Chapter 8 example #6983

The design of a bureaucratic organization assumes a well educated workforce.

To better organize his business, Frank divides the required tasks into smaller jobs and assigns each job to a specific employee. This is an example of departmentalization.

The division of labor and specialization often improves an employee's job performance.

Economies of scale occur when a firm operates more efficiently as it grows larger.

8-1. The driving force behind the change in business organizations is the change in consumer expectations.

8-2. The degree to which an organization allows lower level managers to make decisions determines the degree of decentralization.

8-3. An organizational hierarchy establishes one person at the top of an organization.

8-4. The greater the rate of employee turnover, the broader the span of control.

8-5. The flatter an organization's structure, the fewer managers are needed.

8-6. In a line organization, there are many specialists who serve as advisors and assistants to the managers who make decisions.

8-7. While staff personnel have the authority to make policy decisions, line personnel have the authority to advise and make suggestions.

8-8. Cross-functional teams are self-managed groups of employees empowered to work with suppliers and customers to develop new products and give great service.

8-9. The design of a bureaucratic organization assumes a well educated workforce.

8-10. An organization's core competencies are those functions that the firm can perform as well or better than anyone else in the world.

8-11. Reengineering is intended to improve the performance of an organization through regular, incremental steps.

8-12. Reengineering is the fundamental rethinking and radical redesign of organizational processes in order to achieve dramatic improvements in performance. Answer: True LG: 5/LL: 1 Page: 258

8-13. A firm's formal organization would be better suited than its informal organization to: A) create an atmosphere of friendship and camaraderie among workers. B) find answers to critical problems that require logical analysis. C) find creative solutions to short-term problems. D) find a way around bureaucratic rules and regulations in order to get things done quickly.

8-14. In an inverted organization, the job of management is to: A) closely monitor employee performance. B) establish rules and regulations to guide worker behavior. C) make all of the basic decisions. D) assist and support front-line people.

8-15. Excite Enterprises uses an accounting firm to handle the payroll and tax functions for the firm. Using the services of another firm in this manner is an example of: A) outsourcing. B) functional reassignment. C) core competencies. D) benchmarking.

8-16. As a new employee in a bureaucratic organization, Nancy can expect a great deal of independence and authority.

8-17. Centralized authority provides for the delegation of authority to employees who are then better able to respond to customers' needs.

8-18. Departmentalization creates an environment in which people are trained in a variety of managerial responsibilities.

8-19. Rome Corporation is organized into departments such as finance, production, marketing, data processing, and accounting. Rome has chosen to departmentalize by function.

8-20. Line managers issue orders, enforce discipline, and adjust the organization as conditions change.

8-21. In large businesses, a line organization provides firms the ability to respond quickly to a changing environment.

8-22. Line organizations clearly define the lines of authority and responsibility.

8-23. Matrix organizations bring together specialists from different parts of the firm to work on specific projects.

8-24. The team specialists in a matrix organization remain part of the traditional line and staff structure.

8-25. A matrix organization produces an environment that discourages cooperation and teamwork.

8-26. Cross-functional teams are self-managed groups of employees empowered to work with suppliers and customers to develop new products and give great service.

8-27. Cross-functional teams serve as advisory committees offering their expertise to line decision makers.

8-28. Networking uses communication technology to link organizations allowing them to work together on common objectives.

8-29. The Internet makes real time availability of data possible.

8-30. Transparency describes the relationship between a firm and its stockholders.

8-31. Transparency allows two companies to work more efficiently together.

8-32. Benchmarking requires organizations to compare each function against the best in the world.

8-33. Competitive benchmarking rates an organization's products and operations against the industry average.

8-34. Competitive benchmarking compares a company's practices, processes, and products against the world's best.

8-35. Restructuring involves relatively minor changes to an organization to better meet the needs of management.

8-36. Inverted organizations empower employees by adding multiple layers of management and long lines of communication.

8-37. In an inverted organization, the purpose of management is to assist and support first-line employees, not boss them around.

8-38. A firm's informal organization refers to the structure that identifies the authority, responsibility, and position of people within the organization.

8-39. The informal organization of a business can help generate creative solutions to short-term problems.

8-40. The formal organization of a firm provides the lines of authority to follow in routine situations.

8-41. Organizing a business begins with: A) acquiring the necessary resources. B) choosing the best qualified employees. C) developing an efficient plan of action. D) determining the work to be done.

8-42. Dividing the required work among a group of employees is called a: A) departmentalization. B) delegation of responsibility. C) division of labor. D) separation of control.

8-43. Dividing tasks into smaller jobs is called: A) job enrichment. B) job specialization. C) departmentalization. D) division of authority.

8-44. The process of setting up individual departments to do specialized tasks is called: A) departmentalization. B) a division of labor. C) job specialization. D) delegation of authority.

8-45. In a bureaucratic organization: A) departments communicate with each other on a regular basis. B) employees follow strict rules and regulations. C) customer satisfaction is the number one priority. D) the first-line workers are empowered to respond to the needs of customers.

8-46. One advantage of a bureaucratic organization is that: A) it is very responsive to the wants and needs of customers. B) there are very few layers of management. C) it encourages cooperation among different departments within the organization. D) employees know what is expected of them.

economies of scale

hierarchy

chain of command

bureaucracy

centralized authority

decentralized authority

span of control

tall organization structure

flat organization structure

departmentalization

line organization

line personnel

staff personnel

matrix organizations

cross functional self manage teams

networking

real time

virtual corporation

benchmarking

core competencies

digital natives

restructuring

inverted organization

organization (or corporate) culture

formal organization

informal organization