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Multinational pharmaceutical companies who during the past 20 years preferred to contract with companies in India and other places with cheap labor are turning back to the U.S.to produce their products.The recent popularity of _______________ is due to compliance issues and legal issues,as well as the quality of output.


A) market transition
B) market transformation
C) outsourcing
D) insourcing

E) B) and C)
F) C) and D)

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Today's preference to flat vs.tall organization structures is mainly due to a flat organization's ability to:


A) encourage esprit de corps among employees in various departments.
B) increase the cost of labor through economies of scale.
C) respond readily to customer demands.
D) increase sales through multiple customer contacts by several layers of management.

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

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Describe two major issues that are important in organizational design.

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There are four issues from which the stu...

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In the Making Ethical Decisions box,titled,"Would You Sacrifice Safety for Profit?",which of the following statements best forms the theme of this passage?


A) In the beginning,company procedures that require value judgments are often too costly.As the business grows,the owner can add ethical procedures to each job.
B) The principles of organization state that the only company objective is to gain profits for the owner(s) or stockholders.If your competitors are cutting corners with safety regulations,you should consider the same.
C) The only way to be profitable is to avoid risk.If new safety equipment becomes available that is applicable to your business,even if it slows productivity,you should adopt it.
D) The corporate culture you create as you begin your service will last a long time.Your workers will adopt your values.

E) B) and C)
F) All of the above

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The main difference between a matrix-style organization model and a cross-functional team is:


A) the matrix model has a limit on the number of functional units who send an expert to join the team,whereas the cross-functional team does not.
B) the matrix model is a temporary arrangement,whereas the cross-functional team is a more permanent arrangement.
C) the matrix model shares leadership responsibilities within the group,whereas the cross-functional team does not.
D) the matrix model is a more permanent arrangement,whereas the cross-functional team is a temporary arrangement.

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

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As a response to a rapidly changing marketplace,Idea Electronics found it necessary to reorganize,including a significant downsize of its middle management.This action will likely result in __________.


A) acquiring additional firms
B) flattening the organization and empowering employees,allowing them to get closer to the customer
C) increasing the size of its traditional departments to handle 24/7 operations
D) centralizing its decision making to better control its total quality management program

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

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Which of the following is an advantage of a matrix organization structure?


A) It is much cheaper to staff than other organization models.
B) It provides for efficient use of organizational resources.
C) The project teams are permanent.
D) It is a complex organization structure.

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

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Organizational culture refers to the widely shared values within a corporation that foster unity and cooperation.

A) True
B) False

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The design of a bureaucratic organization assumes a well-educated workforce.

A) True
B) False

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At Green Acres Fencing Company,eight employees each perform various aspects of the company's work.One person does sales,four perform installation;one purchases materials;one does billing;one performs after-sales inspections.This type of organization reflects Fayol's principle of:


A) division of labor.
B) equity.
C) unity of command.
D) hierarchy of authority.

E) C) and D)
F) B) and D)

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An advantage of departmentalization is "groupthink".

A) True
B) False

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Fayol believed that managers should treat employees and peers with respect and justice.

A) True
B) False

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A firm's formal organization would be better suited than its informal organization to:


A) create an atmosphere of friendship and camaraderie among workers.
B) find answers to critical problems that require logical analysis.
C) find creative solutions to short-term problems.
D) find a way around bureaucratic rules and regulations in order to get things done quickly.

E) C) and D)
F) B) and C)

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Line-and-staff organizations work well in organizations with:


A) operations in high-growth industries.
B) stiff competition.
C) short product life cycles.
D) a relatively unchanging environment.

E) A) and B)
F) A) and D)

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Weber put great trust in the creativity,skills,and pride of employees and believed that managers should act more as coaches than as bosses.

A) True
B) False

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The formal organization of a firm provides the lines of authority to follow in routine situations.

A) True
B) False

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Bureaucratic organizations are not very responsive to customers.

A) True
B) False

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Alleta Publishing Company,Inc.is considering the use of cross-functional teams.In order to be most effective,Alleta should include customers as members of the teams.

A) True
B) False

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In today's competitive environment,cost containment is extremely important to survival.Which of the following increases efficiency in the production and distribution of goods?


A) Personal computers
B) Real time data
C) Assembly lines
D) Self-managed teams

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

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The grapevine refers to the formal channel used for confidential communications between members of top management.

A) True
B) False

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