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Exam 9: Adapting Organizations to Todays Markets

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Question 21

Multiple Choice

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Tamika works for a pharmaceutical company that services hospitals,doctors and consumers.Her company should departmentalize by which of the following ways?

A) product
B) function
C) customer group
D) process

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

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Question 22

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Fayol's principle of esprit de corps says that employees should be divided into small groups that can be directed efficiently by a single manager.

A) True
B) False

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Question 23

Multiple Choice

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The _____________ consists of the relationships that develop spontaneously as employees meet and form power centres.

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

The more complex the job,the narrower the span of control.

Management begins with planning.

A study at the Mars Hotel Corporation identified poor employee morale.These workers are frustrated by their inability to deal directly with customers' concerns and complaints.These employees feel that if they were empowered with the authority to make decisions,customer satisfaction would dramatically increase.This illustrates one of the disadvantages of decentralized authority.

The matrix organizational structure was created as a response to changes in the railroad industry.

The informal organization of a business can help generate creative solutions to short-term problems.

Within its production department,Sooner Manufacturing has shift leaders,supervisors,assistant plant managers,plant managers,product group managers,assistant division managers,division managers,an assistant vice president for production,and a vice president in charge of production.Given their multiple layer management structure,Sooner Manufacturing is an example of a ____________ organization.

The business operations of the XYZ Corporation are complex,requiring a great deal of planning and coordination.The span of control for the managers of the XYZ Corporation is likely to be:

A diverse corporate image is one of the disadvantages of a decentralized business organization.

Fayol's ____________ principle says that a spirit of pride and loyalty should be created among people within an organization.

Describe benchmarking,and how it can be used?

What are the benefits for employees of departmentalization by function?

Organizations that require consistent production standards to help create a high quality public image would tend to favour:

A tall organization structure consists of multiple levels of management.

An advantage of a tall organization is that it ensures fast and efficient communication throughout the organization.

Line organizations clearly define the lines of authority and responsibility.

In a(n) _____________ organization,decision-making authority is maintained at the top level of management.