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Exam 8: Structuring Organizations for Todays Challenges

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Question 91

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A bureaucracy is designed to be customer focused.

A) True
B) False

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Question 92

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The process of creating individual departments to do specialized tasks is called departmentalization.

A) True
B) False

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Question 93

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The informal organization of a business can help generate creative solutions and inspire teamwork and camaraderie.

Span of control refers to the number of different markets a business can serve efficiently.

Cross-functional teams work well when leadership of the team is shared.

The very best organizations have cultures that emphasize service to others, especially customers.

It is strategically not sensible for a firm to consider asking suppliers and customers to join a cross-functional self-managed team that is testing iterations of future products.

The informal organization is created by the decisions of top management.

The purpose of Weber's and Fayol's principles was for the benefit of management, as opposed to pleasing customers.

HairTrend, a cosmetology trade publication, utilizes the resources of other organizations as needed. Business relationships are temporary and flexible. HairTrend is a networked organization made up of replaceable firms that join the network and leave it as needed. This unique organization is an example of:

An organization that consists of many layers of management is referred to as a(n) ____________ organization

Bill, a financial manager at Carlyle Bank and Trust, always strives to treat each subordinate with respect and fairness. Bill's treatment of employees is an example of Fayol's principle of:

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

In today's competitive environment, cost containment is extremely important to survival. Which of the following increases efficiency in the production and distribution of goods?

Digital natives, those who grew up with the Internet, are an important customer group that most businesses want to reach.

Ben was confident that sports fans would fill the seats in his brewery restaurant after major league baseball games if they just knew about the place. After all, he offered convenience, easy walking distance, great local talent for entertainment and several fresh premium brews. He decided to join sites such as Twitter and Facebook, and offer wireless services and lunch for afternoon customers. These are worthy strategies for reaching digital natives.

Jesse started a successful telecommunications company that provided voicemail services to business clients in the Midwest. As the business grew, Jesse added functional departments including a marketing department and an accounting department. After a few years, he realized that employees who specialized in these areas no longer shared knowledge with each other in the same way they did when the operation was smaller. As one of Jesse's business consultants, you explain that as the company grows taller, it cannot avoid this pitfall, and he should focus on continued functional departmentalization, especially if he supports innovation and learning.

Gary was a politically savvy employee who had worked for his company for several years. After many promotions, he emerged as the new president of the company. Grace, a colleague of Gary's who had reported to him when he was a first-line supervisor, understood how the human side of the organization worked and made certain that she maintained a direct line of communication with Gary at all times. On the company's organization chart, Grace maintained a lower-level position; however, due to her open line of communication with President Gary, she seemed to successfully push her agenda. The human side of the organization is synonymous with the _________________

Blake is a manager at a car seat manufacturing company. He believes that it is very important and less confusing if each worker has only one boss. Blake's view is consistent with Fayol's unity of command principle.

What is a matrix organization? What advantages and disadvantages are associated with this type of organization?