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The Internet makes "real time" availability of data possible.

A) True
B) False

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Jackie works in the finance department,at the home office of a large retailer.Her main responsibility is to watch department expenditures and find ways to cut costs whenever possible.Tim,the marketing director for the same company shares information with Jackie only when necessary.He finds her inflexible,and not understanding of what it takes to roll-out a new product line.Jackie and Tim typify a disadvantage of departmentalization. A disadvantage of departmentalization is that department members begin to think like each other and do not understand the point of view of members of other departments.They experience a phenomenon known as groupthink.

A) True
B) False

Correct Answer

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Which of the following correctly identifies the explanation behind the unity of command principle of management?


A) All workers must share the same goal
B) Every firm has one strong leader,and everyone should support that individual
C) Workers can become frustrated and confused if they have more than one boss
D) All authority should rest with top management,since only top managers carry the responsibility of bad decisions

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

Correct Answer

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Cross-functional teams work well when leadership of the team is shared.

A) True
B) False

Correct Answer

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


A) normative matrix.
B) predefined group values.
C) ethical system.
D) organizational culture.

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

Correct Answer

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Which of the following are common responses of employees when faced with change?


A) "That's the way we've always done things"
B) "Perhaps I'll be able to get a promotion now"
C) "I'm excited to learn something new"
D) "This should be easy to accept"

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

Correct Answer

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Green Landscapes,Inc. ,a company that installs underground sprinkler systems serves several commercial customers,as well as residential customers.As the business expands,Green Landscapes management may want to consider departmentalizing by customer group and then by process. Companies that serve customers with varying needs may be able to respond quicker if their employees specialize in one customer group.Beyond that,a company like the one in this example that goes through several steps in serving each customer may specialize by process.

A) True
B) False

Correct Answer

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A bureaucratic style of organization is slow when responding to change.

A) True
B) False

Correct Answer

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Fayol believed that the amount of decision-making power vested in top management should be the same in all situations.

A) True
B) False

Correct Answer

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At Dilly-Dally Sportswear Store a manager needs to be called to the front of the store and sign-off on every return that a cashier performs.The CEO continues this policy because he wants every manager to "look those customers right in the eye" and "stake their job on taking those items back." Clearly,Dilly-Daly empowers its employees to make decisions at their jobs. Bureaucratic organizations are characterized by top down authority,division of labor,and the presence of many rules and regulations.Empowerment is often missing from an organization where decisions are made top down.

A) True
B) False

Correct Answer

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Kate holds a middle management position with a large corporation.She prefers to involve her subordinates in decision-making.She also favors allowing workers a fair amount of flexibility in how they do their jobs.Kitty's approach to management exemplifies the principles first popularized by Max Weber. Weber believed that the firm would do well if workers simply did as they were told.He also believed that large organizations could only function efficiently if rules and guidelines were established,and everyone followed these rules precisely.

A) True
B) False

Correct Answer

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Departmentalization by function groups employees based on similar skills,expertise,or resource use.

A) True
B) False

Correct Answer

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During the past six years,the marketing department manager at Creative Concepts International made a strong push to hire mover/shaker professionals that had superior performance records prior to joining this company.It didn't take long for these enthusiastic marketers to recognize the many talents within their department.They marveled at how much they were like each other and how they seemed to agree with each other's work styles and ideas.After a while,it became difficult for others in the organization to present to this group.If the idea did not originate within the marketing department,marketers did not give it much credence.Management counselors would describe this phenomenon as _____.


A) departmentalization clique
B) inter-office competition
C) forward thinking friction
D) groupthink

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

Correct Answer

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If there are several steps in getting the product to its final state,the company may choose to departmentalize by process.

A) True
B) False

Correct Answer

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Improvements in information technology have permitted companies to increase their span of control.

A) True
B) False

Correct Answer

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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:


A) what she learned in her business classes didn't really help her in the real world.
B) an unofficial informal organization exists that she can utilize to help her do her job.
C) organizational culture can be negative.
D) not all businesses have a formal organization.

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

Correct Answer

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In today's business environment,the trend is to decrease the span of control.

A) True
B) False

Correct Answer

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HipHop Music Company assigns workers to departments based on similar skills.Currently,the company has a marketing department,a production department,a finance department,and a human resources department.This suggests that HipHop departmentalizes by:


A) process.
B) function.
C) user group.
D) tradition.

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

Correct Answer

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The decision on how to departmentalize should depend on the customer and the product or service the firm is offering.

A) True
B) False

Correct Answer

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As a result of rapidly changing markets and global differences in consumer tastes,more firms are considering centralized authority.

A) True
B) False

Correct Answer

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