Chapter 8. Structuring Organizations for Today's Challenges

Organizations reorganized to empower frontline workers so that:

they could more efficiently and effectively serve customers

A productive corporate culture is one where there is mutual ________.

trust

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

- a hierarchy of authority - deciding what work needs to be done - dividing up the tasks to be done

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:

- adapt to new technologies - change more quickly than ever before

Organizations reorganize to empower frontline workers to:

- demonstrate appreciation and trust to frontline workers - let them know they are valuable assets to the organization - serve customers more efficiently and effectively

Important decisions to be made while designing an organization include:

- departmentalization - span of control - degree of centralization

Advantages of a positive corporate culture include:

- emphasizing service to others, especially customers - trust between employees - people who enjoy working together to be productive

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

The formal organization details lines of:

- position - authority - responsibility

True or false: The key to success for companies in a capitalist economy is to remain inflexible during times of change.

False

______ 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

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

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

Centralized authority occurs when decision making is done:

at the top level of management

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

The evolving business environment requires the management of _______ in the organization structure to respond to it.

change

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

control

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

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

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

flexible

The key to success is remaining _______ in changing times.

flexible

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

formal

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

going beyond organizational boundaries

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

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

hybrid

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

hybrid

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

line

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

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

Four ways to structure an organization include line, _______ and _______, matrix, and cross-functional teams.

line; staff

Methods of structuring organizations to produce large amounts of goods is _______ ______

mass production

The method of producing large quantities of goods efficiently is:

mass production

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

match the flexibility of small firms

A _______ structure, also called a project management structure, sets up teams from different departments, thereby creating two or more intersecting lines of authority.

matrix

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

matrix

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

matrix

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

networking

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

organizing

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

present; actual

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

real time

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

tall

Which is a true statement about the principles of organization?

Regardless of the business size the principles are similar.

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

centralized

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

change

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

change