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Exam 8: Structuring Organizations for Todays Challenges

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Question 101

True/False

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

A) True
B) False

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Question 102

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Excite Enterprises, a corporation of amusement parks, uses an accounting firm to handle the payroll and tax functions for the company. Using the services of another firm in this manner is an example of:

A) outsourcing.
B) functional reassignment.
C) core competencies.
D) benchmarking.

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

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Question 103

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Organizations that require consistent production standards to help create a high-quality public image would tend to favor:

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.

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

The process of rating an organization's practices, processes, and products against the best of the world is known as:

Joe, a production engineer at Freestone Tires, recently joined a team of specialists from other areas, such as marketing and finance. His long-term assignment to this team has produced several new products. Joe enjoys this work environment, in part because Freestone's management has given the team the freedom and flexibility to make decisions. A recent development is the inclusion of outsiders from Freestone's major distributors and suppliers on the team. It appears that Joe's team is a(n) :

Whirlpond, a manufacturer of home appliances, has historically produced the components for their products. However, Whirlpond now contracts with other firms to produce these components. This strategy of __________ is a current trend among U.S. manufacturers

Rise 'n Shine Bakeries is a nationwide chain that has plants located throughout the U.S. Top management at Rise 'n Shine believes that customers in different regions have different tastes. It also recognizes that its bakeries face more intense competition in some regions than in others. Therefore, Rise 'n Shine's top management gives local managers the freedom to offer different types of breads and desserts, and to decide on a reasonable pricing strategy for its products. Rise 'n Shine typifies a decentralized organization.

The purpose of a division of labor and specialization is to improve an employee's job performance.

Cross-functional teams avoid involving groups outside of the firm to ensure their plans are not leaked to their competitors.

Successful managers will find the balance between promoting the informal organization and maintaining a formalized structure, as well.

International Inns and Conference Centers (IICC) , a national chain of professional event centers, utilizes a centralized authority structure. Which of the following provides the most likely explanation for why management at IICC would favor centralized authority?

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

Chang is a project manager at Paradox Industries. He is able to borrow specialists from the organization on a regular basis to assist in major projects. After the project ends, the specialists return to their functional units to await new assignments. Paradox Industries utilizes a:

In order to improve services to customers, Northwest Electric, a regional monopoly, recently rated their company's processes and products against the results achieved by the world's best at similar processes and products. Northwest Electric has adopted a policy of international standardization.

To better serve customers, many firms are restructuring to empower front-line employees.

_______________ means that decision-making authority is delegated to lower-level managers and employees

The grapevine refers to the formal channel used for confidential communications between members of top management.

Weber believed that large organizations required everyone to follow the established rules and guidelines precisely.