BUS 101 Chapter 7 Review Questions

Distinguish between centralization and decentralization. Under what circumstances is each appropriate?

o A centralized organization is one in which top level managers delegate very little authority to lower-level employees. o A decentralized organization is one in which authority is delegated as far down the chain of command as possible. o A centralized organization is appropriate when the decisions to be made are risky and when low-level managers are not highly skilled in decision making. o Decentralization is appropriate when the organization operates in complex and unpredictable environments.

What are self-managed work teams and what tasks might they perform that traditionally are performed by managers?

o A self-managed work team is a group of employees responsible for an entire work process or segment that delivers a product to an internal or external customer. o They might be given the authority to implement work decisions, especially when problems arise in the production process.

Explain how delegating authority, responsibility, and accountability are related.

o All of these are related, but there is a difference in the meaning of each of these words. o Delegation of authority is the assigning of tasks to employees while giving them the power to make commitments, use resources, and take actions necessary to accomplish them. o Responsibility is the obligation to carry out assigned tasks satisfactorily. o Accountability is the answerability of a subordinate to a superior for the outcome of an assigned task.

Identify four types of departmentalization and give an example of each type.

o Departmentalization is grouping jobs into working units usually called departments, units, groups, or divisions. o Functional departmentalization is the grouping of jobs that perform similar functional activities, such as finance, manufacturing, marketing, and human resources. o Product departmentalization is grouping jobs around the products of a firm. o Geographical departmentalization is grouping jobs by geographic location, such as country, region, or an even smaller area. o Customer departmentalization is grouping jobs around the needs of various types of customers, which allows an organization to respond to the needs of each group of customers.

Explain the difference between groups and teams.

o In a group, two or more individuals communicate with one another, share a common identity, and have a common goal. o The purpose of the group is the same as the broader organizational mission, whereas the team has a specific purpose that is defined by the team itself. o The leadership roles in the team are shared, and both the team members and the whole team are accountable for the results of their work. o In a group, the leadership is clearly focused on one person; thus, each individual is accountable. o A team requires a collective effort and the participation of all team members, two characteristics that are not necessarily required in a group. o All teams are groups, but not all groups are teams.

Define span of management. Why do some organizations have narrow spans and others wide spans?

o Span of management is the number of subordinates who report to a particular manager. o A wide span of management exists when a manager directly supervises a large number of employees. o A narrow span of management exists when a manager directly supervises only a few subordinates. o The nature of spans of management in a company depends on the physical distance between managers and subordinates, on the managers' responsibilities other than supervision, and on the degree of interaction required between managers and subordinates. o Other factors include the frequency of problems, the competence of subordinates, and the existence of specific operating procedures.

How have technological advances made electronic oversight a necessity in many companies?

o Technological advances as alternatives to face-to-face communication have caused problems as employees face information overload. o Electronic oversight is necessary in many companies to insure that employees use technology appropriately and efficiently.

Discuss the different forms of organizational structure. What are the primary advantages and disadvantages of each form?

o The process of delegation establishes a pattern of authority and accountability, often called bureaucracy, within the organization. o Various forms of bureaucracy include line structure, line-and-staff structure, and matrix structure, as well as committees. o A line structure is based on direct lines of authority that extend from the top executive to employees at the lowest level of an organization. o This structure provides a clear chain of command, but it also requires managers to possess a wide range of knowledge. o In the line-and-staff structure there is a line relationship between superiors and subordinates, and line departments are directly involved in the operation of the organization. o Specialized managers, called staff managers, are available to assist line managers. o The matrix structure involves setting up teams from different departments and creating two or more intersecting lines of authority. o The matrix structure improves cross-pollination of ideas but is generally temporary.

Discuss how an organization's culture might influence its ability to achieve its objectives. Do you think that managers can "manage" the organization's culture?

o When an organization's culture consists of values shared by all members of the organization, results can be positive as all members work toward shared objectives. o Managers can "manage" an organization's culture by establishing values and rules through authority, partly in organizational and policy manuals, and by example. o The manager's awareness of a company's culture is management's strongest tool in dealing with problems and weaknesses.approach; and hold themselves mutually accountable.

Discuss the role of the grapevine within organizations. How can managers use it to further the goals of the firm?

oThe grapevine is an informal channel of communication, separate from management's formal, official communication channels. o Astute managers try to identify informal leaders to gain their support for the organization's objectives. o Managers can use the grapevine to their advantage, feeding it facts to squelch o Rumors and incorrect information. o They can also obtain valuable facts from the grapevine to improve decision making.