MGT Chapter 8

Jane owns Larry's Barbecue. She hired someone to make administrative and personnel decisions for the business in her absence, who reports directly to her. This new manager's ability to act in the owner's absence is referred to as Blank______.

authority

The legitimate right to make decisions and to tell other people what to do is referred to as Blank______.

authority

The CEO's power is derived from the Blank______.

board of directors

An approach that involves feedback and discussions to jointly figure out how to approach problems and devise solutions that are agreeable to everyone is known as Blank______.

coordination by mutual adjustment

The approach to organizational integration that relies on feedback and discussions to figure out how to approach problems and develop solutions that are agreeable to everyone is known as Blank______.

coordination by mutual adjustment

Carrying out the many tasks within a company requires specialization and division of labor, which create Blank______.

differentiation

Sanaa is a manager at a company and is planning to start a new project. There are different steps to the project that must be split among various departments Sanaa oversees. Figuring out this process is known as Blank______.

division of labor

The division of work into different tasks assigned to different people or groups is known as Blank______.

division of labor

Departmentalization that groups units around products, customers, or geographic regions refers to a(n) Blank______ organization.

divisional

Fran's Follies is a nationwide party-supply company. The company is grouped into west coast, central, and east coast regions. Each region is self contained in that each region has its own marketing department, human resources department, and so on. Fran's Follies is a(n) Blank______ organization.

divisional

Dynamic networks are appropriate when much of the work can be Blank______.

done independently by experts

A very flexible version of the network organization is the Blank______ organization, composed of temporary arrangements among members that can be assembled to meet a changing competitive environment.

dynamic network

The authority levels of the organizational pyramid are commonly called the organization's Blank______.

hierarchy

The biggest advantage of the matrix form is in its Blank______.

high degree of flexibility

Which of these are disadvantages of the matrix structure?

Dual bosses causing conflict and stress for employees Accountability difficult to define Additional time required for meetings and other work coordination

What are the responsibilities of the board of directors who oversee an organization? (Check all that apply.)

Ensuring ethical and legal conduct Determining the firm's strategic direction Selecting the chief executive officer (CEO)

True or false: Boards made up of strong, independent outsiders are more likely to make big mistakes.

False

True or false: In a high-involvement organization, top management makes all company decisions.

False

What is generally the primary means of running an organization, which is exemplified by orders that a boss gives to a lower-level employee to carry out?

Formal position authority

Kota has the same job title and duties as many others in his group, but everyone goes to him if they need help with their computers or any technical issues. Kota has Blank______.

informal authority

When top executives of ABC corporation sit on the ABC corporation's board of directors, they are called Blank______.

inside directors

The degree to which different organizational units work together and coordinate their efforts is called Blank______.

integration

Which statements are true about an organization chart? (Check all that apply.)

An organization chart depicts the level of authority and responsibility assigned to the positions in a company. An organization chart provides a picture of the reporting structure of a company. An organization chart depicts the arrangement of positions in a company.

What concept means that the person has the power and the right to make decisions, give orders, draw on resources, and do whatever else is necessary to fulfill the responsibility?

Authority

Top management teams meet regularly with the Blank______ and assist in making decisions.

CEO

Who is personally accountable to the owners and the board of directors for the performance of the organization?

CEO

Which of these are typically included in the top management team?

Chief financial officer (CFO) Chief executive officer (CEO) President

What procedures link the various parts of the organization to achieve the organization's overall mission?

Coordination

What are three coordination methods?

Coordination by mutual adjustment Coordination by standardization Coordination by plans

What is the term that describes the oversight of the firm by its executive staff?

Corporate governance

What are two specific techniques managers can use to reduce the need for information?

Create slack resources. Create self-contained tasks.

What word refers to assigning tasks to a subordinate?

Delegation

What are two techniques managers can use to increase information-processing capability?

Invest in information systems. Create horizontal relationships.

Which statement about coordination is true?

It is critical in a differentiated company.

Which of these help create organizational differentiation? (Check all that apply.)

Job specialization Division of labor

Which of these are advantages of matrix organizations? (Check all that apply.)

More sharing of information Higher degree of adaptability Loyalty to the organization as a whole

What depicts the positions in the firm (reporting structure) and the way they are arranged (division of labor)?

Organization chart

Which of these often contribute to a person's informal authority? (Check all that apply.)

Personal qualities Expertise Experience

_______means that a person is supposed to carry out an assigned task.

Responsibility

Which statement is true as to how small business owners can obtain the expertise of a board of directors?

Set up a board of advisers made up of owners of noncompeting companies, retired executives, strategists, technology experts, and perhaps their banker or accountant.

Seth, a manager, delegates a task to his subordinate Liza. Who has the ultimate responsibility and accountability to higher-ups for the task in question?

Seth

Which statements are true about a matrix organization? (Check all that apply.)

