Question 1

Mini-Case
Angelica Canizales is the CEO of Mucho Dinero Enterprises.Sales have declined for four consecutive years and the firm's accountants have reported net losses in each of the last two years.Employees appear demoralized and frustrated.Recently,Angelica met with managers from marketing,production,and finance to listen to their views regarding the company's problems.The managers unanimously agreed that the main problem was a lack of communication between the several functional areas of the business.Each manager felt that the firm could increase quality and customer satisfaction with better interdepartmental communication.Angelica also met with marketing and production employees to get their respective opinions on the problems of the firm.One employee from the production department observed that,"We have so many layers of management that it takes forever to make decisions." An employee from marketing complained that,"This place is so bogged down with rules and regulations that there is no opportunity to be creative." Several employees shared their opinions regarding their bosses.Specifically,one employee expressed "My boss never pays attention to my ideas.He just issues orders and expects me to obey them." Angelica decided,after listening to many comments from employees,suppliers,and customers,that the only way to end Mucho Dinero's slide was to completely rethink the firm's structure and to make radical changes in its organization.She presented her ideas to the board of directors,promising to voluntarily resign if her efforts to reorganize did not return the firm to profitability.
-Employee complaints that there are too many layers of management and too many rules and regulations suggest that Mucho Dinero is a(n):

Accepted Answer

The employee complaints of too many layers of management and rules and regulations suggest that Mucho Dinero is a bureaucratic organization. Bureaucratic organizations typically have a hierarchical structure with many levels of management, standardized procedures and rules, and a focus on efficiency and control.

Question 2

Mini-Case
Angelica Canizales is the CEO of Mucho Dinero Enterprises.Sales have declined for four consecutive years and the firm's accountants have reported net losses in each of the last two years.Employees appear demoralized and frustrated.Recently,Angelica met with managers from marketing,production,and finance to listen to their views regarding the company's problems.The managers unanimously agreed that the main problem was a lack of communication between the several functional areas of the business.Each manager felt that the firm could increase quality and customer satisfaction with better interdepartmental communication.Angelica also met with marketing and production employees to get their respective opinions on the problems of the firm.One employee from the production department observed that,"We have so many layers of management that it takes forever to make decisions." An employee from marketing complained that,"This place is so bogged down with rules and regulations that there is no opportunity to be creative." Several employees shared their opinions regarding their bosses.Specifically,one employee expressed "My boss never pays attention to my ideas.He just issues orders and expects me to obey them." Angelica decided,after listening to many comments from employees,suppliers,and customers,that the only way to end Mucho Dinero's slide was to completely rethink the firm's structure and to make radical changes in its organization.She presented her ideas to the board of directors,promising to voluntarily resign if her efforts to reorganize did not return the firm to profitability.
-From her discussions with employees,Angelica learned quickly that production workers put their trust in 20-year veteran Willie McClaren.Many people told her that if you wanted something done,Willie was the person to see.Willie appears to be an important part of the:

Accepted Answer

Willie McClaren is not a formal part of the organization's structure or hierarchy, but rather is an informal leader who is respected and trusted by the production workers. This suggests that he is an important part of the informal organization, which includes the social networks, communication channels, and norms of behavior that exist outside of the formal organizational chart.

Question 3

What is a matrix organization? What advantages and disadvantages are associated with this type of organization?

Accepted Answer

The answer of What is a matrix organization? What advantages...

Question 4

Ashley experienced frustration with her new job at Walnut Securities,until she befriended a secretary from another department.Over lunch in the cafeteria,her new friend shared with Ashley the way things really work at Walnut Securities.Ashley quickly learned that:

Accepted Answer

Ashley's new friend informed her about the unofficial informal organization that exists at Walnut Securities, which could help her do her job. This shows that option B is correct. Option A is not mentioned in the scenario, so it cannot be selected. Option C is mentioned, but it is not the main lesson that Ashley learned. Option D is incorrect because Walnut Securities is a business, and it is stated that an informal organization exists there.

