Question 1

Which of the following describes the activity of a firm that assigns specific functions, such as accounting or legal work, to other organizations rather than performing these functions themselves?
A)Functional sharing
B)Outsourcing
C)Benchmarking
D)Virtual distribution

Accepted Answer

Outsourcing is the practice of assigning specific functions or processes to an external organization rather than performing them within the company. It is a common strategy for firms to focus on their core competencies and reduce costs by hiring specialized companies to handle non-core functions such as accounting or legal work. Functional sharing refers to the sharing of resources, knowledge or expertise within the organization. Benchmarking is the process of comparing one's business processes and performance metrics to industry bests or best practices from other companies. Virtual distribution refers to the use of technology to deliver products or services directly to customers without the need for physical intermediaries such as a brick-and-mortar store or a sales representative.

Question 2

Whirlpond, a manufacturer of home appliances, has historically produced the components for their products. However, Whirlpond now contracts with other firms to produce these components. This strategy of is a current trend among U.S. manufacturers.
A)outsourcing
B)core positioning
C)foreign competency
D)competitive benchmarking

Accepted Answer

The described strategy of contracting with other firms to produce components is outsourcing, which has become a trend among U.S. manufacturers.

Question 3

One of the most difficult management challenges today is managing change. This is because:
A)change requires cooperation and an awareness of a need for change.
B)change requires a lot of bail-out money from the government.
C)change requires decentralization of decision-making.
D)change will invariably result in an inverted organization and management does not want to relinquish its position power in order to make that happen.

Accepted Answer

Managing change is difficult because it requires cooperation from employees and stakeholders, and an awareness of the need for change. Change can also disrupt established routines and bring uncertainty, resistance, and conflicts. Therefore, successful change management requires effective communication, collaboration, motivation, and leadership skills. The other choices are not accurate or relevant to the challenge of managing change.

Question 4

is the term used to describe those functions that a firm can do as well or better than others. It agrees to perform these functions in-house, rather than outsourcing.
A)Benchmarks
B)Standard responsibilities
C)Operational requirements
D)Core competencies

Accepted Answer

Core competencies refer to the unique abilities or functions that a company is proficient at and can perform better than its competitors. These functions are integral to the company's success and competitive position, and therefore, companies choose to keep them in-house rather than outsourcing.

Question 5

Which term describes a company being so open to other companies working with it that electronic information is shared as if the companies were one?
A)Web-based corporations
B)Webworking
C)Transparency
D)E-connected

Accepted Answer

The answer of Which term describes a company being so...

Question 6

Heather works as a sales representative for the Westerly Company. She really enjoys working for Westerly, because the company treats her and other sales representatives as highly valued employees. Sales reps at Westerly are given freedom and flexibility in their relationships with customers. While there are only a few layers of management at Westerly, Heather has found that these managers try their best to support and assist her efforts. Based on Heather's experience, it appears that Westerly is a(n):
A)bureaucratic organization.
B)inverted organization.
C)tall organization.
D)casual organization.

Accepted Answer

Heather's description of Westerly Company suggests that it is an inverted organization. This is because the company values its sales representatives and gives them autonomy and flexibility, which indicates a flattened hierarchical structure. The few layers of management and their supportive attitude towards the sales reps further support this idea. Bureaucratic organizations are usually characterized by a high degree of formalization and standardization, which is not the case here. Tall organizations have multiple levels of management and a rigid structure, which does not fit Heather's experience. A casual organization is not a recognized organizational structure.

Question 7

For an inverted organization to be effective, it requires:
A)managers with strong position power.
B)managers who are both technologically savvy and conceptually savvy.
C)better educated, better trained, and better paid employees.
D)a focus on what is best for production.

Accepted Answer

Due to the fact that the inverted organization empowers front-line employees to make important customer decisions, the workforce of such an organization is typically better educated, better trained, and better paid.

Question 8

Bull's-eye, a regional discount retailer, carefully watches and compares its operation with the operations of its closest rivals. This firm does:
A)outsourcing.
B)functional positioning.
C)core competency ranking.
D)competitive benchmarking.

