Chapter 8

Question 1

Organization

Answer 1

Group of people working together in some concerted or coordinated effort to attain objectives.

Question 2

Organizing

Answer 2

Grouping of activities necessary to attain common objectives and the assignment of each grouping to a manager who has the authority necessary to supervise the people performing the activities.

Question 3

Informal Organization

Answer 3

The aggregate of the personal contacts and interactions the associated groupings of people working within the formal organization.

Question 4

Reasons for organizing

Answer 4

1. Establish lines of authority
2. Improves the efficiency and quality of work (synergy)
3. Improves communication.

Question 5

Vertical division of labor

Answer 5

Based on the establishment of lines of authority and defines the levels that make up the vertical organization structure.

Question 6

Horizontal division of labor

Answer 6

Based on specialization of work.

Question 7

Job scope

Answer 7

Refers to the number of different types of operations performed.

Question 8

Job depth

Answer 8

The freedom of employees to plan and organize their own work, work at their own pace, and move around and communicate as desired.

Question 9

Power

Answer 9

Ability to influence, command, or apply force.

Question 10

Authority

Answer 10

Legitimate exercise of power.

- Derived from the rights that come with a position and represents the legitimate exercise of power.

Question 11

Responsibility

Answer 11

Accountability for the attainment of objectives, use of resources, and adherence to organizational policy.

Question 12

Formal Theory of Authority

Answer 12

Position = authority

- Top to bottom

Question 13

Acceptance Theory of Authority

Answer 13

Mary Parker Follett

• A manager’s source of authority lies with his or her subordinates because they have the power to either accept or reject the manager’s command.
• If subordinate does not view a manager’s authority as legitimate, it does not exist.

Question 14

The Parity Principle

Answer 14

States that authority and responsibility must coincide.

Question 15

Successful Delegation

Answer 15

1. Decide which tasks can be delegated.
2. Decide which subordinates can handle each task.
3. Grant authority to perform the tasks.
4. Make the subordinates responsible and to control the delegation.

Question 16

Exception Principle

Answer 16

States that managers should concentrate on matters that deviate significantly from normal and let subordinates handle routine matters.
- Management by exception

Question 17

Unity of Command

Answer 17

An employee should have one, and only one, immediate manager.

Question 18

Scalar Principle

Answer 18

States that authority in the organization flows through the chain of managers one link at a time, highest to lowest.

Question 19

Span of Management

Answer 19

Number of subordinates a manger can effectively manage.

1. Complexity
2. Variety
3. Proximity
4. Quality of Subordinates
5. Quality of Manager

Question 20

Centralization

Answer 20

Little authority is delegated to lower levels of management.

Question 21

Decentralization

Answer 21

A great deal of authority is delegated to lower levels of management.

Question 22

Empowerment

Answer 22

Form of decentralization in which subordinates have the authority to make decisions.

1. Participation
2. Innovation
3. Access to Information
4. Accountability