contrast some common forms of organizational structure.
Topic: Forms of Organizational Structure
7-46
Chapter 07 - Organization, Teamwork, and Communication
57. (p. 220-221) Which of the following organizational forms allows managers to take
responsibility for the areas in which they specialize?
A. Line structure
B. Functional structure
C. Line-and-staff structure
D. Matrix structure
E. A committee
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: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 07-04 Compare and contrast some common forms of organizational structure.
Topic: Forms of Organizational Structure
58. (p. 221-222) Multidivisional structures
A. are temporary.
B. organize departments into larger divisions, often based on geography, product, and/or
customer.
C. bring together specialists from a variety of areas to work on a single project.
D. make slower decisions.
E. are less innovative.
A multi-divisional 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: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 07-04 Compare and contrast some common forms of organizational structure.
Topic: Forms of Organizational Structure
7-47
Chapter 07 - Organization, Teamwork, and Communication
59. (p. 222) Which of the following organizational forms is also called a project management
structure?
A. Bureaucratic structure
B. Line structure
C. Complex structure
D. Matrix structure
E. None of the above
The matrix structure is also called a project management structure because it is often set up
temporarily for interdepartmental projects. It superimposes the project structure on functional
structures.
AACSB: Reflective Thinking
Bloom's: Comprehension
Difficulty: Hard
Learning Objective: 07-04 Compare and contrast some common forms of organizational structure.
Topic: Forms of Organizational Structure
60. (p. 223) Which of the following organizational forms is most likely to be complex and
expensive?
A. Line structure
B. Functional structure
C. Line-and-staff structure
D. Matrix structure
E. Committee
Matrix structures are generally expensive and quite complex, and employees may be confused
about whose authority has priority.
AACSB: Reflective Thinking
Bloom's: Comprehension
Difficulty: Hard
Learning Objective: 07-04 Compare and contrast some common forms of organizational structure.
Topic: Forms of Organizational Structure
7-48
Chapter 07 - Organization, Teamwork, and Communication
Essay Questions
61. (p. 222-223) What are the benefits and drawbacks of using a matrix structure to organize?
Matrix structures provide flexibility, enhanced cooperation, and creativity, and they enable
the company to respond quickly to changes in the environment by giving special attention to
specific projects or problems. However, they 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: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 07-04 Compare and contrast some common forms of organizational structure.
Topic: Forms of Organizational Structure
62. (p. 220-221) What is the difference between line structure and line-and-staff structure?
Line structure is based on direct lines of authority that extend from the top executive to
employees at the lowest level of the organization. The line-and-staff structure has a traditional
line relationship between superiors and subordinates, but includes staff managers to assist line
managers.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 07-04 Compare and contrast some common forms of organizational structure.
Topic: Forms of Organizational Structure
7-49
Chapter 07 - Organization, Teamwork, and Communication
True / False Questions
63. (p. 223) Regardless of how a business is organized, most of the essential work of business
occurs in individual work groups and teams.
TRUE
Regardless of how they are organized, most of the essential work of business occurs in
individual work groups and teams.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 07-05 Distinguish between groups and teams; and identify the types of groups that exist in organizations.
Topic: The Role of Groups and Teams in Organizations
64. (p. 223) All groups are teams, but not all teams are groups.
FALSE
All teams are groups, but not all groups are teams.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 07-05 Distinguish between groups and teams; and identify the types of groups that exist in organizations.
Topic: The Role of Groups and Teams in Organizations
65. (p. 224) Teams can create more solutions for solving problems than individuals.
TRUE
Teams can create more solutions to problems than can individuals because multiple people
work together to solve the problem and bring different knowledge, skills and perspectives to
the table.
AACSB: Communication
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 07-05 Distinguish between groups and teams; and identify the types of groups that exist in organizations.
Topic: The Role of Groups and Teams in Organizations
7-50
Chapter 07 - Organization, Teamwork, and Communication
66. (p. 225) Product-development teams are a special type of task force formed to devise, design,
and implement a new product.
FALSE
Product development teams are a special type of project team formed to devise, design, and
implement a new product.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 07-05 Distinguish between groups and teams; and identify the types of groups that exist in organizations.
Topic: The Role of Groups and Teams in Organizations
67. (p. 225) Quality assurance teams are groups of employees brought together to solve specific
quality, productivity, or service problems.
TRUE
Quality assurance teams are fairly small groups of workers brought together from throughout
the organization to solve specific quality, productivity, or service problems.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 07-05 Distinguish between groups and teams; and identify the types of groups that exist in organizations.
