Exam 8: Structuring Organizations for Todays Challenges

New technology such as the Internet has opened up opportunities for firms to sell to new markets.

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:

Barclay developed two interactive computer games. He didn't do it entirely alone. Last year he started a small company, hired two programmers, and a marketing graduate. He considers himself a cutting-edge kind of guy and wants to position his company the same. Soliciting your advice as to how he should structure his organization as he moves forward, you suggest that he hire a few potential customers to join his team of employees as product testers. And, maybe he should solicit globally. The structure you have described would simulate a line and staff organization.

As a new employee in a bureaucratic organization, Nancy can expect a great deal of independence and authority.

If there are several steps in getting the product to its final state, the company may choose to departmentalize by process.

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

Alleta Publishing Company, Inc. is considering the use of cross-functional teams. In order to be most effective, Alleta should include customers as members of the teams.

The management at Patriot Mills works hard to ensure that no one in its organization has more than one boss and all workers are treated with fairness and respect. Additionally, the firm divides the work into areas of specialization so that everyone knows to whom they should report. The management of Patriot Mills reflects the ideas and principles of:

Job specialization is known to:

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.

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.

Line managers issue orders, enforce discipline, and adjust the organization as conditions change.

In the Making Ethical Decisions box, titled, "Safety versus Profit", which of the following statements best forms the theme of this passage?

International Inns and Conference Centers [IICC], a national chain of professional event centers utilizes a centralized authority structure. Which of the following provides the most likely explanation for why management at IICC would favor centralized authority?

Sam supervised a group of people in a very large organization. The refrigerator in the lunchroom stopped functioning. Although he started the paperwork on the day it died, the refrigerator request went out for bid; two middle managers needed to approve it; and, the purchasing director had final approval. The refrigerator arrived six months later. Max Weber would have approved of the detail and documentation Sam's company accumulated to back-up the purchase.

One of Fayol's principles suggests that managers should have the right to give orders and expect others to follow.

A matrix organization produces an environment that discourages cooperation and teamwork.

The grapevine refers to the formal channel used for confidential communications between members of top management.

The team experts in a matrix organization remain part of the traditional line-and-staff structure.

is the term used to describe those functions that a firm can do as well or better than others. It agrees to perform these functions in-house, rather than outsourcing.