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Exam 8: Adapting Organizations to Todays Markets

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Question 161

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The degree to which an organization allows lower level managers to make decisions determines the degree of decentralization.

A) True
B) False

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Question 162

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Organization theorists emerged during the era of mass production,meaning:

A) the development of ways to produce a large quantity of product efficiently.
B) the development of ways to purchase raw materials in bulk.
C) the decline in the cost of production due to an increase in the cottage industry.
D) the era when most companies adopted very similar methods of producing goods and services,which led to standardization of organizational design.

E) B) and C)
F) A) and B)

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Question 163

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Looking at a traditional organization chart,you will view who reports to whom;you will have a sense of each person's authority and responsibility,and the type of work that they perform for the organization.

Line organizations clearly define the lines of authority and responsibility.

Which of the following determines the degree of decentralization a firm might use?

Cross-functional teams consist of employees from different departments who work together on a long-term basis.

Max Weber's principles of organization were similar to those of Henri Fayol.

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

Which of the following is considered to be an advantage of functional departmentalization?

HipHop Music Company assigns workers to departments based on similar skills.Currently,the company has a marketing department,a production department,a finance department,and a human resources department.This suggests that HipHop departmentalizes by:

Correctly structuring a business organization allows managers to avoid delegating responsibility and authority to employees.

The span of control for a manager:

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.

Division of labor refers to deciding how many jobs must be accomplished and then dividing them up amongst the labor force.

Fayol's ____________ principle says that tasks should be divided into areas of specialization.

Cross-functional teams serve as advisory committees offering their expertise to line decision makers.

Explain the difference between a firm's formal organization and its informal organization.Why are both types of organization important to managers?

The traditional way to departmentalize an organization is by geographical area served.

Fayol's ____________ principle says that workers' attitudes would create an environment of pride and loyalty within an organization.

Organizing a business begins with: