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Rise 'n Shine Bakeries is a nationwide bakery that has plants located throughout the United States.Top management at Rise 'n Shine believes that customers in different regions have different tastes.It also recognizes that its bakeries face more intense competition in some regions than in others.Therefore,Rise 'n Shine's top management gives local managers the freedom to offer different types of breads and desserts,and to decide on a reasonable pricing strategy for its products.Rise 'n Shine typifies a decentralized organization.

A) True
B) False

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Transparency describes the relationship between a firm and its stockholders.

A) True
B) False

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

A) True
B) False

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Which of the following describes the activity of a firm that assigns specific functions,such as accounting or legal work,to other organizations rather than performing these functions themselves?


A) Functional sharing
B) Outsourcing
C) Benchmarking
D) Virtual distribution

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

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Empowerment works only when employees are given the proper training and resources to respond.

A) True
B) False

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Which of the following is considered to be a disadvantage of functional departmentalization?


A) There may be a lack of communication among the different departments
B) Employees must develop skills in depth
C) The company must achieve economies of scale
D) Top management has to direct and control department activities

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

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Cross-functional teams defy the trend towards customer-driven organizations.

A) True
B) False

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The process of setting up individual departments to do specialized tasks is called job specialization.

A) True
B) False

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Management at Hottie Potatee,a nationwide potato bar chain,believes that its customers value a predictable and consistent level of service and quality.When customers stop at one of its potato bar chain restaurants anywhere in the United States,they should know what to expect in terms of menu,price and quality.In order to maintain this consistency,Hottie Potatee adopted an) ______ structure.


A) centralized authority
B) decentralized authority
C) hybrid authority
D) origination authority

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

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A matrix organization produces an environment that discourages cooperation and teamwork.

A) True
B) False

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Bureaucratic organizations are not very responsive to customers.

A) True
B) False

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Organizations with positive images for performing exceptional service to customers are usually friendly places to work,as well.

A) True
B) False

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Kate holds a middle management position with a large corporation.She prefers to involve her subordinates in decision-making.She also favors allowing workers a fair amount of flexibility in how they do their jobs.Kitty's approach to management exemplifies the principles first popularized by Max Weber.

A) True
B) False

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

A) True
B) False

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In today's competitive environment,cost containment is extremely important to survival.Which of the following increases efficiency in the production and distribution of goods?


A) Personal computers
B) Real time data
C) Assembly lines
D) Self-managed teams

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

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As a manager of a retail-clothing store,Lance favors detailed job descriptions,formal rules and regulations,detailed records,and standardized procedures.He also believes that staffing and promotion decisions should be based strictly on the qualifications of the people under consideration.Lance's attitudes suggest that he is strongly influenced by the ideas of:


A) Ralph Nader.
B) Max Weber.
C) Karl Marx.
D) Adam Smith.

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

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In firms with centralized authority,each business unit is treated as if it is a completely separate and independent organization.

A) True
B) False

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Inverted organizations empower employees by adding multiple layers of management and long lines of communication.

A) True
B) False

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JayLo Corporation has experienced rapid growth during its five years of existence.While still relatively small,JayLo is now big enough that Jennifer,the firm's CEO,has decided to organize the firm into functional departments.Jennifer can likely expect which of the following to occur?


A) Quick company response to a change in the business environment
B) Excellent communications between different departments
C) Increase in scope of the performance of functions
D) Opportunities for employees to develop their skills in depth

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

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Organization theorists emerged during the era of mass production,meaning:


A) the development of ways to produce a large quantity of product efficiently.
B) the development of ways to purchase raw materials in bulk.
C) the decline in the cost of production due to an increase in the cottage industry.
D) the era when most companies adopted very similar methods of producing goods and services,which led to standardization of organizational design.

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

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