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Ping believes all workers should receive the same wage rate regardless of their position within a company.Ping's views on wages illustrate Fayol's principle of equity.

A) True
B) False

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Recent changes in the organizational structure of businesses are intended to facilitate management.

A) True
B) False

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Weber was a strong proponent of bureaucracy.

A) True
B) False

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Greenwave Garden Centres is a national chain of discount gardening stores.The top management at Greenwave realizes that different regions in Canada 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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In firms with centralized authority,each department is treated as if it is a completely separate and independent organization.

A) True
B) False

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Self-managed teams are groups of employees empowered to work with suppliers and customers to develop new products and give great service.

A) True
B) False

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Describe two major issues that are important in organizational design.

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A)There are four issues from which the s...

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The degree to which an organization allows lower level managers to make decisions determines the degree of decentralization.

A) True
B) False

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In an inverted organization,the purpose of management is to assist and support first-line employees,not boss them around.

A) True
B) False

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Barbara is a middle manager who spends much of her time devising ways to implement the ideas of top management.Max Weber would have called Barbara a bureaucrat.

A) True
B) False

Correct Answer

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Fayol's ____________ principle says that functions should be divided into areas of specialization.


A) departmentalization
B) comparative advantage
C) division of labour
D) centralization

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

Correct Answer

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Samad has just accepted a managerial position at City Bank.In order to be more effective in his new position,he should try to learn who the important people are in City's informal organization.

A) True
B) False

Correct Answer

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Departmentalization creates an environment in which people are trained in a variety of managerial responsibilities.

A) True
B) False

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Inverted organizations define the role of front-line employees as those workers who follow the orders of top and middle management.

A) True
B) False

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The ____________ of a business firm is the structure that details lines of authority,responsibility,and position.


A) matrix reloaded structure
B) formal organization
C) informal organization
D) normative design

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

Correct Answer

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________________ is the fundamental rethinking and radical redesign of organizational processes to achieve dramatic improvements in critical measures of performance.


A) Re-engineering
B) Strategic analysis
C) Total progressive management
D) Reformation

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

Correct Answer

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Chang is a project manager at Paradox Industries.He is able to borrow specialists from the organization on a regular basis to assist in major projects at his high-tech company.After the project ends,the specialists return to their former duties.Paradox Industries utilizes a:


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

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

Correct Answer

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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

Correct Answer

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The culture of an organization is often reflected in stories,traditions,and myths.

A) True
B) False

Correct Answer

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Flat organization structures can be highly responsive to customer demands.

A) True
B) False

Correct Answer

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