Exam 8: Adapting Organizations to Todays Markets

JayLo Corporation has experienced rapid growth during its five years of existence.While still relatively small,JayLo is now big enough that Jennifer,the firm's CEO,has decided to organize the firm into functional departments.Jennifer can likely expect which of the following to occur?

Economies of scale:

Span of control refers to the number of different markets a business can serve efficiently.

Matrix organization structures provide for more efficient use of organizational resources.

Weber believed that large organizations required everyone to follow the established rules and guidelines precisely.

The process of setting up individual departments to do specialized tasks is called job specialization.

In a capitalist economy,organizations seldom reorganize due to changing markets.

__________ refer to those functions that an organization does as well as,or better than,any other organization in the world.

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

Cross-functional teams serve as advisory committees offering their expertise to line decision makers.

The traditional way to departmentalize an organization is by geographical area served.

Empowerment works only when employees are given the proper training and resources to respond.

Correctly structuring a business organization allows managers to avoid delegating responsibility and authority to employees.

While adding structure to his graphic design business,including the allocation of resources for getting the job done,Jack knew that he would need to initially allocate a considerable amount of funds for the sales team to have face to face meetings with other businesses who needed website design and promotional materials.Since overall funds were limited,he worried about his employees using these funds for the stated purpose and in a manner that he would use them.As his business advisor,you explain:

Fayol's ____________ principle says that workers' attitudes would create an environment of pride and loyalty within an organization.

Which of the following is considered to be a disadvantage of functional departmentalization?

In today's fast-paced business environment,Weber's bureaucratic ideas work well.These principles permit business to respond quickly to customer changes. Max Weber's ideas worked well with a less educated workforce that did not make decisions.The bureaucratic model did not allow for immediate response to changing market conditions,and changing customer needs.

Because top managers supervise the firm's most talented workers,they generally have a broader span of control than middle or first line managers. At higher levels of management,the work becomes less standardized and there is a greater need for face-to-face communication.These factors tend to result in a narrow span of control for top managers.

An organization that consists of many layers of management is referred to as a(n)____________ organization.

To avoid losing that small company feel,fast growing companies try to maintain a flat organization structure. Large companies use flat structures to try to match the friendliness of small companies.