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Restructuring involves the redesign of an organization to be more responsive to customers.

A) True
B) False

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In the Crescent City manufacturing plant of the Granite Works Corporation,a foreman supervises workers.The foreman reports to the shift supervisor who reports to the head of the production department,who then reports to the assistant plant manager,who reports to the plant manager.The plant manager,in turn,reports to a district manager,who then reports to a product group manager,who reports to an assistant vice president of operations,who keeps in close touch with an executive vice president.The layers of management indicate that Granite Works Corporation is a tall organization. A tall organization is characterized by many layers of management.

A) True
B) False

Correct Answer

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Weber put great trust in the creativity,skills,and pride of employees and believed that managers should act more as coaches than as bosses. Weber put great trust in managers and believed that workers should simply do as they were told.

A) True
B) False

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As depicted in the Reaching Beyond our Borders,box,"General Electric Looks for More Profits",in order to compete globally,corporate strategy should:


A) not try to match the performance of competitors.
B) study competitors and try to match or exceed their performance.
C) not waste time and resources going beyond the competitor's strategy,but should move within striking distance.
D) centralize all services.

E) B) and D)
F) A) and D)

Correct Answer

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

A) True
B) False

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Successful managers will find the balance between promoting the informal organization and maintaining a formalized structure,as well. As appealing as the informal organization may be due to its ability to create camaraderie and a spirit of cooperation,informality also can be very powerful in resisting managerial directives.These resistance movements can result in Union strikes and other disruptive occurrences.Management must find the right balance between the formal and informal organization.

A) True
B) False

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

A) True
B) False

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Management at Hottie Potatee,a nationwide potato bar chain,believes that its customers value a predictable and consistent level of service and quality.When customers stop at one of its potato bar chain restaurants anywhere in the United States,they should know what to expect in terms of menu,price and quality.In order to maintain this consistency,Hottie Potatee adopted a(n) ______ structure.


A) centralized authority
B) decentralized authority
C) hybrid authority
D) origination authority

E) None of the above
F) A) and D)

Correct Answer

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An organization with only a few layers of management is known as a(n) :


A) tall organization.
B) flat organization.
C) leveraged organization.
D) coordinated organization.

E) B) and C)
F) C) and D)

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

A) True
B) False

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Weber was a strong proponent of bureaucracy.

A) True
B) False

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Some companies have created hybrid versions of departmentalization,where they combine two or more traditional ways of departmentalizing.

A) True
B) False

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

A) True
B) False

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

A) True
B) False

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Cardinal Foods is a wholesaler serving grocery stores.High tech communications allows Cardinal to work closely with its suppliers and customers in real time.Networking allows these organizations to operate more efficiently. Networking is using communications technology to link organizations and allow them to work together on common objectives.

A) True
B) False

Correct Answer

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In Weber's view of a bureaucratic organization,the role of top management was to:


A) empower workers and enable them to quickly respond to customer wants.
B) make decisions.
C) develop the rules and procedures needed to carry out the plans of bureaucrats.
D) directly supervise front-line employees to better control operations.

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

Correct Answer

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Which of the following statements best describes the evolution of organization design?


A) Companies have evolved to cross-functional teams because line models and line and staff models have become too costly to maintain.
B) Most companies are finding that the stages of product development are much slower than in the past because new products are much more complicated in nature than products of several years ago.Matrix models work much better in the current environment.
C) The development of new technology allows for companies to be much more self-contained and able to maintain their competitive advantage due to more privacy.
D) Companies are now part of a vast network of global businesses,and part of a larger system.

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

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Line organizations clearly define the lines of authority and responsibility.

A) True
B) False

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The success of the firm often depends on assigning the right tasks to the right person.

A) True
B) False

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

A) True
B) False

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