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Exam 8: Structuring Organizations for Todays Challenges

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Question 41

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Max Weber believed that promotion should be based solely on seniority.

A) True
B) False

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Question 42

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

A) It does not require specialists to advise people along the line.
B) Responsibility and authority are clearly defined.
C) Each worker has several supervisors.
D) It is very flexible.

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

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Question 43

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Correctly structuring a business organization allows managers to avoid delegating responsibility and authority to employees.

The functions that a company can perform as well as or better than anyone else in the world are known as that firm's optimized capabilities.

Companies benefit today from interfirm cooperation. One of the ways they cooperate is through networking. Another way is by seeking technological knowledge and learning new processes from exemplary firms sometimes outside their own industries. We call this:

The line of authority that moves from the top of a hierarchy to the lowest level is called the:

The driving force behind the change in business organizations is the change in consumer expectations.

Buzzoff Co. is a medium-sized organization, organized with well-defined lines of authority and responsibility. Each employee reports to only one boss. The managers at Buzzoff complain that they have no expert support staff available to offer legal advice. Lately opportunities are slipping through the cracks due to inefficient long lines of communication. These characteristics suggest that Buzzoff employs a matrix organization.

The main difference between a matrix-style organization model and a cross-functional team is:

The design of a bureaucratic organization assumes a well-educated workforce.

Bureaucratic organizations are not very responsive to customers.

Outsourcing has become commonplace, particularly when organizations want to focus on core competencies.

When Brian started his auto mechanic shop, his business plan included a(n) _______________ that showed the relationships among employees in his organization and the lines of authority and responsibility

The management at Patriot Mills works hard to ensure that no one in its organization has more than one boss and all workers are treated with fairness and respect. Additionally, the firm divides the work into areas of specialization so that everyone knows to whom they should report. The management of Patriot Mills reflects the ideas and principles of:

Management at Hottie Potatee, a nationwide potato bar chain, believes that its customers value a predictable and consistent level of service and quality. When customers stop at one of its potato bar chain 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, Hottie Potatee adopted a(n) ______ structure

A bureaucracy empowers employees to quickly respond to customers' wants and desires.

Baby Boomers are often referenced as digital natives.

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

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

Most businesses adopt a bureaucratic organization in order to speed up their decision-making process.