Topic: The Role of Groups and Teams in Organizations
7-51
Chapter 07 - Organization, Teamwork, and Communication
Multiple Choice Questions
68. (p. 225) Which of the following is formed to solve specific quality, service or productivity
problems?
A. Self-directed work team
B. Product-development team
C. Work group
D. Quality-assurance team
E. Task force
Quality-assurance teams, sometimes called quality circles, are fairly small groups of workers
brought together from throughout the organization to solve specific quality, productivity, or
service problems.
AACSB: Communication
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 07-05 Distinguish between groups and teams; and identify the types of groups that exist in organizations.
Topic: The Role of Groups and Teams in Organizations
69. (p. 224) Which of the following is a temporary group of employees, usually chosen for their
expertise, responsible for bringing out a specific change?
A. Self-directed work team
B. Product-development team
C. Work group
D. Quality-assurance team
E. Task force
A task force is a temporary group of employees, usually chosen for their expertise,
responsible for bringing out a specific change.
AACSB: Communication
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 07-05 Distinguish between groups and teams; and identify the types of groups that exist in organizations.
Topic: The Role of Groups and Teams in Organizations
7-52
Chapter 07 - Organization, Teamwork, and Communication
70. (p. 223) Work groups
A. have shared leadership roles.
B. have a specific purpose that the group itself delivers.
C. create collective work products.
D. have individual accountability.
E. encourage open-ended discussion.
Work groups emphasize individual work products, individual accountability, and even
individual leadership.
AACSB: Communication
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 07-05 Distinguish between groups and teams; and identify the types of groups that exist in organizations.
Topic: The Role of Groups and Teams in Organizations
71. (p. 224) Teams
A. have a strong, clearly focused leader.
B. have individual accountability.
C. share leadership and create collective work products.
D. run efficient meetings.
E. measure effectiveness indirectly.
Work teams share leadership roles, have both individual and mutual accountability, and create
collective work products.
AACSB: Communication
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 07-05 Distinguish between groups and teams; and identify the types of groups that exist in organizations.
Topic: The Role of Groups and Teams in Organizations
7-53
Chapter 07 - Organization, Teamwork, and Communication
72. (p. 224) A permanent, formal group that performs a specific task is a
A. task force.
B. product-development team.
C. project team.
D. committee.
E. self-directed work team.
A committee is usually a permanent, formal group that does some specific task.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 07-05 Distinguish between groups and teams; and identify the types of groups that exist in organizations.
Topic: The Role of Groups and Teams in Organizations
73. (p. 224) A temporary group of employees responsible for bringing about a particular change
is a
A. task force.
B. product-development team.
C. project team.
D. committee.
E. self-directed work team.
A task force is a temporary group of employees responsible for bringing about a particular
change.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 07-05 Distinguish between groups and teams; and identify the types of groups that exist in organizations.
Topic: The Role of Groups and Teams in Organizations
7-54
Chapter 07 - Organization, Teamwork, and Communication
74. Project teams
A. are permanent, formal groups.
B. are composed of individuals from one functional area.
C. never last for more than six months.
D. run their operation and have control of a specific work project.
E. solve specific quality problems.
Project teams are similar to task forces, but they normally run their operation and have total
control of a specific work project.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 07-05 Distinguish between groups and teams; and identify the types of groups that exist in organizations.
Topic: The Role of Groups and Teams in Organizations
75. (p. 225) A special type of project team formed to devise, design, and implement a new
product is a
A. product-development team.
B. committee.
C. task force.
D. coalition.
E. quality-assurance team.
A product-development team is a special type of project team formed to devise, design, and
implement a new product.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 07-05 Distinguish between groups and teams; and identify the types of groups that exist in organizations.
Topic: The Role of Groups and Teams in Organizations
7-55
Chapter 07 - Organization, Teamwork, and Communication
Essay Questions
76. (p. 225) What is a self-directed work team?
A self-directed work team is a group of employees responsible for an entire work process or
segment that delivers a product to an internal or external customer. These teams reduce the
need for extra layers of management and can help control costs.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 07-05 Distinguish between groups and teams; and identify the types of groups that exist in organizations.
Topic: The Role of Groups and Teams in Organizations
True / False Questions
77. (p. 228) Horizontal communication involves the traditional flow of information from upper
organizational levels downward.
FALSE
Horizontal communication involves the exchange of information among colleagues and peers.
AACSB: Reflective Thinking
Bloom's: Comprehension
Difficulty: Easy
Learning Objective: 07-06 Describe how communication occurs in organizations.
