MANAGEMENT_CH9_QB.doc

CHAPTER 9LINE/STAFF AUTHORITY, EMPOWERMENT, AND DECENTRALIZATIONMULTIPLE CHOICE QUESTIONS. Choose the best answer.1.Departments cannot become smooth working units that are harmonized for the accomplishment of enterprise objectives unless _ is properly placed in managers.A. Authority.B. Empowerment.C. Leadership.D. Control.Answer: A2.Whether vertical or horizontal, authority _ facilitate department activities and bring coordination to an enterprise. These are in fact the factors that make organization possible.A. Empowerments.B. Relationships.C. Controls.D. Flows.Answer: B3._ is the ability of individuals or groups to induce or influence the beliefs or actions of other persons or groups.A. Authority.B. Power.C. Creativity.D. Innovation.Answer: B4._ is _ in an organization setting.A. Authority; power.B. Power; authority.C. Creativity; innovation.D. Innovation; creativity.Answer: A5._ normally arises from an organizational position and derives from our cultural system of rights, obligations, and duties.A. Expert power.B. Referent power.C. Legitimate power.D. Reward power.Answer: C6.Physicians, lawyers, and university professors have _ to exert considerable influence on others because they are respected for their specialized knowledge.A. Expert power.B. Referent power.C. Legitimate power.D. Reward power.Answer: A7.Martin Luther King had _ on people because they believe in him and his ideas.A. Expert power.B. Referent power.C. Legitimate power.D. Reward power.Answer: B 8.University professors have considerable _ because they can grant or withhold high grades. A. Referent power.B. Coercive power.C. Reward power.D. Expert power.Answer: C9.A superior has the _ to punish, whether by firing a subordinate or withholding a merit pay increase. A. Referent power.B. Coercive power.C. Reward power.D. Expert power.Answer: B10._ means that employees, managers, or teams at all levels in the organization are given the power to make decisions without having to ask their superior for permission. A. Empowerment.B. Legitimization.C. Departmentation.D. Coercion.Answer: A11.Power should always be _ responsibility.A. Equal to.B. Less than.C. Greater than.D. None of the above.Answer: A12. If power is _ responsibility, this could result in autocratic behavior of the superior who is not held accountable for his or her actions.A. Equal to.B. Less than.C. Greater than.D. None of the above.Answer: C13.If responsibility is _ power, this could result in frustration because the person does not have the necessary power to carry out the task for which he or she is responsible.A. Equal to.B. Less than.C. Greater than.D. None of the above.Answer: B14.The _ states that the clearer the line of authority from the ultimate management position in an enterprise to every subordinate position, the clearer will be the responsibility for decision-making and the more effective the organizational communication.A. Scalar principle.B. Peters principle.C. Murphys principle.D. Unity of command principle.Answer: A15.Horst Schulze, the president of Ritz-Carlton Hotel, _ employees by authorizing the front-desk staff to spend up to $2,000 to serve customers and to ensure the satisfaction of the guests. A. Encourages.B. Empowers.C. Rewards.D. Organizes.Answer: B16. In order to develop entrepreneurial managers corporate leaders must determine: A. Innovation objectives.B. Entrepreneurial managers abilities C. Best organization structure to allow innovation to succeed D. All of them Answer: D17._ pertains to geographic concentration; it characterizes, for example, a company operating in a single location.A. Performance centralization.B. Departmental centralization.C. Management centralization.D. None of the above.Answer: A18._ refers to concentration of specialized activities, generally in one department. For example, a single department carries out the maintenance for a whole plant.A. Performance centralization.B. Departmental centralization.C. Management centralization.D. None of the above.Answer: B19._ is the tendency to restrict delegation of decision-making. A high degree of authority is held by managers at or near the top of the organizational hierarchyA. Performance centralization.B. Departmental centralization.C. Management centralization.D. None of the above.Answer: C20.Which of the following statements is not an attitude underlying real delegation? A. Willingness to establish and use broad controls.B. Willingness to allow mistakes by subordinates.C. Willingness to trust subordinates.D. Willingness to do everything.Answer: D21.Decentralization implies more than delegation: it reflects a _ of organization and management.A. Research. B. Methodology.C. Philosophy.D. PrincipleAnswer: C22.Which of the following statements is not an advantage of decentralization?A. Encourages decision-making and assumptions of authority and responsibility.B. Gives managers more freedom and independence in decision-making.C. Promotes the establishment and use of broad controls that may increase motivation.D. May result in loss of some control by upper-level managers.Answer: D23.Which of the following statements is not a limitation of decentralization?A. Increases complexity of coordination of decentralized organizational units.B. Involves considerable expenses for training managers.C. Makes it more difficult to have a uniform policy.D. Aids in adaptation to fastchanging environment.Answer: D24. According to the case “How the Lexus Was Born- and Continued Its Success in the United States, but will Lexus Succeed in Japan?”- Japanese luxury car buyers favor,A. American carsB. German carsC. Japanese carsD. None of the aboveAnswer: B25. According to the case “How the Lexus Was Born- and Continued Its Success in the United States, but will Lexus Succeed in Japan?”- Toyota aimed to create a car that,A. Was fast B. Was fuel-efficientC. Measured against Mercedes and BMWD. All of the aboveAnswer: DTRUE or FALSE. Mark each statement as true (T) or false (F). If the statement is false, or partly false, mark (F), write the correct version of the statement and discuss it.26.Authority is the right of a person to influence others in the organization.Answer: FTAuthority is the right a person has to exercise discretion in making decision affecting others in the organization, which is derived from the position in the organization he or she occupies.27.Treating both employees and customers with value for money helped earn Ritz-Carlton the prestigious Malcolm Baldrige National Quality Award.Answer: FTTreating both employees and customers with respect helped earn Ritz-Carlton the prestigious Malcolm Baldrige National Quality Award. At the Ritz-Carlton, not only customers but also employees are treated with dignity and respect, as illustrated by the companys slogan “Ladies and gentlemen serving ladies and gentlemen.”28.In some cases, line managers are deprived of some authority, which is delegated by their common superior to a staff specialist or to a manager in another department, for numerous reasons. Answer: T29.Structured organization exists in both absolute centralization and absolute decentralization.Answer: FTAbsolute centralization of authority in one person implies no subordinate managers and therefore no structure organization. On the other hand, there cannot be absolute decentralization, for if managers delegated all their authority, their status as managers would cease.30.Most failures in effective delegation occur not because managers do not understand the nature and principles of delegation but because they are unable or unwilling to apply them.Answer: T31.The manager who knows how to delegate must have a maximum of the “NIH (not invented here) factor.”Answer: FTThe manager who knows how to delegate must have a minimum of the “NIH (not invented here) factor.” He must be able not only to welcome the ideas of others but also to help others come up with ideas and to compliment them on their ingenuity.32.The law of comparative managerial advantage states managers will enhance their contributions to the firm if they concentrate on tasks that they could accomplish better than anyone else in the organization.Answer: FTThe law of comparative managerial advantage states managers will enhance their contributions to the firm if they concentrate on tasks that contribute most to the firms goals and assign to subordinates other tasks, even though they could accomplish them better themselves. 33.There should be free flow of information between superior and subordin