Introduction to Business

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

unity of command

If you owned a small company, and a major competitor started promoting itself in your area, what information might you look for while monitoring the business environment?

what new products are customers demanding? Who are your competitors target clients in the area?

Line personnel have the __________________ to issue orders and discipline employees, while staff personnel have the ability to __________________ and influence

Authority; Advise

Cross-functional self-managed teams are used in organizations to?

Break down barriers between functional departments

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

Centralized

Restructuring to empower front line workers helps organizations adapt to change by responding more quickly to its?

Customers

An organizational structure that has only a few levels of managers who have a broad span of control is called a?

Flat organization

Under the unity of command principle a worker is to report how many bosses?

One

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

With respect and justice

A drawback of grapevines in "us vs. them" organizations is that the informal organization can?

Work against formal goals

Line managers are those who have the authority to?

adjust to changing conditions enforce discipline issue orders

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

authority, communication, responsibility

Comparing an organization's practices, processes, and products against the world's best is called?

benchmarking

Macy's is a company that allows its managers in California to select different items for sale than those in Maine because it has a(n) ____________________ structure

decentralized

The disadvantages of a line structure for large businesses are?

having lengthy lines of communication being too inflexible the lack of expertise to solve complex problems

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

hierarchy of authority

A McDonald's restaurant anywhere in the world has an atmosphere and look that represents the company's values of cleanliness, quality service, and value. This is an example of?

organization culture

To understand the formal reporting relationships among people in a company one may consult the company's?

organizational chart

Organizations adapt their structure to reduce costs in response to change by?

outsource some functions; eliminate middle managers

An appliance company may have a refrigerator department, a washing machine department, and a dishwasher department. This company is departmentalizing by?

product

For a department to operate effectively, the organization must allocate it sufficient __________________ such as funds and personnel

resources

Identify which of the following are considered advantages to centralized authority?

simpler distribution system more efficiency greater top-management control

Which of the following are reasons to name department managers for each department created during departmentalization?

- to assure the department's accountability - to maintain control of the whole process

Which Fayol principle states that the amount of decision-making power vested in top management should vary by circumstances?

DEGREE OF CENTRALIZATION

When designing responsive organizations, what decisions do firms have to make?

Decide between centralization versus decentralization decide the span of control choose between tall or flat structures

Job specialists involves?

Dividing tasks into smaller jobs

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

Dividing up the tasks to be done deciding what work needs to be done

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

Line

Which of the following exemplify line personnel in the line-and-staff organization?

Production workers Packaging personnel

An inverted organization is one that has contact people at the _______________ and top management at the _________________ of the organizational chart

Top; bottom

The formal organization details lines of?

responsibility, authority, and position

In a decentralized organization the decision-making authority is delegated as far ___________ the chain of command as possible.

Down

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

UPS does much of the shipping for L.L. Bean by sharing information electronically in?

Real time

An important driver of change is customer expectations. Customers today expect _________________ products and fast, friendly __________________ at a restaurant

High-quality; service

Which of the following would qualify as staff personnel in the line-and-staff organization?

Human resource managers Marketing research analysis Legal advisors

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

Hybrid

Which of the following are considered to be disadvantages to the matrix organization?

It's costly and complex It can confuse employees about whose orders to follow It requires good interpersonal skills

The optimal number of subordinates a manager supervises or should supervise is called a(n) ________________ of _____________.

Span of Control

Which of the following are characteristics of a matrix organization?

Specialists from different parts of the organization remain part of the line-and-staff structure Specialists from different parts of the organization work together temporarily Specialists from different parts of the organization work on specific projects

Disadvantages of departmentalization by function include?

Identifying with department goals to the detriment of the organization's goals Poor communication between departments

If an organization temporarily borrows specialists from different functional areas to accomplish a common project, it is implementing what type of organization?

matrix

A _________________ corporation uses a networked organization structure in order to be flexible

Virtual

Which of the following are advantages of the matrix organization structure?

It makes efficient use of organization resources It encourages interorganizational cooperation

Remaining ______________ is the key to an organization's success to changing times

Flexible

Young people who have grown up with the internet are referred to as?

digital natives

A company may choose to departmentalize by ____________ so employees are able to focus on learning a few critical skills such as cutting leather to make costs

Process

A firm that makes tables may have one department that cuts the wood, another department that assembles the wood into tables, and a third department that stains the tables. This firm would departmentalize by?

Process

The present moment or the actual time in which an event takes place is called?

