Exam 7: Organizing the Business Enterprise

David has grouped some jobs together in such a way that they can be treated like they were a small business, responsible for its costs, revenues, and profits. David has created a

What does the term span of control refer to?

Which of the following is correct with regard to divisional structures?

The type of departmentalization where all the engineers are in an engineering department, all the customer service reps are in a customer service department, and all the accountants are in an accounting department is called ________ departmentalization.

Organizations use decentralization as a way to maintain standardization.

What is the meaning of the solid lines connecting the boxes on an organization chart?

In the ________ structure, teams are formed in which individuals report to two or more managers, usually including a line manager and a staff manager.

The primary focus of job specialization is the elimination of unnecessary or undesirable jobs.

When delegating authority, managers should keep all of the following points in mind except

Team authority is generally given to top management teams, but not to operating teams.

Boundaryless and virtual organizations both function without traditional boundaries.

Describe centralization/decentralization, delegation, and authority as the key ingredients in establishing the decision-making hierarchy.

Departmentalization refers to

In recent years, a consensus has emerged among managers that the divisional structure is more effective than the functional structure.

Interstate Insurance is looking to upgrade the company's information technology. Information technology is used for a variety of purposes, so the company needs to prioritize its needs and find out in what areas the company needs to improve its information technology. Interstate's chief information officer thinks that improvements to the company's wide area network (WAN) should be a priority for the company. Which of the following, if true, would strengthen the CIO's position?

Describe a formal organization that does not contain an informal organization.

Which of the following is correct with regard to the different types of organizational structures?

Span of control refers to the type and number of different tasks for which a manager is responsible.

Why are centralization and decentralization, delegation, and authority the key ingredients in establishing the decision-making hierarchy?

Discuss the difference between delegation and accountability.