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Exam 8: Adapting Organizations to Todays Markets

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Question 81

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If companies follow the theories of Fayol and Weber,which of the following scenarios is likely to result?

A) Organization design will be benefitted by the emergence of quick decision-making
B) Organization design will eliminate systems of hierarchy and chains of command due to their hindrance of esprit de corps
C) Organizations that grow will develop several layers of management and the time that it takes to make a decision will increase
D) There will be a significant reduction of work force due to specialization and departmentalization

E) All of the above
F) None of the above

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Question 82

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Departmentalization is the dividing of organizational functions into separate units.

A) True
B) False

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Question 83

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

Henri Fayol and Max Weber are best known for their contributions to accounting theory.

A bureaucracy is designed to be customer focused.

The optimum number of subordinates a manager should supervise is referred to as the span of control.

________ refers to the process of dividing organizational functions (sales,production,accounting/bookkeeping) into separate units.

Jason is a self-employed patent attorney.These days he is seldom without work.Large corporations hire him on an as-need basis to review prospective ideas and help with securing patents for a variety of inventions including surgical instruments,medicines,and high tech gadgets.Once he secures a contract,he knows approximately how many weeks or months he will work.Jason works for virtual corporations. A virtual corporation has no legal ties to the companies that perform a variety of jobs for the core firm - things such as distribution,legal work,accounting,manufacturing,and production.They hire other companies on an as needed basis.

Fayol's ____________ principle says that tasks should be divided into areas of specialization.

Organizing a business begins with:

The ___________ is the nerve center of the informal organization.

Cross-functional self-managed teams work best when _______________.

A line organization in a large business often suffers from excessively slow lines of communication.

Including customers and suppliers on cross-functional teams violates the interests of stockholders.

Discuss Max Weber's views on organization theory.

One disadvantage of the matrix style of organization is that it is more difficult to keep development projects on schedule.The model slows down the time from design,to production,and then to market. Matrix Style Organization was purposely designed to expedite projects from conception to market.The model eliminates the communication problems that line and line-and-staff models experienced when trying to develop a product and get it to market.

A flat organizational structure is designed to be more responsive to the needs of management.

Departmentalization by function typically increases the cost of doing business.

A tall organization structure consists of multiple levels of management.

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: