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Exam 8: Structuring Organizations for Todays Challenges

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Question 41

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Excite Enterprises,a corporation of amusement parks uses an accounting firm to handle the payroll and tax functions for the company.Using the services of another firm in this manner is an example of:

A) outsourcing.
B) functional reassignment.
C) core competencies.
D) benchmarking.

E) None of the above
F) A) and C)

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Question 42

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Chang is a project manager at Paradox Industries.He is able to borrow specialists from the organization on a regular basis to assist in major projects.After the project ends,the specialists return to their functional units to await new assignments.Paradox Industries utilizes a:

A) line organization model.
B) bi-functional organization model.
C) lateral transfer organization model.
D) matrix organization model.

E) C) and D)
F) A) and B)

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Question 43

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Weber was critical of bureaucrats because he felt they undermined the efficiency of the organization.

The Social Media in Business box titled,"When Twitter and Facebook Are Old School," speculates that as social media incrementally changes,we will see changes in_________________.

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

Economies of scale:

Max Weber's principles of organization were similar to those of Henri Fayol.

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

Max Weber's organizational theories require an educated work force to operate efficiently.

Julio is the owner of Celebration,Inc.a small party supply company.The company provides tents,tables,chairs,and related paraphernalia for wedding,Bar Mitzvah,Bot Mitzvah,graduation,birthday,and other celebratory events.As sales have increased,the organization has hired more personnel and departmentalized to more efficiently handle purchasing,sales,service,and accounting.Everyone is still responsible for achieving company goals.Upon seeing Celebration's organization chart,you agree it uses a _______________.

In a line organization,there are many specialists who serve as advisors and assistants to the managers who make decisions.

In a line-and-staff organization,staff positions are temporary jobs to train new line managers.

A tall organization structure consists of multiple levels of management.

Departments are functional units within the business such as sales,accounting,finance,and marketing.

Sam supervised a group of people in a very large organization.The refrigerator in the lunchroom stopped functioning.Although he started the paperwork on the day it died,the refrigerator request went out for bid;two middle managers needed to approve it;and,the purchasing director had final approval.The refrigerator arrived six months later.Max Weber would have approved of the detail and documentation Sam's company accumulated to back-up the purchase.

In today's business environment,the trend is to decrease the span of control.

Line organizations often experience the problem of employees reporting to more than one boss.

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

The process of creating individual departments to do specialized tasks is called departmentalization.

In a statement reported in the New York Times,Lars Bjork,CEO of Qliktech,remarked that he appreciates the order that bureaucracy can bring to an organization;however,when adding order to a process,the employees involved need to understand why that order is being implemented.It has to make sense.With this in mind,which of the following statements would be of great concern to this CEO?