Unit 5: Set 1 (Bureaucracy) Flashcards

Terms Definitions
____________ organizations are characterized by many layers of management and function with well defined rules and procedures
a. Bureaucratic
Most businesses adopt a bureaucratic organization in order to speed up decision making
The design of a bureaucratic organization assumes a well educated workforce at all levels of the organization
A bureaucracy is designed to be customer focused
One of the attractive features of bureaucratic management is its flexibility and ability to change
After the Industrial Revolution, jobs mostly occurred in large, formal organizations where hundreds of people worked under one roof.
What does the bureaucratic, hierarchical paradigm do better?
a. reduce operations costs
Which of the following statements about bureaucratic organizations is false?
a. A bureaucracy is an organization with many layers of managers who set rules and
regulations and oversee all decisions;
b. A bureaucratic style of organization is slow when r
c. Bureaucratic organizations are structured to empower employees and please customers;
An employee in a bureaucratic organization can expect to be able to exercise a great deal of independence and authority
The larger a bureaucracy, the more rigid it becomes
Fayol's _____________ principle states that each worker should report to one, and only one, boss.
a. comparative advantage
b. departmentalization
c. division of labor
d. esprit de corps
e. unity of command
e. unity of command
A(n) ____________ consists of one person at the top of the organization and many levels of managers who are responsible to that person
b. Hierarchy
Organizational authority is traditionally characterized by ____.
a.Behavioral informality
b.Chain of command
c. Empowerment
d. Leadership
e. Reengineering
b. Chain of command
Which of the following determines the degree of decentralization a firm might use?
a. The chain of command used to follow the flow of authority from top of the hierarchy to
the lowest levels
b. The degree of product standardization desired by the market
c. The degree to which lower level management is empowered to make decisions
In firms with centralized authority, each department is treated as if it is a completely separate and independent organization.
The process of setting up individual functional units of the business to do specialized tasks is called
b. Departmentalization
Managing a growing business organization often required managers to create departments to accomplish various tasks
____ departmentalization is defined as organizing work and workers into separate units responsible for particular business functions or areas of expertise.
With divisions that focus on business clients and consumer clients, companies like Sprint, American Express, and others are examples of ____ departmentalization.
a. Costumer
The traditional way to departmentalize an organization is by geographical area serve
Which of the following statements about departmentalization is false?
a. Departmentalization by function allows employees an opportunity to develop their skills;
b. Departmentalization by function is a grouping of workers based on similar skills,
Organizations that utilize departmentalization benefit from improved communication
between different organizational departments.
Which of the following is an advantage of a matrix organization structure?
a. It creates clear and simple lines of authority b. It is a complex organization structure
c. It is much cheaper to staff than other organization models
d. It provides for effic
d. It provides for efficient use of organizational resources
23. Large businesses engaged in a variety of projects dealing either directly with customers or with
products geared to clearly defined markets
24. Small companies with a limited range of products
25. Very large corporations with a variety of businesses
23. Matrix organization
24. Functional
25. Divisional
Departmentalization by function typically reduces the costs of doing business
Managing a growing business organization often requires managers to create departments to accomplish various tasks
Departmentalization suffers from:
I. Slow response to external demands;
II. Unclear lines of authority;
III. Narrow specialization.
I and III
Match the organizational structure to each of the following organizational cases
29. Divisional structure 30. Functional structure 31. Matrix structure
a. Multiple product/business firm
b. Project oriented firm c. Single product/business firm
29. Multiple product/business firm
30. Single product/business firm
31. Project orienated
Other things equal, which of the following will have the most hierarchy levels?
a. Divisional organization
b. Functional organization
a. Divisional organization
A matrix organization is a good example of a pure hierarchy
Categorize the following characteristics as advantages (a) or disadvantages (b) of departmentalization
34. economies of scale 35. coordination within functions
36. group think
34. advantage
35. advantage
36. disadvantage
Large fast food restaurants successfully employ decentralization
The optimum number of subordinates a manager should supervise is named "span of control".
The more standardized the work, the wider the span of control.
Because top managers supervise the firm's most talented workers, they generally have a broader span of control than middle or first line managers
The span of control for a manager
a. Depends on a number of factors, and can vary from one manager from another
b. Depends on the form of business ownership the owners/entrepreneurs have chosen
c. Is no longer a relevant issue due to information techno
a. Depends on a number of factors, and can vary from one manager from another
Which of the following statements about span of control is false?
a. As employees obtain more experience, the span of control in an organization can
b. Managers near the top of an organization have the broadest span of control;
c. The more co
b. Managers near the top of an organization have the broadest span of control;
Companies willing to train their employees extensively and to trust their employees could expand their managers' spans of control
Employee empowerment increases managerial span of control
Fayol's ____________ principle says that functions should be divided into areas of specialization.
a. centralization
b. comparative advantage
c. departmentalization
d. division of labor
e. "esprit de corps"
d. division of labor
When higher management in a(n) ____ organization admits there is a need for better communication, the response is to tether subordinates to their jobs and to appoint newly hired employees who specialize in establishing liaison relationships.
a. Centralize
c. Mechanistic
Which of the following statements about the organic form of organization design is true?
a. The organic form of organization design is better suited to using organizational design
techniques based upon functional departmentalization and centralized autho
b. The organic form of organization design is characterized by broadly defined jobs and
responsibility, loosely defined, frequently changing roles, and decentralized authority and
horizontal communication based on task knowledge.
A firm that assigns specific functions, such as accounting or legal work, to other organizations rather than performing these functions themselves is
Which of the following describe a temporary networked organization made up of replaceable firms that join and leave as needed?
Virtual corporation
The composition of a ____ organization is always changing.
All organizations can clearly be categorized as either completely mechanistic or completely organic
The process of setting up individual departments to do specialized tasks is called job specialization.
Correctly structuring a business organization allows managers to avoid delegating responsibility and authority to employees.
Division of labor is difficult to achieve in small businesses.
Departments are functional units within a firm such as sales, accounting, finance, and marketing.
To better organize his landscaping business, Frank divides each job into several parts. One part is excavation and removal of old landscaping, the next part is design, followed by purchasing, and the last part is installation of new plants. If he assigns
division of labor
The driving force behind the change in business organizations is the change in consumer expectations.
The basic idea behind the organization design of Fayol and Weber was that management wanted to control workers.
a. True
The purpose of Weber's and Fayol's principles was for the benefit of management, as opposed to pleasing customers.
The more complex the job, the narrower the span of control.
Departmentalization by function typically increases the cost of doing business.
Small businesses often use a line organization model.
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.
Wizard Manufacturing makes small consumer electronics like mixers and toasters. The industry is relatively stable, having few new advances in product development. Wizard should use a line or line-and-staff organizational structure to ensure efficient oper
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