Question 1

Bureaucratic organizations are not very responsive to customers.

Accepted Answer

A) True 
 B)False

Question 2

Max Weber believed that promotion should be based solely on seniority.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is an advantage of a line organization in a large business?

Accepted Answer

A)  It does not require specialists to advise people along the line. 
B)  Responsibility and authority are clearly defined. 
C)  Each worker has several supervisors. 
D)  It is very flexible.

Question 4

Restructuring involves the redesign of an organization to be more responsive to customers.

Accepted Answer

A) True 
 B)False

Question 5

The main difference between a matrix-style organization model and a cross-functional team is:

Accepted Answer

A)  the matrix model has a limit on the number of functional units who send an expert to join the team, whereas the cross-functional team does not. 
B)  the matrix model is a temporary arrangement, whereas the cross-functional team is a more permanent arrangement. 
C)  the matrix model shares leadership responsibilities within the group, whereas the cross-functional team does not. 
D)  the matrix model is a more permanent arrangement, whereas the cross-functional team is a temporary arrangement.

Question 6

Baby Boomers are often referenced as digital natives.

Accepted Answer

A) True 
 B)False

Question 7

Most businesses adopt a bureaucratic organization in order to speed up their decision-making process.

Accepted Answer

A) True 
 B)False

Question 8

Companies benefit today from interfirm cooperation. One of the ways they cooperate is through networking. Another way is by seeking technological knowledge and learning new processes from exemplary firms sometimes outside their own industries. We call this:

Accepted Answer

A)  competency capturing. 
B)  technology swapping. 
C)  benchmarking. 
D)  broadening the knowledge base.

Question 9

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:

Accepted Answer

A)  John M. Keynes. 
B)  Peter Drucker. 
C)  Karl Marx. 
D)  Henri Fayol.

Question 10

The line of authority that moves from the top of a hierarchy to the lowest level is called the:

Accepted Answer

A)  chain of logic. 
B)  chain of command. 
C)  organizational design. 
D)  delegation of contingent authority.

Question 11

Outsourcing has become commonplace, particularly when organizations want to focus on core competencies.

Accepted Answer

A) True 
 B)False

Question 12

Buzzoff Co. is a medium-sized organization, organized with well-defined lines of authority and responsibility. Each employee reports to only one boss. The managers at Buzzoff complain that they have no expert support staff available to offer legal advice. Lately opportunities are slipping through the cracks due to inefficient long lines of communication. These characteristics suggest that Buzzoff employs a matrix organization.

Accepted Answer

A) True 
 B)False

Question 13

A bureaucracy empowers employees to quickly respond to customers' wants and desires.

Accepted Answer

A) True 
 B)False

Question 14

The functions that a company can perform as well as or better than anyone else in the world are known as that firm's optimized capabilities.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A)  centralized authority 
B)  decentralized authority 
C)  hybrid authority 
D)  origination authority

Question 16

When Brian started his auto mechanic shop, his business plan included a(n) _______________ that showed the relationships among employees in his organization and the lines of authority and responsibility

Accepted Answer

A)  business view map 
B)  department categorization 
C)  organization chart 
D)  operating matrix grid

Question 17

The driving force behind the change in business organizations is the change in consumer expectations.

Accepted Answer

A) True 
 B)False

Question 18

The design of a bureaucratic organization assumes a well-educated workforce.

Accepted Answer

A) True 
 B)False

Question 19

The matrix organization model brings together experts from different functional units of the firm to work on specific projects.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 8: Structuring Organizations for Todays Challenges

Bureaucratic organizations are not very responsive to customers.

Max Weber believed that promotion should be based solely on seniority.

Which of the following is an advantage of a line organization in a large business?

Restructuring involves the redesign of an organization to be more responsive to customers.

The main difference between a matrix-style organization model and a cross-functional team is:

Baby Boomers are often referenced as digital natives.

Most businesses adopt a bureaucratic organization in order to speed up their decision-making process.

Companies benefit today from interfirm cooperation. One of the ways they cooperate is through networking. Another way is by seeking technological knowledge and learning new processes from exemplary firms sometimes outside their own industries. We call this:

The line of authority that moves from the top of a hierarchy to the lowest level is called the:

Outsourcing has become commonplace, particularly when organizations want to focus on core competencies.

A bureaucracy empowers employees to quickly respond to customers' wants and desires.

The functions that a company can perform as well as or better than anyone else in the world are known as that firm's optimized capabilities.

When Brian started his auto mechanic shop, his business plan included a(n) _______________ that showed the relationships among employees in his organization and the lines of authority and responsibility

The driving force behind the change in business organizations is the change in consumer expectations.

The design of a bureaucratic organization assumes a well-educated workforce.

The matrix organization model brings together experts from different functional units of the firm to work on specific projects.

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