Management Basics
Theories & Principles
Structuring Organizations
Organizational Models
Cooperation & Culture
100

What is the key to success for businesses in a changing economy?


Remaining flexible and adapting to change


100

Who created the original principles of organizational management?


Henri Fayol


100

What are the four main choices managers make when structuring organizations?


Centralization, span of control, tall vs. flat structures, and departmentalization


100

What are the two traditional organizational models?


Line and line-and-staff


100

What is networking?


Linking organizations through technology to achieve common goals


200

What does structuring an organization involve?


Division of labor, assigning responsibility, setting up teams, and allocating resources


200

What is “unity of command”?


Each worker should report to only one manager


200

What does “decentralization”mean?


Distributing decision-making power to lower levels of management


200

Who gives expert advice in a line-and-staff organization?


Staff assistants


200

What is a virtual corporation?


A networked organization of replaceable firms that join and leave as needed


300

What is specialization a result of?


Division of labor


300

What did Max Weber add to Fayol’s ideas?


Bureaucratic principles like written rules and job descriptions


300

What happens to the span of control as employees become self-directed?


It becomes larger


300

What is one benefit of a line organization?


Clear authority and responsibility


300

What does benchmarking do?


Compares a company’s performance to competitors


400

What kind of decisions must managers make about workers?


Ethical decisions


400

What was Weber’s view on staffing and promotions?


They should be based on qualifications


400

What are matrix organizations and cross-functional teams used for?


Decentralizing authority and improving teamwork


400

What do matrix organizations encourage?


Cooperation across departments


400

What is an inverted organization?


Puts employees at the top and managers at the bottom to assist them


500

What economic system causes markets to change, creating winners and losers?


Capitalism


500

What principle emphasizes fairness within the workplace?


Equity


500

What trend involves eliminating managers?


Flattening the organization


500

What kind of teams combine the benefits of matrix structure and long-term cooperation?


Cross-functional self-managed teams


500

What’s the difference between formal and informal organization?


Formal = official hierarchy

Informal = natural human relationships and communication lines


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