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____________ organizations are characterized by many layers of management and function with well defined rules and procedures

a. Bureaucratic

Most businesses adopt a bureaucratic organization in order to speed up decision making

False

The design of a bureaucratic organization assumes a well educated workforce at all levels of the organization

False

A bureaucracy is designed to be customer focused

False

One of the attractive features of bureaucratic management is its flexibility and ability to change

False

After the Industrial Revolution, jobs mostly occurred in large, formal organizations where hundreds of people worked under one roof.

True

What does the bureaucratic, hierarchical paradigm do better?

a. reduce operations costs

Which of the following statements about bureaucratic organizations is false?

a. A bureaucracy is an organization with many layers of managers who set rules and
regulations and oversee all decisions;
b. A bureaucratic style of organization is slow when responding to change;
c. Bureaucratic organizations are structured to empower employees and please customers;
d. Bureaucracies establish rules and regulations that everyone is expected to follow.

c. Bureaucratic organizations are structured to empower employees and please customers;

An employee in a bureaucratic organization can expect to be able to exercise a great deal of independence and authority

False

The larger a bureaucracy, the more rigid it becomes

True

Fayol's _____________ principle states that each worker should report to one, and only one, boss.

a. comparative advantage
b. departmentalization
c. division of labor
d. esprit de corps
e. unity of command

e. unity of command

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

b. Hierarchy

Organizational authority is traditionally characterized by ____.

a.Behavioral informality
b.Chain of command
c. Empowerment
d. Leadership
e. Reengineering

b. Chain of command

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

a. The chain of command used to follow the flow of authority from top of the hierarchy to
the lowest levels
b. The degree of product standardization desired by the marketplace
c. The degree to which lower level management is empowered to make decisions
d. The geographical area served by the firm's operations e. None of the above

c. The degree to which lower level management is empowered to make decisions

In firms with centralized authority, each department is treated as if it is a completely separate and independent organization.

False

The process of setting up individual functional units of the business to do specialized tasks is called

b. Departmentalization

Managing a growing business organization often required managers to create departments to accomplish various tasks

True

____ departmentalization is defined as organizing work and workers into separate units responsible for particular business functions or areas of expertise.

Functional

With divisions that focus on business clients and consumer clients, companies like Sprint, American Express, and others are examples of ____ departmentalization.

a. Costumer

The traditional way to departmentalize an organization is by geographical area serve

False

Which of the following statements about departmentalization is false?

a. Departmentalization by function allows employees an opportunity to develop their skills;
b. Departmentalization by function is a grouping of workers based on similar skills,
expertise, or resource use;
c. Departmentalization is the dividing of organizational functions into separate units;
Organizations that utilize departmentalization benefit from improved communication
between different organizational departments.d. Economies of scale can be achieved through departmentalization; e. Organizations that utilize departmentalization benefit from improved communication
between different organizational departments.

Organizations that utilize departmentalization benefit from improved communication
between different organizational departments.

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

a. It creates clear and simple lines of authority b. It is a complex organization structure
c. It is much cheaper to staff than other organization models
d. It provides for efficient use of organizational resources e. The project teams are permanent

d. It provides for efficient use of organizational resources

23. Large businesses engaged in a variety of projects dealing either directly with customers or with
products geared to clearly defined markets

24. Small companies with a limited range of products

25. Very large corporations with a variety of businesses

23. Matrix organization
24. Functional
25. Divisional

Departmentalization by function typically reduces the costs of doing business

True

Managing a growing business organization often requires managers to create departments to accomplish various tasks

True

Departmentalization suffers from:
I. Slow response to external demands;
II. Unclear lines of authority;
III. Narrow specialization.

I and III

Match the organizational structure to each of the following organizational cases
29. Divisional structure 30. Functional structure 31. Matrix structure

a. Multiple product/business firm
b. Project oriented firm c. Single product/business firm

29. Multiple product/business firm
30. Single product/business firm
31. Project orienated

Other things equal, which of the following will have the most hierarchy levels?

a. Divisional organization
b. Functional organization

a. Divisional organization

A matrix organization is a good example of a pure hierarchy

False

Categorize the following characteristics as advantages (a) or disadvantages (b) of departmentalization

34. economies of scale 35. coordination within functions
36. group think

34. advantage
35. advantage
36. disadvantage

Large fast food restaurants successfully employ decentralization

False--standardization

The optimum number of subordinates a manager should supervise is named "span of control".

True

The more standardized the work, the wider the span of control.

True

Because top managers supervise the firm's most talented workers, they generally have a broader span of control than middle or first line managers

False

The span of control for a manager

a. Depends on a number of factors, and can vary from one manager from another
b. Depends on the form of business ownership the owners/entrepreneurs have chosen
c. Is no longer a relevant issue due to information technology
d. Should never exceed 7 subordinates
e. Varies somewhat from manager to manager, but most managers operate best with a span
of control of about 9 employees

a. Depends on a number of factors, and can vary from one manager from another

Which of the following statements about span of control is false?

a. As employees obtain more experience, the span of control in an organization can
increase;
b. Managers near the top of an organization have the broadest span of control;
c. The more complex the work, the narrower the span of control;
d. The more standardized the work, the wider the span of control;
e. The trend towards employee empowerment results in a wider span of control.

b. Managers near the top of an organization have the broadest span of control;

Companies willing to train their employees extensively and to trust their employees could expand their managers' spans of control

True

Employee empowerment increases managerial span of control

True

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

a. centralization
b. comparative advantage
c. departmentalization
d. division of labor
e. "esprit de corps"

d. division of labor

When higher management in a(n) ____ organization admits there is a need for better communication, the response is to tether subordinates to their jobs and to appoint newly hired employees who specialize in establishing liaison relationships.

a. Centralized
b. Empowered
c. Mechanistic
d. Organic
e. Departmentalized

c. Mechanistic

Which of the following statements about the organic form of organization design is true?

a. The organic form of organization design is better suited to using organizational design
techniques based upon functional departmentalization and centralized authority.
b. The organic form of organization design is characterized by broadly defined jobs and
responsibility, loosely defined, frequently changing roles, and decentralized authority and
horizontal communication based on task knowledge. c. The organic form of organization design is typically less appropriate than the mechanistic
approach for the environments in which today's businesses compete.
d. The organic form of organization design works best in stable business environments.
e. All of these statements about the organic form of organization design are true.

b. The organic form of organization design is characterized by broadly defined jobs and
responsibility, loosely defined, frequently changing roles, and decentralized authority and
horizontal communication based on task knowledge.

A firm that assigns specific functions, such as accounting or legal work, to other organizations rather than performing these functions themselves is

outsourcing

Which of the following describe a temporary networked organization made up of replaceable firms that join and leave as needed?

Virtual corporation

The composition of a ____ organization is always changing.

virtual

All organizations can clearly be categorized as either completely mechanistic or completely organic

FALSE

The process of setting up individual departments to do specialized tasks is called job specialization.

False

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

False

Division of labor is difficult to achieve in small businesses.

False

Departments are functional units within a firm such as sales, accounting, finance, and marketing.

True

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

division of labor

The driving force behind the change in business organizations is the change in consumer expectations.

True

The basic idea behind the organization design of Fayol and Weber was that management wanted to control workers.

a. True

The purpose of Weber's and Fayol's principles was for the benefit of management, as opposed to pleasing customers.

True

The more complex the job, the narrower the span of control.

True

Departmentalization by function typically increases the cost of doing business.

False

Small businesses often use a line organization model.

True

A matrix team for an aerospace company may consist of a project manager, a finance expert, a marketing specialist, a member of production, and two design engineers.

True

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.

True

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