8

_____________ is using communications technology and other means to link organizations and allow them to work together on common objectives.

Networking

To avoid losing that small-company-feel, fast growing companies try to maintain a flat organization structure.

T

Bureaucracy

The government has to wrestle with bureaucracy just as businesses do

Fayol's Principles of Organization

Unity of command.

Staff personnel perform functions such as production and sales that contribute directly to the primary goals of the organization.

False

The process of setting up individual departments to do specialized tasks is called job specialization.

False

Management at Leaves of Green, a nationwide vegetarian restaurant chain, believes that its customers value a predictable and consistent level of service and quality. When customers stop at one of its restaurants anywhere in the United States, they should know what to expect in terms of menu, price and quality. In order to maintain this consistency, Leaves of Green adopted a(n) ______ structure.

centralized authority

Organizing a business begins with

determining the work to be done.

The concept of ____________ suggests that as a firm produces more, the average cost of goods produced goes down.

economies of scale

A ____________ organization is characterized by direct two-way lines of responsibility, authority, and communication running from the top to the bottom of the organization, with all people reporting to only one supervisor.

line

A(n) __________ is used by an organization to show who is accountable for the completion of specific work and who reports to whom.

organization chart

A(n) ________________ is a visual device that shows relationships among people and divides the organization's work.

organization chart

Excite Enterprises, a corporation of amusement parks, uses an accounting firm to handle the payroll and tax functions for the company. Using the services of another firm in this manner is an example of

outsourcing.

A bureaucratic style of organization is slow when responding to change.

t

A recent business trend is the elimination of layers of management, creating flatter organizations and subsequently, a wider span of control.

t

An informal organization can be a valuable asset to managers attempting to create an environment of harmony among workers and establish the corporate culture.

t

Angelo, a middle manager at a nonprofit, spends much of his time developing ways to implement the ideas from top management. Max Weber would have considered Angelo a bureaucrat.

t

Cruz works in the marketing department of a large firm. This is an example of Fayol's division of labor concept.

t

Digital natives, those who grew up with the Internet and other devices, are an important customer group that most businesses want to reach.

t

Cross-functional teams that go beyond company boundaries share production information but seldom market information.

False

Departmentalizing by customer group has proven ineffective.

False

specialization

A focus on a particular activity or area of study

One of the most difficult management challenges today is managing change. Why is this?

Change requires cooperation and an awareness of a need for change.

Which of the following statements best describes the evolution of organization design?

Companies are now part of a vast network of global businesses, and part of a larger system.

__________ refer to those functions that an organization does as well as, or better than, any other organization in the world.

Core competencies

division of labor

Division of work into a number of separate tasks to be performed by different workers

Cross-functional teams avoid involving groups outside of the firm to ensure their plans are not leaked to their competitors.

F

Henri Fayol and Max Weber are best known for their contributions to accounting theory.

F

A flat organizational structure is designed to be more responsive to the needs of management.

False

organization chart

a diagram that shows the structure of an organization, classifications of work and jobs, and the relationships among those classifications

In open organizations the informal organization can be

an asset that promotes harmony among workers.

Companies benefit today from interfirm cooperation. One of the ways they cooperate is through networking. Another way is by seeking technological knowledge and new processes from exemplary firms sometimes outside their own industries. This is called

benchmarking.

A virtual corporation refers to a permanent network of firms linked by high-tech communication systems.

f

Baby Boomers are often referenced as digital natives.

f

Due to the competitive nature among companies competing for the same customers, cross-functional teams never consist of individuals from more than one firm.

f

Most businesses adopt a bureaucratic organization in order to speed up their decision-making process.

f

Once a company has restructured a firm to be more competitive in today's market, it alleviates the need to scan the external environment.

f

While most organizations have a formal organization structure, only poorly managed firms also have an informal organization.

f

A firm's formal organization would be better suited than its informal organization to

find answers to critical problems that require logical analysis.

The ________ an organization's structure, the ________ the span of control.

flatter; wider

The __________ is the system of relationships that develop spontaneously as employees meet and form power centers.

informal organization

economies of scale

reduce their production costs by purchasing raw materials in bulk.

In the Rock Solid manufacturing plant of the Stone Works Granite Company, a foreman closely supervises her workers. She reports to the shift supervisor who reports to the head of the production department, who then reports to the assistant plant manager, who reports to the plant manager. The plant manager, in turn, reports to a district manager, who then reports to a product group manager, who reports to an assistant vice president of operations, who keeps in close touch with an executive vice president. The layers of management indicate that Stone Works Granite Company is a tall organization.

t

Line organizations clearly define the lines of authority and responsibility.

t

Outsourcing involves assigning various functions to outside organizations.

t

The formal organization of a firm provides the lines of authority to follow in routine situations.

t

Weber had a great deal of faith in managers. He was confident that a firm would do well if employees simply did as they were told.

t

Yolklore Breakfast Cafes is a nationwide chain with locations all around the United States. Top management at Yolklore believes that customers in different regions have different tastes and that its cafes may face more intense competition in some regions than in others. Therefore, Yolklore's top management gives local managers the freedom to offer local flavors in addition to its traditional entrees, and the ability to decide on a reasonable pricing strategy for its meals. Yolklore typifies a decentralized organization.

t

Organization theorists emerged during the era of mass production, meaning

the development of ways to produce a large quantity of product efficiently.

Departmentalization

the dividing of organizational functions into separate units

Mario recently earned his Ph.D. in biochemistry and has been asked to join a lab at a prestigious university. After a month on the job, he remarked to a graduate student at his former university that the spirit of help and cooperation at the lab was remarkable. He enjoyed going to work each day and sometimes exchanged calls with other lab partners in the evening with ideas to improve each other's experiments. Mario mentioned, "Now I understand why this lab is considered one of the best in the nation!" Mario is referring to

the organizational culture.

According to Fayol's principle of authority, if you have authority you also have responsibility.

true

If there are several steps in getting the product to its final state, the company may choose to departmentalize by process.

true

One of Fayol's principles suggests that managers should have the right to give orders and expect others to follow.

true

Organizational culture refers to the widely shared values within a corporation that foster unity and cooperation.

true

The decision on how to departmentalize should depend on the customer and the product or service the firm is offering.

true

The optimum number of subordinates a manager should supervise is referred to as the span of control.

true