Some employees have two bosses. It is a hybrid form of organization. Functional and divisional forms overlap.

What constrains actions and integrates various units by regulating what people do?

Standardization

What establishes common operating procedures that become routine and remain in place over time?

Standardization

Which of these are horizontal processes that may be used to increase the organization's information-processing capability?

Task forces Direct contact Liaison roles

Which statement about coordination by plan is true?

Units have some freedom and flexibility in how they work as long as they meet deadlines.

The simplest and most flexible approach to coordination, which involves having interdependent parties talk to one another, is Blank______.

coordination by mutual adjustment

When interdependent units are required to meet deadlines and objectives that contribute to a common goal, it is known as Blank______.

coordination by plan

One of the main responsibilities of the top management team is oversight of the firm, also known as Blank______.

corporate governance

Tyrell is a manager. He assigns a task to one of his subordinates. Tyrell is Blank______.

delegating

Because it involves getting work done through others, Blank______ is perhaps the most fundamental feature of management.

delegation

Creating slack resources basically means that Blank______.

extra resources are made available to all units in case they need them "in a pinch"

Gabriela is a manager with a staff of 20 employees. Gabriela gives assignments to her employees, and the employees must follow her orders. Gabriela has Blank______.

formal position authority

An organization with departmentalization according to specialized activities, such as production, marketing, or human resources, is called (a) Blank______ organization.

functional

In a Blank______ organization, departments are specialized and grouped according to business functions and the skills they require.

functional

To deal with audits, financial reporting, and discrimination laws, some boards of directors are staffed with legal and regulatory experts who focus on Blank______.

legal and compliance issues

A collection of independent, mostly single-function firms that collaborate to produce a good or service is called a Blank______ organization.

network

Mary has five employees who report directly to her. This number of employees is known as her Blank______.

span of control

Which term refers to the number of people who report to an individual manager?

span of control

Large corporations have boards of directors that are elected by Blank______.

stockholders

Creating self-contained Blank______ refers to changing from a functional organization to a product or project organization and giving each unit the resources it needs.

tasks

An organization chart is a visual representation of the Blank______. (Check all that apply.)

various activities carried out by different individuals reporting structure of the firm

As head of the accounting department, Martina uses her Blank______ to assign clients to each of her staff accountants.

authority

CEOs share their Blank______ with other key members of the top management team.

authority

Employees are expected to perform a job and report upward on the status and quality of their performance, and managers have the right to take corrective action when necessary. What concept does this describe?

Accountability

What is occurring when a manager expects the subordinate to perform a job and takes corrective action when the subordinate fails to do so?

Accountability

Which of these are disadvantages of the matrix structure? (Check all that apply.)

Additional time required for meetings and other work coordination Dual bosses causing conflict and stress for employees Accountability difficult to define

Oscar, the CEO of an international Internet security company, seeks input from his top management team and from lower levels of the company about the direction the company should take. By doing this, what is Oscar building?

High-involvement organization

What type of departments are responsible for making things, selling things, or providing customer service?

Line departments

What units deal directly with the organization's primary goods and services by making things, selling things, or providing customer service?

Line departments

Which organizational structure features dual reporting relationships in which some managers report to two superiors?

Matrix

Who are the owners of a corporation?

The stockholders

Which of these are true statements regarding the role of stockholders in a corporation?

There are many stockholders, but few are directly involved in managing the company. Stockholders are the owners of the corporation. Stockholders elect a board of directors to oversee the organization.

Which statement about network organizations is true?

They are webs of relationships among many firms.

What do horizontal processes accomplish?

They foster coordination between units.

How are the best boards of directors staffed?

With active, critical participants from inside and outside the organization

Martika reports to her manager, who reports to a section chief, who reports to a regional director, who then reports to the CEO. This organizational structure is known as Blank______.

a hierarchy

Delegation is fundamental to management and is important at Blank______ hierarchical levels.

all

Many of the potential disadvantages of the matrix form are due to Blank______.

its violation of the unity-of-command principle

Capitalizing on the intellect and experience of the organization's human assets to increase collaboration and effectiveness is referred to as Blank______.

knowledge management

In private business enterprises, the Blank______ has ultimate authority over the organization.

owner

In a Blank______ division of a divisional organization, all functions that contribute to a given product are organized under one manager.

product

Play Ball, Inc. began business by making shoes for athletes. It soon expanded and now manufactures and distributes clothing, sporting equipment, and protective sports gear worldwide. It is departmentalized by athletic equipment, shoes, and clothing. Play Ball utilizes a Blank______ organizational structure.

product

When Lori has been assigned to handle the registration at a conference but is not able to make decisions regarding this task, it means that she has been given Blank______ for this particular task.

responsibility

When a manager assigns an employee a new task, that task is then the employee's Blank______.

responsibility

A common problem in a hierarchy is for people to have more Blank______ than Blank______.

responsibility; authority