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An advantage of a tall organization is that it ensures fast and efficient communications throughout the organization.

A) True
B) False

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Fayol's principles suggest that the goals of the firm are less important than the goals of individual workers.

A) True
B) False

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Restructuring involves the redesign of an organization to be more responsive to customers.

A) True
B) False

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Which of the following statements would best summarize Max Weber's views on the role of workers in an organization?


A) Workers should be empowered to do whatever it takes to satisfy the needs of customers.
B) Workers will be promoted within the organization depending upon "who they know",rather than "what they know".
C) Workers should simply follow well-defined procedures.
D) Although top managers must ultimately make the decisions,workers are an important creative resource for a firm,and top management should listen to their ideas.

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

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When Bret started his auto mechanic shop his business plan included a(n) _______________ that showed the relationship among employees in his organization and the lines of authority and responsibility.


A) business view map
B) department categorization
C) organization chart
D) operating matrix grid

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

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A chain of command is a line of authority that moves from the lowest level of the hierarchy to the top.

A) True
B) False

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Rob is a middle manager who spends much of his time devising ways to implement the ideas of top management.Max Weber would have considered Rob a bureaucrat.

A) True
B) False

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Introducing change into an organization is an easy task for a manager.

A) True
B) False

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Cardinal Foods is a wholesaler serving grocery stores.High tech communications allows Cardinal to work closely with its suppliers and customers in real time.Networking allows these organizations to operate more efficiently.

A) True
B) False

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__________ refer to those functions that an organization does as well as,or better than,any other organization in the world.


A) Primary functions
B) Comparative strengths
C) Residual functions
D) Core competencies

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

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In a(n) _____________ organization,decision-making authority is concentrated at the top level of management.


A) bottom-up
B) decentralized
C) inverted
D) centralized

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

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Springfield National Bank organizes its loan operations based on the market served,such as consumer,small business,and nonprofit organizations.Departmentalization based on ________ allows Springfield to better serve borrowers with different needs.


A) function
B) geography
C) process
D) customer group

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

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Cross-functional teams that go beyond company boundaries share production information but seldom market information.

A) True
B) False

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What is a matrix organization? What advantages and disadvantages are associated with this type of organization?

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a)A matrix organization is an organizati...

View Answer

An organization that has contact people at the top and the chief executive officer at the bottom is known as a(n) :


A) bureaucracy.
B) oligarchy.
C) improvised organization.
D) inverted organization.

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

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Economies of scale can be achieved through departmentalization.

A) True
B) False

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A matrix organization produces an environment that discourages cooperation and teamwork.

A) True
B) False

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Span of control refers to the number of different markets a business can serve efficiently.

A) True
B) False

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Companies benefit today by inter-firm cooperation.One of the ways they cooperate is through networking.Another way is by seeking technological knowledge and learning new processes from other firms that usually fall outside of their respective industries.We call this:


A) competency capturing.
B) technology swapping.
C) benchmarking.
D) broadening the knowledge base.

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

Correct Answer

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All organizations have two organizational systems:


A) the command system and the control system.
B) the formal organization and the informal organization.
C) the functioning system and backup system.
D) the primary organization and secondary organization.

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

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