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Exam 8: Adapting Organizations to Todays Markets

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Question 31

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An organizational hierarchy establishes one person at the top of an organization.

A) True
B) False

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Question 32

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The Spotlight on Small Business,titled,"Keeping that Small Company Feeling",illustrates that:

A) maintaining a strong informal organization is vital in today's business environment.
B) maintaining a strong informal organization is so much easier to effect in large companies because they have the money to make it happen.
C) although the informal organization may provide fun and diversion in the workplace it breeds unethical behavior which only the formal organization can derail.
D) getting carried away with maintaining a small company feeling can stifle innovation and growth.

E) A) and B)
F) B) and D)

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Question 33

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Rob is a middle manager who spends much of his time devising ways to implement the ideas of top management.Max Weber would have considered Rob a bureaucrat. Max Weber used the term bureaucrat to describe middle managers whose main function was to implement top management's orders.

Buzzoff Corporation is a medium sized organization,organized with well-defined lines of authority and responsibility.Each employee reports to only one boss.The managers at Buzzoff complain that they have no expert support staff available to offer legal advice.Lately opportunities are slipping through the cracks due to inefficient long lines of communication.These characteristics suggest that Buzzoff employs a matrix organization. A line organization is characterized by well-defined lines of authority and responsibility and provides one supervisor for each person.Line organizations also have few experts and assistants to help line managers,and are frequently plagued by long lines of communication.

Businesses seldom create separate departments to serve customers with different needs. Some organizations departmentalize by customer group.

The purpose of Weber's and Fayol's principles was for the benefit of management,as opposed to pleasing customers. Fayol and Weber's ideas made management's life easier.Their organization principles facilitated management's needs,but did little for employees or customers.

Vaughn Studios organizes its operations by activity,such as production,marketing,accounting,and finance.Vaughn utilizes _____________ departmentalization in order to maximize their efficiency.

In today's competitive environment,cost containment is extremely important to survival.Which of the following increases efficiency in the production and distribution of goods?

The cross-functional team concept has resulted in lots of unhappy employees because less than 25% of employed workers do favor working with others. According to a BusinessWeek report,over 80% of employees surveyed showed a preference for working with others.

Bill,a financial manager at Carlyle Bank and Trust always strives to treat each subordinate with respect and fairness.Bill's treatment of employees is an example of Fayol's principle of:

Jack just learned that several persons in Arizona became ill from the peanut butter they ate that was produced and bottled in his plant.As he walks the back stairs at the plant,he ponders,"It's time to get the informal organization in on this.We've got to stop this in its tracks!" Jack is taking the right approach to solving this serious problem. The informal organization is often too unstructured and emotional to deal with serious emergency type situations.Critical matters need reasoned and rational decision-making that needs to happen in a more formalized approach.

Reorganizing in order to compete better may require a business to reassign tasks. Companies reorganize in order to be more competitive and reduce costs.In order to reduce costs,the firm may reduce its labor force,and reorganize the jobs and activities to those workers who remain.

A bureaucracy is an organization with many layers of managers who set rules and regulations and oversee all decisions.

Barclay developed two interactive computer games.He didn't do it entirely alone.Last year he started a small company,hired two programmers,and a marketing graduate.He considers himself a cutting-edge kind of guy and wants to position his company the same.Soliciting your advice as to how he should structure his organization as he moves forward,you suggest that he hire a few potential customers to join his team of employees as product testers.And,maybe he should solicit globally.You are suggesting to Barclay that he put together a __________.

Job specialization is known to:

Reorganizing in order to compete better may require a firm to reduce its number of business units. If a firm wants to remain competitive,it has the option to reevaluate the corporate structure of its business and determine which business units and operational units are benefiting the bottom line,and which may need to be re-organized or sold.

Julio is the owner of Celebration,Inc.a small party supply company.The company provides tents,tables,chairs,and related paraphernalia for wedding,Bar Mitzvah,Bot Mitzvah,graduation,birthday,and other celebratory events.As sales have increased,the organization has hired more personnel and departmentalized to more efficiently handle purchasing,sales,service,and accounting.Everyone is still responsible for achieving company goals.Upon seeing Celebration's organization chart,you agree it uses a ______________.

Companies have learned that working transparently through real time networks has provided competitive advantages in the marketplace. The Internet has allowed companies to send to each other real time data,which expedites the process of getting products and services to customers,many of which are digital natives,having grown-up with the Internet who expect fast and exceptional service.

Ping believes all workers should receive the same wage rate regardless of their position within a company.Ping's views on wages illustrate Fayol's principle of equity. Fayol's principle of equity says that managers should treat employees with respect and justice.It does not,however,suggest that all workers should be paid the same wage rate.

As compared to a centralized management structure,which of the following is a disadvantage of the decentralized management structure?