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Exam 8: Adapting Organizations to Todays Markets

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Question 41

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

A) True
B) False

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Question 42

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

A) True
B) False

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Question 43

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The informal organization of a business is probably best suited to:

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

Assigning various functions that a firm might do for itself to outside organizations is known as competitive allocation.

By structuring the company with cross-functional teams,there is a greater chance that a business is more responsive to social trends affecting customer preferences.

Chang is a project manager at Paradox Industries.He is able to borrow specialists from the organization on a regular basis to assist in major projects.After the project ends,the specialists return to their functional units to await new assignments.Paradox Industries utilizes a:

One key to organizational success is to go back to basic principles and build the business on a sound foundation.

The process of setting up individual functional units of the business to do specialized tasks is called:

Cross-functional teams defy the trend towards customer-driven organizations.

As a result of rapidly changing markets and global differences in consumer tastes,more firms are considering centralized authority.

The matrix organization model brings together experts from different functional units of the firm to work on specific projects.

Competitive benchmarking compares a company's practices,processes,and products against others in its industry,with the goal of doing it better than the competition.

Line organizations often experience the problem of employees reporting to more than one boss.

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.

Max Weber's organizational theories require an educated work force to operate efficiently.

Eileen works in the human resources department of a corporation with several hundred employees.Her main function is to advise and assist managers in other departments,such as marketing and production,when they make staffing decisions.Eileen's position would be classified as a(n) ___________ position.

Buzzoff Corporation is a medium sized organization,organized with well-defined lines of authority and responsibility.Each employee reports to only one boss.The managers at Buzzoff complain that they have no expert support staff available to offer legal advice.Lately opportunities are slipping through the cracks due to inefficient long lines of communication.These characteristics suggest that Buzzoff employs a matrix organization.

An organization with only a few layers of management is known as a(n) :

Benchmarking requires organizations to compare each organizational function against the best in the world.