Question Details

Advantages of functional departmentation



1. __________ increases when the discretion to spend money, to hire people, and to make similar decisions is moved farther up the hierarchy of authority. 
a) Distribution. 
b) Dissipation. 
c) Diffusion. 
d) Centralization. 
e) Decentralization. 


2. __________ is the degree to which the authority to make decisions is delegated to lower levels in an organization- hierarchy. 
a) Dissipation. 
b) Centralization. 
c) Distribution. 
d) Exclusivity. 
e) Decentralization. 


3. Greater __________ is often adopted when a firm faces a single major threat to its survival. 
a) dissipation. 
b) centralization. 
c) distribution. 
d) participation. 
e) decentralization. 


4. Which one of the following statements about decentralization is NOT accurate? 
a) decentralization assists in the on-the-job training of subordinates for higher-level positions. 
b) decentralization provides a quicker response to a diverse set of unrelated problems than does centralization. 
c) decentralization is a popular approach in many industries. 
d) generally speaking, greater decentralization provides lower subordinate satisfaction. 
e) decentralization is the degree to which the authority to make decisions is given to lower levels in an organization- hierarchy. 


5. All of the following are advantages of functional departmentation EXCEPT: 
a) it is easy to explain. 
b) it may reinforce the narrow training of individuals. 
c) it yields very clear task assignments, consistent with an individual- 
training. 
d) individuals within a department can easily build on one another- knowledge, training, and experience. 
e) it provides an excellent training ground for new managers. 




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