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Exam 8: Adapting Organizations to Todays Markets

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Question 121

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The virtual corporation does all its business online with partners considered a permanent part of the network.

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B) False

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Question 122

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Organizations with positive images for performing exceptional service to customers are usually friendly places to work,as well.

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Question 123

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The process of setting up individual departments to do specialized tasks is called job specialization.

While most organizations have a formal organization structure,only poorly managed firms also have an informal organization.

Networking requires transparency to work most effectively.

The informal organization is best suited for decision making on big issues.

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

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

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

Departmentalization by function allows employees opportunity to further develop their skills.

Mini-Case Angelica Canizales is the CEO of Mucho Dinero Enterprises.Sales have declined for four consecutive years and the firm's accountants have reported net losses in each of the last two years.Employees appear demoralized and frustrated.Recently,Angelica met with managers from marketing,production,and finance to listen to their views regarding the company's problems.The managers unanimously agreed that the main problem was a lack of communication between the several functional areas of the business.Each manager felt that the firm could increase quality and customer satisfaction with better interdepartmental communication.Angelica also met with marketing and production employees to get their respective opinions on the problems of the firm.One employee from the production department observed that,"We have so many layers of management that it takes forever to make decisions." An employee from marketing complained that,"This place is so bogged down with rules and regulations that there is no opportunity to be creative." Several employees shared their opinions regarding their bosses.Specifically,one employee expressed "My boss never pays attention to my ideas.He just issues orders and expects me to obey them." Angelica decided,after listening to many comments from employees,suppliers,and customers,that the only way to end Mucho Dinero's slide was to completely rethink the firm's structure and to make radical changes in its organization.She presented her ideas to the board of directors,promising to voluntarily resign if her efforts to reorganize did not return the firm to profitability. -Employee complaints that there are too many layers of management and too many rules and regulations suggest that Mucho Dinero is a(n) :

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.

Within its production department,Sooner Manufacturing has shift leaders,supervisors,assistant plant managers,plant managers,product group managers,assistant division managers,division managers,an assistant vice president for production,and a vice president in charge of production.Given its multiple layer management structure,Sooner Manufacturing is an example of a(n) ____________ organization.

Kate holds a middle management position with a large corporation.She prefers to involve her subordinates in decision-making.She also favors allowing workers a fair amount of flexibility in how they do their jobs.Kitty's approach to management exemplifies the principles first popularized by Max Weber.

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.

When management structures the organization,it clarifies who gets to make decisions,how many people report to one manager,and how many different departments the company needs in order to operate effectively.

The Internet makes "real time" availability of data possible.

In Weber's view of a bureaucratic organization,the role of top management was to:

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

According to Fayol's principle of Authority,if you have authority you also have responsibility.