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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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According to Weber, a bureaucrat is a middle manager whose job is to implement top management's orders.

A) True
B) False

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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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Greener Grass, a business specializing outdoor sprinkler systems, serves several commercial customers, as well as residential customers. As the business expands, Greener Grass's management may want to consider departmentalizing by customer group and then by process.

A) True
B) False

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Competitive benchmarking rates an organization's products and operations against the industry average.

A) True
B) False

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Dividing tasks into smaller jobs is called


A) job enrichment.
B) job specialization.
C) departmentalization.
D) division of authority.

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

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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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Qiang is a project manager at Enigma Industries and is able to borrow specialists from the organization on a regular basis to assist in major projects. After the project ends, the specialists return to their functional units to await new assignments. Enigma Industries utilizes a


A) line organization model.
B) bi-functional organization model.
C) lateral transfer organization model.
D) matrix organization model.

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

Correct Answer

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In open organizations the informal organization can be


A) a hindrance to effective management.
B) an asset that promotes harmony among workers.
C) a roadblock to the corporate culture.
D) part of the formal organization.

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

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Fayol's ________ principle says that workers' attitudes can create an environment of pride and loyalty within an organization.


A) esprit de corps
B) hierarchy of loyalty
C) unity of command
D) equity

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

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Some business organizations still follow the 1940s organizational theory of Max Weber.

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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In large businesses, a line organization provides firms the ability to respond quickly to a changing environment.

A) True
B) False

Correct Answer

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Which of the following factors help determine a manager's span of control?


A) the number of global competitors
B) the level of standardization of the work to be done
C) method of accounting for production
D) form of business ownership

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

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A bureaucracy is an organization with many layers of managers who set rules and regulations and oversee all decisions.

A) True
B) False

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

A) True
B) False

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What is the main difference between a matrix-style organization model and a cross-functional team?


A) The matrix model has a limit on the number of functional units who send an expert to join the team, whereas the cross-functional team does not.
B) The matrix model is a temporary arrangement, whereas the cross-functional team is a more long-term arrangement.
C) The matrix model shares leadership responsibilities within the group, whereas the cross-functional team does not.
D) The matrix model is a more long-term arrangement, whereas the cross-functional team is a temporary arrangement.

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

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An organization with only a few layers of management is known as a(n)


A) tall organization.
B) flat organization.
C) leveraged organization.
D) coordinated organization.

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

Correct Answer

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Outsourcing has become commonplace, particularly when organizations want to focus on their core competencies.

A) True
B) False

Correct Answer

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

A) True
B) False

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