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Exam 8: Structuring Organizations for Todays Challenges

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Question 101

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Organizational culture refers to the widely shared values within a corporation that foster unity and cooperation.

A) True
B) False

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Question 102

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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.

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B) False

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Question 103

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Which term describes a company being so open to other companies working with it that electronic information is shared as if the companies were one?

Fayol's principle of esprit de corps says that employees should be divided into small groups that can be directed efficiently by a single manager.

Green Landscapes, Inc., a company that installs underground sprinkler systems serves several commercial customers, as well as residential customers. As the business expands, Green Landscapes management may want to consider departmentalizing by customer group and then by process.

Benchmarking requires organizations to compare each organizational function against the best in the world.

An advantage of departmentalization is "groupthink".

While adding structure to his graphic design business, including the allocation of resources for getting the job done, Jack knew that he would need to initially allocate a considerable amount of funds for the sales team to have face to face meetings with other businesses who needed website design and promotional materials. Since overall funds were limited, he worried about his employees using these funds for the stated purpose and in a manner that he would use them. As his business advisor, you explain:

If a particular function is one of a firm's core competencies, it typically performs this function itself rather than outsourcing it to another organization.

Economies of scale can be achieved through departmentalization.

Digital natives, those who grew-up with the Internet are an important customer group that most businesses want to reach.

Fayol's principle says that workers' attitudes would create an environment of pride and loyalty within an organization.

An organization chart shows who is accountable for the completion of specific work and who reports to whom.

Organizations with positive images for performing exceptional service to customers are usually friendly places to work, as well.

Companies have learned that working transparently through real time networks has provided competitive advantages in the marketplace.

Martina is an experienced manager with excellent communications skills. The workers in her area are highly skilled and capable of doing their work with very little direct supervision. Martina's span of control is likely to be quite broad.

Due to more emphasis on empowerment and more talented and better-educated lower level management, span of control in organizations has .

Campbell is a middle manager for a bureaucratic organization. According to Max Weber's views on bureaucratic organizations, Campbell's function within the organization is to:

A chain of command is a line of authority that moves from the lowest level of the hierarchy to the top.

Gangsta Industries produces a variety of anti-crime and safety products such as burglar alarms, smoke detectors, surveillance cameras, and specialty locks. Gangsta sells to households, businesses, and government agencies. They have found that each market requires a different marketing strategy. Gangsta would probably benefit from departmentalization by: