Question 1

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.

Accepted Answer

A) True 
 B)False

Question 2

In an inverted organization, the purpose of management is to assist and support the decisions of employees who work directly with customers.

Accepted Answer

A) True 
 B)False

Question 3

Economies of scale:

Accepted Answer

A)   are available to small firms but not to large firms due to management inefficiencies.
B)   are achieved when a firm reduces its average cost of production as it produces more.
C)   can be avoided by purchasing supplies and raw materials in large quantities.
D)   help explain the success of small businesses.E) B) and C)
F) A) and B)

Question 4

A(n)  ________________ is a visual device which shows relationships among people and divides the organization's work

Accepted Answer

A)   organization chart
B)   Venn diagram
C)   corporate tree
D)   Gantt chartE) A) and D)
F) A) and C)

Question 5

Explain the difference between a firm's formal organization and its informal organization. Why are both types of organization important to managers?

Accepted Answer

a. A firm's formal organization is the s...

Question 6

Fayol believed that managers should treat employees and peers with respect and justice.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

One of the most difficult management challenges today is managing change. This is because:

Accepted Answer

A)   change requires cooperation and an awareness of a need for change.
B)   change requires a lot of bail-out money from the government.
C)   change requires decentralization of decision making.
D)   change will invariably result in an inverted organization and management does not want to relinquish its position power in order to make that happen.E) A) and B)
F) None of the above

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Max Weber's organizational theories require an educated workforce to operate efficiently.

Accepted Answer

A) True 
 B)False

Question 11

To avoid losing that small company feel, fast growing companies try to maintain a flat organization structure.

Accepted Answer

A) True 
 B)False

Question 12

A flat organization is less likely to respond quickly to customer needs.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A)   Leaving some decision-making power to middle management has the effect of minimizing the effort and results that management would put into the other historical principles of organization.
B)   The rule making that develops from these principles creates organizations that don't respond quickly to customer needs.
C)   The principles of Fayol and Weber hamper a firm's ability to determine if it is profitable.
D)   Authority and responsibility quickly become unrelated.E) B) and D)
F) A) and C)

Question 14

Staff positions in an organization:

Accepted Answer

A)   support and assist the line positions.
B)   are superior to line positions.
C)   are less well-paid than line positions.
D)   are ways to employ past CEOs until they retire.E) All of the above
F) None of the above

Question 15

The Spotlight on Small Business box titled "Cutting Back While Cutting Costs" discusses the decline of outsourcing jobs in the small business sector. Outsourcing is just for big business.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Departmentalizing by customer group has proven ineffective.

Accepted Answer

A) True 
 B)False

Question 18

The Nutmeg Soccer Club outsourced its accounting work. This suggests that management at Nutmeg does not believe that accounting is one of the firm's core competencies.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A)   matrix
B)   line
C)   line-and-staff
D)   centralizedE) A) and C)
F) All of the above

Question 20

Fayol's principle of the division of labor says that functions should be divided into areas of specialization such as production, marketing, and finance.

Accepted Answer

A) True 
 B)False

Exam 8: Structuring Organizations for Todays Challenges

In an inverted organization, the purpose of management is to assist and support the decisions of employees who work directly with customers.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Max Weber's organizational theories require an educated workforce to operate efficiently.

Correct AnswerverifiedShow Answer

A(n) ________________ is a visual device which shows relationships among people and divides the organization's work

Correct AnswerverifiedShow Answer

The Nutmeg Soccer Club outsourced its accounting work. This suggests that management at Nutmeg does not believe that accounting is one of the firm's core competencies.

Correct AnswerverifiedShow Answer

To avoid losing that small company feel, fast growing companies try to maintain a flat organization structure.

Correct AnswerverifiedShow Answer

One of the most difficult management challenges today is managing change. This is because:

Correct AnswerverifiedShow Answer

A flat organization is less likely to respond quickly to customer needs.

Correct AnswerverifiedShow Answer

Explain the difference between a firm's formal organization and its informal organization. Why are both types of organization important to managers?

Correct Answerverifieda. A firm's formal organization is the s...View AnswerShow Answer

Departmentalizing by customer group has proven ineffective.

Correct AnswerverifiedShow Answer

The Spotlight on Small Business box titled "Cutting Back While Cutting Costs" discusses the decline of outsourcing jobs in the small business sector. Outsourcing is just for big business.

Correct AnswerverifiedShow Answer

Fayol believed that managers should treat employees and peers with respect and justice.

Correct AnswerverifiedShow Answer

Economies of scale:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Fayol's principle of the division of labor says that functions should be divided into areas of specialization such as production, marketing, and finance.

Correct AnswerverifiedShow Answer

Staff positions in an organization:

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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a. A firm's formal organization is the s...
View Answer

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