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Exam 8: Structuring Organizations for Todays Challenges

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Question 181

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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.

A) True
B) False

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Question 182

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In an) _____________ organization,decision-making authority is concentrated at the top level of management.

A) bottom-up
B) decentralized
C) inverted
D) centralized

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

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Question 183

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Explain the difference between a firm's formal organization and its informal organization.Why are both types of organization important to managers?

An advantage of departmentalization is "groupthink".

Because top managers supervise the firm's most talented workers,they generally have a broader span of control than middle or first line managers.

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

From her discussions with employees,Angelica learned quickly that production workers put their trust in 20-year veteran Willie McClaren.Many people told her that if you wanted something done,Willie was the person to see.Willie appears to be an important part of the:

Small businesses often use a line organization model.

In 2011,CNN reported that NCR National Cash Register Company) had hired 500 workers to build ATM machines and self-service check-out counters at a plant in Columbus,GA,with plans to hire several hundred more employees by 2014.In the past,these machines were built in Hungary,China,and Brazil.Both shipping costs and quality control were cited as the reasons these companies have elected to change production strategy to ______________.

Companies have learned that working transparently through real time networks has provided competitive advantages in the marketplace.

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

Which of the following positions would be classified as a staff position?

Bureaucratic organizations are structured to empower employees and please customers.

Rob is a middle manager who spends much of his time devising ways to implement the ideas of top management.Max Weber would have considered Rob a bureaucrat.

Jack just learned that several persons in Arizona became ill from the peanut butter they ate that was produced and bottled in his plant.As he walks the back stairs at the plant,he ponders,"It's time to get the informal organization in on this.We've got to stop this in its tracks!" Jack is taking the right approach to solving this serious problem.

As your good friend ponders putting some structure to his/her graphic design business idea,which of the following do you not advise him/her to do?

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

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.

Angelica's decision to completely redesign Mucho Dinero's organization indicates that she believes the best approach to her firm's problems is:

A bureaucratic style of organization is slow when responding to change.