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Exam 7: Creating a Flexible Organization

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Question 31

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A biotechnology company is constantly faced with important decisions that are likely to have severe consequences for the future of the company. They need to make efficient, fast decisions that set the direction of the company. The top managers should do which of the following?

A) decentralize decision-making authority
B) appoint lawyers to make business decisions
C) train first-line managers to make these decisions
D) exercise centralized decision-making authority

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

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Question 32

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Employees at a chemical factory are systematically moved every two weeks among three different departments in the organization. What is this practice called?

A) job empowerment
B) job specialization
C) job enlargement
D) job rotation

E) B) and D)
F) None of the above

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Question 33

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Mark left his position as a Hudson's Bay store manager after two years. He complained of burnout from having too many roles and tasks for one position-even though he had plenty of staff working for him. Mark probably never learned to use which of the following tools?

Which of the following is a benefit of job rotation?

Jackson Inc. is a bicycle and cycling product manufacturer. Sales have been declining in the last several years, and executives have determined that the company has produced too many different products and lacks focus. As a result, executives wish to reorganize in an effort to revitalize the company. Efficiency and control will be the company's focus as they move to cut costs and streamline product lines. Additionally, executives feel it is important to restrict decision making to key functional managers who will communicate decisions to their subordinates. What type of organizational design would best fit this company?

The Patel Company, a small furniture manufacturer, divides its organization into marketing, human resources, accounting, and production departments. This is an example of departmentalization by which of the following?

3M has customer innovation centres for corporate customers. These centres, usually located near 3M research facilities, are like showrooms that allow 3M to have a better understanding of what its customers are trying to accomplish. By understanding this, 3M can create products that help its customers. How does 3M likely prioritize organizational design?

Which of the following involves grouping jobs and people into manageable units?

Suppose you work in a customer service call centre for a local cable company. Your job is to answer calls from customers who have a variety of questions or problems. You have been well trained to handle a variety of calls and have access to a computer program where you can search for solutions to issues you have not yet encountered. You would expect what kind of span of management to exist at the call centre?

A high-volume manufacturing firm concentrates decisions at the top of the organization. What is the likely effect on the organization?

Which of the following is a disadvantage of departmentalization by function?

A software design firm has many knowledgeable employees who are able to make decisions in order to best meet their clients' needs. Which of the following likely describes this organization?

The more a company needs to be innovative and responsive, the more likely the company will do which of the following?

John just became CEO of a large company that manufactures the same basic type of product as other companies in this industry. As a result, the organization's priorities are efficiency and control-because profit margins are very low in the industry. Which of the following aspects of organizational design would best fit John's company?

Phil is the art director for a video game production company. He works with the writers, graphic artists, and programmers to bring the team's ideas to life. Although the theme of each game is set by the executive team, Phil is able to take that basic theme in just about any direction he chooses. Which of the following best describes Phil's job?

The various tasks in Caterpillar's manufacturing plant are arranged so that one worker draws the wiring, another strengthens the wires, a third cuts them, a fourth installs them, and a fifth seals them together. Which of the following does this arrangement exemplify?

The managers at a large soft-drink company prefer that employees be grouped with others doing the same activity, as this simplifies supervision. However, they are concerned that this slows decision making and may cause employees to emphasize the needs of their own departments. This company is most likely departmentalized by which of the following?

Drake works on a cross-functional team in a matrix organization. He is a member of the finance department, and his boss is the VP of Finance, but Drake's team is run by a project manager. What is the downside to this matrix structure?

Paul works in an organizational structure where the lines of communication are very clear; however, managers often feel isolated and lack the resources needed to achieve company goals. Paul most likely works in which type of organizational structure?

Which of the following is a common characteristic of a centralized organization?