Topic: Communicating in Organizations
7-56
Chapter 07 - Organization, Teamwork, and Communication
78. (p. 227) Downward communication typically involves directions, the assignment of tasks and
responsibilities, performance feedback, and certain details about the organization's strategies
and goals.
FALSE
Downward communication refers to the traditional flow of information from upper
organizational levels to lower levels. This type of communication typically involves
directions, the assignment of tasks and responsibilities, performance feedback, and certain
details about the organization's strategies and goals.
AACSB: Reflective Thinking
Bloom's: Comprehension
Difficulty: Easy
Learning Objective: 07-06 Describe how communication occurs in organizations.
Topic: Communicating in Organizations
79. (p. 228) The most significant informal communication occurs while playing golf.
FALSE
The most significant informal communication occurs through the grapevine.
AACSB: Reflective Thinking
Bloom's: Comprehension
Difficulty: Easy
Learning Objective: 07-06 Describe how communication occurs in organizations.
Topic: Communicating in Organizations
80. (p. 228) Communication flows within an organization are always formal.
FALSE
Along with the formal channels of communication, all firms communicate informally from
the grapevine that could improve decision making.
AACSB: Reflective Thinking
Bloom's: Comprehension
Difficulty: Easy
Learning Objective: 07-06 Describe how communication occurs in organizations.
Topic: Communicating in Organizations
7-57
Chapter 07 - Organization, Teamwork, and Communication
81. (p. 228) When individuals from different units and organizational levels communicate, it is
diagonal communication.
TRUE
When individuals from different units and organizational levels communicate, it is known as
diagonal communication.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 07-06 Describe how communication occurs in organizations.
Topic: Communicating in Organizations
Multiple Choice Questions
82. (p. 228) Diagonal communication
A. is the traditional flow of communication from higher to lower levels of the organization.
B. occurs when individuals from different units and departments within an organization
communicate.
C. flows from lower organizational levels to higher ones.
D. communication between peers and colleagues.
E. not a term used in your textbook.
Diagonal communication occurs when individuals from different units and departments
within an organization communicate.
AACSB: Reflective Thinking
Bloom's: Comprehension
Difficulty: Easy
Learning Objective: 07-06 Describe how communication occurs in organizations.
Topic: Communicating in Organizations
7-58
Chapter 07 - Organization, Teamwork, and Communication
83. (p. 229) The increased use of electronic communication in the workplace has caused many
organizations to implement all but which of the following?
A. Formal policies on appropriate Internet use
B. Software programs to monitor employee Internet use
C. Most companies simply let employees do what they want on the Internet
D. Requiring employees to use corporate computers while at work
E. Consulting online resources on how to handle employee Internet usage
Most companies have taken steps to monitor and restrain employee Internet use while at
work. Excessive non-work-related Internet communications while on the job can result in lost
productivity and therefore lost profits for the company.
AACSB: Reflective Thinking
Bloom's: Comprehension
Difficulty: Easy
Learning Objective: 07-06 Describe how communication occurs in organizations.
Topic: Communicating in Organizations
84. (p. 228) Which of the following is an informal communication channel?
A. Leaflets
B. Telecommunications
C. Job descriptions
D. Grievances
E. The grapevine
The grapevine is the primary informal communication channel.
AACSB: Reflective Thinking
Bloom's: Comprehension
Difficulty: Easy
Learning Objective: 07-06 Describe how communication occurs in organizations.
Topic: Communicating in Organizations
7-59
Chapter 07 - Organization, Teamwork, and Communication
85. (p. 227) Which of the following is not typically part of downward communication?
A. Performance feedback
B. Assignment of tasks
C. Details on organizational strategy
D. Gossip
E. Directions
Downward communication typically involves directions, the assignment of tasks and
responsibilities, performance feedback, and certain details about the organization's strategies
and goals.
AACSB: Reflective Thinking
Bloom's: Comprehension
Difficulty: Easy
Learning Objective: 07-06 Describe how communication occurs in organizations.
Topic: Communicating in Organizations
86. (p. 226-227) What is upward communication?
A. Is the traditional flow of communication from higher to lower levels of the organization
B. Occurs when individuals from different units and departments within an organization
communicate
C. Flows from lower organizational levels to higher ones
D. Communication between peers and colleagues
E. Not a term used in your textbook
Upward communication flows from lower to higher levels of the organization and includes
information such as progress reports, suggestions for improvement inquiries, and grievances.
AACSB: Reflective Thinking
Bloom's: Comprehension
Difficulty: Medium
Learning Objective: 07-06 Describe how communication occurs in organizations.
