Chapter 7: Structuring Organizations for Today's Challenges

A cross-functional team that includes customers, suppliers, and distributors is:

going beyond organizational boundaries

In economies of scale, a company buys raw materials in bulk so that the average cost of goods goes as the production levels increase.

Blank 1: down or lower

Regardless of the size of the business, the principles of its structure remain the same.

Blank 1: organizing

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

Blank 1: outsourcing

Which of Fayol's principles states that materials and people should be placed and maintained in the proper location:

order

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

restructuring

Four organizational designs include: line, line and staff, ______, and cross-functional teams.

matrix

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

Unity of command

According to Fayol's equity principle, a manager should treat employees and peers with and .

Blank 1: respect Blank 2: justice or fairness

True or false: Adapting to change is difficult because over time employees get stuck in their ways and are comfortable.

True

Using communications technology to link organizations and allow them to work together on common objectives is called:

networking

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:

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

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

Blank 1: temporary

The key to success is remaining in changing times.

Blank 1: flexible, adaptable, or agile

Remaining ______ is the key to an organization's success in changing times.

flexible

The present moment or the actual time in which something takes place is called

Blank 1: real Blank 2: time

Google is a company that provides many services and a relaxed atmosphere for its employees to keep them engaged at work. That is a strong feature of its:

corporate culture

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

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

centralized

Managing has become a critical managerial function because the increasing rate of change affects all organizations.

change

The structure that details lines of responsibility, authority, and position that represents different types of organizational design is known as a organization.

Blank 1: formal

The principles of bureaucracy which brought consistent application of rules and procedures to organizations were proposed by

Blank 1: Max Blank 2: Weber

A(n) organization structure maintains the decision-making authority at the top level of management.

Blank 1: centralized

In a organization, project managers are in charge of teams made up of members from several departments.

Blank 1: matrix or matrix-style

The ______ organization details lines of responsibility, authority, and position. It is the structure shown on organization charts.

formal

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

materials; people

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

with respect and justice

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

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 process

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) .

Blank 1: hierarchy

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

Blank 1: hierarchy

Some companies create structures because the sales department has geographic departments, production is by function, and marketing is by customer groups.

Blank 1: hybrid

Production workers, distribution people, and marketing personnel who are responsible for directly achieving organizational goals are called personnel.

Blank 1: 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)

Blank 1: line Blank 2: structure or organization

Why is adapting to change one of the hardest challenges facing any manager?

Employees and managers are sometimes resistant to change.

Each worker is to report to one, and only one, boss is an example of which Fayol principle?

Unity of command

When a company purchases raw materials in bulk, thus reducing the cost of production, it is called:

economies of scale

When a firm assigns one or more of its functions to an outside organization, it is:

outsourcing

An advantage of a organization structure is that lower level employees have authority to respond more quickly to customer needs.

Blank 1: flat or decentralized

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

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

Hierarchy of authority

3 M is a company that rewards innovation as part of its

Blank 1: corporate or organizational Blank 2: culture

Economies of scale work best in a company that makes large quantities of goods using processes.

Blank 1: mass Blank 2: production

The formal organization details lines of:

authority position responsibility

Which of Fayol's principles states that a manager should treat employees and peers with respect and justice?

Equity

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

Flat

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

Hybrid

The unity of command principle states that each person should report to only one manager in order to prevent

Blank 1: confusion or conflict

An important decision to be made while designing a responsive organization is about the size of the span of

Blank 1: control

An important decision to be made while designing a responsive organization is about the size of the span of .

Blank 1: control

Restructuring involves redesigning an organization so that it can be more and

Blank 1: effective Blank 2: efficient

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)

Blank 1: hierarchy

Firms may use a combination of departmentalization techniques to create a(n) form.

Blank 1: hybrid

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.

Blank 1: important

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

Blank 1: networking

Under unity of command, each worker is to report to only boss.

Blank 1: one

Fayol's principle states that materials and people should be placed and maintained in the proper location within an organization.

Blank 1: order

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

Blank 1: real Blank 2: time

Redesigning an organization so that it can more effectively and efficiently serve its customers is called

Blank 1: restructuring

According to Fayol, division of labor states that functions within an organization are to be divided into areas of

Blank 1: specialization

Identify the four ways to structure an organization.

Line-and-staff organizations Line organizations Cross-functional self-managed teams Matrix-style organizations

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

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

According to Fayol, the of principle states that functions are to be divided into areas of specialization.

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

Which is a true statement about the principles of organization?

Regardless of the business size the principles are similar.

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

When Fayol refers to subordination of individual interests to the general interest, he believes that workers are to think of themselves as a(n):

coordinated team

Groups of employees from different departments who work together on a long-term basis are called:

cross-functional teams

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

line

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

Real time is the ______ moment or the ______ time in which something takes place.

present; actual

A temporary networked organization made up of replaceable firms that join and leave as needed is called a(n):

virtual corporation

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 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

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

True or false: The hierarchy of authority principle states that all workers should know to whom they report.

True

Max Weber's principles of organization resembled Fayol's. In addition, Weber emphasized which of the following principles?

Written rules, decision guidelines, and detailed records Job descriptions Consistent procedures, regulations, and policies

Centralized authority occurs when decision making is done:

at the top level of management

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

authority responsibility communication

Important decisions to be made while designing an organization include:

departmentalization degree of centralization span of control

Line managers are those who have the authority to:

enforce discipline adjust to changing conditions issue orders

Employees at all levels often resist because they are used to doing their jobs in ways they know.

Blank 1: change

A temporarily networked organization made up of replaceable firms that join and leave as needed is called a(n) organization.

Blank 1: virtual

A large organization might use a flat organization structure in order to:

match the flexibility of small firms

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

break down barriers between functional departments