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Exam 8: Adapting Organizations to Todays Markets

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Question 101

Multiple Choice

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As the head of the engineering department for her company,Jody works with her team on complex and challenging projects.The level of detail in this work requires Jody to spend a significant amount of time with each team member,providing advice and support.Due to the complexity and time involvement of each project,Jody has a(n) ________ span of control.

A) wide
B) narrow
C) unlimited
D) functional

E) None of the above
F) B) and C)

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Question 102

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Assigning various functions that a firm might do for itself to outside organizations is known as competitive allocation.

A) True
B) False

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Question 103

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When Eric Schmidt became the CEO of Google,he reported that the company in the hands of founders Larry Page and Sergey Brinn was running well,it just needed a little structure.CEO Schmidt helped develop:

A recent trend in organization models is the development of cross-functional,self-managed teams of employees who work together on a long-term basis.

Line organizations often experience the problem of employees reporting to more than one boss.

As compared to the decentralized management structure,which of the following is a disadvantage of the centralized management structure?

According to Fayol's principle of Authority,if you have authority you also have responsibility.

Competitive benchmarking compares a company's practices,processes,and products against others in its industry,with the goal of doing it better than the competition.

In a _____________ organization,specialists from different parts of the organization are brought together on a temporary basis to work on specific projects.

Which of the following statements most closely identifies the problem with adopting Fayol's principles of organization design for contemporary businesses?

Sarah is a designer for a business that installs underground sprinkler systems for residential and commercial customers.Sarah designs and presents systems to prospective customers.Brothers Tom and Bill share the ownership responsibilities.Tom is in charge of commercial accounts and Bill is in charge of residential accounts.Sometimes Tom and Bill double book Sarah's time,creating frustration and animosity.Since they share supervisory responsibility,there is no clear way to decide whose accounts are most important.This type of situation represents a violation of Fayol's ____________ principle.

Mini-Case Angelica Canizales is the CEO of Mucho Dinero Enterprises.Sales have declined for four consecutive years and the firm's accountants have reported net losses in each of the last two years.Employees appear demoralized and frustrated.Recently,Angelica met with managers from marketing,production,and finance to listen to their views regarding the company's problems.The managers unanimously agreed that the main problem was a lack of communication between the several functional areas of the business.Each manager felt that the firm could increase quality and customer satisfaction with better interdepartmental communication.Angelica also met with marketing and production employees to get their respective opinions on the problems of the firm.One employee from the production department observed that,"We have so many layers of management that it takes forever to make decisions." An employee from marketing complained that,"This place is so bogged down with rules and regulations that there is no opportunity to be creative." Several employees shared their opinions regarding their bosses.Specifically,one employee expressed "My boss never pays attention to my ideas.He just issues orders and expects me to obey them." Angelica decided,after listening to many comments from employees,suppliers,and customers,that the only way to end Mucho Dinero's slide was to completely rethink the firm's structure and to make radical changes in its organization.She presented her ideas to the board of directors,promising to voluntarily resign if her efforts to reorganize did not return the firm to profitability. -From her discussions with employees,Angelica learned quickly that production workers put their trust in 20-year veteran Willie McClaren.Many people told her that if you wanted something done,Willie was the person to see.Willie appears to be an important part of the:

Although a firm may experience better cost controls through departmentalization,it may not increase its responsiveness to customer needs. An advantage of departmentalization is economies of scale.A disadvantage is less responsiveness to customers.

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:

The informal organization is best suited for decision making on big issues.

Small business organizations lack the size required to reap the benefits of labor specialization.

Bureaucratic organizations are not very responsive to customers.

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

Team participants in a matrix organization model may report to two managers at one time.

The informal organization appears as dashed lines on a firm's organizational chart.