Accepted Answer

Bull's-eye is engaging in competitive benchmarking by closely watching and comparing its operation with its closest rivals in order to identify areas where it can improve and stay competitive. Competitive benchmarking involves comparing one's own business practices and performance metrics with those of competitors in order to identify best practices and areas for improvement.

Question 9

Which of the following describes the redesigning of an organization so that it can more effectively and efficiently serve its customers?
A)Reinventing
B)Restructuring
C)Radical reorganizing
D)Extroverted reorganizing

Accepted Answer

Restructuring involves redesigning an organization with the intention of improving its efficiency and effectiveness. This often involves changes to the organizational hierarchy, processes, and roles, with the goal of better serving customers. Reinventing and radical reorganizing may also lead to improved customer service, but restructuring specifically focuses on organizational design changes. Extroverted reorganizing is not a commonly used term in organizational restructuring.

Question 10

HairTrend, a cosmetology trade publication, utilizes the resources of other organizations as needed. Business relationships are temporary and flexible. HairTrend is a networked organization made up of replaceable firms that join the network and leave it as needed. This unique organization is an example of:
A)competitive benchmarking.
B)a virtual corporation.
C)core competency ranking.
D)real time transparency.

Accepted Answer

HairTrend's arrangement as a networked organization made up of replaceable firms that join and leave as needed is characteristic of a virtual corporation. This type of organization relies on business relationships that are flexible and temporary, utilizing the resources of other organizations as needed, in order to remain competitive and adaptable to changing market conditions. This is distinct from competitive benchmarking, core competency ranking, and real-time transparency, which do not necessarily involve this type of organizational structure.

Question 11

An organization that has contact people at the top and the chief executive officer at the bottom is known as a(n):
A)bureaucracy.
B)oligarchy.
C)improvised organization.
D)inverted organization.

Accepted Answer

An organization that has contact people at the top and the chief executive officer at the bottom is known as an inverted organization. Inverted organizations are structured in such a way that decision-making power and responsibility are given to the employees at the lower levels. This helps to ensure that decisions are made quickly and efficiently, and that the organization is responsive to the needs of its customers.

Question 12

Excite Enterprises, a corporation of amusement parks uses an accounting firm to handle the payroll and tax functions for the company. Using the services of another firm in this manner is an example of:
A)outsourcing.
B)functional reassignment.
C)core competencies.
D)benchmarking.

Accepted Answer

Outsourcing is the practice of using an external firm to handle certain business functions, such as payroll and tax services. This allows the company to focus on its core competencies and save costs by using the expertise of another firm. Functional reassignment and benchmarking are not accurate descriptions of this situation, and while core competencies are important, they are not directly related to the use of an accounting firm for payroll and tax functions.

Question 13

In an inverted organization, the job of management is to:
A)closely monitor employee performance.
B)establish rules and regulations to guide worker behavior.
C)make all of the basic decisions.
D)assist and support front-line people.

Accepted Answer

In an inverted organization, the focus is on empowering front-line employees and allowing them to make decisions. The job of management is to support and assist them in achieving their goals. Therefore, the correct choice is D: assist and support front-line people. The other options (A, B, and C) go against the principles of an inverted organization.

Question 14

Young people today are often called because they have never known life without the Internet.
A)the high-tech heroes
B)Social networkers
C)digital natives
D)electronic eggheads

Accepted Answer

The term "digital natives" refers to young people who have grown up in a world where technology, particularly the Internet, has always been present. This term highlights the idea that technology is an integral part of their lives and they have a natural affinity for it.

Question 15

Which of the following describes a temporary networked organization made up of replaceable firms that join and leave as needed?
A)Web-based corporation
B)Benchmark outsourcing system
C)Network system
D)Virtual corporation

Accepted Answer

A virtual corporation is a temporary networked organization made up of replaceable firms that join and leave as needed. Web-based corporation and benchmark outsourcing system are not accurate descriptions of this type of organization. While a network system can be a part of a virtual corporation, it does not fully encompass the concept as it can also refer to other types of networks.

