Question 1

The virtual corporation does all its business online with partners considered a permanent part of the network.

Accepted Answer

Although it is possible for firms that are connected virtually to interact online, the term refers to the fact that the functional units of this type of corporation do not have permanent ties to any one corporation. The core firm hires other companies to partner with it on an as-needed basis.

Question 2

Inverted organizations empower employees by adding multiple layers of management and long lines of communication.

Accepted Answer

Inverted organizations empower employees by removing layers of management and creating shorter lines of communication.

Question 3

To better serve customers, many firms are restructuring to empower front-line employees.

Accepted Answer

Empowering front-line employees can help firms better understand and meet customer needs, leading to improved customer satisfaction and loyalty. This often involves restructuring to give employees more decision-making authority and resources to address customer issues.

Question 4

The Spotlight on Small Business box titled "Cutting Back While Cutting Costs" discusses the decline of outsourcing jobs in the small business sector. Outsourcing is just for big business.

Accepted Answer

The statement in the question is false. The Spotlight on Small Business box actually discusses the decline of outsourcing jobs in the small business sector, suggesting that outsourcing is not just for big business.

Question 5

New technology such as the Internet has opened up opportunities for firms to sell to new markets.

Accepted Answer

The Internet allows firms to reach a wider audience and sell to new markets, which was not possible before the advent of this technology.

Question 6

Restructuring involves the redesign of an organization to be more responsive to customers.

Accepted Answer

Restructuring is a process of reorganizing an organization to make it more efficient, effective and responsive to the external environment, including customers.

Question 7

Introducing change into an organization is an easy task for a manager.

Accepted Answer

Introducing change into an organization can be a challenging and complex task for a manager. It requires careful planning, effective communication, and stakeholder buy-in to successfully implement change.

Question 8

Companies have learned that working transparently through real-time networks has provided competitive advantages in the marketplace.

Accepted Answer

Companies have found that real-time networks provide them with a competitive advantage by allowing them to be more transparent in their operations. This transparency can help build trust with customers and partners, improve communication, and increase efficiency.

Question 9

Milton Learning Centers is a private firm specializing in helping students with learning problems. Located around the country, each center employs a manager and several tutors and counselors. The counselors and tutors have a great deal of flexibility to design programs specifically for individual students. In fact, these first-line employees are considered to be the key people in the organization, and the manager's main function is to assist these employees in matters such as scheduling and securing necessary materials. This type of arrangement suggests that Milton is an inverted organization.

Accepted Answer

The description of the organization suggests that it is an inverted organization where the front-line employees are considered to be key people and the manager's main function is to assist them.

Question 10

In an inverted organization, the purpose of management is to assist and support the decisions of employees who work directly with customers.

Accepted Answer

In an inverted organization, decision-making authority is shifted to employees who work directly with customers. Management's role is to assist and support these employees in carrying out their responsibilities.

Question 11

According to the Adapting to Change box titled "When Open Communication Should Not Be So Open," France is considering legislation to block work e-mails and phone calls to allow workers time to rest.

Accepted Answer

According to the Adapting to Change box titled "When Open Communication Should Not Be So Open," France is considering legislation to block work e-mails and phone calls to allow workers time to rest.

Question 12

According to the Spotlight on Small Business box titled "Cutting Back While Cutting Costs," the growth of small business outsourcing can be attributed to the presence of online job marketplaces.

Accepted Answer

The Spotlight on Small Business box titled "Cutting Back While Cutting Costs" states that the growth of small business outsourcing can be attributed to the presence of online job marketplaces.

Question 13

Digital natives, those who grew up with the Internet, are an important customer group that most businesses want to reach.

Accepted Answer

Digital natives are a valuable target audience as they are accustomed to digital technology and have different expectations and preferences in terms of communication and customer experience. Therefore, many businesses strive to cater to their needs and preferences.

Question 14

Outsourcing has become commonplace, particularly when organizations want to focus on core competencies.

Accepted Answer

Outsourcing is a common practice for organizations to delegate non-core tasks to specialized service providers, so they can focus on their core competencies.

