Business principle part 2

The purpose of a division of labor and specialization is to improve an employee's job performance.

True

Employees at all levels of New Belgium Brewery are empowered to make decisions. The delegation of decision making to lower-level managers and employees more familiar with conditions is called

decentralization.

What style of decision making is practiced at Freshii?

decentralized

3. At CustomerComputer Inc., all orders for custom-designed systems must be approved by the manager, so it can take weeks for customers to receive their new systems.

disadvantage of a centralized structure

5. Because they have little input on company matters, employees at a satellite location of Motown Motors are unmotivated and feel disconnected from corporate headquarters.

disadvantage of a centralized structure

2. Because each department chooses its own parts suppliers, BigAir Boards often experiences delays in getting snowboards from the plants to the stores.

disadvantage of a decentralized structure

4. Whether or not customers at Harvey's department store get refunds depends on which clerks help them.

disadvantage of a decentralized structure

The most valuable employees in an organization would be

management. ***All of these choices are correct*** executives. line personnel. staff personnel.

As New Belgium Brewery grew, the owners discovered they needed to hire more and more workers in order to keep up with demand. They needed to devise a division of labor, set up teams or departments to do specific tasks, and assign responsibility and authority to people. This process is called

organizing

Employees, including interns, are considered __________ at Freshii, which empowers each individual to step up and excel at their jobs.

partners

The legal department of a large corporation would be considered

staff personnel.

*Formal and Informal Organization Systems* 1. the "grapevine" of the organization 2. the friendships employees create 3. the organization chart 4. Yussra is a part of a clique of employees who play on the company softball team. 5. the chain of command 6. job titles and responsibilities

1. Informal Organization 2. Informal Organization 3. Formal Organization 4. Informal Organization 5.Formal Organization 6. Formal Organization

1. Centralized authority 2. Restructuring 3. Decentralized authority 4. Virtual corporation 5. Corporate culture 6. Line organization 7. Staff personnel

1. Organization structure in which decision making and authority are concentrated at top levels of the firm. 2. The reorganization of a company in order to achieve greater efficiency and adapt to new markets. 3.Organization structure in which authority and decision making is delegated to lower levels of the firm. 4. Organization structure that temporarily networks replaceable firms that join together and leave as needed. 5. The shared values, symbols, rituals, beliefs, and traditions of an organization. 6.Structure in which authority and responsibility move from top to bottom and each employee reports to only one manager. 7. Personnel whose positions are typically advisory and/or facilitative in nature.

1. Flat organization 2. Tall organization 3. Span of control 4. Hierarchy 5. Matrix organization 6. Departmentalization 7.Chain of command

1. Organization with few layers of management between the executive level and the lowest level. 2. Organization with multiple layers of management between top executives and front-line employees. 3. The number of subordinates under the direct control of a manager or supervisor. 4.The levels of management within a business organization, from the lowest to the highest. 5. Organizational structure that combines employees from different parts of the organization; often used for special projects. 6. Process of organizing employees into groups or units to accomplish specific organizational goals. 7. Official hierarchy of authority that dictates who is in charge of whom within the organization.

1. Formal organization 2. Bureaucracy 3. Line personnel 4. Real time 5. Core competencies 6. Benchmarking 7. Economies of scale

1. Structure of an organization that is typically depicted on organization charts. 2. Management structure with many layers of management, a high degree of formalization, and job specialization. 3.Those personnel in an organization who have direct job performance responsibilities. 4.The actual time during which a process or event occurs. 5. Those functions that the organization can do as well as or better than any other organization. 6. Comparing a firm's processes and performance to the world's best and/or best practices from other industries. 7 The increase in efficiency of production as the number of goods being produced increases.

1. Carhop's structure is a complement to the adoption of employee empowerment since it allows workers more autonomy to make decisions regarding their own positions. 2. Computers R Us has recently adopted a flatter structure in order to match customer responsiveness demonstrated by smaller firms. 3. At Custom Stone the work is not very standardized. 4. Foodies allows employees to respond to customer demands by empowering employees to have authority and responsibility for making decisions. 5. At Joe's Gaseteria the work is standardized. 6. Leviathan grew over the years and in doing so they added layers of management with only a few people reporting to each manager. 7. Lu's Ice Cream is a flatter organization, which makes communication easier. 8. Tiny Toys, Inc. became very large and communication was challenging with so many layers so messages were often distorted.

1. broad 2.broad 3.narrow 4. broad 5. broad 6.narrow 7.broad 8. narrow

Which statement most accurately reflects Freshii's mission?

Change the way the world eats.

6. Mr. Burger is able to move customers through quickly during busy hours due to strong management oversight.

advantage of a centralized structure

7. Senior management at ProTool tightly controls quality to avoid defects.

advantage of a centralized structure

1. Programmers at App-el Games monitor online gamer communities for fresh ideas. If they find a great idea, they start work on it immediately to be first to market.

advantage of a decentralized structure

8. Employees at Ritz Hotels are authorized to spend, without permission, as much as $2,000 to resolve customer problems quickly.

advantage of a decentralized structure

New Belgium Brewery uses a newer form of organization that allows employees to not only know what management is doing, but to participate in management decisions. Many organizations in the past were designed more to facilitate management than to please customers. Companies designed many rules and regulations to give managers control over employees. This reliance on rules is called

bureaucracy.

As indicated in the "Making Ethical Decisions" box "Would You Sacrifice Safety for Profits?", organizational decisions that affect profits in a negative way should be avoided at all cost.

false

Correctly structuring a business organization allows managers to avoid delegating responsibility and authority to employees.

false

Division of labor is difficult to achieve in small businesses.

false

In a capitalist economy, organizations seldom reorganize due to changing markets.

false

Small business organizations lack the size required to reap the benefits of labor specialization.

false

The process of setting up individual departments to do specialized tasks is called job specialization.

false

To better organize his landscaping business, Donte started to divide each job into several parts. One is excavation and removal of old landscaping, the next is design, followed by purchasing, and finally installation of new plants. If he assigns a different employee to each part, this action would be an example of departmentalization.

false

New Belgium Brewery has few layers of managers. Its organizational structure can be described as

flat

Which organizational structure did Freshii's adopt?

flat structure

Freshii has maintained lean and efficient operations at its franchise stores by sharing ideas and

implementing suggestions from franchisees.

At New Belgium Brewery, people make friends, form cliques, and establish social organizations and lines of authority outside the traditional organization chart. These relationships are part of the company's

informal organization.

Bravo Books and More needs to reorganize its floor space. Management decided to reduce seating space in its stores in order to create room for new shelves to display a popular new line of educational toys. This company's effort is an example of how a firm may reduce its emphasis in one product line in order to serve customer preferences and trends.

true

Departments are functional units within the business such as sales, accounting, finance, and marketing.

true

Division of labor refers to deciding how many jobs must be accomplished and then dividing them up amongst the labor force.

true

Jessie has long dreamed of opening her own restaurant. She, of course, knows that she will need to organize her business. Organizing begins with determining the work to be done.

true

Managing a growing business often requires managers to create departments to accomplish various tasks.

true

One key to organizational success is to go back to basic principles and build the business on a sound foundation.

true

Organizing the structure of the company means deciding what jobs need to be done and who is responsible for doing them.

true

The process of creating individual departments to do specialized tasks is called departmentalization.

true

The success of the firm often depends on assigning the right tasks to the right person.

true