Chapter 8

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

Blank 1: matrix or matrix-style

Regardless of the size of the business, the principles of its structure remain the same.

Organizing

Which of the following are advantages of departmentalization by function?

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

A firm's success depends on a manager's ability to

assign tasks based on a worker's strengths

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

cross-functional teams

Important decisions to be made while designing an organization include:

degree of centralization span of control departmentalization

A benefit of by function is that it helps create economies of scale by centralizing resources and experts in one area.

departmentalization

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

departmentalization

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

economies of scale

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

A manager's ability to the worker with the best skills to do specific tasks affects a company's success.

identify

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 or information

Principles proposed by Weber and Fayol that are still useful in today's organizations include:

job descriptions staffing and promotion based on qualifications written rules, decision guidelines, and records

Dividing tasks into smaller jobs is called:

job specialization

According to Fayol's order principle, ______ and ______ should be placed and maintained in the proper location.

materials; people

When a firm assigns one or more of its functions to an outside organization, it is:

outsourcing

For departments to operate effectively, they must be allocated sufficient resources such as:

personnel funds equipment

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

real time

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

real time

Organizations reorganized to empower frontline workers so that:

they could more efficiently and effectively serve customers

The chain of command is the line of authority that moves from the ______ of a hierarchy to the ______ level.

top; lowest

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

true

Line managers are those who have the authority to:

-Issue orders -Enforce discipline -adjust to changing conditions

The key to success is remaining in changing times.

Blank 1: flexible, adaptable, or agile

A productive corporate culture is one where there is mutual .

Blank 1: trust

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

Centralization

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

Equity

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

False

Under which Fayol principle does it state that all workers should know to whom they report?

Hierarchy of authority

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

Hierarchy of authority Division of labor Unity of command

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

Hybrid

A benefit of the unity of command principle is:

It prevents confusion since each employee reports to one manager

Max Weber's principles of organization resembled Fayol's. In addition, Weber emphasized which of the following principles?

Job descriptions Consistent procedures, regulations, and policies Written rules, decision guidelines, and detailed records

Identify the four ways to structure an organization.

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

Which organizational theorist put great trust in managers and felt the firm would do well if employees simply did what they were told?

Max Weber

Which of the following departments could be considered by a company approaching departmentalization by functions?

Production Marketing Accounting

Which is a true statement about the principles of organization?

Regardless of the business size the principles are similar.

Which of the following would be the result of a departmentalization process?

The creation of a group including only accountants to process financial transactions The creation of a group of specialists to process the human resources functions of the business

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

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

Henri Fayol's principles for organization structure included:

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

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

centralized

The line of authority that moves from the top of a hierarchy to the lowest level is called the:

chain of command

Employees at all levels often resist because they are used to doing their jobs in ways they know.

change

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

When decision making is delegated to lower-level managers and employees more familiar with local conditions than top managers it is called:

decentralized authority

When isolation between the production and marketing departments is so great that production does not get appropriate feedback, it is an example of a(n) ______.

disadvantage to departmentalization

Job specialization involves:

dividing tasks into smaller jobs

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

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

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

line

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

matrix

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

networking

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 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

The formal organization details lines of:

position authority responsibility

When businesses evolved into larger organizations producing larger amounts of product more efficiently using mass production methods, it could be said that:

the bigger the plant, the more efficient production became

Managers accustomed to more traditional forms of organizational structures may have difficulty adapting to:

the rapid rate of change in virtual organization

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

true

Advantages of a positive corporate culture include:

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

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

virtual

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

with respect and justice

The German economist and sociologist who promoted the pyramid-shaped organization structure was .

Blank 1: Max Blank 2: Weber

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

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

Blank 1: change

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

Blank 1: change

According to Fayol, all workers should be able to reach each other quickly and easily through clear .

Blank 1: communication Blank 2: channels

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

The Ford Motor Company's is the manufacture and marketing of automobiles and trucks.

Blank 1: core Blank 2: 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.

Blank 1: economies Blank 2: of Blank 3: scale

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

Blank 1: effective Blank 2: efficient

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 traditional way to departmentalize is by , such as design, production, marketing, and accounting.

Blank 1: function

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

The concept that states all workers should know to whom they report and that managers have the right to give orders is referred to as the of .

Blank 1: hierarchy or chain Blank 2: authority or command

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

Blank 1: hybrid or combination

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

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

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

Blank 1: matrix or matrix-style

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

Blank 1: order

The Fayol principle esprit de corps indicates that a spirit of and should be created among people in the firm.

Blank 1: pride Blank 2: loyalty

UPS is an organizational partner that does much of the shipping for L.L.Bean by sharing information electronically in .

Blank 1: real Blank 2: time

For a department to operate effectively, the organization must allocate it sufficient such as funds and personnel.

Blank 1: resources

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

Blank 1: respect Blank 2: justice or fairness

The success of a firm often depends on management's ability to identify each worker's, Correct Unavailable and assign the right tasks to the right person.

Blank 1: strengths, abilities, skills, talents, or ability

A corporation uses a networked organization structure in order to be flexible.

Blank 1: virtual

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.

Blank 1: virtual

Managers used to more traditional organization forms may have trouble adapting to the impermanence of organization structures.

Blank 1: virtual, networked, or matrix

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

Degree of centralization

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

Division of labor

The owner of a small lawn-mowing business separates the job functions of the business into mowing, edging, and trimming so she can assign the tasks to different workers. What process is exemplified by this action?

Division of labor

Which Fayol principle states that a spirit of pride and loyalty should be created among people in the firm?

Esprit de corps

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

Subordination of individual interest to the general interest

The bureaucratic principles proposed by Fayol and Weber would likely apply better to which of the following organizations?

United Parcel Service

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

Unity of command

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

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

Comparing an organization's practices, processes, and products against the world's best is called .

benchmarking

When a company compares its practices, processes, and products against the world's best organization it is:

benchmarking

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

boundaries

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

break down barriers between functional departments

When a house painting company divides workers into those who prepare the surface, those who paint the trim, and those who paint the walls, it is an example of:

division of labor

In a decentralized organization the decision-making authority is delegated as far _____ the chain of command as possible.

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

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

The ______ organization details lines of responsibility, authority, and position. It is the structure shown on organization charts.

formal

When you are discussing departmentalization items such as design, production, marketing, and accounting are referred to as ______.

functions

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 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

The method of producing large quantities of goods efficiently is:

mass production

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

one

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

order

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

Disadvantages of departmentalization by function include:

poor communication between departments identifying with department goals to the detriment of the organization's goals

Changing a supply line to make it more efficient and a better use of resources would exhibit:

restructuring

According to Fayol, division of labor states that functions within an organization are to be divided into areas of .

specialization

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

virtual corporation