Intro To Buisness Chapter 8
The principles of bureaucracy which brought consistent application of rules and procedures to organizations were proposed by ______ ______.
(Max) (Weber)
According to Fayol, the ______ of ______ principle states that functions are to be divided into areas of specialization.
(division) (labor)
The line organization has direct lines of ______ that extend from the top manager to employees at the lowest level of the organization.
- communication - responsibility - authority
Organizations reorganize to empower frontline workers to:
- serve customers more efficiently and effectively - demonstrate appreciation and trust to frontline workers - let them know they are valuable assets to the organization
Which of Fayol's principles states that a manager should treat employees and peers with respect and justice?
Equity
An organization structure in which decision-making authority is maintained at the top level of management is called a(n) ______ organization.
centralized
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 and are empowered to make decisions without management approval are:
cross-functional self-managed teams
Groups of employees from different departments who work together on a long-term basis are called:
cross-functional teams
Once managers determine what work needs to be done, they then need to divide up the tasks among workers. This is called ______ of ______.
division 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
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 current trend in organizations is to ______ the span of control.
expand, increase, widen, broaden, or extend
An advantage of a ______ organization structure is that lower level employees have authority to respond more quickly to customer needs.
flat or decentralized
Remaining ______ is the key to an organization's success in changing times.
flexible
The key to success is remaining ______ in changing times.
flexible, adaptable, or agile
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
Some companies create ______ structures because the sales department has geographic departments, production is by function, and marketing is 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
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
A ______ structure, also called a project management structure, sets up teams from different departments, thereby creating two or more intersecting lines of authority.
matrix or matrix-style
Using communications technology to link organizations and allow them to work together on common objectives is called:
networking
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
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
According to Fayol, division of labor states that functions within an organization are to be divided into areas of ______.
specialization
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
A productive corporate culture is one where there is mutual ______.
trust
Four ways to structure an organization include line, ______ and ______, matrix, and cross-functional teams.
(line) (staff)
A cross-functional team that includes suppliers, distributors, and customers goes beyond organizational ______.
boundaries
Cross-functional self-managed teams are used in organizations to
break down barriers between functional departments
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
The structure that details lines of responsibility, authority, and position that represents different types of organizational design is known as a ______ organization.
formal
Firms may use a combination of departmentalization techniques to create a(n) ______ form of organization.
hybrid
Production workers, distribution people, and marketing personnel who are responsible for directly achieving organizational goals are called ______ personnel.
line
Methods of structuring organizations to produce large amounts of goods is ______ ______.
mass production
The concept that states all workers should know to whom they report is referred to as the ______ of ______.
(hierarchy or chain) (authority or command)
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
Advantages of a positive corporate culture include:
- trust between employees - people who enjoy working together to be productive - emphasizing service to others, especially customers
______ organization structures respond to customer demands faster because its lower-level employees have authority and responsibility for making decisions.
Flat
Identify the four ways to structure an organization.
- Cross-functional self-managed teams - Line-and-staff organizations - Line organizations - Matrix-style organizations
Important decisions to be made while designing an organization include:
- span of control - departmentalization - degree of centralization
The present moment or the actual time in which something takes place is called ______ ______.
real time
A temporarily networked organization made up of replaceable firms that join and leave as needed is called a(n) ______ organization.
virtual
When designing responsive organizations, what decisions do firms have to make?
- Decide the span of control - Decide between centralization versus decentralization - Choose between tall or flat structures
Identify the principles of Henri Fayol's book General and Industrial Management from the following list.
- Unity of command - Hierarchy of authority - Division of labor
Functions being divided into areas of specialization such as production, marketing, and finance are examples of which Fayol principle?
Division of labor
A Fayol principle that states each worker is to report to one and only one boss.
Unity of command
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
Economies of scale work best in a company that makes large quantities of goods using ______ ______ processes.
mass production
Regardless of the size of the organization, the principles of organizing include:
- a hierarchy of authority - dividing up the tasks to be done - deciding what work needs to be done
A(n) ______ organization structure maintains the decision-making authority at the top level of management.
centralized
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
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
Regardless of the size of the business, the principles of ______ its structure remain the same.
organizing
According to Fayol's order principle, ______ and ______ should be placed and maintained in the proper location.
(materials) (people)
According to Fayol's equity principle, a manager should treat employees and peers with
(respect) (justice or fairness)
According to Fayol's equity principle, a manager should treat employees and peers with ______ and ______.
(respect) (justice or fairness)
True or false: The key to success for companies in a capitalist economy is to remain inflexible during times of change.
False
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: 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
Each worker is to report to one, and only one, boss is an example of which Fayol principle?
Unity of command
In a ______ organization, project managers are in charge of teams made up of members from several departments.
matrix or matrix-style
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
Fayol's ______ principle states that materials and people should be placed and maintained in the proper location within an organization.
order
Which of Fayol's principles states that materials and people should be placed and maintained in the proper location:
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
In addition to unity of command, hierarchy of authority, and division of labor, Henri Fayol's organizational principles included ______ of ______ interests.
subordination individual
In a virtual corporation the replaceable firms are joined together on a(n) ______ basis to create a flexible organization.
temporary
Organizations reorganized to empower frontline workers so that:
they could more efficiently and effectively serve customers
A temporary networked organization made up of replaceable firms that join and leave as needed is called a(n):
virtual corporation
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
The formal organization details lines of:
- authority - position - responsibility
Line managers are those who have the authority to:
- enforce discipline - adjust to changing conditions - issue orders
Henri Fayol's principles for organization structure included:
- managers can enforce their orders - unity of command - a hierarchy of authority
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
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
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
Written rules and procedures. promotion based on qualifications, and job descriptions are organizing principles proposed by:
Max Weber
Centralized authority occurs when decision making is done:
at the top level of management
The evolving business environment requires the management of ______ in the organization structure to respond to it.
change
The unity of command principle states that each person should report to only one manager in order to prevent ______.
confusion or conflict
An important decision to be made while designing a responsive organization is about the size of the span of ______.
control
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
[QUESTION] - 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
The ______ organization details lines of responsibility, authority, and position. It is the structure shown on organization charts.
formal
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
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
A benefit of the unity of command principle is:
it prevents confusion since each employee reports to one manager
Those directly responsible for achieving the organization's production goals by issuing orders and enforcing discipline are ______ managers.
line
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
A large organization might use a flat organization structure in order to:
match the flexibility of small firms
Four organizational designs include: line, line and staff, ______, and cross-functional teams.
matrix
