Business Chapter 8

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

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

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

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

control

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

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:

departmentalization span of control degree of centralization

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

flexible

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

formal

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

hybrid

Line managers are those who have the authority to:

issue orders enforce discipline adjust to changing conditions

A benefit of the unity of command principle is:

it prevents confusion since each employee reports to one manager

The method of producing large quantities of goods efficiently is:

mass production

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

materials and people

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

matrix

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: Multiple choice question.

order

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

organizing

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

The formal organization details lines of:

position authority responsibility

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

present; actual

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

subordination, individual

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

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

true

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.

Economics of Scale

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

Equity

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

boundaries

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

change

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

change

Firms may use a combination of departmentalization techniques to create a(n) form of organization.

hybrid

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

line

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

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

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

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

real time

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

respect and justice

Organizations reorganized to empower frontline workers so that:

they could more efficiently and effectively serve customers

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

Economics of scale

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

Identify the four ways to structure an organization.

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

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

Max Weber

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 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

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

communication authority responsibility

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

economics of scale

Advantages of a positive corporate culture include:

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

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 Blank______ the span of control.

expand

An advantage of a organization structure is that lower level employees have authority to respond more quickly to customer needs

flat

Organizations reorganized to make workers their most important people.

frontline

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

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

line , staff

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

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

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

networking

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

order

Today's trend is to expand the span of control because:

the workforce is better educated at all levels organizations save by reducing the number of middle managers

A productive corporate culture is one where there is mutual

trust

Henri Fayol's principles for organization structure included:

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