Chapter 7: Structuring Organizations for Today's Challenges
A cross-functional team that includes customers, suppliers, and distributors is:
going beyond organizational boundaries
In economies of scale, a company buys raw materials in bulk so that the average cost of goods goes as the production levels increase.
Blank 1: down or lower
Regardless of the size of the business, the principles of its structure remain the same.
Blank 1: organizing
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
Blank 1: outsourcing
Which of Fayol's principles states that materials and people should be placed and maintained in the proper location:
order
Changing a supply line to make it more efficient and a better use of resources would exhibit:
restructuring
Four organizational designs include: line, line and staff, ______, and cross-functional teams.
matrix
A Fayol principle that states each worker is to report to one and only one boss.
Unity of command
According to Fayol's equity principle, a manager should treat employees and peers with and .
Blank 1: respect Blank 2: justice or fairness
True or false: Adapting to change is difficult because over time employees get stuck in their ways and are comfortable.
True
Using communications technology to link organizations and allow them to work together on common objectives is called:
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
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
In a virtual corporation the replaceable firms are joined together on a(n) basis to create a flexible organization.
Blank 1: temporary
The key to success is remaining in changing times.
Blank 1: flexible, adaptable, or agile
Remaining ______ is the key to an organization's success in changing times.
flexible
The present moment or the actual time in which something takes place is called
Blank 1: real Blank 2: time
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
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:
- change more quickly than ever before - adapt to new technologies
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 structure that details lines of responsibility, authority, and position that represents different types of organizational design is known as a organization.
Blank 1: formal
The principles of bureaucracy which brought consistent application of rules and procedures to organizations were proposed by
Blank 1: Max Blank 2: Weber
A(n) organization structure maintains the decision-making authority at the top level of management.
Blank 1: centralized
In a organization, project managers are in charge of teams made up of members from several departments.
Blank 1: matrix or matrix-style
The ______ organization details lines of responsibility, authority, and position. It is the structure shown on organization charts.
formal
According to Fayol's order principle, ______ and ______ should be placed and maintained in the proper location.
materials; people
Fayol's equity principle states that a manager should treat employees and peers:
with respect and justice
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
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 process
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) .
Blank 1: hierarchy
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
Blank 1: hierarchy
Some companies create structures because the sales department has geographic departments, production is by function, and marketing is by customer groups.
Blank 1: hybrid
Production workers, distribution people, and marketing personnel who are responsible for directly achieving organizational goals are called personnel.
Blank 1: line
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)
Blank 1: line Blank 2: structure or organization
Why is adapting to change one of the hardest challenges facing any manager?
Employees and managers are sometimes resistant to change.
Each worker is to report to one, and only one, boss is an example of which Fayol principle?
Unity of command
When a company purchases raw materials in bulk, thus reducing the cost of production, it is called:
economies of scale
When a firm assigns one or more of its functions to an outside organization, it is:
outsourcing
An advantage of a organization structure is that lower level employees have authority to respond more quickly to customer needs.
Blank 1: flat or decentralized
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
Under which Fayol principle does it state that all workers should know to whom they report?
Hierarchy of authority
3 M is a company that rewards innovation as part of its
Blank 1: corporate or organizational Blank 2: culture
Economies of scale work best in a company that makes large quantities of goods using processes.
Blank 1: mass Blank 2: production
The formal organization details lines of:
authority position responsibility
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
A firm that has a marketing department organized geographically and a production process organized by function has which type of departmental structure?
Hybrid
The unity of command principle states that each person should report to only one manager in order to prevent
Blank 1: confusion or conflict
An important decision to be made while designing a responsive organization is about the size of the span of
Blank 1: control
An important decision to be made while designing a responsive organization is about the size of the span of .
Blank 1: control
Restructuring involves redesigning an organization so that it can be more and
Blank 1: effective Blank 2: efficient
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)
Blank 1: hierarchy
Firms may use a combination of departmentalization techniques to create a(n) form.
Blank 1: 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.
Blank 1: important
Using communications technology and other means to link organizations and allow them to work together on common objectives is referred to as
Blank 1: networking
Under unity of command, each worker is to report to only boss.
Blank 1: one
Fayol's principle states that materials and people should be placed and maintained in the proper location within an organization.
Blank 1: order
The present moment or the actual time in which an event takes place is called
Blank 1: real Blank 2: time
Redesigning an organization so that it can more effectively and efficiently serve its customers is called
Blank 1: restructuring
According to Fayol, division of labor states that functions within an organization are to be divided into areas of
Blank 1: specialization
Identify the four ways to structure an organization.
Line-and-staff organizations Line organizations Cross-functional self-managed teams Matrix-style organizations
When designing responsive organizations, what decisions do firms have to make?
Decide the span of control Choose between tall or flat structures Decide between centralization versus decentralization
According to Fayol, the of 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
Which is a true statement about the principles of organization?
Regardless of the business size the principles are similar.
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
Written rules and procedures. promotion based on qualifications, and job descriptions are organizing principles proposed by:
Max Weber
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
Groups of employees from different departments who work together on a long-term basis are called:
cross-functional teams
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
Real time is the ______ moment or the ______ time in which something takes place.
present; actual
A temporary networked organization made up of replaceable firms that join and leave as needed is called a(n):
virtual corporation
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 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
Regardless of the size of the organization, the principles of organizing include:
- a hierarchy of authority - dividing up the tasks to be done - deciding what work needs to be done
True or false: The hierarchy of authority principle states that all workers should know to whom they report.
True
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
Centralized authority occurs when decision making is done:
at the top level of management
The line organization has direct lines of _______ that extend from the top manager to employees at the lowest level of the organization.
authority responsibility communication
Important decisions to be made while designing an organization include:
departmentalization degree of centralization span of control
Line managers are those who have the authority to:
enforce discipline adjust to changing conditions issue orders
Employees at all levels often resist because they are used to doing their jobs in ways they know.
Blank 1: change
A temporarily networked organization made up of replaceable firms that join and leave as needed is called a(n) organization.
Blank 1: virtual
A large organization might use a flat organization structure in order to:
match the flexibility of small firms
Cross-functional self-managed teams are used in organizations to
break down barriers between functional departments