Exam 6: Organizing the Business

Authority is the duty to perform an assigned task.

Everyday social interactions among employees that transcend formal jobs and job interrelationships are called the ________.

Briefly explain the steps in the delegation process.

For the delegation process to work smoothly,responsibility and authority must be equivalent.

Reporting relationships within the company shown on the organization chart as solid lines are defined as the ________.

To avoid bureaucracy within the organization,most large organizations tend to adopt the same types of departmentalization for all levels.

The specification of the jobs to be done within an organization and the ways in which those jobs relate to one another is called ________.

Define job specialization.

When a firm has one division for the United States,one for Europe,and another for Asia,the firm is departmentalized according to ________.

As a small organization grows,so does the need to ________.

List and describe three advantages of a divisional structure.

Flat organizational structures are usually associated with centralized decision making.

Jack Welch,former CEO of General Electric,stated,"If you don't let managers make their own decisions,you're never going to be anything more than a one-person business." Welch was likely a proponent of ________ management.

Specialists in law,accounting,and human resource management are commonly called ________.

Divisional structure is relationships between group functions and activities that determine authority.

Short Case Scenario 6-1 Steffi Graf has assumed leadership of Ace Products after many years of loyal service. Ace Products is an international manufacturer of copiers, printers, and fax machines. Historically, their customers have fallen into four groups: hospitals, small businesses, airlines, and state and local governments. After talking with her daughter, who has just completed her business degree, Steffi is beginning to wonder if reorganizing would benefit Ace Products. The organization chart shows that there is a Vice-President of Manufacturing, Vice-President of Accounting and Finance, and a Vice-President of Marketing; they all report to the President of Ace Products. -How might a divisional structure benefit Ace products?

Line departments are linked directly to the production and sales of a specific product.

The building blocks of all organizations are specialization and centralization.

Rubbermaid has used ________ to create and maintain the innovation and flexibility of a small business environment within the large,bureaucratic structure.

Tall organizational structures are prone to delays in information flow.