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Exam 7: Creating a Flexible Organization

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Question 31

Multiple Choice

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Galvin Corporation provides institutional food facilities with bread and other baked goods.The company does not actually produce or market the bread,and it has very few employees,most of whom are top executives or clerical workers.Galvin Corporation has a(n) ____ organizational structure.

A) matrix
B) line-and-staff
C) network
D) informal
E) line

F) A) and D)
G) A) and E)

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Question 32

Multiple Choice

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The president of Digital Equipment Corporation discovered that his company was having a problem with counterproductive product groups who were working selfishly rather than cooperating with one another.To solve the problem,he combined the company's twelve U.S.product groups into three regional management centers.This solution is referred to as departmentalization by

A) location.
B) function.
C) product.
D) customer.
E) objective.

F) A) and E)
G) A) and B)

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Question 33

True/False

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After years of research,theorists have decided that the optimal span of management is one manager per twenty employees.

Victor Green has been working at The Bicycle Superstore for about two weeks.This morning he noticed that the store's inventory on bicycle tire repair kits is out,but he is unsure of whom he should report to for approval to place an order for more kits.Victor is unclear about the

Gehrig is the office manager of a business with 20 employees.He gives the employees their work,attempts to organize them into work teams,provides their employee reviews every quarter,and addresses their personal issues as they relate to the business.Wayne is an employee in Gherig's department.Wayne knows every employee by name.He organizes parties for the staff,collects gifts for families going through difficult times such as illness of a family member,arranges people to take care of personal responsibilities for an employee who is having a baby,and sends flowers to the new parents on behalf of the office.When he asks people to help,they do so willingly.What is Wayne's position in the organization?

Most large organizations use

Through informal talks with employees,managers realized employees thought their plant would close,resulting in massive layoffs.A few were already seeking other employment.The managers responded promptly and aggressively to this rumor,assuring employees of the health of the corporation and the reasonable security of their jobs.Your managerial know-how tells you that these managers are attempting to

Mitchell has worked for a very large company for three years.During lunch one day he stood at the elevator and read the building directory.He noticed that all of the accounting staff for his business was grouped on one floor,all of the legal personnel were on the floor above his,the CEO and his staff were on the top floor,the marketing and advertising departments on the floor under his,and the sales department on the floor under marketing and advertising.How is Mitchell's business departmentalized?

Using more than one basis for departmentalization is the rule rather than the exception for larger firms.

Jazmine and Estephanie work for a company where employees have a high degree of autonomy,flexibility and equality.Most of them have friends and other activities they participate in outside of the company and very few make friends at work.They all enjoy their work because it gives them the opportunity to do what they know how to do in the manner they determine to be the best,however the general feeling is that they work "at" the company but not "for" it.What kind of company culture does this company have?

Corporate culture has little real influence on the performance of a firm.

The ____ structure is considered the simplest and the oldest form of organizational structure.

A basic difference between line managers and staff managers is that line managers have ___ which staff managers rarely have.

A computer manufacturer is first divided into the following groups: Home Office/Personal Use,Small Business,Large Business,and Educational Institutions.Within each of these divisions,management is organized into finance,operations,marketing,and human resources.This company is organized first by ____,then by ____.

The inner rites,rituals,heroes,and values of a firm make up its corporate culture.

Citibank has one group of loan officers who handle consumer loans and another group who work in the commercial loan area.Grouping work units this way is known as departmentalization by

It is important that every company use only one departmentalization basis.

One's duty to do a job or perform a task is called

Managers within a line structure are typically known as staff managers.

What does it mean for a manager to have a wide span of control? Would you expect the span of control to be wide or narrow when subordinates are highly trained professionals? Support your answer.