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Exam 8: Structuring Organizations for Todays Challenges

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Question 161

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Some business organizations still follow the 1940s organizational theory of Max Weber.

A) True
B) False

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Question 162

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A virtual corporation is a networked organization made up of replaceable firms that join the network and leave it as needed.

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B) False

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Question 163

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In today's fast-paced business environment, Weber's bureaucratic ideas work well. These principles permit business to respond quickly to customer changes.

An advantage of a tall organization is that it ensures fast and efficient communications throughout the organization.

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

Inverted organizations empower employees by adding multiple layers of management and long lines of communication.

A weakened corporate image is one of the disadvantages of a decentralized business organization.

Transparency allows two companies to work more efficiently together.

A virtual corporation refers to a permanent network of firms linked by high-tech communication systems.

Zach recently got his Ph.D. in analytical chemistry and was fortunate to be asked to join a lab at a prestigious eastern university. After a month on the job, he remarked to another graduate student at his former university that the spirit of help and cooperation at the lab was remarkable. He enjoyed going to work each day and sometimes exchanged calls with other lab partners in the evening with ideas to improve each other's experiments. Zach remarked, "Now I know why this lab is considered one of the best in the nation!" Zach is referring to:

One of Fayol's principles suggests that managers should have the right to give orders and expect others to follow.

Rome Corporation is organized into departments such as finance, production, marketing, data processing, and accounting. Rome has chosen to departmentalize by function.

Henri Fayol and Max Weber are best known for their contributions to accounting theory.

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.

Discuss Max Weber's views on organization theory.

Management at Hottie Potatee, a nationwide potato bar chain, believes that its customers value a predictable and consistent level of service and quality. When customers stop at one of its potato bars anywhere in the U.S., they should know what to expect in terms of menu, price and quality. In order to maintain this consistency, Hottie Potatee should adopt a decentralized organization.

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

An organization's core competencies are those functions that the firm performs as well as or better than anyone else in the world.

By structuring the company with cross-functional teams, there is a greater chance that a business is more responsive to social trends affecting customer preferences.

In its effort to reorganize its floor space, Backstreet Books decided to eliminate seating space in its stores in order to make room for bookshelves to accommodate the growing interest in books about how to go green. This company's effort is an example of how a firm may reduce its emphasis in one product line in order to serve customer preferences and trends.