Chapter 8 Study- Intro to Business Essay

question

A tall organization structure consists of multiple levels of management.
answer

TRUE
question

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

hierarchy
question

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.
answer

TRUE
question

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.
answer

TRUE
question

Departmentalization is the dividing of organizational functions into separate units.
answer

TRUE
question

Economies of scale:
answer

are achieved when a firm reduces its average cost of production as it produces more. can be avoided by purchasing supplies and raw materials in large quantities. help explain the success of small businesses.
question

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

unity of command division of labor unity of command esprit de corps comparative advantage
question

In a bureaucratic organization:
answer

employees follow strict rules and regulations. departments communicate with each other on a regular basis. employees follow strict rules and regulations. customer satisfaction is the number one priority. first-line workers are empowered to respond to the needs of customers.
question

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.
answer

FALSE
question

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.
answer

FALSE
question

Matrix organizational structures were first developed in:
answer

the aerospace industry.
question

Outsourcing involves assigning various functions to outside organizations.
answer

TRUE
question

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
answer

FALSE
question

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

TRUE
question

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

TRUE
question

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

FALSE
question

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

TRUE
question

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

span of control
question

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

departmentalization
question

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

respond readily to customer demands. increase sales through multiple customer contacts by several layers of management
question

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.
answer

TRUE
question

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

The degree to which lower-level management is empowered to make decisions.
question

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

There may be a lack of communication among the different departments.
question

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

Workers can become frustrated and confused if they have more than one boss.
question

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

Workers should simply follow well-defined procedures.

Get instant access to
all materials

Become a Member