Chapter 5&6 Reading Assignment

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

going beyond organizational boundaries

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

Under unity of command, each worker is to report to only ______ boss.

one

Identify the four ways to structure an organization. -Visual corporations -Line-and-staff organizations -Cross-functional self-managed teams -Matrix-style organizations -Line organizations

-Line-and-staff organizations -Cross-functional self-managed teams -Matrix-style organizations -Line organizations

The concept that states all workers should know to whom they report is referred to as the _______ of _______

chain; command

Departmentalizing by _______ groups workers according to their skills and expertise so they can work together more effectively.

function

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

hybrid

Firms may use a combination of departmentalization techniques to create a(n) ______ form.

hybrid

Which of the following are advantages of the matrix organization structure? -It encourages interorganizational cooperation -It can confuse employees about loyalty to their functional group or their project manager -It requires very good interpersonal and communication skills -It makes efficient use of organization resources

-It encourages interorganizational cooperation -It makes efficient use of organization resources

Which of the following are considered to be disadvantages to the matrix organization? -It's costly and complex. -It may lead to competition among members or groupthink. -It can confuse employees about whose orders to follow -It requires good interpersonal skills.

-It's costly and complex. -It can confuse employees about whose orders to follow -It requires good interpersonal skills.

Which of the following are advantages of departmentalization by function? -The company can achieve economies of scale. -People may not be cross-trained and be unprepared for advancement -People can develop group think. -Employees develop in depth skills and continue to progress.

-The company can achieve economies of scale. -Employees develop in depth skills and continue to progress.

People seeking managerial positions today need different skills than in the past. Which of the following are true regarding management today? -They coach employees rather than discipline them. -They are more collaborative. -They are much older. -They emphasize team work.

-They coach employees rather than discipline them. -They are more collaborative. -They emphasize team work.

In a project where members have different expertise and leadership is shared to complete the task, which organization structure works best?

Cross-functional self-managed team

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

Division of labor

Line personnel have the ______ to issue orders and discipline employees, while staff personnel have the ability to _______ and influence

authority; advise

The Fayol principle called degree of _______ states that the amount of decision-making power vested in top management should vary by circumstances.

centralization

Managing _______ has become a critical managerial function because the increasing rate of change affects all organizations.

change

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

confusion

According to Fayol, the _________ of _______principle states that functions are to be divided into areas of specialization.

division; 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

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

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

True or false: McDonald's is a highly centralized organization so that they can standardize their offerings across international markets.

false

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

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

true

Modern managers may change the definition of ________ from a task you do for a specific time and in a specific place to something you may do anywhere and anytime.

work

A benefit of the unity of command principle is:

it prevents confusion since each employee reports to one manager

The personnel directly responsible for achieving organizational goals are:

line personnel

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: -retain traditional organization structures -defend their traditions and old ways of doing business -adapt to new technologies -change more quickly than ever before

-adapt to new technologies -change more quickly than ever before

According to John Mackey of Whole Foods, cross-functional self-managed teams work best when: -leadership is shared -they are empowered -they report to department managers before making crucial decisions -they are collaborative

-leadership is shared -they are empowered -they are collaborative

At one time managers were called bosses and their job consisted of telling people what to do, watching over them to be sure they did it, and reprimanding those who did not. Today, managers need to be: -motivators -team builders -tough disciplinarians -supporters

-motivators -team builders -supporters

Important decisions to be made while designing an organization include: -span of control -the budgeting process -degree of centralization -departmentalization

-span of control -degree of centralization -departmentalization

Identify which of the following would exemplify employee empowerment. -Workers can approve a sale price without management approval. -Employees can change a price after checking with a manager -An employee is able to take customer returns without manager approval. -An employee is able to offer free delivery to close a sale without manager approval.

-Workers can approve a sale price without management approval. -An employee is able to take customer returns without manager approval. -An employee is able to offer free delivery to close a sale without manager approval.

When designing responsive organizations, what decisions do firms have to make? -Choose between tall or flat structures -Monitoring the environment -Decide between centralization versus decentralization -Decide the span of control

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

Which Fayol principle states that the amount of decision-making power vested in top management should vary by circumstances?

Degree of centralization

Kirby was an experienced manager who gathered his team each morning and assigned tasks. Lucy supervised a second team; she did not tell them what to do but what needs to be done overall. Lucy's team constantly showed higher productivity. What does this example demonstrate?

How managers are changing to progressive team leadership

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

The name of a company that allows employees to accept returns thus eliminating a time consuming management approval is

Nordstrom

Each worker is to report to one, and only one, boss is an example of which Fayol principle?

Unity of command

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

In a bagel shop, the chain of command is a general manager, shift manager, and employees. The employees report to the shift manager who reports to the general manager. This exemplifies a ________ organization.

line

In the near future, organizations will demand a new kind of _______: a skilled communicator and team player as well as a planner, organizer, motivator, and leader.

manager

A large organization might use a flat organization structure in order to:

match the flexibility of small firms

Four organizational designs include: line, line and staff, ______, and cross-functional teams.

matrix

Today's managers tend to be more collaborative and work in ______

teams

McDonald's moved from a centralized authority to a more decentralized authority primarily due to ______

today's rapidly changing markets, and global differences in consumer tastes

In a pizza parlor the chain of command is a general manager, shift manager, and employees. The employees report to the shift manager who reports to the general manager. This exemplifies a:

line organization

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

expand

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

flat or decentralized

A matrix organization is suited to adapt to today's fast-paced technological business environment because it allows for sharing of specialties from different parts of the organization and is more ______ than other forms of business structure.

flexible