Chapter 08 – Structuring Organizations for Today’s Challenges
344. HairTrend, a cosmetology trade publication, utilizes the resources of other
organizations as needed. Business relationships are temporary and flexible. HairTrend is a
networked organization made up of replaceable firms that join the network and leave it as
needed. This unique organization is an example of:
A. competitive benchmarking.
B. a virtual corporation.
C. core competency ranking.
D. real time transparency.
Feedback: A virtual corporation is a temporary networked organization, made up of
replaceable firms that join the network and leave it as needed.
345. Whirlpond, a manufacturer of home appliances, has historically produced the
components for their products. However, Whirlpond now contracts with other firms to
produce these components. This strategy of __________ is a current trend among U.S.
manufacturers.
A. outsourcing
B. core positioning
C. foreign competency
D. competitive benchmarking
Feedback: Outsourcing is the assigning of various functions, such as accounting, production,
security, maintenance, and legal work, to outside organizations.
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346. Heather works as a sales representative for the Westerly Company. She really enjoys
working for Westerly, because the company treats her and other sales representatives as
highly valued employees. Sales reps at Westerly are given freedom and flexibility in their
relationships with customers. While there are only a few layers of management at
Westerly, Heather has found that these managers try their best to support and assist her
efforts. Based on Heather’s experience, it appears that Westerly is a(n):
A. bureaucratic organization.
B. inverted organization.
C. tall organization.
D. casual organization.
Feedback: An inverted organization is one with few layers of management, and in which the
most important employees are front-line employees who deal directly with customers. In this
type of organization, the job of managers is to assist and support front-line employees, not
boss them around.
347. The widely shared values within an organization that provide unity and cooperation to
achieve common goals is together known as the:
A. normative matrix.
B. predefined group values.
C. ethical system.
D. organizational culture.
348.
Chapter 08 – Structuring Organizations for Today’s Challenges
The ____________ of a business firm is the system that details lines of authority,
responsibility, and position, similar to the structure on organization charts.
A. matrix reloaded structure
B. formal organization
C. informal organization
D. normative design
349. All organizations have two organizational systems:
A. the command system and the control system.
B. the formal organization and the informal organization.
C. the functioning system and backup system.
D. the primary organization and secondary organization.
350. The __________ is the system of relationships that develop spontaneously as
employees meet and form power centers.
A. informal organization
B. bureaucratic structure
C. secondary organization
D. formal organization
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361. Discuss Max Weber’s views on organization theory.
362. What is a matrix organization? What advantages and disadvantages are associated
with this type of organization?
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366. Employee complaints that there are too many layers of management and too many
rules and regulations suggest that Mucho Dinero is a(n):
A. flat organization.
B. bureaucratic organization.
C. inverted organization.
D. wide organization.
Feedback: A bureaucratic organization is characterized by many layers of management and
reliance on rules and regulations to guide behavior.
