BUS 160 - Chapter 8 SmartBook

Line managers are those who have the authority to:

-Adjust to changing conditions -Enforce discipline -Issue orders

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

-Parts suppliers for medical devices -Amputees who will use it -Product designers

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

-Recognizing employee strengths -Dividing up the tasks to be done -Deciding what work needs to be done

Important decisions to be made while designing an organization include:

-Span of control -Departmentalization -Degree of centralization

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

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

Control

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

Functions being divided into areas of specialization such as production, marketing, and finance are examples of which Fayol principle?

Division of labor

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

Equity

The current trend in organizations is to ____ 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

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

Flexible

The structure that details lines of responsibility, authority, and position that represents different types of organizational design is known as a ____ organization

Formal

What is a feature of a virtual corporation?

It is a temporary network

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

Mass Production

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 and other means to link organizations and allow them to work together on common objectives is referred to as ____.

Networking

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

One

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: The hierarchy of authority principle states that all workers should know to whom they report.

True

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

With respect and justice

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

Max Weber's principles of organization resembled Fayol's. In addition, Weber emphasized which of the following principles?

-Consistent procedures, regulations, and policies -Written rules, decision guidelines, and detailed records -Job descriptions

Organizations reorganize to empower frontline workers to:

-Let them know they are valuable assets to the organization -Serve customers more efficiently and effectively -Demonstrate appreciation and trust to frontline workers

Identify the four ways to structure an organization.

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

An organization structure in which decision-making authority is maintained at the top level of management is called a(n) ____ organization.

Centralized

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

Change

Organizations reorganized to empower frontline workers so that they:

Could more efficiently and effectively serve customers

A firm that has a marketing department organized geographically and a production process organized by function has which type of departmental structure?

Hybrid

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

Hybrid

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

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

The method of producing large quantities of goods efficiently is:

Mass production

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

Max Weber

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

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

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

Real time

Which is a true statement about the principles of organization?

The principles of organization vary depending upon the size of the firm

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

Henri Fayol's principles for organization structure included:

-Managers can enforce their orders -Unity of command -A hierarchy of authority

Advantages of a positive corporate culture include:

-People who enjoy working together to be productive -Emphasizing service to others, especially customers -Trust between employees

The formal organization details lines of:

-Position -Authority -Responsibility

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

Confusion

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

Control

According to Fayol, which principle states that functions within an organization are to be divided into areas of specialization?

Division of labor

According to ______, a company buys raw materials in bulk so that the average cost of goods goes down as the production levels increase.

Economies of scale

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

Economies of scale

Why is adapting to change one of the hardest challenges facing any manager?

Employees and managers are sometimes resistant to change

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

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

False

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

Flat

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

A benefit of the unity of command principle is:

It prevents confusion since each employee reports to one manager

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

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

Line

According to Fayol's order principle, ____ and ____ should be placed and maintained in the proper location.

Materials; people

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

Matrix

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

True or false: Networking is the process of establishing and maintaining contacts with key managers in one's own organization and other organizations and using those contacts to weave strong relationships that serve as informal development systems.

True

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

Unity of command

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

Virtual organization

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

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

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

Hierarchy of authority