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Milo was confident that baseball fans would fill the seats in his brewhouse if they just knew about the place. After all, he offered convenience, easy walking distance to the local MLB stadium, great local talent for entertainment and several fresh premium craft beers. He uses Twitter and Facebook to connect with potential customers, and offers free wifi for customers. These are worthy strategies for reaching digital natives.

A) True
B) False

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Staff personnel perform functions such as production and sales that contribute directly to the primary goals of the organization.

A) True
B) False

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Bureaucratic organizations establish rules and regulations that everyone is expected to follow.

A) True
B) False

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Realizing that it was time to invest in an updated information system, the CEO made an announcement in his weekly email to his team: "We are going to shake things up around here. We need to break apart our information system, and start over." Unfortunately, the message translated poorly in the minds of employees. A total shake-up such as this could impact employee morale. Progressive companies today incorporate strategies that continuously embrace


A) formal, symbolic walls that prevent one person from driving change to the detriment of others.
B) a stay the course environment. It is always best to play your game than try to embark on someone else's game.
C) a change-oriented culture.
D) a formal and information organization that assists with change.

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

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If companies follow the theories of Fayol and Weber, which of the following scenarios is likely to result?


A) Organization design will benefit by the emergence of quick decision making.
B) Organization design will eliminate systems of hierarchy and chains of command due to their hindrance of esprit de corps.
C) Organizations that grow will develop several layers of management and the time that it takes to make and carry out a decision will increase.
D) There will be a significant reduction of workforce due to specialization and departmentalization.

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

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An advantage of a line-and-staff organization is that it provides people that advise and assist line managers as they perform their jobs.

A) True
B) False

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Max Weber believed that promotion should be based solely on seniority.

A) True
B) False

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Economies of scale can be achieved through departmentalization.

A) True
B) False

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Weber promoted the idea of the pyramid-shaped organization structure for large businesses.

A) True
B) False

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Matrix organizations give managers flexibility in assigning people to projects.

A) True
B) False

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International Inns and Conference Centers (IICC) , a national chain of professional event centers, utilizes a centralized authority structure. Which of the following provides the most likely explanation for why management at IICC would favor centralized authority?


A) Top management at IICC intends to empower its first-line employees.
B) Top management at IICC wants to improve customer service response time.
C) Top management desires to maintain a uniform image and high-quality service.
D) IICC wants to utilize a cross-functional organization.

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

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As Elisa gets ready to open her new business, she has identified the tasks that need to be accomplished and has assigned employees to each task. This illustrates


A) management departmentalization.
B) division of labor.
C) specialization of priorities.
D) mass production economies.

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

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The purpose of a division of labor and specialization is to improve an employee's job performance.

A) True
B) False

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The more complex the job, the narrower the span of control.

A) True
B) False

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Which of the following was created as a solution to the temporary nature of the matrix structure?


A) line organizations
B) cross-functional self-managed teams
C) line-and-staff organizations
D) network organizations

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

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Southeastern Bank organizes its loan operations based on the market served-consumer, small business, or nonprofit organizations. Departmentalization based on ________ allows Southeastern to better serve borrowers with different needs.


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

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

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Which of the following describes a temporary networked organization made up of replaceable firms that join and leave as needed?


A) online corporation
B) benchmark outsourcing system
C) network system
D) virtual corporation

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

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The concept of ________ suggests that as a firm produces more, the average cost of goods produced goes down.


A) natural growth
B) survival of the fittest
C) cost enhancement
D) economies of scale

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

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The informal organization of a business can help generate creative solutions and inspire teamwork and camaraderie.

A) True
B) False

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Employees who perform functions that advise and assist line personnel are known as


A) middle managers.
B) empowered workers.
C) secondary employees.
D) staff personnel.

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

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