Practice Problems and Key
1. Alana, the children's department manager at Shoe Mart, has eight employees in her department, and all of
them report directly to her. The eight employees who report directly to Alana are her _____.
A. area of responsibility
B. span of direction
C. span of control
D. hierarchy of authority
E. management depth
2. Becky, the CEO of an electronics retailer, is looking at the corporate structure that groups employees by
specialties, such as store sales, HR, and accounting. This is an example of a functional structure.
3. IT Technology has designed its corporate structure with divisions based on its location. For example, there
are the Southern and Northern Divisions, and globally there is the European Division. This is an example of a
structure with _____.
4. There are two kinds of spans of control are _____.
5. Organizational design is concerned with an organization developing ____.
A. the best structures of costs and efficiency that an organization uses to meet goals
B. optimal structures of accountability and responsibility to execute its strategies
C. important decisions that are suggested by employees
D. new MBO goals
E. the most favorable methods of accomplishing both the diversity and synergy plans