Chapter 7

A cross-functional team that includes suppliers, distributors, and customers goes beyond organizational _______

Boundaries

A(n) _______ organization structure maintains the decision-making authority at the top level of management.

Centralized

Which of Fayol's principles states that all workers should be able to reach others in the firm quickly and easily?

Clear Communication Channels

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'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

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

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

Economies of Scale

Restructuring involves redesigning an organization so that it can be more _______ and _______

Effective and 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

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

Expand

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

Hybrid

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

Line and Staff

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

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

Max Weber

Using communications technology to link organizations and allow them to work together on common objectives is called

Networking

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

One (General And Industrial Management)

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

Order

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

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

Respect and Justice

Redesigning an organization so that it can more effectively and efficiently serve its customers is called _______

Restructuring

Under which Fayol principle do workers think of themselves as a coordinated team

Subordination of individual interest to the general interest

A company that is so open to other companies that electronic information is shared as if the companies were one exhibits:

Transperency

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

True

True or false: Clear communication channels refers to the worker's ability to reach others in the firm quickly and easily.

True

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

Unity of Command

Fayol's equity principle states that a manager should treat employees and peers:

With Respect and Justice

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

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

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

cross-functional teams

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 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 _______ technology.

internet

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:

match the flexibility of small firms

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

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

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

temporary

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

virtual

3 M is a company that rewards innovation as part of its _______ _______

Corporate Culture

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

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

Degree of Centralization

The process of setting up individual departments to do specialized tasks is called _______

Departmentalization

The process of setting up individual departments to do specialized work is:

Departmentalization

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

Division of Labor

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

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

Flat

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

Flexible

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

Some companies create _______ structures because the sales department has geographic departments, production is by function, and marketing is by customer groups.

Hybrid

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

Those directly responsible for achieving the organization's production goals by issuing orders and enforcing discipline are ______ managers.

Line

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

Economies of scale work best in a company that makes large quantities of goods using _______ _______ processes

Mass Production

A _______ structure, also called a project management structure, sets up teams from different departments, thereby creating two or more intersecting lines of authority.

Matrix

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

Matrix

A local furniture company launched a website to boost national sales. However, it could not ship the orders efficiently so it started using FedEx and UPS. This is an example of _______

Outsourcing

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

Fayol's principle of esprit de corps states that a company should create:

Pride and Loyalty Among Workers

The present moment or the actual time in which something takes place is called _______ _______

Real Time

UPS does much of the shipping for L.L.Bean by sharing information electronically in _______ _______

Real Time

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

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

True