Real time

Employees who advise and assist the managers in meeting their goals are called ____________ personal

Staff

In line-and-staff structures, _________________ managers provide advice and support to _______________ departments on specialized matters such as finances, engineering, human resources, and the law

Staff; Line

The success of a firm often depends on management's ability to identify each worker's ________________ and assign the right tasks to the right person

Strengths

The chain of command is the line of authority that moves from the _______________ of a hierarchy to the _____________ level

Top; lowest

Using communications technology and other means to link organizations and allow them to work together on common objectives is referred to as?

Networking

In a virtual corporation the replaceable firms are joined together on a(n) __________________ basis to create a flexible organization

temporary

An _______________ chart shows relationships among people: who is accountable for the completion of specific work, and who reports to whom

Organizational

According to Fayol, all workers should be able to reach each other quickly and easily through clear?

Communication Channels

The widely shared values an organization that foster unity and cooperation to achieve common goals is called the?

Organizational culture

The process of setting up individual departments to do specialized tasks is called?

Departmentalization

The arrangement of jobs around the needs of various types of customers is known as?

Departmentalization by customer group

According to Fayol, the ______________________ of __________________ principle states that functions are to be divided into area of specialization

Division of labor

Innovations like the mass production of care can create economies of scale. However, over time the benefit becomes less meaningful because?

Other companies copy the processes

Which of the following are advantages of departmentalization by function?

Employees develop in depth skills and continue to progress The company can achieve economies of scale

For departments to operate effectively, they must be allocated sufficient resources such as?

Equipment Funds Personnel

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

Flat

The key to success is remaining ________________ to changing times

Flexible

A company departmentalizes when it divides its organizational ___________________ into separate units

Functions

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

The reasons for implementing departmentalization include?

Grouping all of those doing the same task together Assigning people with the correct knowledge to do each task

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 manager's ability to _______________ the worker with the best skills to do specific tasks affects a company's success

Identify

A system within an organization that develops spontaneously as employees meet and form cliques and relationships is called a(n)?

Informal Organization

The pyramid that focuses on top-management is called a(n) _________________ organization

Inverted

The increasing rate of change has required businesses to?

Listen to customers and adapt to their needs Restructure their organizations to be more flexible

Adjusting to changing markets is a critical _______________ function

Managerial

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

Materials; people

A(n) _________________ style organization is one where you have one person at the top of the chart, with many different parts of that same thing flowing down the chart

Matrix

Written rules and procedures, promotion based on qualifications, and job descriptions are organizing principles proposed by?

Max Weber

The latest transformation of the business environment have led to businesses changing?

More quickly than ever

In an organization with many layers of managers the pyramidal organization chart would be quite tall due to ____________ spans of control (exists when a manager directly supervises only a few subordinates).

Narrow

Identify from the following lists the advantages and disadvantages to decentralized authority

advantage: empowerment of workers adaption to customer wants disadvantage: less efficiency complex distribution system

An organization sets up rules and regulations to give its managers more control over employees. The type of organization managed by rules is often considered inefficient due to the levels of control and is known as a?

bureaucracy

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

Nike sells golf clubs, swim wear, as well as footballs. However, Nike is best known for its performance in designing and marketing of athletic shoes. This is known as Nike's?

core competency

Once managers determine what work needs to be done, they then need to divide up the tasks among workers. This is called ______________ of ______________.

division of labor

According to Fayol's traditional management rules, line organization managers?

enforce discipline for those they supervise issue orders to those they supervise

The concept that states all workers should know to whom they report is referred to as the _______________ of ____________.

hierarchy of authority

Although Weber's principles made sense at the time, ______________ and _____________ became so rigid in some companies that they grew counterproductive

rules and procedures

A disadvantage of both line and staff organizational structures is that they become?

inflexible

In a pizza parlor the chain of command is a general manager, shift manager, and employees. The employees report to the shift manager who reports to the general manager. This exemplifies a?

line organization

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

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

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

Which of the following departments could be considered by a company approaching departmentalization by functions?

production, accounting, marketing

Changing a supply line to make it more efficient and a better use of resources would exhibit?

restructuring

Managers used to more traditional organization forms may have trouble adapting to the impermanence of _________________ organization structures

the rapid rate of change in virtual organizations

Principles proposed by Weber and Fayol that are still useful in today's organization include?

written rules, decision guidelines, and records staffing and promotion based on qualifications job descriptions