Question 1

The Nutmeg Soccer Club outsourced its accounting work. This suggests that management at Nutmeg does not believe that accounting is one of the firm's core competencies.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Because top managers supervise the firm's most talented workers, they generally have a broader span of control than middle or first-line managers.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following statements most closely identifies the problem with adopting Fayol's principles of organization design for contemporary businesses?

Accepted Answer

A)  Leaving some decision-making power to middle management has the effect of minimizing the effort and results that management would put into the other historical principles of organization. 
B)  The rule making that develops from these principles creates organizations that don't respond quickly to customer needs. 
C)  The principles of Fayol and Weber hamper a firm's ability to determine if it is profitable. 
D)  Authority and responsibility quickly become unrelated.

Question 5

To avoid losing that small company feel, fast growing companies try to maintain a flat organization structure.

Accepted Answer

A) True 
 B)False

Question 6

Team participants in a matrix organization model may report to two managers at one time.

Accepted Answer

A) True 
 B)False

Question 7

Departmentalizing by customer group has proven ineffective.

Accepted Answer

A) True 
 B)False

Question 8

The Spotlight on Small Business box titled "Cutting Back While Cutting Costs" discusses the decline of outsourcing jobs in the small business sector. Outsourcing is just for big business.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

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.

Accepted Answer

A) True 
 B)False

Question 11

Fayol believed that managers should treat employees and peers with respect and justice.

Accepted Answer

A) True 
 B)False

Question 12

One of the most difficult management challenges today is managing change. This is because:

Accepted Answer

A)  change requires cooperation and an awareness of a need for change. 
B)  change requires a lot of bail-out money from the government. 
C)  change requires decentralization of decision making. 
D)  change will invariably result in an inverted organization and management does not want to relinquish its position power in order to make that happen.

Question 13

Staff positions in an organization:

Accepted Answer

A)  support and assist the line positions. 
B)  are superior to line positions. 
C)  are less well-paid than line positions. 
D)  are ways to employ past CEOs until they retire.

Question 14

Explain the difference between a firm's formal organization and its informal organization. Why are both types of organization important to managers?

Accepted Answer

The answer of Explain the difference between a firm's formal...

Question 15

In an inverted organization, the purpose of management is to assist and support the decisions of employees who work directly with customers.

Accepted Answer

A) True 
 B)False

Question 16

Economies of scale:

Accepted Answer

A)  are available to small firms but not to large firms due to management inefficiencies. 
B)  are achieved when a firm reduces its average cost of production as it produces more. 
C)  can be avoided by purchasing supplies and raw materials in large quantities. 
D)  help explain the success of small businesses.

Question 17

A(n) ________________ is a visual device which shows relationships among people and divides the organization's work

Accepted Answer

A)  organization chart 
B)  Venn diagram 
C)  corporate tree 
D)  Gantt chart

Question 18

In a _____________ organization, specialists from different parts of the organization are brought together on a temporary basis to work on specific projects

Accepted Answer

A)  matrix 
B)  line 
C)  line-and-staff 
D)  centralized

Question 19

A flat organization is less likely to respond quickly to customer needs.

Accepted Answer

A) True 
 B)False

Question 20

Fayol's principle of the division of labor says that functions should be divided into areas of specialization such as production, marketing, and finance.

Accepted Answer

A) True 
 B)False

Exam 8: Structuring Organizations for Todays Challenges

The Nutmeg Soccer Club outsourced its accounting work. This suggests that management at Nutmeg does not believe that accounting is one of the firm's core competencies.

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

Because top managers supervise the firm's most talented workers, they generally have a broader span of control than middle or first-line managers.

Which of the following statements most closely identifies the problem with adopting Fayol's principles of organization design for contemporary businesses?

To avoid losing that small company feel, fast growing companies try to maintain a flat organization structure.

Team participants in a matrix organization model may report to two managers at one time.

Departmentalizing by customer group has proven ineffective.

The Spotlight on Small Business box titled "Cutting Back While Cutting Costs" discusses the decline of outsourcing jobs in the small business sector. Outsourcing is just for big business.

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

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.

Fayol believed that managers should treat employees and peers with respect and justice.

One of the most difficult management challenges today is managing change. This is because:

Staff positions in an organization:

Explain the difference between a firm's formal organization and its informal organization. Why are both types of organization important to managers?

In an inverted organization, the purpose of management is to assist and support the decisions of employees who work directly with customers.

Economies of scale:

A(n) ________________ is a visual device which shows relationships among people and divides the organization's work

In a _____________ organization, specialists from different parts of the organization are brought together on a temporary basis to work on specific projects

A flat organization is less likely to respond quickly to customer needs.

Fayol's principle of the division of labor says that functions should be divided into areas of specialization such as production, marketing, and finance.