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Exam 8: Structuring Organizations for Todays Challenges

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Question 171

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Joel, an employee of the engineering department, was temporarily assigned to work with a team of specialists from other departments to develop a new product. Upon completion of this project, Joel returned to his position in the engineering department. This arrangement illustrates the use of a cross-functional team.

A) True
B) False

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Question 172

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According to the Spotlight on Small Business box titled "Cutting Back While Cutting Costs," overseas outsourcing is_________________

A) growing in the small business sector due to online job marketplaces.
B) only increasing in popularity among big businesses since small businesses cannot afford to seek employees outside of their local community.
C) not changing the competitive environment for U.S. job seekers.
D) decreasing in popularity in both small and big business.

E) B) and C)
F) B) and D)

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Question 173

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All organizations have two organizational systems:

Greenwave Garden Centers is a national chain of discount gardening stores. The top management realizes that different regions of the U.S. have very different climates and soil conditions, so they give regional managers a great deal of freedom to decide exactly what types of plants, fertilizers, and other items to stock and how to best market these products. Greenwave is an example of a _______________ organization

Describe two major issues that are important in organizational design.

Wizard Manufacturing makes small consumer electronics products like mixers and toasters. The industry is relatively stable, having few new advances in product development. Wizard should use a line or line-and-staff organizational structure to ensure efficient operations.

The Internet makes real-time availability of data possible.

Outsourcing involves assigning various functions to outside organizations.

Companies have learned that working transparently through real-time networks has provided competitive advantages in the marketplace.

To better organize his landscaping business, Frank divides each job into several parts. One part is excavation and removal of old landscaping, the next part is design, followed by purchasing, and the last part is installation of new plants. If he assigns a different employee to each part, this action would be an example of departmentalization.

A study at the Slumber Inn Co. identified poor employee morale. Employee respondents indicated frustration with their inability to deal directly with customers' concerns and complaints. These employees feel that if they were empowered with the authority to make decisions, customer satisfaction would dramatically increase. This illustrates one of the disadvantages of decentralized authority.

If a particular function is one of a firm's core competencies, it typically performs this function itself rather than outsourcing it to another organization.

Milton Learning Centers is a private firm specializing in helping students with learning problems. Located around the country, each center employs a manager and several tutors and counselors. The counselors and tutors have a great deal of flexibility to design programs specifically for individual students. In fact, these first-line employees are considered to be the key people in the organization, and the manager's main function is to assist these employees in matters such as scheduling and securing necessary materials. This type of arrangement suggests that Milton is an inverted organization.

Max Weber used the term ________ to describe middle managers whose job was to implement the orders of top management

An organization chart shows who is accountable for the completion of specific work and who reports to whom.

Weber had a great deal of faith in managers. He was confident that a firm would do well if employees simply did as they were told.

Job specialization is known to:

The team experts in a matrix organization remain part of the traditional line-and-staff structure.

Due to more emphasis on empowerment and more talented and better-educated lower-level management, span of control in organizations has ___________

Cross-functional teams work best when the voice of the customer is brought into organizations.