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Which of the following positions would be classified as a staff position?


A) An assembly-line worker for a major auto manufacturer
B) The chief executive officer of a small corporation
C) A sales manager for a chain of clothing stores
D) An attorney in the legal department of a manufacturing corporation

E) C) and D)
F) All of the above

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Which of the following is an advantage of a matrix organization structure?


A) It is much cheaper to staff than other organization models.
B) It provides for efficient use of organizational resources.
C) The project teams are permanent.
D) It is a complex organization structure.

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

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As a result of rapidly changing markets and global differences in consumer tastes, more firms are considering centralized authority.

A) True
B) False

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Bureaucratic organizations establish rules and regulations that everyone is expected to follow.

A) True
B) False

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Fayol believed that decision-making authority should remain in the hands of top management:


A) in small organizations, but should be delegated to middle and first-line managers in large organizations.
B) in large organizations, but could be delegated to middle and first-line managers in small organizations.
C) in all types and sizes of organizations.
D) only in organizations subjected to significant government regulation.

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

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Economies of scale can be achieved through departmentalization.

A) True
B) False

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As indicated in the Making Ethical Decisions box, "Would You Sacrifice Safety for Profit?" organizational decisions that affect profits in a negative way should be avoided at all cost.

A) True
B) False

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Benchmarking requires organizations to compare each organizational function against the best in the world.

A) True
B) False

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According to Fayol's principle of authority, if you have authority you also have responsibility.

A) True
B) False

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