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Exam 8: Structuring Organizations for Todays Challenges

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Question 21

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One reason to reorganize is to become more competitive.

A) True
B) False

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Question 22

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Bureaucratic organizations are structured to empower employees and please customers.

A) True
B) False

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Question 23

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Which of the following describes the activity of a firm that assigns specific functions, such as accounting or legal work, to other organizations rather than performing these functions themselves?

The trend towards employee empowerment results in a wider span of control.

During the past six years, the marketing department manager at Creative Concepts International made a strong push to hire mover/shaker professionals that had superior performance records prior to joining this company. It didn't take long for these enthusiastic marketers to recognize the many talents within their department. They marveled at how much they were like each other and how they seemed to agree with each other's work styles and ideas. After a while, it became difficult for others in the organization to present to this group. If the idea did not originate within the marketing department, marketers did not give it much credence. Management counselors would describe this phenomenon as .

An organization's core competencies are those functions that the firm performs as well as or better than anyone else in the world.

A organization is characterized by 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.

As indicated in the Spotlight for Small Business box titled, "Keeping that Small- Company Feeling," water cooler talk, idea brokers, and other informal ways of collecting creative ideas are proving to be good strategies for large companies.

Alicia dreams of opening her own restaurant and knows that she will need to organize her business. Organizing begins with determining the work to be done.

The traditional technique used to departmentalize an organization is by:

Clear communication between workers and keeping order in materials and people are included in Fayol's principles.

Weber believed that large organizations required everyone to follow the established rules and guidelines precisely.

The optimum number of subordinates a manager can supervise is referred to as the:

According to Weber, a bureaucrat is a middle manager whose job is to implement top management's orders.

Mike prepared a paper for his class about organizational styles used in business. He found that one reason the traditional bureaucratic style is less popular than in the past is that:

Matrix organization structures provide for more efficient use of organizational resources.

Effective employees learn the relationships of employees in the firm's informal organization.

Fayol believed that the amount of decision-making power vested in top management should be the same in all situations.

Wizard Manufacturing makes small consumer electronics 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.

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.