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Exam 8: Structuring Organizations for Todays Challenges

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Question 171

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Departmentalization creates an environment in which people are trained in a variety of managerial responsibilities.

A) True
B) False

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Question 172

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The degree to which an organization allows lower level managers to make decisions determines the degree of decentralization.

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Question 173

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A tall organization structure consists of multiple levels of management.

Organizational culture can produce either a positive or negative impact on an organization.

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

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

In recent years, large organizations have tried to improve their efficiency in communication and decision making by:

The more standardized the work, the wider the span of control.

Julio is the owner of Celebration, Inc. a small party supply company. The company provides tents, tables, chairs, and related paraphernalia for wedding, Bar Mitzvah, Bot Mitzvah, graduation, birthday, and other celebratory events. As sales have increased, the organization has hired more personnel and departmentalized to more efficiently handle purchasing, sales, service, and accounting. Everyone is still responsible for achieving company goals. Upon seeing Celebration's organization chart, you agree it uses a line organization model.

Networking uses communication technology to link organizations allowing them to work together on common objectives.

The of a business firm is the system that details lines of authority, responsibility, and position, similar to the structure on organization charts.

organizations are characteristic of many layers of management and function with well-defined rules and procedures.

Julio is the owner of Celebration, Inc. a small party supply company. The company provides tents, tables, chairs, and related paraphernalia for wedding, Bar Mitzvah, Bot Mitzvah, graduation, birthday, and other celebratory events. As sales have increased, the organization has hired more personnel and departmentalized to more efficiently handle purchasing, sales, service, and accounting. Everyone is still responsible for achieving company goals. Upon seeing Celebration's organization chart, you agree it uses a .

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.

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

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

Traditional organizational models such as a line model or a line and staff model provide the flexibility demanded in a changing business environment.

Mario kept humming that old song, "Well, I heard it through the grapevine, not much longer would you be mine…" Earlier today, he heard from his coworker Jessica that by the end of today, several employees would get their hours reduced and other would lose their jobs. He decided to stop by George's office. If anyone had the scoop, it would be George. To Mario, George represented an influential person in the informal organization.

Restructuring involves the redesign of an organization to be more responsive to customers.

Matrix organizations give managers flexibility in assigning people to projects.