Smartbook Chapter 8

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

- Accounting - Marketing - Production

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

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

Organizations reorganize to empower frontline workers to:

- demonstrate appreciation and trust to frontline workers - serve customers more efficiently and effectively - let them know they are valuable assets to the organization

A small firm might use outsourcing because

- it does not have the in-house expertise for a particular task - a particular task could be more expensive if done in-house

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

The line organization has direct lines of ______ that extend from the top manager to employees at the lowest level of the organization.

- responsibility - authority - communication

The formal organization details lines of:

- responsibility - position - authority

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

1: effective 2: efficient

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

Equity

True or false: Neither line nor line-and-staff organization structures suffer from inflexibility.

False Reason: Both may suffer from inflexibility at times.

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

Flat

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

Max Weber

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

Max Weber

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

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

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

assign tasks based on a worker's strengths

Centralized authority occurs when decision making is done:

at the top level of management

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

benchmarking

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

break down barriers between functional departments

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

A drawback to Weber's bureaucratic principles was that many large organizations relied on them so heavily that they became rigid and _____ .

counterproductive or unproductive

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

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

departmentalization

If a book seller was to separate its organization according to the types of books it sells it would be an example of:

departmentalization by product

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

You and a friend start a snow cone stand. On your first day you realize that there are really two tasks involved: cashier and snow cone maker. If you each focus on one of the two jobs, this is known as:

division of labor

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

flexible

Departmentalization by _____ may create groupthink, where all members think alike and so make poorer decisions.

function

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

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.

important

An organization that has contact people at the top and the chief executive officer at the bottom of the organization chart is called a(n) _____ organization.

inverted

Dividing tasks into smaller jobs is called:

job specialization

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

mass production

The method of producing large quantities of goods efficiently is:

mass production

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

matrix or matrix-style

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

networking

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

order

A chain of 3 local restaurants has decided to _____ its payroll and tax reporting to a firm that specializes in that function.

outsource

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

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

outsourcing

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

present; actual

When a department is assigned responsibility for specific tasks, it should also be allocated the ______ to accomplish its objectives.

resources

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

specialization

The owner of a flower shop has three employees. Two employees are better at arranging flowers in a vase while the third is skilled at preparing the flowers to be arranged. Separating the employees by these skills is called job ______.

specialization

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

temporary

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

top; lowest

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

- Division of labor - Hierarchy of authority - Unity of command

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.

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

- The creation of a group of specialists to process the human resources functions of the business Reason: A human resource department has been created. - The creation of a group including only accountants to process financial transactions Reason: An accounting department has been created.

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

Henri Fayol's principles for organization structure included:

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

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

Line managers are those who have the authority to:

- adjust to changing conditions - issue orders - enforce discipline

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

- dividing up the tasks to be done - deciding what work needs to be done - a hierarchy of authority

The drawbacks to Weber's principles of organization have been that:

- following the rules can become an end in itself - large organizations may develop too many rules

Advantages of a positive corporate culture include:

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

Disadvantages of departmentalization by function include:

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

Which of the following are characteristics of a matrix organization:

- specialists from different parts of the organization work together temporarily - specialists from different parts of the organization remain part of the line-and-staff structure - specialists from different parts of the organization work on specific projects

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

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

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

1. Division 2. Labor

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

1. Line 2. Staff

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

1. pride 2. loyalty

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

1. respect 2. justice

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

1: core 2: competency

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 ______ of ______.

1: hierarchy or chain 2: authority or command

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) _____ _____.

1: line 2: structure or organization

In addition to unity of command, hierarchy of authority, and division of labor, Henri Fayol's organizational principles included ______ of ______ interests.

1: subordination 2: individual

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

Clear communication channels

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

Degree of centralization

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

Esprit de corps

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

False Reason: Adapting to change is a crucial component for continued success.

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

Hierarchy of authority

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

Production workers, distribution people, and marketing personnel who are responsible for directly achieving organizational goals are called _____ personnel.

Line

A company that works virtually with a design firm for six months to develop a new line of handbags, then severs its connection with them when they shift to designing shoes, exemplifies which organization structure?

Networked organization

A consumer products company's marketing groups are organized into departments for lotions, soaps, and first aid supplies. It is departmentalized by:

Product

Which is a true statement about the principles of organization?

Regardless of the business size the principles are similar.

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

Subordination of individual interest to the general interest

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 Reason: Clear communication is based on the ability to reach the necessary parties.

True or false: Many jobs can be done quickly and well when each person specializes.

True Reason: Specialization often produces efficiency.

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

United Parcel Service

A Fayol principle that states each worker is to report to one and only one boss.

Unity of command

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

Unity of command

When a snowboard company consulted a cable television company to learn how to braid layers of fiberglass and carbon for its snowboards it was an example of _____ .

benchmarking

When competitors like Walmart and Target compare their processes to try to improve their methods, it is an example of:

benchmarking

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

boundaries

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

centralization

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

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

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

change

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

communication channels

An important decision to be made while designing a responsive organization is about the size of the span of _____.

control

Managers in the 1900s began to design organizations as they grew larger, so they could _____ more workers.

control, manage, or supervise

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 competency

Organizations reorganized to empower frontline workers so that they:

could more efficiently and effectively serve customers

An organization structure in which decision-making authority is delegated as far down the chain of command as possible is called a(n) ______ organization.

decentralized

Companies that allow their managers to make key decisions to cater to local markets are _____.

decentralized

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

decentralized authority

In the retail clothing industry the customer demands vary from state to state. The managers for Macy's in California select different items to sell than in New York. This illustrates a(n) _____ authority.

decentralized structure

Dividing an organization into separate working units is called:

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

In economies of scale, a company buys raw materials in bulk so that the average cost of goods goes ______ as the production levels increase.

down or lower

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 GM and Ford Motor Company introduced large factories and mass production, the cost of building each car declined. This effect exemplifies ______.

economies of scale

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

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

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

formal

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

function

Departmentalizing by ______ groups workers according to their skills and expertise so they can work together more effectively.

function

A company departmentalizes when it divides its organizational ______ into separate units.

functions or tasks

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 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 disadvantage of both line and line and staff organizational structures is that they become _____ .

inflexible or rigid

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

When an organization chart is turned upside down with top management placed at the bottom this is usually known as a(n):

inverted organization

The primary reason why managers in the latter 1900s began designing organizations was so that ______.

managers could control workers

Methods of structuring organizations to produce large amounts of goods is ______ ______ .

mass production

A large organization might use a flat organization structure in order to:

match the flexibility of small firms

When different members of an aerospace firm come together to work temporarily on a specific project they are operating in a:

matrix organization

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

one

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

order

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

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

real time

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

real time

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

resources

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

restructuring

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

the rapid rate of change in virtual organizations

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

transparency

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

virtual

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

virtual

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

virtual organization

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

virtual, networked, or matrix