Question 5

Mini-Case
Angelica Canizales is the CEO of Mucho Dinero Enterprises.Sales have declined for four consecutive years and the firm's accountants have reported net losses in each of the last two years.Employees appear demoralized and frustrated.Recently,Angelica met with managers from marketing,production,and finance to listen to their views regarding the company's problems.The managers unanimously agreed that the main problem was a lack of communication between the several functional areas of the business.Each manager felt that the firm could increase quality and customer satisfaction with better interdepartmental communication.Angelica also met with marketing and production employees to get their respective opinions on the problems of the firm.One employee from the production department observed that,"We have so many layers of management that it takes forever to make decisions." An employee from marketing complained that,"This place is so bogged down with rules and regulations that there is no opportunity to be creative." Several employees shared their opinions regarding their bosses.Specifically,one employee expressed "My boss never pays attention to my ideas.He just issues orders and expects me to obey them." Angelica decided,after listening to many comments from employees,suppliers,and customers,that the only way to end Mucho Dinero's slide was to completely rethink the firm's structure and to make radical changes in its organization.She presented her ideas to the board of directors,promising to voluntarily resign if her efforts to reorganize did not return the firm to profitability.
-In order to encourage more interdepartmental communication and cooperation,Angelica is thinking about setting up groups of workers from different departments to work together on a long-term basis.She is even thinking about asking people from some of Mucho Dinero's suppliers,customers and distributors to join these groups.The type of group that Angelica is considering is known as a(n):

Accepted Answer

A cross-functional team is a group of individuals who come from different departments or areas of expertise within a company and work together on a specific project or goal. This type of team is ideal for improving interdepartmental communication and cooperation, as it allows individuals with different perspectives and skill sets to collaborate and share ideas. By also including people from Mucho Dinero's suppliers, customers, and distributors, Angelica can further promote collaboration and ensure that the team has a well-rounded understanding of the company's operations and customers.

Question 6

Explain the difference between a firm's formal organization and its informal organization.Why are both types of organization important to managers?

Accepted Answer

The answer of Explain the difference between a firm's formal...

Question 7

The ___________ is the nerve center of the informal organization.

Accepted Answer

The grapevine refers to the informal communication network within an organization. It is typically spread through word-of-mouth and can be a powerful influence on employee attitudes and behaviors. It is often seen as the nerve center of the informal organization. The other options listed (organizational database, intranet, company newsletter) are all formal communication channels within an organization and do not typically play as strong of a role in the informal network.

Question 8

Carlos is the person to see in the welding department if you are a new employee.While he is not a manager,he is the person that most of the others in the department look to for advice and assistance.Carlos is an important member of the firm's:

Accepted Answer

Carlos is not a supervisor or manager, but he is a respected member of the department who others turn to for guidance. This suggests an informal network has formed within the welding department, which is a type of organization that arises naturally within a workplace as employees form relationships and social structures that are not necessarily part of the company's formal hierarchy.

Question 9

The Spotlight on Small Business,titled,"Keeping that Small Company Feeling",illustrates that:

Accepted Answer

Maintaining a strong informal organization is vital in today's business environment as it helps in fostering a sense of community and belonging, which can enhance employee satisfaction and productivity.

Question 10

When Eric Schmidt became the CEO of Google,he reported that the company in the hands of founders Larry Page and Sergey Brinn was running well,it just needed a little structure.CEO Schmidt helped develop:

Accepted Answer

Eric Schmidt helped develop the formal organization by implementing processes and structures to manage the growing company.

Question 11

What is a cross-functional,self-managed team? Who would serve on such teams? Why do cross-functional,self-managed teams often lead to networking?

Accepted Answer

The answer of What is a cross-functional,self-managed team? Who would...

Question 12

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

Accepted Answer

The formal organization is structured with clear lines of authority and rules, making it better suited for logical analysis and problem-solving. The informal organization is more focused on social relationships and would not be as effective in solving critical problems.

Question 13

According to the Spotlight on Small Businesses box,titled,"Keeping that Small Company Feeling",the main idea is to:

Accepted Answer

The article discusses the importance of developing a culture of innovation in large companies in order to maintain the "small company feeling" that fosters creativity and employee satisfaction. It does not mention restoring old corporate cultures, bringing in new managers, or implementing centralized management.

Question 14

Discuss Max Weber's views on organization theory.

Accepted Answer

The answer of Discuss Max Weber's views on organization theory....

Question 15

Describe two major issues that are important in organizational design.

Accepted Answer

The answer of Describe two major issues that are important...

