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

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The more standardized the work, the wider the span of control.

A) True
B) False

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Companies benefit today from interfirm cooperation. One of the ways they cooperate is through networking. Another way is by seeking technological knowledge and new processes from exemplary firms sometimes outside their own industries. This is called


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

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

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Organizations that require consistent production standards to help create a high-quality public image would tend to favor


A) centralized authority.
B) an inverted organization.
C) a high level of employee empowerment.
D) flat organizational structures.

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

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The organizational structure of the U.S. Army's 1st Infantry Division provides for direct two-way lines of responsibility, authority, and communication running from the top to the bottom. Additionally, each person in the division reports to only one superior. The 1st Infantry Division is clearly an example of a(n)


A) matrix organization.
B) functional organization.
C) line organization.
D) service organization.

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

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Which of the following statements explains 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 B)
F) B) and D)

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When employees are self-managed, a company can implement a wider span of control.

A) True
B) False

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A ________ organization is characterized by direct two-way lines of responsibility, authority, and communication running from the top to the bottom of the organization, with all people reporting to only one supervisor.


A) matrix
B) cross-functional
C) line
D) line-and-staff

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

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Leaf Lovers Garden Centers is a chain of discount gardening stores throughout the United States. Top management realizes that among the different regions of the U.S., there are vastly different climates and soil conditions. Therefore, regional managers are given 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. Leaf Lovers is an example of a ________ organization.


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

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

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When Barrett opened his auto body shop, his business plan included a(n) ________ that showed the relationships 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) C) and D)
F) B) and C)

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If you are a new employee at Reinhold Industries, Javier is the man to see in the welding department. Though he may not be a manager, he is the person that most of the others in the department look to for advice and assistance. Javier is an important member of the firm's


A) supervisory management.
B) participatory control.
C) informal organization.
D) closet cabinet.

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

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

A) True
B) False

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In a capitalist economy, organizations seldom reorganize due to changing markets.

A) True
B) False

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A flat organization is less likely to respond quickly to customer needs.

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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Henri Fayol and Max Weber are best known for their contributions to accounting theory.

A) True
B) False

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The grapevine refers to the formal channel used for confidential communications between members of top management.

A) True
B) False

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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) All of the above
F) B) and C)

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Job specialization is known to


A) minimize delegated authority and responsibility.
B) improve job performance.
C) create work teams and improve resource allocation.
D) establish procedures.

E) None of the above
F) All of the above

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A recent trend in organization models is the development of cross-functional, self-managed teams of employees who work together on a long-term basis.

A) True
B) False

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