a.
Formalization
b.
Specialization
c.
Centralization
d.
Documentation
ANSWER:
a
52. During the first week of his new job as a sales representative for a national auto parts distributor, Tyler attended a regional sales conference. He couldn’t help but notice that of the 400 or so sales reps there, nearly all of them were good-looking men under 35, like himself. He began to wonder if he got the job because of his skill in sales or because he fit a certain profile. Which aspect of organizational design is Tyler concerned about?
a.
The hierarchy of authority
b.
Specialization
c.
Organizational culture
d.
Organizational environment
ANSWER:
c
53. The CEO of a chemical manufacturing plant is reviewing the organization’s effectiveness over the past year. Among other things, she is looking at the plant’s profitability, the volume of chemicals produced, the number of accidents within the plant, the rate of employee turnover, and the degree to which the firm is complying with federal regulations regarding the plant’s impact on the environment. This CEO is taking a(n) _______ approach to measuring effectiveness.
a.
Stakeholder
b.
Goal-oriented
c.
Comprehensive
d.
Efficient
ANSWER:
a
54. In some organizations, in which everyone has access to the information they need and the training to make good decisions, it no longer makes sense to have layers of managers. This is particularly true of ________ organizations.
a.
knowledge-based
b.
global
c.
highly centralized
d.
diversified
ANSWER:
a
55. Phoenix Software employs fewer than 20 employees. They do not have job titles, and they typically organize themselves into collaborative work teams as new projects arise. Which of the following best describes Phoenix Software?
a.
Mechanistic
b.
Centralized
c.
Informal
d.
Bossless
ANSWER:
d
Essay
56. In today’s rapidly changing global business environment, managers face many challenges. Briefly summarize the five major challenges discussed in the text.
ANSWER:
Due to globalization, managers are expected to help their organizations adapt to a business environment in which markets, technologies, and organizations are increasingly interconnected. This growing global interdependence creates new opportunities for organizations, but it has also led to intense competition in an increasingly complex environment. Stakeholders around the globe are demanding that organizations commit to balancing profit with public interest, thus managers must place a new focus on sustainability, the green movement, and ethics. A fourth significant challenge for managers is to respond quickly and decisively to environmental changes, organizational crises, and shifting customer expectations. And finally, due to the digital revolution, managers must learn to use big data analytics to uncover hidden patterns and correlations that can enhance their organizations’ performance.
57. Differentiate between for-profit businesses and nonprofit firms.
ANSWER:
The primary difference between for-profit businesses and nonprofit firms is that managers in businesses direct their activities toward earning money for the company and its owners, whereas managers in nonprofits direct much of their effort toward generating some kind of social impact. Financial resources for government and charity nonprofits typically come from government appropriations, grants, and donations rather than from the sale of products or services to customers. In businesses, managers focus on improving the organization’s products and services to increase sales revenues. In nonprofits, however, services are typically provided to nonpaying clients, and a major problem for many organizations is securing a steady stream of funds to continue operating. Nonprofit managers, committed to serving clients with limited funds, must focus on keeping organizational costs as low as possible and demonstrating a highly efficient use of resources. Moreover, for-profit firms often compete with nonprofits for limited donations through their own philanthropic fundraising efforts.