269. (p. 215) Springfield National Bank organizes its loan operations based on the market served, such as
consumer, small business, and nonprofit organizations. Departmentalization based on ________ allows
Springfield to better serve borrowers with different needs.
270. (p. 214) JayLo Corporation has experienced rapid growth during their five years of existence. While still
relatively small, JayLo is now big enough that Jennifer, the firm’s CEO, has decided to organize the firm into
functional departments. Jennifer can likely expect which of the following to occur?
A. quick company response to a change in the business environment
271. (p. 211-212) Huggin Motels, a national chain of motels, utilizes a centralized authority structure. Which of the
following provides the most likely explanation for why management at Huggin would favor centralized
authority?
A. Top management at Huggin Motels intends to empower its first-line employees.
272. (p. 210) IBM recently went through a major reorganization that included firing more than 10,000 people. One
result of this change means it is likely that IBM responded to the challenge of a rapidly changing marketplace
by:
D. centralizing their decision making to better control their total quality management program.
273. (p. 217) A ____________ organization is characterized by direct two-way lines of responsibility, authority,
and communication running from the top to the bottom of the organization, with all people reporting to only one
supervisor.
A. matrix
274. (p. 217) Employees with the formal authority to issue orders and make policy decisions are classified as:
D. staff personnel.
275. (p. 217) Employees who perform functions that advise and assist line personnel are known as:
A. middle managers.
276. (p. 217) Which of the following follow all of Fayol’s traditional management rules?
D. staff personnel
277. (p. 217) Staff positions in an organization:
D. are ways to employ past CEOs until they retire.
278. (p. 217) Staff personnel:
A. issue orders.
279. (p. 218) In a _____________ organization, specialists from different parts of an organization are brought
together to work on specific projects, but these specialists still remain part of a traditional line-and-staff
organizational structure.
D. centralized
280. (p. 217) Line-and-staff organizations work well in organizations with:
A. operations in high-growth industries.
281. (p. 218) Matrix organizational structures were first developed in:
D. the chemicals industry.
282. (p. 219-220) Which of the following was created as an answer to the temporary nature of the matrix structure?
D. network organizations
283. (p. 219) Which of the following describes a group of employees from different departments working together
on a long-term basis?
A. focus group
284. (p. 217) Which of the following is an advantage of a line organization in a large business?
D. It is very flexible.
285. (p. 217) Which of the following positions would be classified as a staff position?
A. an assembly line worker for a major auto manufacturer
286. (p. 218) Which of the following is an advantage of a matrix organization structure?
D. It is a complex organization structure.
287. (p. 220) Which of the following is true of cross-functional teams?
A. Cross-functional teams are required not to share information across national boundaries.
288. (p. 220) Which of the following would be the least likely to serve on a cross-functional team for the
Discovery Corporation?
A. a member of the Discovery marketing department
289. (p. 217) The organizational structure of the U.S. Army’s 1st Infantry Division provides for direct two-way
lines of responsibility, authority, and communication running from the top to the bottom. Additionally, each
person in the division reports to only one superior. The 1st Infantry Division is clearly an example of a(n):
290. (p. 217) Eileen is employed by the personnel department of a corporation with several hundred employees.
Her main function is to advise and assist managers in other departments, such as marketing and production,
when they make staffing decisions. Eileen’s position would be classified as a(n) ___________ position.
C. first-line
D. secondary
291. (p. 219-220) Joe, a production engineer at Freestone Tires, has recently been assigned to a team of specialists
from other areas, such as marketing and finance. His long-term assignment to this team has produced several
new products. Joe enjoys this work environment, in part because Freestone’s management has given the team
the freedom and flexibility to make decisions. An interesting development has been the inclusion of “outsiders”
from Freestone’s major distributors and suppliers on the team. It appears that Joe’s team is a(n):
A. interfunctional matrix organization.
292. (p. 218) Chang Ti Dung 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 at his high-tech company. After the project ends, the
specialists return to their former duties. Paradox Industries utilizes a:
293. (p. 220) _____________ is using communications technology and other means to link organizations and
allow them to work together on common objectives.
D. Strategic planning
294. (p. 221) Which of the following describes an environment in which data is instantly available via the Internet
to organizational partners?
D. e-commerce
295. (p. 221) Which term describes a company being so open to other companies working with it that electronic
information is shared as if the companies were one?
A. web-based corporations
296. (p. 221) Which of the following describes a temporary networked organization made up of replaceable firms
that join and leave as needed?
A. web-based corporation
297. (p. 221) __________ involves an organization comparing each of their practices, processes, and products
against the best in the world.
D. Virtual competition
298. (p. 221) The process of rating an organization’s practices, processes, and products against the best of the
world is known as:
A. webworking.
299. (p. 222) Which of the following describes the activity of a firm that assigns specific functions, such as
accounting or legal work, to other organizations rather than performing these functions themselves?
D. virtual distribution
300. (p. 222-223) __________ refer to those functions that an organization does as well as, or better than, any other
organization in the world.
A. Primary functions.
301. (p. 222-223) Independence Electronics prides itself as a world-class producer of components used in CD and
DVD players. The outstanding performance of the production department indicates that this activity is one of
the firm’s:
D. target competitive advantages.
302. (p. 222) Excite Enterprises, the owner of several amusement parks, uses an accounting firm to handle the
payroll and tax functions for the firm. Using the services of another firm in this manner is an example of:
D. benchmarking.
303. (p. 221-222) Bull’s-eye, a regional discount retailer, carefully watches the operations of their best rivals.
Bull’s-eye rates and compares their operations to the best in the market. This firm is involved in:
A. outsourcing.
304. (p. 221) HairNet, a cosmetology trade publication, utilizes people and resources from other organizations as
needed. Business relationships are temporary and flexible. HairNet 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:
D. real time transparency.
305. (p. 222) 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
__________ appears to be a trend among U.S. manufacturers.
D. competitive benchmarking.
C. “I’m excited to learn something new.”
D. “This should be easy to accept.”
307. (p. 223) Which of the following describes the redesigning of an organization so that it can more effectively
and efficiently serve its customers?
D. extroverted reorganizing
308. (p. 224, figure 8.9) An organization that has contact people at the top and the chief executive officer at the bottom
is known as a(n):
A. bureaucracy.