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Exam 8: Adapting Organizations to Todays Markets

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Question 71

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__________ are responsible for directly achieving organizational goals.

A) Organizational specialists
B) Line personnel
C) Chain of command managers
D) Staff personnel

E) All of the above
F) C) and D)

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Question 72

True/False

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When management structures the organization,it makes decisions about which products and services it will offer and how it is going to finance the company. Structuring the organization involves deciding on a centralization vs.decentralization decision-making policy;decisions with regards to span of control,meaning how many employees will report to one manager,as well as how to departmentalize the organization.

A) True
B) False

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Question 73

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Bureaucratic organizations establish rules and regulations that everyone is expected to follow.

Management at Hottie Potatee,a nationwide potato bar chain,believes that its customers value a predictable and consistent level of service and quality.When customers stop at one of its potato bar chain restaurants anywhere in the United States,they should know what to expect in terms of menu,price and quality.In order to maintain this consistency,Hottie Potatee should adopt a decentralized organization. By giving individual managers and employees more flexibility,a decentralized organization would result in less standardization and uniformity.

Which of the following is an advantage of a matrix organization structure?

Soprano Industries follows a chain of command with authority moving from the top of the hierarchy down to lower-level managers.The company is organized by department with established rules and regulations that everyone is expected to follow.All of these characteristics suggest that Soprano is an example of a bureaucratic organization. Bureaucratic organizations are characterized by top down authority,division of labor,and the presence of many rules and regulations.

Jesse started a successful telecommunications company that provided voicemail services to business clients in the Midwest.As the business grew,Jesse added functional departments including a marketing department and an accounting department.After a few years,he realized that employees who specialized in these areas no longer shared knowledge with each other in the same way they did when the operation was smaller.As one of Jesse's business consultants,you explain that as the company grows taller,it cannot avoid this pitfall,and he should focus on continued functional departmentalization,especially if he supports innovation and learning. A disadvantage of functional departmentalization is a lack of communication between and among departments.Employees may identify with their own department's goals,as opposed to the goals of the company.

A(n) __________ consists of one person at the top of the organization and many levels of managers who are responsible to that person.

The organizational structure of the U.S.Army's 1^st Infantry Division provides for direct two-way lines of responsibility,authority,and communication running from the top to the bottom.Additionally,each person in the division reports to only one superior.The 1^st Infantry Division is clearly an example of a(n) :

The __________ is the system of relationships that develop spontaneously as employees meet and form power centers.

Which of the following factors help determine a manager's span of control?

Independence Electronics prides itself as a world-class producer of components used in CD and DVD players.The outstanding performance of the production department indicates that this activity is one of the firm's:

The very best organizations have cultures that emphasize service to others,especially customers.

One of the most difficult management challenges today is managing change.This is because:

Which term describes a company being so open to other companies working with it that electronic information is shared as if the companies were one?

A matrix organization produces an environment that discourages cooperation and teamwork.

Departmentalizing by customer group has proven ineffective.

The process of creating individual departments to do specialized tasks is called departmentalization.

What is a cross-functional,self-managed team? Who would serve on such teams? Why do cross-functional,self-managed teams often lead to networking?

A virtual corporation refers to a permanent network of firms linked by high-tech communication systems.