Smartbook Chapter 8

Why is adapting to change one of the hardest challenges facing any manager?

Employees and managers are sometimes resistant to change.

Written rules and procedures. promotion based on qualifications, and job descriptions are organizing principles proposed by ______.

Max Weber

True or false: Adapting to change is difficult because over time employees get stuck in their ways and are comfortable.

True

True or false: Networking uses technology, such as a company intranet, to link organizations and their suppliers to allow them to work together for a common goal.

True

A Fayol principle that states each worker is to report to one and only one boss.

Unity of command

The result of the increase in the rate of change in the business environment from causes such as natural disasters and global competition has been that companies must:

adapt to new technologies change more quickly than ever before

Centralized authority occurs when decision making is done ______.

at the top level of management

Cross-functional self-managed teams are used in organizations to ______.

break down barriers between functional departments

An organization structure in which decision-making authority is maintained at the top level of management is called a(n) ______ organization.

centralized

An important decision to be made while designing a responsive organization is about the size of the span of

control

Less need for policy manuals, organization charts, and formal controls is a sign of shared values in a:

corporate culture that emphasizes service to others.

Groups of employees from different departments who work together on a long-term basis are called ______.

cross-functional teams

According to Fayol, the _____ of ________ principle states that functions are to be divided into areas of specialization.

division; labor

Advantages of a positive corporate culture include:

emphasizing service to others, especially customers trust between employees people who enjoy working together to be productive

As organizations adopt empowerment, reduce the number of middle managers, and hire more talented and better educated lower-level employees the trend today is to ______ the span of control.

expand

The current trend in organizations is to _____ the span of control.

expand

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 benefit of the unity of command principle is:

it prevents confusion since each employee reports to one manager

Four ways to structure an organization include line, ______ and ______, matrix, and cross-functional teams.

line; staff

Using communications technology and other means to link organizations and allow them to work together on common objectives is referred to a

networking

Today's trend is to expand the span of control because:

organizations save by reducing the number of middle managers the workforce is better educated at all levels

Real time is the ______ moment or the ______ time in which something takes place.

present; actual

The present moment or the actual time in which an event takes place is called

real time

In a virtual corporation the replaceable firms are joined together on a(n) _____ basis to create a flexible organization.

temporary

When designing responsive organizations, what decisions do firms have to make?

Choose between tall or flat structures Decide the span of control Decide between centralization versus decentralization

Which of Fayol's principles states that a manager should treat employees and peers with respect and justice?

Equity

______ organization structures respond to customer demands faster because its lower-level employees have authority and responsibility for making decisions.

Flat

True or false: The hierarchy of authority principle states that all workers should know to whom they report.

True

Organizations reorganized to empower frontline workers so that they:

could more efficiently and effectively serve customers

Regardless of the size of the organization, the principles of organizing include:

deciding what work needs to be done dividing up the tasks to be done recognizing employee strengths

Remaining __ is the key to an organization's success in changing times.

flexible

A cross-functional team that includes customers, suppliers, and distributors is ______.

going beyond organizational boundaries

The method of structuring businesses to produce large amounts of goods is

mass production

Henri Fayol's principles for organization structure included:

unity of command a hierarchy of authority managers can enforce their orders

Functions being divided into areas of specialization such as production, marketing, and finance are examples of which Fayol principle?

Division of labor

True or false: The key to success for companies in a capitalist economy is to remain inflexible during times of change.

False

A firm that has a marketing department organized geographically and a production process organized by function has which type of departmental structure?

Hybrid

Line managers are those who have the authority to:

Issue orders Enforce discipline adjust to changing conditions

The principles of bureaucracy which brought consistent application of rules and procedures to organizations were proposed by

Max Weber

Which is a true statement about the principles of organization?

Regardless of the business size the principles are similar.

When each worker is to report to only one boss, it is an example of which Fayol principle?

Unity of command

Identify the principles of Henri Fayol's book General and Industrial Management from the following list.

Unity of command Hierarchy of authority Division of labor

The rapidly evolving business environment requires the management of _____ in the organization to respond to it effectively.

change

The line organization has direct lines of ______ that extend from the top manager to employees at the lowest level of the organization.

communication authority responsibility

The unity of command principle states that each person should report to only one manager in order to prevent

confusion

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 GM and Ford Motor Company introduced large factories and mass production, the cost of building each car declined. This effect exemplifies ______.

economies of scale

When a company purchases raw materials in bulk, thus reducing the cost of production, it is called ______.

economies of scale

An advantage of a ____ organization structure is that lower level employees have authority to respond more quickly to customer needs.

flat

A system in which one person is at the top of the organization and there is a ranked or sequential ordering from the top down of managers who are responsible to that person is called a(n)

hierarchy

Organizations reorganize to empower frontline workers to:

let them know they are valuable assets to the organization serve customers more efficiently and effectively demonstrate appreciation and trust to frontline workers

An organization that has 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 is called a(n)

line organization

The type of organization that has direct two-way lines of responsibility, authority, and communication from the top down, with everyone reporting to one supervisor is called a ______.

line organization

A large organization might use a flat organization structure in order to ______.

match the flexibility of small firms

In a ______ organization, project managers are in charge of teams made up of members from several departments.

matrix

Fayol's ____ principle states that materials and people should be placed and maintained in the proper location within an organization.

order

Which of Fayol's principles states that materials and people should be placed and maintained in the proper location?

order

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

A cross-functional team that is working on the development of a new prosthetic device for amputees should include:

parts suppliers for medical devices product designers amputees who will use it

According to Fayol's equity principle, a manager should treat employees and peers with ______ and ________

respect; justice

A temporarily networked organization made up of replaceable firms that join and leave as needed is called a(n) ____ organization.

virtual