Ch. 7

_____ is the formal and legitimate right of a manager to make decisions, issue orders, and allocate resources to achieve organizationally desired outcomes.

Authority

_____ teams consist of employees from various functional departments who are responsible to meet as a team and resolve mutual problems.

Cross-functional

_____ is the process managers use to transfer authority and responsibility to positions below them in the hierarchy.

Delegation

T/F: Aspects of both functional and divisional structures simultaneously in the same part of the organization are combined in the virtual network approach.

False

T/F: Certainty in the environment is usually associated with decentralization.

False

T/F: Collaboration refers to the managerial task of adjusting and synchronizing the diverse activities among different individuals and departments.

False

T/F: In the divisional approach, coordination across divisions is great whereas coordination within divisions is often poor.

False

T/F: Organizing defines what to do while strategy defines how to do it.

False

T/F: Quick response to external changes is an advantage of vertical functional structure.

False

T/F: The principle of unity of command suggests that managers within an organization should reach agreement on the goals and objectives of the organization.

False

T/F: The trend in recent years has been toward narrower spans of control as a way to facilitate delegation.

False

T/F: When an organization uses a differentiation strategy, it strives for internal efficiency.

False

_____ refers to services that are perishable and, unlike physical products, cannot be stored in inventory.

Intangible output

_____ is the radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed.

Reengineering

_____ production involves the production of goods in batches of one or a few products designed to customer specifications.

Small-batch

T/F: Service firms include banks, hotels, and law firms.

True

T/F: The confusion and frustration caused by the dual chain of command is a major problem of the matrix structure.

True

T/F: The distinctive feature of the project manager position is that the person is not a member of one of the departments begin coordinated.

True

T/F: The framework in which the organization defines how tasks are divided, resources are deployed and departments are coordinated is called organizational structure.

True

T/F: The pure functional structure is appropriate for achieving internal efficiency goals.

True

T/F: Traditional views of organizational design recommend a span of management of about 7 to 10 subordinates per manager.

True

_____ is characterized by intangible outputs. a. Service technology b. Mass production c. Large-batch production d. Small-batch production e. Continuous process production

a. Service technology

T/F: At Fox End, people are grouped together in departments by common skills and work activities, including a sales department and a production department. This is an example of vertical functional approach.

a. True

T/F: For companies to operate effectively, the amount of centralization or decentralization should fit the firm's strategy.

a. True

Innovative Creations Corporation is designed along functional lines. New product development is very slow and the process is plagued by many problems. One of the problems is that the people in marketing never communicate with the people in production. This is an example of poor: a. coordination. b. planning. c. motivating. d. leading. e. controlling.

a. coordination.

With a(n) _____ strategy, the organization attempts to develop innovative products unique to the market. a. differentiation b. integration c. reengineering d. cost leadership e. defensive

a. differentiation

Makai's Marketing Mix (MMM) does not use its resources wisely. The employees at MMM spend too much time in meetings and not enough time focusing on the task at hand. MMM's management should consider changing the organizational structure from _____ to _____. a. horizontal; vertical b. team based; horizontal c. vertical; team based d. mechanistic; rigid e. team-based; virtual network

a. horizontal; vertical

T/F: The functional structure is appropriate when the primary goal is innovation and flexibility.

b. False

Swift Move Facilities manufacturers two different bicycle models. The company produces a high volume of products using standardized production runs. The company does very little product customization. Swift Move uses what type of technology structure? a. Service production b. Mass production c. Large-batch production d. Small-batch production e.Continuous process production

b. Mass production

_____ departments include all of those that provide specialized skills in support of _____ departments. a. Line; staff b. Staff; line c. Primary; functional d. Functional; primary e. Line; functional

b. Staff; line

Stephanie works in one of seven research and development departments at Tara's Terrace, Inc. This would suggest that Tara's Terrace has a: a. functional structure. b. divisional structure. c. wide span of control. d. high degree of centralization. e. matrix structure.

b. divisional structure.

The functional, _____, and _____ are traditional approaches that rely on the chain of command to define departmental groupings and reporting relationships along the hierarchy. a. divisional; teams b. divisional; matrix c. matrix; teams d. matrix; networks e. teams; networks

b. divisional; matrix

Louise works in the manufacturing department at Ice Sculptures. The work in Louise's department is low in task specialization. As a result, Louise: a. usually performs a single task. b. does a variety of tasks and activities. c. is often bored. d. is rarely challenged. e.generally goofs-off

b. does a variety of tasks and activities.