Question 16

Mini-Case
Angelica Canizales is the CEO of Mucho Dinero Enterprises.Sales have declined for four consecutive years and the firm's accountants have reported net losses in each of the last two years.Employees appear demoralized and frustrated.Recently,Angelica met with managers from marketing,production,and finance to listen to their views regarding the company's problems.The managers unanimously agreed that the main problem was a lack of communication between the several functional areas of the business.Each manager felt that the firm could increase quality and customer satisfaction with better interdepartmental communication.Angelica also met with marketing and production employees to get their respective opinions on the problems of the firm.One employee from the production department observed that,"We have so many layers of management that it takes forever to make decisions." An employee from marketing complained that,"This place is so bogged down with rules and regulations that there is no opportunity to be creative." Several employees shared their opinions regarding their bosses.Specifically,one employee expressed "My boss never pays attention to my ideas.He just issues orders and expects me to obey them." Angelica decided,after listening to many comments from employees,suppliers,and customers,that the only way to end Mucho Dinero's slide was to completely rethink the firm's structure and to make radical changes in its organization.She presented her ideas to the board of directors,promising to voluntarily resign if her efforts to reorganize did not return the firm to profitability.
-Currently,Mucho Dinero is organized into specialized departments such as marketing,finance,production and personnel.These departments are designed to allow people with similar skills and expertise to work together.This approach is known as ___________ departmentalization.

Accepted Answer

The description given in the case suggests that Mucho Dinero is using functional departmentalization, which is based on the grouping of similar skills and expertise. The other options, process, interest group, and task-oriented departmentalization, are not applicable based on the information given in the case.

Question 17

Zach recently got his Ph.D.in analytical chemistry and was fortunate to be asked to join the Weilman Lab at a prestigious eastern university.After a month on the job,he remarked to another graduate student at his former university that the spirit of help and cooperation at the Weilman lab was remarkable.He enjoyed going to work each day and sometimes exchanged calls with other lab partners in the evening with ideas to improve each other's experiments.Zach remarked,"Now I know why this lab is considered one of the best in the nation!" Zach is referring to:

Accepted Answer

Zach is referring to the organizational culture at the Weilman lab, which is characterized by a spirit of help and cooperation, and a willingness to share ideas and work together to improve each other's experiments. This is an example of a positive organizational culture that contributes to the lab's success and reputation as one of the best in the nation.

Question 18

Mini-Case
Angelica Canizales is the CEO of Mucho Dinero Enterprises.Sales have declined for four consecutive years and the firm's accountants have reported net losses in each of the last two years.Employees appear demoralized and frustrated.Recently,Angelica met with managers from marketing,production,and finance to listen to their views regarding the company's problems.The managers unanimously agreed that the main problem was a lack of communication between the several functional areas of the business.Each manager felt that the firm could increase quality and customer satisfaction with better interdepartmental communication.Angelica also met with marketing and production employees to get their respective opinions on the problems of the firm.One employee from the production department observed that,"We have so many layers of management that it takes forever to make decisions." An employee from marketing complained that,"This place is so bogged down with rules and regulations that there is no opportunity to be creative." Several employees shared their opinions regarding their bosses.Specifically,one employee expressed "My boss never pays attention to my ideas.He just issues orders and expects me to obey them." Angelica decided,after listening to many comments from employees,suppliers,and customers,that the only way to end Mucho Dinero's slide was to completely rethink the firm's structure and to make radical changes in its organization.She presented her ideas to the board of directors,promising to voluntarily resign if her efforts to reorganize did not return the firm to profitability.
-Angelica's decision to completely redesign Mucho Dinero's organization indicates that she believes the best approach to her firm's problems is:

Accepted Answer

Angelica's decision to completely rethink the firm's structure and make radical changes in its organization demonstrates that she believes in restructuring the organization to overcome the problems faced by Mucho Dinero Enterprises. This indicates that she believes that structural changes such as departmentalization, elimination of layers of management, and reducing rules and regulations will lead to increased communication, quality, and customer satisfaction, thereby turning the company around.

Question 19

One of Javier's coworkers was recently promoted to a middle management position at their company.He seems to have quickly distanced himself from Javier and their other coworker,Carlos.In fact,yesterday Carlos described the situation by saying,"He's gone to the dark side." Javier understands what Carlos means because management keeps 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:

Accepted Answer

The answer of One of Javier's coworkers was recently promoted...

Question 20

The informal organization of a business is probably best suited to:

Accepted Answer

The informal organization is based on social relationships among coworkers and encourages teamwork and a sense of camaraderie. It does not provide specific guidelines or clear ideas about hierarchy within the organization, nor does it typically generate careful reasoned decisions about critical issues.

Quiz 8: Adapting Organizations to Todays Markets