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Cross-functional self-managed teams are groups of employees empowered to work with suppliers and customers to develop new products and give great service.

A) True
B) False

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Independence Electronics prides itself as a world-class producer of components used in CD and DVD players. The outstanding performance of the production department indicates that this activity is one of the firm's:


A) fiscal responsibilities.
B) core competencies.
C) benchmark assets.
D) target competitive advantages.

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

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Max Weber favored which of the following?


A) Inverted organizations
B) Worker participation in decision making
C) Staffing and promotions based on qualifications
D) Flat organizations

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

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Bureaucratic organizations are structured to empower employees and please customers.

A) True
B) False

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Henri Fayol and Max Weber are best known for their contributions to:


A) production theory.
B) marketing theory.
C) organization theory.
D) finance theory.

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

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Small businesses often use a line organization model.

A) True
B) False

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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 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 D)
F) B) and D)

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In the Crescent City manufacturing plant of the Granite Works Corp., 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) True
B) False

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Weber was a strong proponent of bureaucracy.

A) True
B) False

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In a line-and-staff organization, staff positions are temporary jobs to train new line managers.

A) True
B) False

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Andrew's company is a bureaucratic organization. Andrew is likely to encounter which of the following conditions?


A) Real time decisions
B) Cross-functional teams
C) Empowerment of first-line employees to better serve customers
D) Many layers of management

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

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

A) True
B) False

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For an inverted organization to be effective, it requires:


A) managers with strong position power.
B) managers who are both technologically savvy and conceptually savvy.
C) better educated, better trained, and better paid employees.
D) a focus on what is best for production.

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

Correct Answer

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_____________ is using communications technology and other means to link organizations and allow them to work together on common objectives


A) Networking
B) Structural linking
C) Functional sharing
D) Strategic planning

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

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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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Rapid Response Security Firm, a company that provides on-site security services for malls and other retail environments, needs to review current procedures used by its professional officers to make certain they are in compliance with new laws. On crucial issues such as this, it is more important to gather information through the informal organization, as opposed to the formal organization.

A) True
B) False

Correct Answer

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A ____________ organization is characterized by direct two-way lines of responsibility, authority, and communication running from the top to the bottom of the organization, with all people reporting to only one supervisor


A) matrix
B) cross-functional
C) line
D) line-and-staff

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

Correct Answer

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Which of the organization models follows all of Fayol's traditional management rules?


A) Line organization
B) Line-and-staff organization
C) Cross-functional team
D) Matrix

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

Correct Answer

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The basic idea behind the organization design of Fayol and Weber was that management wanted to control workers.

A) True
B) False

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Fairview Community College is a multi-district college with four campuses. Each campus has one president, two vice presidents, five deans, 12 department chairs, over 100 faculty members, and several persons in support roles. The presidents from each campus report to four vice chancellors and the vice chancellors report to the chancellor. It is clear that Fairview has a well-defined _____________


A) channel of academic culture
B) chain of command
C) responsibility environment
D) bureaucratic reallocation

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

Correct Answer

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