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Exam 9: Structuring Organizations for Todays Challenges

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Question 1

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A hierarchy requires many top managers,but only a few middle managers.

A) True
B) False

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Question 2

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A virtual corporation refers to a permanent network of firms linked by high-tech communication systems.

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B) False

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Weber believed that large organizations required everyone to precisely follow the established rules and guidelines.

Organizing a business begins with:

The more standardized the work,the wider the span of control.

Milton Learning Centres is a private firm specializing in helping students with learning problems.Located around the country,each centre employs a manager and several tutors and counselors.The counselors and tutors have a great deal of flexibility to design programs specifically for individual students.In fact,these first-line employees are considered to be the key people in the organization,and the manager's main function is to assist these employees in matters such as scheduling and securing necessary materials.This type of arrangement suggests that Milton is an inverted organization.

An organizational hierarchy establishes one person at the top of an organization.

In a line and staff organization,staff positions are entry jobs to train new line managers.

Departmentalization by function is a grouping of workers based on similar skills,expertise,or resource use.

A firm's informal organization refers to the structure that identifies the authority,responsibility,and position of people within the organization.

The degree to which an organization allows lower level managers to make decisions determines the degree of decentralization.

Which of the following describes a group of employees from different departments working together on a long-term basis?

Bureaucratic organizations establish rules and regulations that everyone is expected to follow.

Whirlpond,a manufacturer of home appliances,has historically produced the components for their products.However,Whirlpond now contracts with other firms to produce these components.This strategy of________ appears to be a trend among Canadian manufacturers.

Including customers and suppliers on self-managed teams violates the interests of stockholders.

The Nutmeg Soccer Club has just decided to outsource its accounting work.This suggests that executives at Nutmeg do not believe that accounting is one of the firm's core competencies.

Departmentalization is the dividing of organizational functions into separate units.

Matrix organizations give managers flexibility in assigning people to projects.

Transparency allows two companies to work more efficiently together.

The matrix organization structure is costly and complex.