Flash Card Inc. recently underwent a significant company-wide change that involved revision of its manufacturing and leadership processes. The result of this was a stronger emphasis on horizontal coordination. This level of change is referred to as: a. reorganization. b. reengineering. c. e-engineering. d. strategic planning. e. corporate structuring.

b. reengineering.

Which of the following structures works best in an uncertain organizational environment? a. A tight structure b. A mechanistic structure *c. A horizontal structure d. A functional structure e. A vertical structure

c. A horizontal structure

Rebecca works for a company that has clearly defined lines of authority. Each employee knows that he or she has authority and responsibility for a distinct set of tasks. Employees are also aware of the company's reporting structure as well as successive management levels all the way to the top. Rebecca's company follows which principle? a. Specialization principle b. Unity of command principle c. Scalar principle d. Authority principle e.Responsibility principle

c. Scalar principle

Which of the following factors is NOTassociated with larger span of control? a. Work performed by subordinates is stable and routine. b. Subordinates perform similar work tasks. c. Subordinates are located at various different locations. d. Subordinates are highly trained and need little direction. e.Rules and procedures defining task activities are available

c. Subordinates are located at various different locations.

Organ Rentals Corporation has been having numerous problems. Communication across departments is poor and decisions are backing up at the top of the organization. Organ Rentals uses a _____ structure. a. geographic b. product c. functional d. matrix e. team-based

c. functional

When people from two or more departments work together to produce outcomes that meet a common goal, this is referred to as _____.

collaboration

Which of the following structures is most consistent with a strategy of stability? a. Team based structure b. Organic structure c. Matrix structure d. Functional structure e.Learning structure

d. Functional structure

Jacob, a customer service representative for AB Retailers, has seven levels of management between himself and the company's CEO. In contrast, his friend Rhonda, a customer service representative for YZ Retailers, has only four levels of management between her and the company CEO. Compared to YZ, Jacob's company has what type of organizational structure? a. Narrow b. Wide c. Flat d. Tall e. Identical

d. Tall

Which of the following is a contemporary approach to structural design in departmentalization? a. Functional b. Divisional c. Traditional divisions d. Teams e. Geographic-based

d. Teams

Walt works for a large company. Recently, his organization began to contract out such functions as training, engineering, and computer service. This approach is consistent with a _____ structure. a. functional b. team c. divisional d. virtual network e. service

d. virtual network

The _____ delineates the chain of command, indicates departmental tasks and how they fit together, and provides order and logic for the organization. a. management chart b. employee directory c. structural table d. administrative chart e. organizational chart

e. organizational chart

All of the following are advantages of a divisional structure, except: a. high concern for customers' needs. b. fast response, flexibility in an unstable environment. c. emphasis on overall product and division goals. d. development of general management skills. e. there is little duplication of services across divisions.

e. there is little duplication of services across divisions.

A(n) _____ structure has a wide span, is horizontally dispersed, and has fewer hierarchical levels.

flat

The visual representation of an organization's structure is called the _____.

organization chart

The _____ is the number of employees reporting to a supervisor.

span of management

In the _____ approach of structural design, departments are independent, contracting services to the central hub for a profit.

virtual network

The degree to which organizational tasks are subdivided into individual jobs is called _____.

work specialization

The matrix structure violates which of the following principles of management? a. Unity of direction b. Unity of command c. Work specialization d. Division of labor e. Span of management

b. Unity of command

Which of the following typically is NOTconsidered a staff department? a. Strategic planning b. Accounting c. Manufacturing d. Human resources e. Research and development

c. Manufacturing

With _____ decision authority is pushed downward to lower organization levels

decentralization

A(n) ______ structure is the grouping of positions into departments based on similar skills, expertise, and resource use.

functional

The _____ combines aspects of both functional and divisional structures simultaneously, in the same part of the organization.

matrix approach

A(n) _____ is a person who is responsible for coordinating the activities of several departments for the completion of a specific project.

project manager

A(n) _____ is a temporary team designed to solve a short-term problem involving several departments.

task force