Chapter 7 Learnsmart and Quiz
A cross-functional team that includes suppliers, distributors, and customers goes beyond organizational ___
boundaries
Once managers determine what work needs to be done, they then need to divide up the tasks among workers. This is called ___ of ___.
division of labor
The owner of a small lawn-mowing business separates the job functions of the business into mowing, edging, and trimming so she can assign the tasks to different workers. What process is exemplified by this action?
division of labor
Which of Fayol's principles states that a manager should treat employees and peers with respect and justice?
equity
The key to success is remaining_____ in changing times.
flexible
The principle of subordination of individual interests to the general Interests states that the goals of the team are more ___ than goals of the individual workers.
important
Even though he is not a manager, Mr. Klein is the one to see in the company when there is something you need. He will get it quickly and can avoid the red tape that often delays action. Mr. Klein is also the one to see if you need advice or help. Mr. Klein is an important member of the firm's
informal organization
Redesigning an organization so that it can more effectively and efficiently serve its customers is called
restructuring
The widely shared values within an organization that provide unity and cooperation to achieve common goals is the organization's
culture
To more quickly respond to customer needs, a company is changing its organizational structure to give more authority and responsibility to field managers located across the country. These managers spend time with customers and know what the customers need right away. It appears that this company is moving toward a more __________ structure.
decentralized
The current trend in organizations is to ___ the span of control.
expand
Some companies create ___structures because the sales department has geographic departments, production is by function, and marketing is by customer groups.
hybrid
In the past, the major purpose of organizational design was to facilitate the needs of management in making their job easier, rather than
pleasing customers
When a department is assigned responsibility for specific tasks, it should also be allocated the ___ to accomplish its objectives.
resources
True or false: Clear communication channels refers to the worker's ability to reach others in the firm quickly and easily.
true
Which of Fayol's principles states that all workers should be able to reach others in the firm quickly and easily?
Clear communication channels
Under which Fayol principle does it state that all workers should know to whom they report?
Hierarchy of authority
Max Weber's principles of organization resembled Fayol's. In addition, Weber emphasized which of the following principles?
Written rules, decision guidelines, and detailed records Job descriptions Consistent procedures, regulations, and policies
A company desires a successful product launch for its new product venture. Looking outside of its industry, the company solicited the advice of two companies known for successful product introductions in past years. The business term used to describe the practice of looking toward others to develop a model approach is called
benchmarking
______ organization structures respond to customer demands faster because its lower-level employees have authority and responsibility for making decisions.
flat
The organization structure that creates a chain of command with one person at the top and others in ranked order to the bottom is a
hierarchy
A ___ structure, also called a project management structure, sets up teams from different departments, thereby creating two or more intersecting lines of authority.
matrix
Regardless of the size of the business, the principles of ___ its structure remain the same.
organizing
Innovations like the mass production of cars can create economies of scale. However, over time this benefit becomes less meaningful because:
other companies copy the processes
Functions being divided into areas of specialization such as production, marketing, and finance are examples of which Fayol principle?
Division of labor
When a company purchases raw materials in bulk, thus reducing the cost of production, it is called:
economies of scale
A company desires a successful product launch for its new product venture. Looking outside of its industry, the company solicited the advice of two companies known for successful product introductions in past years. The business term used to describe the practice of looking toward others to develop a model approach is called
product
A Fayol principle that states each worker is to report to one and only one boss.
Unity of command
Groups of employees from different departments who work together on a long-term basis and are empowered to make decisions without management approval are:
cross-functional self-managed teams
When Fayol refers to subordination of individual interests to the general interest, he believes that workers are to think of themselves as a(n):
coordinated team
The process of setting up individual departments to do specialized work is:
departmentalization
Production workers, distribution people, and marketing personnel who are responsible for directly achieving organizational goals are called ___ personnel.
line
Written rules and procedures. promotion based on qualifications, and job descriptions are organizing principles proposed by:
Max Weber
A cross-functional team that is working on the development of a new prosthetic device for amputees should include:
amputees who will use it parts suppliers for medical devices product designers
A large commercial cattle farm provides jobs for over 100 employees, who care for over 500 various species of cattle. The operation consists of traditional functional units, which include management, marketing, and finance, and 30 veterinarians that specialize in the various types of cattle owned by the company. Although the firm operates with a CEO, COO, CFO, and a director of marketing, it relies on the veterinarians to make decisions on the appropriate care and environment for the cattle. Sometimes the veterinary decisions override marketing and financial concerns even though the veterinarians operate at a lower level in the organization structure. The commercial farm operates as a(n) __________ organization.
