BUSINESS PRINCIPLE (7)
Max Weber's principles of organization resembled Fayol's. In addition, Weber emphasized which of the following principles? Multiple select question. (A) Job descriptions (B) Consistent procedures, regulations, and policies (C) Subordination of individual interests to the general interest (D) Written rules, decision guidelines, and detailed records
A B D
The concept that states all workers should know to whom they report is referred to as the
Hierarchy of authority
________________ structure, also called a project management structure, sets up teams from different departments, thereby creating two or more intersecting lines of authority.
Matrix
Written rules and procedures. promotion based on qualifications, and job descriptions are organizing principles proposed by:
Max Weber
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
Each worker is to report to one, and only one, boss is an example of which Fayol principle?
Unity of command
The evolving business environment requires the management of _______________ in the organization structure to respond to it.
change
An important decision to be made while designing a responsive organization is about the size of the span of
control
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
Nike sells golf clubs, swim wear, as well as footballs. However, Nike is best known for its performance in designing and marketing of athletic shoes. This is known as Nike's __________ ______________
core competency
3 M is a company that rewards innovation as part of its _________ ________
corporate culture
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
Restructuring involves redesigning an organization so that it can be more ______________ and _____________ .
effective/efficient
Which of Fayol's principles states that a manager should treat employees and peers with respect and justice?
equity
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
______ organization structures respond to customer demands faster because its lower-level employees have authority and responsibility for making decisions.
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
The principle of organizational structure where one person is at the top and the other managers are ranked sequentially from the top down is called:
hierarchy
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
Production workers, distribution people, and marketing personnel who are responsible for directly achieving organizational goals are called _____________ personnel.
line
Using communications technology to link organizations and allow them to work together on common objectives is called:
networking
Regardless of the size of the business, the principles of _____________ its structure remain the same.
organizing
A small retail chain called Bike Away has found it cheaper and more efficient to have Paychex process their payroll and tax work. This is an example of:
outsourcing
For a department to operate effectively, the organization must allocate it sufficient _______________ such as funds and personnel.
resources
According to Fayol, division of labor states that functions within an organization are to be divided into areas of
specialization
In a virtual corporation the replaceable firms are joined together on a(n) _____________ basis to create a flexible organization.
temporary
A company that is so open to other companies that electronic information is shared as if the companies were one exhibits:
transparency
Today, you can take classes online and have live discussion boards from your own home. This type of interaction is similar to that experienced within a(n) ______________ corporation.
virtual
________________ corporation uses a networked organization structure in order to be flexible.
virtual
A temporary networked organization made up of replaceable firms that join and leave as needed is called a(n):
virtual corporation
A temporarily networked organization made up of replaceable firms that join and leave as needed is called a(n)
virtual organization
Regardless of the size of the organization, the principles of organizing include: Multiple select questions. (A) knowing that change in the environment doesn't affect internal structures (B) a hierarchy of authority (C) deciding what work needs to be done (D) dividing up the tasks to be done
B C D
Fayol's equity principle states that a manager should treat employees and peers: Multiple choice question. (A) as individual workers (B) as a coordinated team (C) with respect and justice (D) with power and authority
C
A cross-functional team that includes customers, suppliers, and distributors is: Multiple choice question. (A) only meeting basic expectations (B) not going far enough to function properly (C) going too far to function properly (D) going beyond organizational boundaries (E) excluding outside influence
D
Cross-functional self-managed teams are used in organizations to Multiple choice question. (A) reduce the communication between divisions (B) reduce team empowerment (C) increase the effects of specialization and differentiation (D) break down barriers between functional departments
D
Which Fayol principle states that the amount of decision-making power vested in top management should vary by circumstances?
Degree of centralization
Managing _____________ has become a critical managerial function because the increasing rate of change affects all organizations
change
Nike's strength is in designing and marketing athletic shoes and Apple's is in marketing innovative electronics. These are examples of each company's:
core competencies
Once the department manager determines the work that needs to be done, the next step is dividing the tasks among department employees. This step is known as:
division of labor
By developing _______________ ___________ ____________ , a company can reduce its production costs if it can purchase raw materials in bulk; the average cost of goods goes down as production levels increase.
economies of scale
The current trend in organizations is to _____________ the span of control.
expand
The structure that details lines of responsibility, authority, and position that represents different types of organizational design is known as a
formal organization
Firms may use a combination of departmentalization techniques to create a(n) ________________ form
hybrid
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
A large organization might use a flat organization structure in order to: Multiple choice question. (A) maintain a narrow span of control (B) match the flexibility of small firms (C) centralize operations (D) increase corporate control
B
Which of Fayol's principles states that all workers should be able to reach others in the firm quickly and easily?
Clear communication channels
True or false: Adapting to change is difficult because over time employees get stuck in their ways and are comfortable.
