Chapter 8 Study- Intro to Business – Flashcards

A tall organization structure consists of multiple levels of management.

A(n) __________ consists of one person at the top of the organization and many levels of managers who are responsible to that person.

According to the Adapting to Change box titled "When Open Communication Should Not Be So Open," France is considering legislation to block work e-mails and phone calls to allow workers time to rest.

According to the Spotlight on Small Business box titled "Cutting Back While Cutting Costs," the growth of small business outsourcing can be attributed to the presence of online job marketplaces.

Departmentalization is the dividing of organizational functions into separate units.

Economies of scale:

Fayol's _____________ principle states that each worker should report to one, and only one, boss.

In a bureaucratic organization:

Joel, an employee of the engineering department, was temporarily assigned to work with a team of specialists from other departments to develop a new product. Upon completion of this project, Joel returned to his position in the engineering department. This arrangement illustrates the use of a cross-functional team.

Last week at Happy Trails Financial Services Company, all financial advisors who serve more than 150 clients each received a notice from the VP of Operations that every client's investment portfolio should consist of 50% individual stock purchases, 25% bonds, and 25% property. Advisors were ordered to review all client portfolios for compliance to this directive. Clearly, Happy Trails is an inverted organization because management directives such as the one described are very common.

Matrix organizational structures were first developed in:

Outsourcing involves assigning various functions to outside organizations.

Rapid Response Security Firm, a company that provides on-site security services for malls and other retail environments, needs to review current procedures used by its professional officers to make certain they are in compliance with new laws. On crucial issues such as this, it is more important to gather information through the informal organization, as opposed to the formal organization

Successful managers will find the balance between promoting the informal organization and maintaining a formalized structure, as well.

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

The grapevine refers to the formal channel used for confidential communications between members of top management.

The informal organization of a business can help generate creative solutions and inspire teamwork and camaraderie.

The optimum number of subordinates a manager can supervise is referred to as the:

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

Today's preference for flat rather than tall organization structures is mainly due to a flat organization's ability to:

When we experience economies of scale, this means that as production levels rise (we make more of something), the cost of supplies and the cost of labor that go into the production go down.

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

Which of the following is considered to be a disadvantage of functional departmentalization?

Which of the following statements explains the unity of command principle of management?

Which of the following statements would best summarize Max Weber's views on the role of workers in an organization?