Question 15

Last week at Happy Trails Financial Services Company, all financial advisors who serve more than 150 clients each received a notice from the VP of Operations that every client's investment portfolio should consist of 50% individual stock purchases, 25% bonds, and 25% property. Advisors were ordered to review all client portfolios for compliance to this directive. Clearly, Happy Trails is an inverted organization because management directives such as the one described are very common.

Accepted Answer

An inverted organization typically refers to a structure where decision-making is decentralized and employees have more autonomy, which is contrary to the top-down directive described in the scenario.

Question 16

Cardinal Foods is a wholesaler serving grocery stores. High-tech communications allows Cardinal to work closely with its suppliers and customers in real time. Networking allows these organizations to operate more efficiently.

Accepted Answer

The statement describes how Cardinal Foods uses high-tech communications and networking to operate efficiently, therefore the statement is true.

Question 17

The Nutmeg Soccer Club outsourced its accounting work. This suggests that management at Nutmeg does not believe that accounting is one of the firm's core competencies.

Accepted Answer

The fact that Nutmeg Soccer Club outsourced its accounting work implies that management believes accounting is not one of the firm's core competencies and can be performed better by an outside specialist.

Question 18

Inverted organizations define the role of front-line employees as those workers who follow the orders of top and middle management.

Accepted Answer

Inverted organizations define the role of front-line employees as those who have autonomy and decision-making power, and are empowered to drive innovation and change within the organization.

Question 19

In order to improve services to customers, Northwest Electric, a regional monopoly, recently rated their company's processes and products against the results achieved by the world's best at similar processes and products. Northwest Electric has adopted a policy of international standardization.

Accepted Answer

Northwest Electric has adopted a policy of benchmarking, not international standardization. Benchmarking involves comparing one's processes and performance metrics to industry bests or best practices from other companies.

Question 20

Once a company has restructured a firm to be more competitive in today's market, it alleviates the need to scan the external environment.

Accepted Answer

Even after restructuring, it is important for a company to continuously scan the external environment to stay competitive and adapt to any changes or trends in the market.

Quiz 8: Structuring Organizations for Todays Challenges

The virtual corporation does all its business online with partners considered a permanent part of the network.

Inverted organizations empower employees by adding multiple layers of management and long lines of communication.

To better serve customers, many firms are restructuring to empower front-line employees.

The Spotlight on Small Business box titled "Cutting Back While Cutting Costs" discusses the decline of outsourcing jobs in the small business sector. Outsourcing is just for big business.

New technology such as the Internet has opened up opportunities for firms to sell to new markets.

Restructuring involves the redesign of an organization to be more responsive to customers.

Introducing change into an organization is an easy task for a manager.

Companies have learned that working transparently through real-time networks has provided competitive advantages in the marketplace.

In an inverted organization, the purpose of management is to assist and support the decisions of employees who work directly with customers.

According to the Adapting to Change box titled "When Open Communication Should Not Be So Open," France is considering legislation to block work e-mails and phone calls to allow workers time to rest.

According to the Spotlight on Small Business box titled "Cutting Back While Cutting Costs," the growth of small business outsourcing can be attributed to the presence of online job marketplaces.

Digital natives, those who grew up with the Internet, are an important customer group that most businesses want to reach.

Outsourcing has become commonplace, particularly when organizations want to focus on core competencies.

Cardinal Foods is a wholesaler serving grocery stores. High-tech communications allows Cardinal to work closely with its suppliers and customers in real time. Networking allows these organizations to operate more efficiently.

The Nutmeg Soccer Club outsourced its accounting work. This suggests that management at Nutmeg does not believe that accounting is one of the firm's core competencies.

Inverted organizations define the role of front-line employees as those workers who follow the orders of top and middle management.

In order to improve services to customers, Northwest Electric, a regional monopoly, recently rated their company's processes and products against the results achieved by the world's best at similar processes and products. Northwest Electric has adopted a policy of international standardization.

Once a company has restructured a firm to be more competitive in today's market, it alleviates the need to scan the external environment.