True
Employees at all levels often resist ____________ because they are used to doing their jobs in ways they know.
change
According to Fayol, all workers should be able to reach each other quickly and easily through clear______________ _______________
communication channels
The Ford Motor Company's _____________ ________ is the manufacture and marketing of automobiles and trucks.
core competency
Once managers determine what work needs to be done, they then need to divide up the tasks among workers. This is called
division of labor
A McDonald's restaurant anywhere in the world has an atmosphere and look that represents the company's values of cleanliness, quality service, and value. This is an example of:
organization culture
When a firm assigns one or more of its functions to an outside organization, it is:
outsourcing
The Fayol principle esprit de corps indicates that a spirit __________ of ____________ and should be created among people in the firm.
pride/loyalty
When a department is assigned responsibility for specific tasks, it should also be allocated the __________________ to accomplish its objectives.
resources
Identify the four ways to structure an organization. Multiple select question. (A) Cross-functional self-managed teams (B) Line organizations (C) Line-and-staff organizations (D) Visual corporations (E) Matrix-style organizations
A B C E
Google is a company that provides many services and a relaxed atmosphere for its employees to keep them engaged at work. That is a strong feature of its:
corporate culture
A manufacturer who uses just-in-time inventory management shares information in real time with its supplier. This is an example of transparency between firms using
internet techonology
Four ways to structure an organization include line, _________________ and ____________, matrix, and cross-functional teams.
line/staff
Economies of scale work best in a company that makes large quantities of goods using ____________ _____________ processes.
mass production
The present moment or the actual time in which something takes place is called
real time
Centralized authority occurs when decision making is done: Multiple choice question. (A) at the top level of management (B) by employees (C) by employee teams (D) at all levels of management
A
Which of the following departments could be considered by a company approaching departmentalization by functions? Multiple select question. (A) Accounting (B) B2B (C) Production (D) Marketing
A C D
A benefit of the unity of command principle is: (A) it leads to job satisfaction since employees report to several different mangers (B) it prevents confusion since each employee reports to one manager (C) it prevents confusion since employees are expected to follow strict rules and regulations (D) it prevents confusion since employees are not required to report to a manager
B
Fayol's principle of esprit de corps states that a company should create: Multiple choice question. (A) a family atmosphere (B) a safe working environment (C) respect and justice among workers (D) pride and loyalty among workers
D
Why is adapting to change one of the hardest challenges facing any manager? Multiple choice question. (A) Shareholders are resistant to change. (B) Other companies may not change with you. (C) Governments are resistant to change. (D) Employees and managers are sometimes resistant to change.
D
True or false: The key to success for companies in a capitalist economy is to remain inflexible during times of change.
False
True or false: The hierarchy of authority principle states that all workers should know to whom they report.
True
A(n) __________ organization structure maintains the decision-making authority at the top level of management.
centralized
UPS does much of the shipping for L.L.Bean by sharing information electronically in
real time
For departments to operate effectively, they must be allocated sufficient resources such as: Multiple select question. (A) production goals (B) equipment (C) personnel (D) funds
B C D
The formal organization details lines of: Multiple select question. (A) relationships (B) responsibility (C) authority (D) position
B C D
The Fayol principle called degree of ________________ states that the amount of decision-making power vested in top management should vary by circumstances.
centralization
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
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
An advantage of a ___________________ organization structure is that lower level employees have authority to respond more quickly to customer needs.
flat
Remaining ______ is the key to an organization's success in changing times.
flexible
The ______ organization details lines of responsibility, authority, and position. It is the structure shown on organization charts.
formal
A traditional way to departmentalize is by _______________ , such as design, production, marketing, and accounting.
function
When you are discussing departmentalization items such as design, production, marketing, and accounting are referred to as ______.
functions
Some companies create ______________ structures because the sales department has geographic departments, production is by function, and marketing is by customer groups.
hybrid
According to Fayol's order principle, ______ and ______ should be placed and maintained in the proper location.
materials/people
Which of Fayol's principles states that materials and people should be placed and maintained in the proper location:
order
Real time is the ______ moment or the ______ time in which something takes place.
present/actual
Redesigning an organization so that it can more effectively and efficiently serve its customers is called
restructuring
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: Multiple select question. (A) adapt to new technologies (B) retain traditional organization structures (C) change more quickly than ever before (D) defend their traditions and old ways of doing business
A C
Important decisions to be made while designing an organization include: Multiple select question. (A) departmentalization (B) the budgeting process (C) span of control (D) degree of centralization
A C D
Line managers are those who have the authority to: Multiple select questions. (A) adjust to changing conditions (B) provide advice about affirmative action (C) enforce discipline (D) issue orders
A C D
The line organization has direct lines of _______ that extend from the top manager to employees at the lowest level of the organization. Multiple select question. (A) responsibility (B) collaboration (C) authority (D) communication
A C D
Which of the following would be the result of a departmentalization process? Multiple select question. (A) The creation of a group of specialists to process the human resources functions of the business (B) Separating the functions of a taco stand into cashier and taco maker. (C) The creation of an employee handbook. (D) The creation of a group including only accountants to process financial transactions
A D
A firm that has a marketing department organized geographically and a production process organized by function has which type of departmental structure?
Hybrid
A cross-functional team that includes suppliers, distributors, and customers goes beyond organizational
boundaries
The process of setting up individual departments to do specialized work is:
departmentalization
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
If an organization temporarily borrows its specialists from different functional areas to accomplish a common project, it is implementing what type of organization?
Matrix organization
A company that works virtually with a design firm for six months to develop a new line of handbags, then severs its connection with them when they shift to designing shoes, exemplifies which organization structure?
Networked organization
