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Exam 8: Adapting Organizations to Todays Markets

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Question 81

Multiple Choice

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Organizing a business begins with:

A) acquiring the necessary resources.
B) choosing the best qualified employees.
C) developing an efficient plan of action.
D) determining the work to be done.

E) A) and B)
F) A) and C)

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Question 82

Multiple Choice

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Chang is a project manager at Paradox Industries.He is able to borrow specialists from the organization on a regular basis to assist in major projects.After the project ends,the specialists return to their functional units to await new assignments.Paradox Industries utilizes a:

A) line organization model.
B) bi-functional organization model.
C) lateral transfer organization model.
D) matrix organization model.

E) B) and C)
F) None of the above

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Question 83

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Jason is a self-employed patent attorney.These days he is seldom without work.Large corporations hire him on an as-need basis to review prospective ideas and help with securing patents for a variety of inventions including surgical instruments,medicines,and high tech gadgets.Once he secures a contract,he knows approximately how many weeks or months he will work.Jason works for virtual corporations. A virtual corporation has no legal ties to the companies that perform a variety of jobs for the core firm - things such as distribution,legal work,accounting,manufacturing,and production.They hire other companies on an as needed basis.

Including customers and suppliers on cross-functional teams violates the interests of stockholders.

One disadvantage of the matrix style of organization is that it is more difficult to keep development projects on schedule.The model slows down the time from design,to production,and then to market. Matrix Style Organization was purposely designed to expedite projects from conception to market.The model eliminates the communication problems that line and line-and-staff models experienced when trying to develop a product and get it to market.

A bureaucracy is designed to be customer focused.

Departmentalization by function typically increases the cost of doing business.

Fayol's ____________ principle says that tasks should be divided into areas of specialization.

The basic idea behind the organization design of Fayol and Weber was that management wanted to control workers.

The optimum number of subordinates a manager should supervise is referred to as the span of control.

Cross-functional self-managed teams work best when _______________.

________ refers to the process of dividing organizational functions (sales,production,accounting/bookkeeping) into separate units.

Discuss Max Weber's views on organization theory.

Henri Fayol and Max Weber are best known for their contributions to accounting theory.

If companies follow the theories of Fayol and Weber,which of the following scenarios is likely to result?

A line organization in a large business often suffers from excessively slow lines of communication.

Departmentalization is the dividing of organizational functions into separate units.

The ___________ is the nerve center of the informal organization.

A flat organizational structure is designed to be more responsive to the needs of management.

A tall organization structure consists of multiple levels of management.