Question 1

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's position as the go-to person in the welding department indicates that he has a strong presence in the informal organization of the firm. The informal organization refers to the network of personal and social relationships that exist between individuals in an organization, outside of their formal job descriptions and hierarchical positions. Carlos's influence in the department is not tied to any formal supervisory or managerial role but is rather based on the informal relationships and trust that he has built with his colleagues.

Question 2

The widely shared values within an organization that provide unity and cooperation to achieve common goals is together known as the:

Accepted Answer

The term used for the widely shared values within an organization that provide unity and cooperation to achieve common goals is organizational culture. Therefore, option D is the correct answer. Option A (normative matrix) and option C (ethical system) are not specifically related to organizational values and culture. Option B (predefined group values) is too narrow and does not capture the complexity and depth of organizational culture.

Question 3

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 about too many layers of management and too many rules and regulations suggest that Mucho Dinero is a bureaucratic organization, which is characterized by a highly structured hierarchical arrangement of authority, formalized rules and procedures, and a division of labor.

Question 4

The of a business firm is the system that details lines of authority, responsibility, and position, similar to the structure on organization charts.

Accepted Answer

The formal organization is the system that establishes the lines of authority, responsibility, and position within a business firm. This is depicted in organizational charts that show the hierarchy of positions and how they are interrelated. The formal organization contrasts with the informal organization, which consists of the unofficial relationships and networks that exist within the company, and which can influence the way work is done and decisions are made. Options A, C, and D do not accurately describe the system of authority and responsibility in a business firm.

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.
-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 indicates that she believes the best approach to her firm's problems is restructuring. This aligns with the opinions of the managers and employees who emphasized the need for better interdepartmental communication and fewer layers of management. Competitive benchmarking and organizational therapy do not necessarily address the specific issues highlighted by Angelica and her team, and flexible departmentalization alone may not be sufficient to address the deeper organizational issues causing the firm's decline.

Question 6

The is the system of relationships that develop spontaneously as employees meet and form power centers.

Accepted Answer

Informal organization refers to the social structure and relationships that develop within an organization as a result of employee interactions and personal connections, rather than the formal structure dictated by the organization chart. This can include power centers, cliques, and informal communication networks.

Question 7

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 8

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

Angelica is considering setting up groups of workers from different departments to work together on a long-term basis. This type of group is known as a cross-functional team, which is created with individuals from different departments or areas of the organization to work together towards a common goal. This approach is aimed at breaking down silos and promoting communication and collaboration across the organization.

Question 9

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

Accepted Answer

The Spotlight on Small Businesses box discusses how large companies can maintain a culture of innovation and agility similar to small businesses. It does not mention restoring old corporate culture, bringing in new managers, or centralizing management.

Question 10

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

By befriending the secretary, Ashley discovered an unofficial informal organization that exists within the company that can be utilized to help her do her job. Option A is not necessarily true as it is unclear whether Ashley's business classes were helpful or not. Option C may be true but is not directly stated in the passage. Option D is clearly false as all businesses have some sort of organization.

Question 11

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 approach used by Mucho Dinero is known as functional departmentalization, which groups people by their similar skills and expertise. The other options (process, interest group and task-oriented) do not fit the description of Mucho Dinero's current structure.

Question 12

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

Accepted Answer

The formal organization is usually structured to address logical and technical problems, and it provides a systematic approach to problem-solving. Conversely, the informal organization is better suited to solving creative or social problems, so it is not the best choice for finding answers to critical problems that require logical analysis.

Question 13

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 structure at Google, providing the necessary structure and hierarchy that the company needed to continue growing efficiently.

Question 14

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's position as a trusted and influential individual among production workers suggests that he has a significant role in the informal organization of Mucho Dinero. This informal organization exists outside of the formal structure of the company and is characterized by relationships and communication channels that are not part of the official hierarchy.

Question 15

All organizations have two organizational systems:

Accepted Answer

The formal organization is the official and structured system of an organization, while the informal organization refers to the unofficial and social network within the organization. Both systems coexist and interact with each other to varying degrees, influencing the overall performance and culture of the organization.

Question 16

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

Accepted Answer

The informal organization fosters a sense of camaraderie among employees and encourages teamwork. It is not focused on providing clear hierarchical structures or guidelines for routine problems, nor does it necessarily facilitate careful, reasoned decision-making about critical issues.

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, which encompasses the shared values, attitudes, and behaviors of the individuals in the lab. The spirit of help and cooperation that Zach has observed is a reflection of the lab's culture and contributes to its reputation as one of the best in the nation.

Quiz 8: Structuring Organizations for Todays Challenges