Foundations of Business: Chapter 7

explain mercenary culture

involves a high degree of passion, energy, sense of purpose and excitement for one's work. Usually a high-stakes, fast-paced environment. Employees are very determined and focused to win. (pg 200)

what is a centralized organization

an organization that systematically works to concentrate authority at the upper levels of the organization (pg 193)

what is the network structure

an organizational structure in which administration is the primary function and most other functions are contracted out to other firms (pg 198)

what is line structure

an organizational structure in which the chain of command goes directly from person to person throughout the organization (pg 195)

what is the matrix structure

an organizational structure that combines vertical and horizontal lines of authority, usually by superimposing product departmentalization on a functionally departmentalized organization (pg 197)

what is the line-and-staff structure

an organizational structure that utilizes the chain of command from a line structure in combination with the assistance of staff managers (pg 196)

what are the 3 major steps in the delegation process

assign responsibility grant authority assign accountability (pg 192, and figure 7-3)

What is delegation

assigning part of a managers work and power to other workers (pg 192)

what is functional authority

authorizes staff managers to make decisions and issue directives about their area of expertise (pg 197)

Delegation assigns work and power to other workers as required by the centralization or decentralization of authority within the organization. What is the last step in the delegation process? a. Assign responsibility b. Assign accountability c. Grant authority d. Accepting responsibility

b. Assign accountability

T/F: many organizations use only one of these forms of departmentalization

F: many use a combination of departmentalization bases. for example toyota is doing product and location. and clothing stores may do customer and functional (pg 191)

T/F: staff managers are part of the chain of command and have authority over their assistants

F: staff managers are NOT part of the chain of command but they DO have authority over their assistants (pg 196)

what is responsibility

the duty to do a job or perform a task

explain network culture

it is characterized by a base of trust and friendship among the employees. A strong sense of community and commitment helps to keep productivity high and turnover low (pg 199)

what are the 3 other approaches to job design

job rotation job enlargement job enrichment (pg 190)

what is the most common approach to job design

job specialization (pg 188)

which of the 4 organizational structures (line, line and staff, matrix, and network) is the simplest

line (pg 195)

which of the 4 organizational structures (line, line and staff, matrix, and network) works best for medium and and large sized organizations

line and staff (pg 196)

what are the 4 basic forms of organizational structure

line, line and staff, matrix, and network (pg 195)

what is a downside of line structure

mangers are responsible for many activities and therefore must have a wide range of knowledge (pg 196)

what is the chain of command

the line of authority that extends from the highest to the lowest levels of an organization (pg 187)

what is organizational height

the number of layers, or levels, of management in a firm (pg 195)

what is the span of management/span of control

the number of workers who report directly to one manager (pg 194)

what is accountability

the obligation of a worker to accomplish an assigned job or task (pg 192)

what is informal organization

the pattern of behavior and interaction that stems from personal rather than official relationships (pg 201)

what is authority

the power within an organization to accomplish an assigned job or task (pg 192)

what is departmentalization

the process of grouping jobs into manageable units (pg 190)

what is job specialization

the separation of all organizational activities into distinct tasks and the assignment of different tasks to different people (pg 189)

what is job rotation

the systematic shifting of employees from one job to another (pg 190)

what is line authority

they can make decisions and issue directives relating to the organizations goals (pg 196)

what are some possible disadvantages of committees over individual action

-committee deliberations take longer than individual actions -unnecessary compromise may take place -one person may dominate (and thus negate) the committee process

what are some challanges that managers in network structured field face

-controlling the quality of work performed by other organizations -low morale -high turnover among hourly workers -lack of a clear hierarchy (pg 198-199)

what 3 factors can influence the extent of a firms decentralization

-external environment in which the firm operates -nature of the decision itself -history of the company centralization practices (pg 193-194)

what are some barriers to delegation

-lack of trust in the employee -fears the employee will do well and attract attention of higher level managers -because the manager is disorganized and cannot plan and assign effectively (pg 193)

what are some advantages of committees over individual action

-several members are able to bring information and knowledge to the task -committees make more accurate decisions -committees transmit their results through the organization more effectively (pg 202)

what are some factors to look at when assessing a corporate culture

-the physical setting (building/office layout) -what the company says about its corporate culture (in advertisements or news releases) -how the company greets guests (formal or informal reception areas) -how employees spend their time (working alone in an office or with others) (pg 199)

QUESTIONS FROM QUIZZES

...

what 3 factors can indicate the need for a wide span

1- the manager and the subordinates are very competent 2-the organization has a well established set of standard operating procedures 3- few new problems are expected to arrive (pg 195)

what 4 factors can indicate the need for a narrow span

1- workers are physically located far away from one another 2-the manager has much work to do in addition to supervising workers 3- a great deal of interaction is required between supervisor and workers 4- new problems arise frequently (pg 195)

what are strengths and benefits of a network structure

1-flexibility that allows that organization to quickly adjust 2- they are more likely to survive the loss of an important member (pg 198)

