212. The grapevine refers to the formal channel used for confidential communications between
members of top management.
213. An informal organization can be a valuable asset to managers attempting to create an
environment of harmony among workers and establish the corporate culture.
214. The informal organization appears as dashed lines on a firm’s organizational chart.
215. The informal organization is best suited for decision making on big issues.
216. The key people in a company’s grapevine typically have considerable influence in the
organization.
217. Successful managers will find the balance between promoting the informal organization
and maintaining a formalized structure, as well.
218. Samad accepted a managerial position at City Bank. In order to be more effective in his
new position, he should try to learn who the important people are in City’s informal organization.
219. Molly, a production-line employee at Holiday Industries learned from a friend at her
coffee break that one of the managers in accounting is about to be fired. She is eager to learn if
other friends at Holiday know any more about the situation. This flow of information is an
example of Holiday’s grapevine.
220. Rapid Response Security Firm, a company that provides on-site security services for
malls and other retail environments, needs to review current procedures used by its professional
officers to make certain they are in compliance with new laws. On crucial issues such as this, it is
more important to gather information through the informal organization, as opposed to the formal
organization.
221. Jack just learned that several people in Arizona became ill from the peanut butter that
was produced and jarred in his plant. As he walks the back stairs at the plant, he ponders, “It’s
time to get the informal organization in on this. We’ve got to stop this in its tracks!” Jack is taking
the right approach to solving this serious problem.
222. Organizing a business begins with:
223. Dividing the required work among a group of employees is called:
224. Dividing tasks into smaller jobs is called:
225. The process of setting up individual functional units of the business to do specialized
tasks is called:
226. Job specialization is known to:
227. Which of the following is an example of a move to reorganize?
228. The proven success of
job specialization
lies in the fact that:
229. In the
Making Ethical Decisions
box titled “Would You Sacrifice Safety for Profit?” which
of the following statements best expresses the theme of the discussion?
230. As Brett prepares to open his new business, he has identified the tasks that need to be
accomplished and has assigned employees to each task. This illustrates:
231. As your good friend ponders putting some structure to his/her graphic design business
idea, which of the following do you not advise him/her to do?
232. The concept of ____________ suggests that as a firm produces more, the average cost of
goods produced goes down.
233. Henri Fayol and Max Weber are best known for their contributions to:
234. Organization theorists emerged during the era of
mass production
, meaning:
235. Fayol’s _____________ principle states that each worker should report to one, and only
one, boss.
236. Fayol’s ____________ principle says that tasks should be divided into areas of
specialization.
237. Fayol’s ____________ principle says that workers’ attitudes can create an environment of
pride and loyalty within an organization.
238. __________ believed that managers were trustworthy and companies would do well if
employees simply did what they were told.
239. Max Weber used the term ________ to describe middle managers whose job was to
implement the orders of top management.
240. A(n) ________________ is a visual device which shows relationships among people and
divides the organization’s work.
241. In Weber’s view of a bureaucratic organization, the role of top management is to:
242. In Weber’s view of a bureaucratic organization, the organization demands:
243. The line of authority that moves from the top of a hierarchy to the lowest level is called
the:
244. A(n) __________ consists of one person at the top of the organization and many levels of
managers who are responsible to that person.
245. A(n) __________ is used by an organization to show who is accountable for the completion
of specific work and who reports to whom.
246. In a bureaucratic organization:
247. One advantage of a bureaucratic organization is that:
248. ______________ organizations are characterized of many layers of management and
function with well-defined rules and procedures.
249. Economies of scale:
250. Max Weber favored which of the following?
251. Fayol believed that decision-making authority should remain in the hands of top
management: