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One of Carlos's coworkers was recently promoted to a middle management position at their company. He seems to have quickly distanced himself from Carlos and their other coworker, Donovan. In fact, yesterday Donovan described the situation by saying, "He's gone to the dark side." Carlos understands what Donovan means because managers keep themselves removed from other employees, and seldom seriously solicit ideas for improvements or change from those in the trenches. The disadvantage in continuing this type of organizational culture is


A) nobody takes management seriously.
B) the company will have to look outside the firm for new managers.
C) small, incremental improvements rather than radical change will become the norm.
D) the informal organization can hinder effective management.

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

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As a new employee in a bureaucratic organization, Madison can expect a great deal of independence and authority.

A) True
B) False

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In an inverted organization, the job of management is to


A) closely monitor employee performance.
B) establish rules and regulations to guide worker behavior.
C) make all of the basic decisions.
D) assist and support front-line people.

E) B) and D)
F) A) and C)

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Some companies have created hybrid versions of departmentalization, where they combine two or more traditional ways of departmentalizing.

A) True
B) False

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Milo was confident that baseball fans would fill the seats in his brewhouse if they just knew about the place. After all, he offered convenience, easy walking distance to the local MLB stadium, great local talent for entertainment and several fresh premium craft beers. He uses Twitter and Facebook to connect with potential customers, and offers free wifi for customers. These are worthy strategies for reaching digital natives.

A) True
B) False

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Max Weber's principles of organization were similar to those of Henri Fayol.

A) True
B) False

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All organizations have two organizational systems,


A) the command system and the control system.
B) the formal organization and the informal organization.
C) the functioning system and backup system.
D) the primary organization and secondary organization.

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

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Traditional organizational models such as a line model or a line-and-staff model provide the flexibility demanded in a changing business environment.

A) True
B) False

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Line managers issue orders, enforce discipline, and adjust the organization as conditions change.

A) True
B) False

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One key to organizational success is to go back to basic principles and build the business on a sound foundation.

A) True
B) False

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As organizations grew, the use of Fayol's principles led to rigid organizations that didn't always respond quickly to consumer requests.

A) True
B) False

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Regional monopoly, Southeastern Electric, wants to improve services to customers. Management recently rated the company's processes and products against the results achieved by the world's best at similar processes and products. Southeastern Electric has adopted a policy of international standardization.

A) True
B) False

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Max Weber used the term ________ to describe middle managers whose job was to implement the orders of top management.


A) management
B) autocrats
C) staff personnel
D) bureaucrats

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

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Job specialization is known to


A) minimize delegated authority and responsibility.
B) improve job performance.
C) create work teams and improve resource allocation.
D) establish procedures.

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

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Staff positions in an organization


A) support and assist the line positions.
B) are superior to line positions.
C) are less well-paid than line positions.
D) are ways to employ past CEOs until they retire.

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

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Holden just learned that several people in New Hampshire needed to be treated for food poisoning after eating peanut butter that was produced and jarred in his plant. As he walks the back stairs at the plant, he thinks to himself, "It's time to get the informal organization in on this. We've got to stop this in its tracks!" Holden is taking the right approach to solving this serious problem.

A) True
B) False

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Weber put great trust in the creativity, skills, and pride of employees and believed that managers should act more as coaches than as bosses.

A) True
B) False

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Josie recently took a job in the marketing department for Beachside Bagels and Bakery. After just a few days on the job, Josie learned that the company has many layers of management, and seems to have a rule to cover almost every situation. These conditions suggest that Beachside Bagels and Bakery is a(n)


A) cross-functional organization.
B) decentralized organization.
C) oligopolistic organization.
D) bureaucratic organization.

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

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Fayol's principles suggest that the goals of the firm are less important than the goals of individual workers.

A) True
B) False

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Henri Fayol and Max Weber are best known for their contributions to accounting theory.

A) True
B) False

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