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Decision Making and Company

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Decision Making and Company
BUS1404 – Tutorial 4

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

1)

Departmentalization based on ________ groups jobs on the basis of territory or physical location.

1)

_______

A)

customer

B)

process

C)

geography

D)

product

2)

________ refers to the rights inherent in a managerial position to tell people what to do and to expect them to do it.

2)

_______

A)

Liability

B)

Bureaucracy

C)

Responsibility

D)

Authority

3)

Which one of Fayol's 14 principles of management states that a person should report to only one manager?

3)

_______

A)

division of work

B)

division of authority

C)

unity of command

D)

unity of direction

4)

________ is the degree to which decision making takes place at upper levels of the organization.

4)

_______

A)

Decentralization

B)

Formalization

C)

Functionalization

D)

Centralization

5)

A company is planning to revise its organizational structure and one of the managers, Anderson Cooper, suggests increasing employee empowerment by giving them more decision-making authority. Which of the following, if true, would support Cooper's stand?

5)

_______

A)

The firm's employees are reluctant to disrupt the status quo and are apprehensive about any change in responsibility.

B)

The company is trying to recover from an economic downturn that caused significant losses which necessitated downsizing.

C)

The company's frontline workers have first-hand knowledge of what can and cannot be done.

D)

The firm's employees are used to an authoritative structure and clearly defined job-roles.

6)

As organizations become more flexible and responsive to environmental trends, there is a distinct shift toward ________ decision making.

6)

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