Question 16

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

Accepted Answer

The answer of In today's competitive environment, cost containment is...

Question 17

Empowering employees to better serve customers requires front-line employees.
A)fewer
B)less training for
C)more support for
D)uniforms for

Accepted Answer

The word "Empowering" implies giving power or authority to employees. Therefore, the best way to empower employees to better serve customers would be to provide them with more support. This could include resources, training, or even better work conditions. Fewer employees (A) would not necessarily empower those who remain, and less training (B) is also unlikely to improve their ability to serve customers. Uniforms (D) may help with branding, but they do not empower employees in the same way as providing them with support.

Question 18

Independence Electronics prides itself as a world-class producer of components used in CD and DVD players. The outstanding performance of the production department indicates that this activity is one of the firm's:
A)fiscal responsibilities.
B)core competencies.
C)benchmark assets.
D)target competitive advantages.

Accepted Answer

Core competencies are activities or processes that a company excels in and gives them a competitive advantage in the market. In this case, Independence Electronics' outstanding performance in producing components for CD and DVD players is a core competency that sets them apart from their competitors.

Question 19

Companies benefit today by inter-firm cooperation. One of the ways they cooperate is through networking. Another way is by seeking technological knowledge and learning new processes from other firms that usually fall outside of their respective industries. We call this:
A)competency capturing
B)technology swapping
C)benchmarking
D)broadening the knowledge base

Accepted Answer

The term describing the practice of seeking knowledge and learning new processes from other firms that usually fall outside of their respective industries is benchmarking. Competency capturing refers to the practice of identifying and utilizing the valuable skills and knowledge possessed by individual employees within a company. Technology swapping is a term that refers to the exchange of technological expertise between two companies. Broadening the knowledge base is a general term that can refer to any practice that expands a company's understanding of a particular subject area.

Question 20

The process of rating an organization's practices, processes, and products against the best of the world is known as:
A)webworking.
B)outsourcing.
C)benchmarking.
D)core competencies.

Accepted Answer

Benchmarking involves evaluating an organization's practices, processes, and products against the best practices of other organizations in the world. This helps identify areas where improvements can be made and ultimately leads to increased efficiency and competitiveness. Webworking refers to collaborating with others online, outsourcing involves contracting work out to external companies, and core competencies are unique strengths that an organization possesses. None of these are directly related to assessing performance against global best practices.

Quiz 8: Structuring Organizations for Todays Challenges

Which of the following describes the activity of a firm that assigns specific functions, such as accounting or legal work, to other organizations rather than performing these functions themselves?

Whirlpond, a manufacturer of home appliances, has historically produced the components for their products. However, Whirlpond now contracts with other firms to produce these components. This strategy of is a current trend among U.S. manufacturers.

One of the most difficult management challenges today is managing change. This is because:

is the term used to describe those functions that a firm can do as well or better than others. It agrees to perform these functions in-house, rather than outsourcing.

Which term describes a company being so open to other companies working with it that electronic information is shared as if the companies were one?

For an inverted organization to be effective, it requires:

Bull's-eye, a regional discount retailer, carefully watches and compares its operation with the operations of its closest rivals. This firm does:

Which of the following describes the redesigning of an organization so that it can more effectively and efficiently serve its customers?

An organization that has contact people at the top and the chief executive officer at the bottom is known as a(n) :

Excite Enterprises, a corporation of amusement parks uses an accounting firm to handle the payroll and tax functions for the company. Using the services of another firm in this manner is an example of:

In an inverted organization, the job of management is to:

Young people today are often called because they have never known life without the Internet.

Which of the following describes a temporary networked organization made up of replaceable firms that join and leave as needed?

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?

Empowering employees to better serve customers requires front-line employees.

Independence Electronics prides itself as a world-class producer of components used in CD and DVD players. The outstanding performance of the production department indicates that this activity is one of the firm's:

Companies benefit today by inter-firm cooperation. One of the ways they cooperate is through networking. Another way is by seeking technological knowledge and learning new processes from other firms that usually fall outside of their respective industries. We call this:

The process of rating an organization's practices, processes, and products against the best of the world is known as: