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The key people in a company's grapevine typically have considerable influence in the organization.

A) True
B) False

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Organizing a business begins with:


A) acquiring the necessary resources.
B) choosing the best qualified employees.
C) developing an efficient plan of action.
D) determining the work to be done.

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

Correct Answer

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Clear communication among workers and keeping order in materials and people are included in Fayol's principles.

A) True
B) False

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At Dilly-Dally Sportswear Store a manager needs to be called to the front of the store and sign off on every return that a cashier performs. The CEO continues this policy because he wants every manager to "look those customers right in the eye" and "stake their job on taking those items back." Clearly, Dilly-Dally empowers its employees to make decisions at their jobs.

A) True
B) False

Correct Answer

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


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

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

Correct Answer

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The optimum number of subordinates a manager can supervise is referred to as the:


A) manager-subordinate ratio.
B) chain of command.
C) employee quota.
D) span of control.

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

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Soprano Industries follows a chain of command with authority moving from the top of the hierarchy down to lower-level managers. The company is organized by department with established rules and regulations that everyone is expected to follow. These characteristics suggest that Soprano Industries is an example of a bureaucratic organization.

A) True
B) False

Correct Answer

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Organizational culture refers to the widely shared values within a corporation that foster unity and cooperation.

A) True
B) False

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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) Web-based corporation
B) Benchmark outsourcing system
C) Network system
D) Virtual corporation

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

Correct Answer

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Departmentalization is the dividing of organizational functions into separate units.

A) True
B) False

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Carlos is the person to see in the welding department if you are a new employee. While he is not a manager, he is the person that most of the others in the department look to for advice and assistance. Carlos 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)

Correct Answer

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Matrix organization structures provide for more efficient use of organizational resources.

A) True
B) False

Correct Answer

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Some companies have created hybrid versions of departmentalization, where they combine two or more traditional ways of departmentalizing.

A) True
B) False

Correct Answer

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The widely shared values within an organization that provide unity and cooperation to achieve common goals are together known as the:


A) normative matrix.
B) predefined group values.
C) ethical system.
D) organizational culture.

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

Correct Answer

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Dividing tasks into smaller jobs is called:


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

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

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Line-and-staff organizations work well in organizations with:


A) operations in high-growth industries.
B) stiff competition.
C) short product life cycles.
D) a relatively unchanging environment.

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

Correct Answer

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______________ organizations are characterized of many layers of management and function with well-defined rules and procedures


A) Matrix
B) Inverted
C) Ordered
D) Bureaucratic

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

Correct Answer

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When Eric Schmidt joined Google he tackled the organization function head-on. In speaking at a large conference with its founders, Sergey Brin and Larry Page, he commented that Google was running pretty well but "it just needed a little structure." Schmidt was referring to basic organization principles such as division of labor, specialization, and getting the departments running smoothly.

A) True
B) False

Correct Answer

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The span of control for a manager:


A) should never exceed 7 subordinates.
B) is no longer a relevant issue in today's computerized offices.
C) depends on a number of factors, and can vary from one manager to another.
D) varies somewhat from manager to manager, but most managers operate best with a span of control of about 9 employees.

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

Correct Answer

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The traditional way to departmentalize an organization is by geographical area served.

A) True
B) False

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