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Amy, an administrative assistant in the business division of a university, is assigned the responsibility of serving the needs of the division's professors. However, Amy often reads books and looks at catalogs during working hours because she has plenty of free time. It appears that the professors in the division have failed to


A) delegate.
B) work hard.
C) teach class.
D) prioritize.
E) be held accountable.

F) A) and C)
G) All of the above

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Citibank has one group of loan officers who handle consumer loans and another group who work in the commercial loan area. Grouping work units this way is known as departmentalization by


A) function.
B) customer.
C) product.
D) specialty.
E) location.

F) A) and B)
G) B) and E)

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Personal rather than formal relationships among employees are known as the


A) span of management.
B) chain of command.
C) informal organization.
D) bureaucratic structure.
E) grapevine.

F) C) and E)
G) C) and D)

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A relatively permanent committee charged with performing some recurring task is called a(n)


A) cluster structure.
B) ad hoc committee.
C) informal group.
D) task force.
E) standing committee.

F) A) and B)
G) A) and C)

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Dana is assigned to create a training program for newly hired mortgage loan officers. She has the ____ to complete this assignment.


A) authority
B) delegation
C) network
D) responsibility
E) accountability

F) A) and B)
G) A) and E)

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Determining how many subordinates will report to each manager gives an organization its


A) chain of command.
B) span of management.
C) degree of centralization.
D) nature and degree of departmentalization.
E) degree of specialization.

F) D) and E)
G) A) and E)

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If you were a manager, how would you use the grapevine?

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As a manager, I would use the grapevine ...

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Angered by the informal discussions among employees, a supervisor has posted rules against rumors, gossip, and discussions about the company's financial situation as well as other company matters. Your managerial know-how tells you that this supervisor is


A) trying to support employees' First Amendment rights.
B) trying to eliminate inaccurate information.
C) making a big mistake by trying to eliminate the grapevine.
D) recognizing the need for a grapevine.
E) attempting to use the grapevine as a managerial tool.

F) C) and D)
G) D) and E)

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The president of Digital Equipment Corporation discovered that his company was having a problem with counterproductive product groups that were working selfishly rather than cooperating with one another. To solve the problem, he combined the company's twelve U.S. product groups into three regional management centers. This solution is referred to as departmentalization by


A) location.
B) function.
C) product.
D) customer.
E) objective.

F) None of the above
G) B) and C)

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A span of control may be wide when


A) managers and workers are located far from one another.
B) a great deal of interaction among levels is needed.
C) few new problems are expected to arise.
D) the manager has a lot of work other than managing.
E) new problems arise frequently.

F) A) and B)
G) None of the above

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It is important that every company use only one departmentalization basis.

A) True
B) False

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A benefit of job specialization is that it


A) is more difficult to design equipment.
B) is easier to train new employees.
C) is more time-consuming to change from one operation to another.
D) eliminates boredom.
E) enriches the job.

F) B) and C)
G) A) and D)

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Departmentalization by location allows an organization to readily respond to the unique demands of each geographic area.

A) True
B) False

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An analyst in the corporate finance department at Chase Manhattan Bank has been assigned to an interdepartmental project involving a major client. He must report to two different supervisors―the project manager and the manager of his department. This sort of organizational structure is called a ____ structure.


A) network
B) matrix
C) line
D) functional
E) hybrid

F) B) and D)
G) A) and C)

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Jason assigns responsibility to a subordinate for preparing a sales presentation for an important potential client and authorizes the necessary expenditures of money and human resources, but he still requires a dress rehearsal to be presented to him before the actual presentation. Jason realizes that accountability cannot be


A) created.
B) delegated.
C) assigned.
D) expected.
E) accepted.

F) C) and D)
G) A) and C)

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The legal affairs attorney working for Intel would most likely occupy a(n)


A) vice president position.
B) high position in the chain of command.
C) staff position.
D) nonessential position.
E) authoritarian position.

F) C) and D)
G) B) and E)

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A consulting manager at SAP America has a very wide span of control. This is probably because the


A) firm has a very loose, informal organizational structure.
B) consulting manager has a low level of accountability.
C) consulting manager is expected to delegate authority.
D) manager's subordinates aren't given much responsibility.
E) manager and his or her subordinates are very competent.

F) A) and E)
G) None of the above

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The more complex and uncertain a company's environment, the more likely it is that the company will


A) decentralize the organization.
B) have a split between decentralized and centralized decision making.
C) centralize the organization.
D) increase the span of control, thus increasing the number of employees on board.
E) decrease the span of control, thus decreasing the workforce.

F) B) and E)
G) A) and B)

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The inner rites, rituals, heroes, and values of a firm make up its corporate culture.

A) True
B) False

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Ann delegated work to an employee who mismanaged public funds. Ann, rather than the employee, was reprimanded for this mismanagement. Ann is now reluctant to delegate because she


A) does not care whether the work is properly done.
B) knows the person who delegates remains accountable for the work.
C) does not trust any of her subordinates.
D) fears a subordinate will do the work so well that he or she will attract the approval of top management.
E) is so disorganized that she simply cannot plan and assign work effectively.

F) C) and D)
G) A) and B)

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