When a manager gives an employee the power to accomplish an assigned job or task that might include ordering supplies, spend money on behalf of the organization, or hiring and firing employees, the manager has ____________ to that employee. A. granted authority B. assigned responsibility C. created accountability D. delegated responsibility

A. granted authority

If a city is considering building a new city office complex, it may appoint a(n) __________________ to research possible locations for the offices within the city, then to present their findings to the city manager for review and presentation to the city council. The committee would be disbanded after its assignment has been completed. A. standing committee B. ad hoc committee C. task force D. advisory committee

B. ad hoc committee

____________________ is a designation given to an informal method of communication within an organization. By launching news of pending changes, it can be used by the organization for its own benefit. A. company newsletter B. grapevine C. informal organization D. informal group

B. grapevine

Line, line-and-staff, matrix, and network all refer to forms of ____________ A. organization chart structures B. spans of management C. forms of organizational structure D. ways to illustrate narrow organizational structures .

C. forms of organizational structure

A store with different sections such as household appliances, bed and bath, clothing, tools, furniture, jewelry, perfume, and cosmetics will often assign employees to work exclusively within one of those sections. In doing so the management is engaging in __________ A. job rotation B. departmentalization by function C. departmentalization by location D. departmentalization by product

D. departmentalization by product

T/F:most larger organizations group by function

False; most smaller and newer organizations departmentalization by function (pg 191)

T/F: often larger firms that produce and sell a variety of products use this approach

T. (pg 191)

T/F: departmentalization by product places more emphasis on the product than the organization

True (pg 191)

What is an ad hoc committee?

a committee created for a specific short-term purpose (pg 201)

what is a task force

a committee established to investigate a major problem or pending decision (pg 201)

what is an organization chart

a diagram that represents the positions and relationships within an organization (pg 187)

what is informal group

a group created by the members themselves to accomplish goals that may or may not be relevant to an organization (pg 201)

what is an organization

a group of 2 or more people working together to achieve a common set of goals (pg 186)

what is a project manager

a manager that is in charge of a team (pg 197)

what is a staff manager

a position created to provide support, advice, and expertise within an organization (pg 196)

what are line managers

a position in which the person makes decisions and gives orders to subordinates to achieve the organization's goals (pg 195)

what is a standing committee

a relatively permanent committee charged with performing some recurring task (pg 201)

what is a cross functional team

a team of individuals with varying specialties, expertise, and skills that are brought together to achieve a common task (pg 197)

Which of the following is NOT a factor that influences whether a firm is decentralized? a. A code of ethics b. The abilities of lower-level management c. Prior use of centralization or decentralization d. The nature of decision risk e. The external environment

a. A code of ethics

Departmentalization is the grouping together of work units or departments to create manageable units. What is the name given to departmentalization of a group of employees based on them all doing the same organizational activity? a. Departmentalization by function b. Departmentalization by customer c. Departmentalization by location d. Departmentalism by product

a. Departmentalization by function

In this type of culture (popular in large banks and investment firms), you have employees who are passionate, energetic, goal-oriented, and have a sense of purpose and excitement for their work. a. Mercenary culture b. Communal culture c. Networked culture d. Fragmented culture e. Normative culture

a. Mercenary culture

Which of the following is NOT a disadvantage of a network structure? a. No centralized leader b. High turnover of hourly workers c. Low morale of hourly workers d. Problems controlling the work quality of other organizations e. Lack of a clear hierarchy

a. No centralized leader

What is a decentralized organization?

an organization in which management consciously attempts to spread authority widely in the lower levels of the organization (pg 193)

Which of the following is NOT a major consideration when organizing a business? a. Production of a good b. Span of management c. Job design d. Delegation e. Departmentalization

a. Production of a good

A committee that is established to investigate a major problem or pending decision of the firm (for example assessing the pros and cons of a potential merger) is known as a(n): a. task force. b. group. c. standing committee. d. team. e. ad hoc committee.

a. task force.

who was the first to emphasize the power of specialization

adam smith (pg 189)

what is the most obvious advantage of the matrix structure

added flexibility (pg 197)

what is the most important area in which line and staff managers differ: and what do each have

amount of authority: Line managers have line authority and staff managers have advisory or functional authority (pg 196)

Factors that bear upon a company's organization include the external environment in which the firm operates, the nature of the decision to be made, the abilities of lower-level managers, and the firm's established practices. If a firm operates in a complex unpredictable environment with dependable lower-level managers, which of the following would be most likely true about the company? a. It will be a centralized organization. b. It will be a decentralized organization. c. Top management will concentrate authority at the upper levels of management. d. Top management will delegate authority only when necessary to achieve an immediate goal.

