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Looking at a traditional organization chart,you will view who reports to whom;you will have a sense of each person's authority and responsibility,and the type of work that they perform for the organization. An organization chart shows you who reports to whom,and who is accountable for the completion of what jobs.

A) True
B) False

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In a bureaucratic organization:


A) departments communicate with each other on a regular basis.
B) employees follow strict rules and regulations.
C) customer satisfaction is the number one priority.
D) first-line workers are empowered to respond to the needs of customers.

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

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The design of a bureaucratic organization assumes a well-educated workforce.

A) True
B) False

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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.

E) C) and D)
F) All of the above

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Economies of scale can be achieved through departmentalization.

A) True
B) False

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As Bret prepares to open his new business,he has identified the tasks that need to be accomplished and has assigned employees to each task.This illustrates a:


A) management departmentalization.
B) division of labor.
C) specialization of priorities.
D) mass production economies.

E) A) and B)
F) C) and D)

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A matrix team for an aerospace company may consist of a project manager,a finance expert,a marketing specialist,a member of production,and two design engineers. Matrix teams consist of individual experts from various functional units of a company joining together to solve a problem or work on a project.These are temporary teams that disband when the assignment is completed.

A) True
B) False

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


A) give workers a clear idea of where they stand in the organization.
B) provide helpful guidelines about how to handle routine problems.
C) provide a mechanism that generates careful reasoned decisions about critical issues.
D) create a feeling of camaraderie among employees and encourage teamwork.

E) A) and B)
F) B) and C)

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Max Weber's organizational theories require an educated work force to operate efficiently.

A) True
B) False

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Fayol's principle of esprit de corps says that employees should be divided into small groups that can be directed efficiently by a single manager.

A) True
B) False

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When we experience economies of scale this means that as production levels rise (we make more of something),the cost of supplies and cost of labor that goes into the production,goes down. Economies of scale is when the cost of production goes down,as the level of production rises.

A) True
B) False

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A recent business trend is the elimination of layers of management,creating flatter organizations and subsequently,a wider span of control.

A) True
B) False

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Organization theorists emerged during the era of mass production,meaning:


A) the development of ways to produce a large quantity of product efficiently.
B) the development of ways to purchase raw materials in bulk.
C) the decline in the cost of production due to an increase in the cottage industry.
D) the era when most companies adopted very similar methods of producing goods and services,which led to standardization of organizational design.

E) B) and D)
F) A) and B)

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Weber believed that employees should be empowered to make their own decisions.

A) True
B) False

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______________ organizations are characteristic of many layers of management and function with well-defined rules and procedures.


A) Matrix
B) Inverted
C) Ordered
D) Bureaucratic

E) A) and B)
F) A) and C)

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Most companies are no longer self-sufficient or self-contained.

A) True
B) False

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Describe two major issues that are important in organizational design.

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There are four issues from which the stu...

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Max Weber believed that promotion should be based solely on seniority.

A) True
B) False

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Weber was critical of bureaucrats because he felt they undermined the efficiency of the organization.

A) True
B) False

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Greenwave Garden Centers is a national chain of discount gardening stores.The top management at Greenwave realizes that different regions of the United States have very different climates and soil conditions,so they give regional managers a great deal of freedom to decide exactly what types of plants,fertilizers,and other items to stock and how to best market these products.Greenwave is an example of a _______________ organization.


A) bureaucratic
B) top down
C) free form
D) decentralized

E) A) and B)
F) A) and C)

Correct Answer

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