Exam 6: Organizing the Business

Authority that flows up and down the chain of command is called ________.

Describe what size company would encourage intrapreneuring.

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. -Steffi has wondered about the informal organization at Ace.Describe how the informal organization may negatively affect the organization.

What is line authority?

According to the text,a profit center is a division of a company whose revenues exceed its expenses.

A team organization typically does not utilize functional hierarchy.

Employee's abilities and the supervisor's managerial skills help determine whether span of control is wide or narrow.

If a company is using a functional structure,adapting to a temporary matrix structure is possible.

When the organization is divided according to production processes,it is referred to as ________.

Grouping jobs into logical units is called ________.

When several employees perform the same simple task,a narrow span of control is most appropriate.

Which of the following is NOT a disadvantage of specialized jobs.

Many businesses manufacture,purchase,and sell in the world market.They utilize a(n)________ organizational structure.

As organizations grow in size,it is both normal and necessary that they become at least somewhat flatter.

In a centralized structure,most decision-making authority is delegated to levels of management at various points below the top.

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. -Based on the organization chart described in the scenario,how is Ace Products organized?

The process of identifying the specific jobs that need to be done and designing the people who will perform them leads to ________.

Departments that resemble separate businesses in that they produce and market their own products are called ________.

Frequently,the informal organization effectively alters a company's formal structure.

Functional structure relies on product departmentalization.