Topic: Communicating in Organizations
7-60
Chapter 07 - Organization, Teamwork, and Communication
87. (p. 227) Downward communication conveys
A. information about procedures and methods.
B. explanations of decisions and orders.
C. complaints.
D. status reports.
E. policy questions.
Downward communication typically involves directions, the assignment of tasks and
responsibilities, performance feedback, and certain details about the organization's strategies
and goals.
AACSB: Reflective Thinking
Bloom's: Comprehension
Difficulty: Hard
Learning Objective: 07-06 Describe how communication occurs in organizations.
Topic: Communicating in Organizations
88. (p. 226) Upward communication conveys
A. orders.
B. explanation of decisions.
C. requests for information.
D. progress reports and complaints.
E. information about procedures and methods.
Upward communication flows from lower to higher levels of the organization and includes
information such as progress reports, suggestions for improvement, inquiries, and grievances.
AACSB: Reflective Thinking
Bloom's: Comprehension
Difficulty: Medium
Learning Objective: 07-06 Describe how communication occurs in organizations.
Topic: Communicating in Organizations
7-61
Chapter 07 - Organization, Teamwork, and Communication
89. (p. 228) When managers recognize that a grapevine exists, they should
A. eliminate it.
B. use it to their advantage by feeding it facts.
C. find out if its goals are contrary to the organization's goals.
D. send incorrect information through it.
E. none of the above.
Managers who understand how the grapevine works also can use it to their advantage by
feeding it facts to squelch rumors and incorrect information.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 07-06 Describe how communication occurs in organizations.
Topic: Communicating in Organizations
Essay Questions
90. (p. 228) How can managers use the "grapevine" to their advantage?
Managers who recognize the existence of a grapevine can use it to their advantage in several
ways. For one, they can use it as a "sounding device" regarding potential policy changes.
They can obtain valuable information that may facilitate decision making, although they
should verify all information, as grapevine information is not always accurate. Managers can
attempt to feed the grapevine facts to squelch rumors and incorrect information circulating
through the firm.
AACSB: Reflective Thinking
Bloom's: Comprehension
Difficulty: Medium
Learning Objective: 07-06 Describe how communication occurs in organizations.
Topic: Communicating in Organizations
7-62
Chapter 07 - Organization, Teamwork, and Communication
Multiple Choice Questions
Solve the Dilemma Quest Star in Transition
91. (p. 232) What did Quest Star do, structurally, to help it become more competitive with
Japanese firms?
A. It increased the number of management layers
B. It flattened its layers of management
C. It reduced the emphasis on teams in the organization
D. It decided that its employees could not be trusted to make decisions
E. It did nothing
QS flattened its layers of management and instead uses teams and peer pressure to accomplish
the plant's goals.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 07-07 Analyze a business's use of teams.
Topic: Solve the Dilemma
92. (p. 232) Why are upper level managers facing frustration and increased stress as QS
transitions to a new organizational structure?
A. They do not like their jobs
B. They are faced with training employees to supervise themselves
C. They miss the old system
D. Management is not stressed—they like the new system
E. Management does not trust employees to make decisions for themselves
Upper-level management is feeling increased stressed as QS transitions to the new
organizational structure because they have to train employees to supervise themselves and to
make decisions for themselves.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 07-07 Analyze a business's use of teams.
Topic: Solve the Dilemma
7-63
Chapter 07 - Organization, Teamwork, and Communication
Essay Questions
93. (p. 232) What techniques or skills should an employee have to assume a leadership role
within a work group?
To assume a leadership role within a work group, an employee should have a very good
technical knowledge of the tasks conducted by the team. This individual should also have
some conceptual skills in order to relate the various activities performed within the group.
Finally, human relations skills are necessary for the leader to provide information to the rest
of the group and for the members of the group to give feedback to their leader.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 07-07 Analyze a business's use of teams.
Topic: Solve the Dilemma
94. (p. 232) If each work group has a team representative, what problems will be faced in
supervising these representatives?
Each team representative is likely to defend the interests of his or her own group and to
neglect the actions that may favor the performance of the other groups. In other words, the
degree of collaboration between teams is likely to be low.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 07-07 Analyze a business's use of teams.
Topic: Solve the Dilemma
7-64
Chapter 07 - Organization, Teamwork, and Communication
95. (p. 232) Evaluate the pros and cons of the system developed by QS.
The program introduced by QS is likely to lead to greater employee involvement, innovation,
improved collaboration between employees of each team, and employees' enhanced sense of
accomplishment. Overall, it is likely to increase the firm's productivity and competitiveness.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 07-07 Analyze a business's use of teams.
Topic: Solve the Dilemma
7-65