Chapter 7

the span of management may be wide when

1. the manager and the subordinates are very competent, 2. the organization has a well-established set of standard operating procedures, and 3. few new problems are expected to arise.

The span should be narrow when

1. workers are physically located far from one another 2. the manager has much word to fo in addition to supervising workers 3. a great deal of interaction is required between supervisor and workers, and 4. new problems arise frequently

Which of the following is NOT a factor that influences whether a firm is decentralized?

A code of ethics

When the decisions to be made by a business are risky and when low-level managers are not highly skilled in decision making then the company tends to be more _____.

Centralized

Giving employees not only tasks but also the power to make commitments, use resources, and take whatever actions are necessary to carry out those tasks is the definition of:

Delegation of Authority

What is the advantage of departmentalization by customer?

Departmentalization by customer allows the firm to deal efficiently with unique customers or customer groups.

The form of departmentalization that groups jobs that perform similar functional activities, like finance and marketing, is called:

Departmentalization by function

When a company looks to departmentalize by areas of business like Japan, America, and Australia it is exemplifying ______.

Departmentalization by location

To combat the potential negative consequences of specialization, managers often turn to _______, the systematic shifting of employees from one job to another.

Job rotation

Which of the following is NOT a potentially negative consequence of job specialization?

Less Injuries

_____ structures provide flexibility, enhanced cooperation, and creativity, and they enable the company to respond quickly to changes in the environment by giving special attention to specific

Matrix

Which of the following is NOT a disadvantage of a network structure?

No centralized leader

As a company grows, it may become necessary for it to create a(n) ______, which is a visual display of the organizational structure, lines of authority (chain of command), staff relationships, permanent committee arrangements, and lines of communication.

Organization chart

Which of the following is NOT a major consideration when organizing a business?

Production of a good

ad hoc committee

a committee created for a specific short-term purpose

task force

a committee established to investigate a major problem or pending decision

informal group

a group created by the members themselves to accomplish goals that may or may not be relevant to an organization

organization

a group of two or more people working together to achieve a common set of goals

staff managers

a position created to provide support, advice, and expertise within an organization

line managers

a position in which a person makes decisions and gives orders to subordinates to achieve the organization's goals

standing committee

a relatively permanent committee charged with performing some recurring task

cross-functional team

a team of individuals with varying specialties, expertise, and skills that are brought together to achieve a common task

Decentralized organization

an organization in which management consciously attempts to spread authority widely in the lower levels of the organization

Centralized organization

an organization that systematically works to concentrate authority at the upper levels of the organization

Network structure

an organizational structure in which administration is the primary function, and most other functions are contracted out to other firms

Line structure

an organizational structure in which the chain of command goes directly from person to person throughout the organization

Matrix structure

an organizational structure that combines vertical and horizontal lines of authority, usually by superimposing product departmentalization on a functionally departmentalized organization

line-and-staff structure

an organizational structure that utilizes the chain of command from a line structure in combination with the assistance of staff managers

Delegation

assigning part of a manager's work and power to other workers

All of the following are potential disadvantages of committees, except:

committees make more accurate decisions than individuals

Which characteristic does NOT support a narrow span of management?

few new problems are expected to arise

If the span of management is wide, _______ levels are needed, and the organization is _______. If the span of management is narrow, ________ levels are needed, and the resulting organization is _______.

fewer;flat;more;tall

An informal channel of communication separate from management's formal official communications related to a job or organization that can sometimes be gossip is called a:

grapevine

Departmentalization by location

grouping activities according to the defined geographic area in which they are performed

Departmentalization by customer

grouping activities according to the needs of various customer populations

Departmentalization by product

grouping activities related to a particular product or service

Departmentalization by function

grouping jobs that relate to the same organizational activity

What is a group created by the members themselves to accomplish goals that may or may not be relevant to an organization?

informal group

In this type of culture (popular in large banks and investment firms), you have employees who are passionate, energetic, goal-oriented, and have a sense of purpose and excitement for their work.

mercenary culture

Job Design

structuring the tasks and activities required to accomplish a firm's objectives into specific jobs so as to foster productivity and employee satisfaction

Responsibility

the duty to do a job or perform a task

grapevine

the informal communications network within an organization

Corporate culture

the inner rites, rituals, heroes, and values of a firm

Organizational height

the number of layers, or levels, of management in a firm

Span of management (or span of control)

the number of workers who report directly to one manager

Accountability

the obligation of a worker to accomplish an assigned job or task

informal organization

the pattern of behavior and interaction that stems from personal rather than official relationships

Authority

the power, within an organization, to accomplish an assigned job or task

Departmentalization

the process of grouping jobs into manageable units

job specialization

the separation of all organizational activities into distinct tasks and the assignment of different tasks to different people

Job rotation

the systematic shifting of employees from one job to another

A _____ span of management exists when a manager directly supervises a very large number of subordinate employees. A _____ span of management exists when a manager directly supervises only a few subordinates.

wide; narrow