Chapter VII: Structuring Organization for Today's Challenges

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

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

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

cross-functional teams

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

Line managers are those who have the authority to:

issue orders enforce discipline adjust to changing conditions

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

match the flexibility of small firms

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

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

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

present actual

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

restructing

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) ___ ___

1. Line 2. Organization

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

1. Organizational or corporate 2. Culture

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

1. Real 2. Time

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

1. effective 2. efficient

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

Control

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

Employees and managers are sometimes resistant to change.

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

Firms may use a combination of departmentalization techniques to create a ____ form of organization.

Hybrid

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

Hybrid or combination

Identify the four ways to structure an organization

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

Which is a true statement about the principles of organization?

Regardless of the business size the principles are similar.

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

change

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

change

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

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

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 a hierarchy of authority

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

down

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

economies of scale

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 current trend in organizations is to ______ the span of control.

expand

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

flat or decentralized

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

flexible

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

formal

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

going beyond organizational boundaries

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

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

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

networking

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

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

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

The formal organization details lines of:

Authority position responsibility

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

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

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

centralized