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Exam 8: Structuring Organizations for Todays Challenges

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Question 141

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Which of the following describes the activity of a firm that assigns specific functions, such as accounting or legal work, to other organizations rather than performing these functions themselves?

A) Functional sharing
B) Outsourcing
C) Benchmarking
D) Virtual distribution

E) A) and D)
F) All of the above

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Question 142

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In an inverted organization, the job of management is to:

A) closely monitor employee performance.
B) establish rules and regulations to guide worker behavior.
C) make all of the basic decisions.
D) assist and support front-line people.

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

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Question 143

Multiple Choice

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__________ believed that managers were trustworthy and companies would do well if employees simply did what they were told

In a capitalist economy, organizations seldom reorganize due to changing markets.

The proven success of job specialization lies in the fact that:

Barclay developed two interactive computer games. He didn't do it entirely alone. Last year he started a small company, and hired two programmers and a marketing graduate. He considers himself a cutting-edge kind of guy and wants to position his company the same way. He solicits your advice as to how he should structure his organization as he moves forward, and you suggest that he hire a few potential customers to join his team of employees as product testers. And, you suggest, maybe he should solicit globally. The structure you have described would simulate a line-and-staff organization.

HipHop Music Company assigns workers to departments based on similar skills. Currently, the company has a marketing department, a production department, a finance department, and a human resources department. This suggests that HipHop departmentalizes by:

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

Empowering employees to better serve customers requires __________ front-line employees

While staff personnel have the authority to make policy decisions, line personnel have the authority to advise and make suggestions.

The success of the firm often depends on assigning the right tasks to the right person.

As a new employee in a bureaucratic organization, Nelle can expect a great deal of independence and authority.

Which of the following determines the degree of decentralization of a firm?

The process of setting up individual functional units of the business to do specialized tasks is called:

Rob is a middle manager who spends much of his time devising ways to implement the ideas of top management. Max Weber would have considered Rob a bureaucrat.

Centralized authority provides for the delegation of authority to employees who are then better able to respond to customers' needs.

In Weber's view of a bureaucratic organization, the role of top management is to:

A bureaucracy is an organization with many layers of managers who set rules and regulations and oversee all decisions.

A matrix team for an aerospace company may consist of a project manager, a finance expert, a marketing specialist, a member of production, and two design engineers.

Which of the following is an example of a move to reorganize?