inverted
Fayol's principle of esprit de corps states that a company should create:
pride and loyalty among workers
Due to his reputation of putting together powerful presentations, Victor was contractually hired by AI Life, Inc., to help this firm introduce the value of its new robotic arms and legs to high-net-worth investors. AI Life hired Victor strictly for this special project. At this stage of its life, the firm operates as a(n) __________, where it solicits the services of other companies on an "as needed" basis and then releases them when the job is done.
virtual corporation
An organization structure in which decision-making authority is maintained at the top level of management is called a(n) ______ organization.
centralized
Managing ____ has become a critical managerial function because the increasing rate of change affects all organizations.
change
The evolving business environment requires the management of ___ in the organization structure to respond to it.
change
The concept that states all workers should know to whom they report is referred to as the ___ of____ .
hierarchy authority
During the past recession, Advanced Protection Systems created a __________ organization when it restructured and eliminated several middle management positions and broadened the span of control for the remaining managers. As it emerged from the recession, Advanced realized that technology permitted the remaining employees to be just as responsive to customer needs as the firm was prior to restructuring.
flat
The ______ organization details lines of responsibility, authority, and position. It is the structure shown on organization charts.
formal
When designing responsive organizations, what decisions do firms have to make?
Choose between tall or flat structures Decide between centralization versus decentralization Decide the span of control
The unity of command principle states that each person should report to only one manager in order to prevent ____ .
confusion
Which Fayol principle states that the amount of decision-making power vested in top management should vary by circumstances?
Degree of centralization
Jaclyn recently started working at a major accounting firm. One of the first things her supervisor provided her with was a large white notebook that contained rules and regulations on just about every aspect of the firm's business. As a recent business graduate, Jaclyn realized that the accounting firm operated in a(n) __________ environment.
bureaucratic
In economies of scale, a company buys raw materials in bulk so that the average cost of goods goes ___ as the production levels increase.
down
Eddie started out with one small print shop. His business has grown so much that he now has two other branches across town. Eddie has found that having three locations has greatly increased his production levels. He also notices that the price he pays for supplies (paper, ink, and packaging materials) has gone down considerably since he can now buy these items in bulk quantities. This exemplifies the principle known as
economies of sale
When GM and Ford Motor Company introduced large factories and mass production, the cost of building each car declined. This effect exemplifies ______.
economies of scale
For departments to operate effectively, they must be allocated sufficient resources such as:
personnel funds equipment
Identify the four ways to structure an organization.
Line-and-staff organizations Line organizations Matrix-style organizations Cross-functional self-managed teams
Which is a true statement about the principles of organization?
Regardless of the business size the principles are similar.
Each worker is to report to one, and only one, boss is an example of which Fayol principle?
Unity of command
True or false: The key to success for companies in a capitalist economy is to remain inflexible during times of change.
false
Accountants at Business Solutions, Inc. work with state-of-the-art systems that create financial statements every day, but the interpretation and analysis of those statements can take several hours. The accounting department consists of financial, managerial, and tax accountants. One advantage of departmentalizing the accountants is
for efficiency; the employees can coordinate work within the function.
According to Fayol's order principle, ______ and ______ should be placed and maintained in the proper location.
materials, people
Metro Motors was awarded a bid to build an energy-efficient motor for a large government heating and cooling project. The requirements of the project included a timeline of one year to build and deliver the system. In order to provide a quality product and stay within the time requirements, Metro Motors set up a __________ organization whereby employees from various functions of the business would join a team to see this project through, from start to finish. Upon completion, the team would disband and members would return to their respective functional units.
matrix
Nellie works as an attorney for a large consulting firm. Nellie's job is to act as an advisor to the firm's consultants, to be sure they do not confront any legal issues when they are working at the various clients' job sites. Nellie's position would be classified as a __________ position.
staff
A manager's need to exert tight controls on subordinates (span of control) is most accurately captured by which statement?
Control will decrease as the manager gets to higher levels in the organization and work becomes less standardized.
Which of the following would be the result of a departmentalization process?
The creation of a group of specialists to process the human resources functions of the business The creation of a group including only accountants to process financial transactions