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Exam 8: Adapting Organizations to Todays Markets

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Question 171

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

A) True
B) False

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Question 172

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Clear communication between workers and keeping order in materials and people are included in Fayol's principles.

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B) False

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Question 173

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Henri Fayol and Max Weber are best known for their contributions to accounting theory.

Departmentalization is the dividing of organizational functions into separate units.

When management structures the organization,it makes decisions about which products and services it will offer and how it is going to finance the company.

Which of the following is considered to be a disadvantage of functional departmentalization?

Most companies are no longer self-sufficient or self-contained.

Small business organizations lack the size required to reap the benefits of labor specialization.

Although a firm may experience better cost controls through departmentalization,it may not increase its responsiveness to customer needs.

As a manager of a retail-clothing store,Lance favors detailed job descriptions,formal rules and regulations,detailed records,and standardized procedures.He also believes that staffing and promotion decisions should be based strictly on the qualifications of the people under consideration.Lance's attitudes suggest that he is strongly influenced by the ideas of:

A virtual corporation refers to a permanent network of firms linked by high-tech communication systems.

Weber promoted the idea of the pyramid-shaped organization structure for large businesses.

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

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.

The traditional technique used to departmentalize an organization is by:

A(n) __________ consists of one person at the top of the organization and many levels of managers who are responsible to that person.

Which of the following factors help determine a manager's span of control?

Joel,an employee of the engineering department,was temporarily assigned to work with specialists from other departments to develop a new product.Upon completion of this project,Joel returned to his position in the engineering department.This arrangement illustrates the use of a cross-functional team.

In a statement reported in the New York Times,Lars Bjork,CEO of Qliktech,remarked that he appreciates the order that bureaucracy can bring to an organization;however,when adding order to a process,the employees involved need to understand why that order is being implemented.It has to make sense.With this in mind,which of the following statements would be of great concern to this CEO?

In today's business environment,the trend is to decrease the span of control.