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Exam 8: Adapting Organizations to Todays Markets

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Question 151

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

A) chain of logic.
B) chain of command.
C) organizational design.
D) delegation of contingent authority.

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

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Question 152

True/False

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In its effort to reorganize its floor space,Backstreet Books decided to eliminate seating space in its stores in order to make room for bookshelves due to growing interest in books about how to "go green".This company's effort is an example of how a firm may reduce its emphasis in one product line in order to serve customer preferences and trends. If a firm wants to remain competitive,it may reevaluate which product lines are more profitable than others and organize its floor space and marketing emphasis to capture consumer attention.

A) True
B) False

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Question 153

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Companies benefit today by inter-firm cooperation.One of the ways they cooperate is through networking.Another way is by seeking technological knowledge and learning new processes from other firms that usually fall outside of their respective industries.We call this:

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

Which of the following describes the activity of a firm that assigns specific functions,such as accounting or legal work,to other organizations rather than performing these functions themselves?

Excite Enterprises,a corporation of amusement parks uses an accounting firm to handle the payroll and tax functions for the company.Using the services of another firm in this manner is an example of:

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

Networking requires transparency to work most effectively.

Reorganizing in order to compete better may require a business to reduce its labor force. Companies reorganize in order to be more competitive and reduce costs.In order to reduce costs,the firm may reduce its labor force,and reorganize the jobs and activities to those workers who remain.

While staff personnel have the authority to make policy decisions,line personnel have the authority to advise and make suggestions.

Max Weber used the term ________ to describe middle managers whose job was to implement the orders of top management.

_______________ means that decision-making authority is delegated to lower-level managers and employees.

Dividing tasks into smaller jobs is called:

The more complex the job,the narrower the span of control.

As a response to a rapidly changing marketplace,Idea Electronics found it necessary to reorganize,including a significant downsize of its middle management.This action will likely result in __________.

Outsourcing involves assigning various functions to outside organizations.

Organizations that utilize functional departmentalization benefit from improved communication between departments.

In an inverted organization,the purpose of management is to assist and support the decisions of employees who work directly with customers.

In firms with centralized authority,each business unit is treated as if it is a completely separate and independent organization.

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