Chapter 06 - Organization

What does the process of organizing involve?

• Setting goals

• Arranging and structuring work to accomplish goals

• Making decisions about budget allocations

• Designing employee performance reviews

What is an organizational chart?

• A written description of the company’s goals

• A visual representation of an organization’s structure

• A guide for employee behavior

• A document outlining job specifications

Which of the following is NOT one of the six key elements of organizational design?

• Work specialization

• Budgeting

• Departmentalization

• Chain of command

What does work specialization aim to achieve?

• Making all employees interchangeable

• Dividing work activities into separate job tasks

• Increasing the span of control

• Reducing the number of managers in an organization

What is the chain of command in an organization?

• The hierarchy of job titles within a company

• The line of authority extending from upper to lower levels

• A set of rules governing employee behavior

• The process of assigning tasks to employees

The management principle stating that each employee should report to only one manager is known as:

• Formalization

• Unity of command

• Departmentalization

• Decentralization

What does span of control refer to?

• The number of tasks an employee can perform

• The total number of managers in an organization

• The number of employees a manager can effectively supervise

• The degree to which tasks are standardized

What is the main difference between centralization and decentralization?

• The speed of decision-making

• The level at which decisions are made within the organization

• The number of employees involved in decision-making

• The use of technology in decision-making

What is the main characteristic of highly formalized jobs?

• They have broad and flexible job roles

• They have little guidance on procedures

• They are standardized and guided by strict rules

• They encourage employee creativity

How are jobs grouped in a functional structure?

• By employee hierarchy

• By similar or related occupational specialties

• By geographical location

• By the product or service offered