b. It will be a decentralized organization

If a company has very competent workers, a well-established set of standard operating procedures, and few expected problems, what type of management should it adopt? a. Line structure of management b. Wide span of management c. Centralized span of management d. Narrow span of management

b. Wide span of management

what is the most significant drawback to specialization

boredom and dissatisfaction from employees (pg 189)

what are the 4 most common bases for organizing a business into effective departments

by function, by product, by location, by customer (pg 190)

What is the advantage of departmentalization by customer? a. Departmentalization by customer can lead to slow decision making. b. Departmentalization by customer cannot be combined with any other departmentalization base. c. Departmentalization by customer allows the firm to deal efficiently with unique customers or customer groups. d. Departmentalization by customer demands a large administrative staff and elaborate control system for coordination. e. Departmentalization by customer causes some duplication of specialized activities.

c. Departmentalization by customer allows the firm to deal efficiently with unique customers or customer groups.

Which characteristic does NOT support a narrow span of management? a. Workers are physically located far from one another b. A great deal of interaction is required between supervisor and workers c. Few new problems are expected to arise d. New problems arise frequently e. The manager has much work to do in addition to supervising workers

c. Few new problems are expected to arise

_____ structures provide flexibility, enhanced cooperation, and creativity, and they enable the company to respond quickly to changes in the environment by giving special attention to specific projects or problems. a. Line-and-staff b. Line c. Matrix d. Network e. Self-managed

c. Matrix

explain communal culture

combines positive traits from network and mercenary culture such as: friendship, commitment, high focus on performance, and high energy. People's lives revolve around the product and when anyone succeeds everyone celebrates. (pg 200)

Companies, the military, the government, and nonprofit organizations can operate because they have determined the levels of authority and reporting structure for their organizations. What is the name given to this line of authority? a. Organizational chart b. Organizational hierarchy c. Organizational command chain d. Chain of command

d. Chain of command

Giving employees not only tasks but also the power to make commitments, use resources, and take whatever actions are necessary to carry out those tasks is the definition of: a. departmentalization. b. accountability. c. leadership. d. delegation of authority. e. responsibility.

d. delegation of authority.

When a company looks to departmentalize by areas of business like Japan, America, and Australia it is exemplifying ______. a. departmentalization by product b. departmentalization by economics c. departmentalization by function d. departmentalization by location e. departmentalization by customer

d. departmentalization by location

Which of the following is NOT a potentially negative consequence of job specialization? a. Poor quality of work b. Boredom and dissatisfaction with jobs c. High employee turnover d. Higher rate of absenteeism e. Less injuries

e. Less injuries

When the decisions to be made by a business are risky and when low-level managers are not highly skilled in decision making then the company tends to be more _____. a. undercentralized b. decentralized c. cross-functional d. overcentralized e. centralized

e. centralized

The form of departmentalization that groups jobs that perform similar functional activities, like finance and marketing, is called: a. departmentalization by product. b. departmentalization by economics. c. departmentalization by customer. d. departmentalization by location. e. departmentalization by function.

e. departmentalization by function.

explain fragmented culture

employees do not become friends, they work "at" the organization not "for" it. Employees have a high degree of autonomy, flexibility, and equality (pg 200)

if the span of the management is wide, the height is ____________ (Flat/tall)

flat (pg 195)

what is departmentalization by customer

grouping activities according to the needs of various customer populations (pg 191)

what is departmentalization by products

grouping activities related to a particular product or service (pg 191)

what is departmentalization by function

grouping jobs that relate to the same organizational activity (pg 190)

what is departmentalization by location

groups activities according to the defined geographical area in which they are performed (pg 191)

what are additional advantages of the matrix structure

increase productivity, raise morale, nurture creativity and innovation, and employees can experience personal development by doing a variety of jobs (pg 197-98)

which of the 4 organizational structures (line, line and staff, matrix, and network) has few permanent employees, leased facilities and equipment, and temporary workers, that are increased or decreased as the needs of the company change

network (pg 198)

which of the 4 organizational structures (line, line and staff, matrix, and network) usually does not manufacture the products that it sells

network (pg 198)

what are the 4 distinct types of corporate culture

network culture, mercenary culture, fragmented culture, communal culture (pg 199-200)

in what size business are line structures most common

small business (pg 196)

what is job design

structuring the tasks and activities required to accomplish a firms objectives into specific jobs so as to foster productivity and employee satisfaction (pg 188)

if the span of the management is narrow, the height is ____________ (Flat/tall)

tall (pg 195)

what is advisory authority

the expectation that managers will consult the appropriate staff manager when making decisions (pg 196)

what is the grapevine

the informal communications network within an organization

what is a corporate culture

the inner rites, rituals, hero's, and values of a firm

what is a wide span of management

when a manager has a larger number of subordinates (pg 194)

what is a narrow span of management

when a manager has only a few subordinates (pg 194)