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Exam 8: Structuring Organizations for Todays Challenges

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Question 131

True/False

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

A) True
B) False

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Question 132

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Departments are functional units within the business such as sales, accounting, finance, and marketing.

A) True
B) False

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Question 133

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Which of the following positions would be classified as a staff position?

As a result of rapidly changing markets and global differences in consumer tastes, more firms are considering centralized authority.

Angelica's decision to completely redesign Mucho Dinero's organization indicates that she believes the best approach to her firm's problems is

An organization chart shows who is accountable for the completion of specific work and who reports to whom.

The Cairo Company is organized into departments such as finance, production, marketing, data processing, and accounting. Cairo has chosen to departmentalize by function.

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

A manager needs to be called to sign off on every return that a cashier performs at Sun and Fun Sportswear. The CEO continues this policy because he wants every manager to "look those customers right in the eye" and "stake their job on taking those items back." Clearly, Sun and Fun empowers its employees to make decisions at their jobs.

After a report identified low employee morale, managers for Night and Day Inn, Inc. were concerned. Employee responses showed frustration with their inability to deal directly with customers' concerns and complaints. Employees feel that if they were empowered with the authority to make decisions, customer satisfaction would dramatically increase. This illustrates one of the disadvantages of decentralized authority.

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

Companies have learned that working transparently through real-time networks has provided competitive advantages in the marketplace.

Organizational culture refers to the widely shared values within a corporation that foster unity and cooperation.

Which of the following is an advantage of a line organization in a large business?

Managing a growing business often requires managers to create departments to accomplish various tasks.

Empowering employees to better serve customers requires ________ front-line employees.

Jacob was temporarily assigned to work with a team of specialists from various departments to develop a new product, though his usual home is in the engineering department. After the project is completed, Joel will return to his regular position in the engineering department. This arrangement illustrates the use of a cross-functional team.

Departmentalization by function typically increases the cost of doing business.

A virtual corporation refers to a permanent network of firms linked by high-tech communication systems.

Cameron, a financial manager at Southeastern Bank, always attempts to treat each subordinate with respect and fairness. Cameron's treatment of employees is an example of Fayol's principle of