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Exam 8: Adapting Organizations to Todays Markets

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Question 21

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Alicia dreams of opening her own restaurant and knows that she will need to organize her business.Organizing begins with determining the work to be done.

A) True
B) False

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Question 22

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Job descriptions are an important part of Max Weber's organizational theory.

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B) False

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Question 23

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An organizational hierarchy establishes one person at the top of an organization.

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 a different employee to each part,this action would be an example of departmentalization.

A line organization in a large business often suffers from excessively slow lines of communication.

If there are several steps in getting the product to its final state,the company may choose to departmentalize by process.

As organizations grew,the use of Fayol's principles led to rigid organizations that didn't always respond quickly to consumer requests.

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.

Staff positions in an organization:

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

Which of the following are common responses of employees when faced with change?

Top management at Topdown,Inc.wants to encourage communication between different departments and prevent employees from becoming narrow specialists.The best way to accomplish these goals is to departmentalize Topdown's organization by function.

Sarah is a designer for a business that installs underground sprinkler systems for residential and commercial customers.Sarah designs and presents systems to prospective customers.Brothers Tom and Bill share the ownership responsibilities.Tom is in charge of commercial accounts and Bill is in charge of residential accounts.Sometimes Tom and Bill double book Sarah's time,creating frustration and animosity.Since they share supervisory responsibility,there is no clear way to decide whose accounts are most important.This type of situation represents a violation of Fayol's ____________ principle.

To avoid losing that small company feel,fast growing companies try to maintain a flat organization structure.

Inverted organizations define the role of front-line employees as those workers who follow the orders of top and middle management.

Bill,a financial manager at Carlyle Bank and Trust always strives to treat each subordinate with respect and fairness.Bill's treatment of employees is an example of Fayol's principle of:

Samad accepted a managerial position at City Bank.In order to be more effective in his new position,he should try to learn who the important people are in City's informal organization.

Mini-Case Angelica Canizales is the CEO of Mucho Dinero Enterprises.Sales have declined for four consecutive years and the firm's accountants have reported net losses in each of the last two years.Employees appear demoralized and frustrated.Recently,Angelica met with managers from marketing,production,and finance to listen to their views regarding the company's problems.The managers unanimously agreed that the main problem was a lack of communication between the several functional areas of the business.Each manager felt that the firm could increase quality and customer satisfaction with better interdepartmental communication.Angelica also met with marketing and production employees to get their respective opinions on the problems of the firm.One employee from the production department observed that,"We have so many layers of management that it takes forever to make decisions." An employee from marketing complained that,"This place is so bogged down with rules and regulations that there is no opportunity to be creative." Several employees shared their opinions regarding their bosses.Specifically,one employee expressed "My boss never pays attention to my ideas.He just issues orders and expects me to obey them." Angelica decided,after listening to many comments from employees,suppliers,and customers,that the only way to end Mucho Dinero's slide was to completely rethink the firm's structure and to make radical changes in its organization.She presented her ideas to the board of directors,promising to voluntarily resign if her efforts to reorganize did not return the firm to profitability. -In order to encourage more interdepartmental communication and cooperation,Angelica is thinking about setting up groups of workers from different departments to work together on a long-term basis.She is even thinking about asking people from some of Mucho Dinero's suppliers,customers and distributors to join these groups.The type of group that Angelica is considering is known as a(n) :

Rise 'n Shine Bakeries is a nationwide bakery that has plants located throughout the United States.Top management at Rise 'n Shine believes that customers in different regions have different tastes.It also recognizes that its bakeries face more intense competition in some regions than in others.Therefore,Rise 'n Shine's top management gives local managers the freedom to offer different types of breads and desserts,and to decide on a reasonable pricing strategy for its products.Rise 'n Shine typifies a decentralized organization.

The driving force behind the change in business organizations is the change in consumer expectations.