True or False
1. Organizational structure is the established pattern of relationships among different
components or parts of the organization.
2. Authority gives managers the right to direct and control the behavior of their
subordinates.
3. Decentralization is the tendency to disperse decision-making authority in an organized
structure.
4. Organizing improves efficiency and increases quality of works.
5. The first activity in the process of organizing is establishing relationship by designing
hierarchy.
6. Departmentation is a part of the organizing process means dividing and grouping the
activities and employees of an enterprise into various departments.
7. Product departmentation is the grouping of enterprise activities based on customers'
interests.
Multiple-choice Questions
1. ___________is the process of defining the essential relationships among people, task, and
activities in such a way that all the organization’s resources are integrated.
A) Organizing
B) Planning
C) Staffing
D) Directing
2. Which one of the following is true about the importance of organizing?
A) Improves efficiency and increases quality of works
B) Establishes accountability and responsibility
C) Helps to achieve organizational objectives
D) All E. no answer
3. All are principles of organizing except;
A) Direction of Vision
B) Decision making
C) Stability and adaptability
D) Rules and regulations
4. __________ is the grouping of work so that similar and logically related activities occur
together.
A) Departmentalization
B) Division of work
C) Span of management
D) Organizing
5. The authority of those managers directly responsible, throughout the organization chain of
command, for achieving organizational goals refers to:
A) Line authority
B) Staff authority
C) Functional authority
D) All of the above
6. Which one is true about delegation?
A) It is the act of assigning formal authority and responsibility for completion of specific
activities to a subordinate.
B) It is the assignment to another person of authority and responsibility to carry out specific
activities.
C) To delegate means to entrust authority to a deputy so as to enable him to accomplish the
tasks assigned to him.
D) All of the above
7. All of the following are true about division of labor, except:
A) Upgrade Performance of Workers
B) Decrease learning time
C) Reduce expenses
D) Increase training time
8. Which one is not a limitation of decentralization?
A) Gives managers more freedom and independence in decision making
B) It increases the chances that a lower-level manager will take undesirable action
C) Makes it more difficult to have a uniform policy
D) Can be limited by the availability of qualified managers