Chapter 8

When designing responsive organizations, what decisions do firms have to make?

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

Identify the four ways to structure an organization.

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

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:

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

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

Regardless of the size of the organization, the principles of organizing include:

-deciding what work needs to be done -dividing up the tasks to be done -recognizing employee strengths

Important decisions to be made while designing an organization include:

-degree of centralization -departmentalization -span of control

Advantages of a positive corporate culture include:

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

The formal organization details lines of:

-position -authority -responsibility

Henri Fayol's principles for organization structure included:

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

______ 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

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

Hybrid

The method of producing large quantities of goods efficiently is:

Mass Production

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

Matrix

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

Written rules and procedures. promotion based on qualifications, and job descriptions are organizing principles proposed by ______.

Max Weber

Which is a true statement about the principles of organization?

Regardless of the business size the principles are similar.

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

Unity of Command

Centralized authority occurs when decision making is done ______.

at the top level of management

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

break down barriers between functional departments

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

centralized

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

confusion/conflict

Less need for policy manuals, organization charts, and formal controls is a sign of shared values in a:

corporate culture that emphasizes service to others.

Organizations reorganized to empower frontline workers so that they:

could more efficiently and effectively serve customers

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

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

economies of sales

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

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

flexible

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

going beyond organizational boundaries

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

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

Because of the evolving business environment, including more global competition, technological innovations, and changing customer expectations, what has become a critical management function?

learning how to manage change

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

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

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

networking

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

Real time is the ______ moment or the ______ time in which something takes place.

present; actual

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

A productive corporate culture is one where there is mutual

trust

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

with respect and justice