Exam 8: Structuring Organizations for Todays Challenges

As organizations grew, the use of Fayol's principles led to rigid organizations that didn't always respond quickly to consumer requests.

Some companies have created hybrid versions of departmentalization, where they combine two or more traditional ways of departmentalizing.

Regional monopoly, Southeastern Electric, wants to improve services to customers. Management recently rated the company's processes and products against the results achieved by the world's best at similar processes and products. Southeastern Electric has adopted a policy of international standardization.

One of Carlos's coworkers was recently promoted to a middle management position at their company. He seems to have quickly distanced himself from Carlos and their other coworker, Donovan. In fact, yesterday Donovan described the situation by saying, "He's gone to the dark side." Carlos understands what Donovan means because managers keep themselves removed from other employees, and seldom seriously solicit ideas for improvements or change from those in the trenches. The disadvantage in continuing this type of organizational culture is

Staff positions in an organization

In an inverted organization, the job of management is to

Max Weber used the term ________ to describe middle managers whose job was to implement the orders of top management.

Josie recently took a job in the marketing department for Beachside Bagels and Bakery. After just a few days on the job, Josie learned that the company has many layers of management, and seems to have a rule to cover almost every situation. These conditions suggest that Beachside Bagels and Bakery is a(n)

Job specialization is known to

Traditional organizational models such as a line model or a line-and-staff model provide the flexibility demanded in a changing business environment.

As a new employee in a bureaucratic organization, Madison can expect a great deal of independence and authority.

All organizations have two organizational systems,

Fayol's principles suggest that the goals of the firm are less important than the goals of individual workers.

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

Milo was confident that baseball fans would fill the seats in his brewhouse if they just knew about the place. After all, he offered convenience, easy walking distance to the local MLB stadium, great local talent for entertainment and several fresh premium craft beers. He uses Twitter and Facebook to connect with potential customers, and offers free wifi for customers. These are worthy strategies for reaching digital natives.

Max Weber's principles of organization were similar to those of Henri Fayol.

One key to organizational success is to go back to basic principles and build the business on a sound foundation.

Henri Fayol and Max Weber are best known for their contributions to accounting theory.

Line managers issue orders, enforce discipline, and adjust the organization as conditions change.

Holden just learned that several people in New Hampshire needed to be treated for food poisoning after eating peanut butter that was produced and jarred in his plant. As he walks the back stairs at the plant, he thinks to himself, "It's time to get the informal organization in on this. We've got to stop this in its tracks!" Holden is taking the right approach to solving this serious problem.