chapter 7 cc

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

Production of a good

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

a. 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.

a. Mercenary culture

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

a. No centralized leader

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

a. committees make more accurate decisions than individuals.

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

a. departmentalization by function.

What is the advantage of departmentalization by customer?

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

Which characteristic does NOT support a narrow span of management?

b. Few new problems are expected to arise

_____ 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 projects or problems.

b. Matrix

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

b. job rotation

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 _____.

c. centralized

A committee that is established to investigate a major problem or pending decision of the firm (for example assessing the pros and cons of a potential merger) is known as a(n):

c. task force.

The inner rites, rituals, heroes, and values of a firm are known as:

d. corporate culture.

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:

d. delegation of authority.

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 _______.

d. fewer; flat; more; tall

One reason for _____ is efficiency. People can perform more efficiently if they master just one distinct task rather than all tasks.

d. job specialization

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

departmentalization by location

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

e. A code of ethics

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

e. Less injuries

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

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

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