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Exam 8: Structuring Organizations for Todays Challenges

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Question 151

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Julio is the owner of Party Pros, Inc., a party supply company. The company provides tents, tables, chairs, and related products for weddings, Bar and Bat Mitzvahs, graduations, birthdays, and other celebrations. As sales have increased, the organization has brought on 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

A) line organization model.
B) line-and-staff organization model.
C) matrix organization model.
D) cross-functional team organization model.

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

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Question 152

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The informal organization appears as dashed lines on a firm's organizational chart.

A) True
B) False

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Question 153

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Brady developed two VR games. However, he didn't do it all on his own. He hired two programmers, a marketing specialist, and created a small company. He considers himself a pioneer and wants to position his company the same way. He solicits your advice as to how he should structure his organization as he moves forward, and you suggest that he hire a few potential customers to join his team of employees as beta testers. And, you suggest, maybe he should solicit globally. The structure you have described would simulate a line-and-staff organization.

Which of the following is considered to be an advantage of functional departmentalization?

In order to encourage more interdepartmental communication and cooperation, Angelica is thinking about setting up groups of workers from different departments to work together on a long-term basis. She is even thinking about asking people from some of Mucho Dinero's suppliers, customers, and distributors to join these groups. The type of group that Angelica is considering is known as a(n)

A firm's formal organization would be better suited than its informal organization to

Management at Leaves of Green, a nationwide vegetarian restaurant chain, believes that its customers value a predictable and consistent level of service and quality. When customers stop at one of its restaurants anywhere in the United States, they should know what to expect in terms of menu, price and quality. In order to maintain this consistency, Leaves of Green adopted a(n) ________ structure.

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

Mason Mills management works hard to ensure that nobody in its organization has more than one boss and all workers are treated with fairness and respect. Additionally, work is divided into areas of specialization so that everyone knows to whom they should report. The management of Mason Mills reflects the ideas and principles of

According to Max Weber's views on bureaucratic organizations, Sean's function, as a middle manager at a bureaucratic company, would be to

Which term describes a company being so open to other companies working with it that electronic information is shared as if the companies were one?

Electrolush manufactures a variety of home appliances and has historically produced the components for their products in-house. However, the company now contracts with other firms to produce these components. This strategy of ________ is a current trend among U.S. manufacturers.

Bureaucratic organizations are structured to empower employees and please customers.

The matrix organization model brings together experts from different functional units of the firm to work on specific projects.

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

To better organize his landscaping business, Scott started to divide each job into several parts. One is excavation and removal of old landscaping, the next is design, followed by purchasing, and finally installation of new plants. If he assigns a different employee to each part, this action would be an example of departmentalization.

Businesses seldom create separate departments to serve customers with different needs.

Cross-functional teams that go beyond company boundaries share production information but seldom market information.

The span of control for a manager

Once a company has restructured a firm to be more competitive in today's market, it alleviates the need to scan the external environment.