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As a response to a rapidly changing marketplace, Idea Electronics found it necessary to reorganize, including a significant downsize of its middle management. This action will likely result in .


A) acquiring additional firms
B) flattening the organization and empowering employees, allowing them to get closer to the customer
C) increasing the size of its traditional departments to handle 24/7 operations
D) centralizing its decision making to better control its total quality management program

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

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B

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

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Which of the following is considered to be an advantage of functional departmentalization?


A) Employees begin to identify with their department and its goals rather than with the goals of the entire organization
B) People in the same department tend to think very differently
C) Departments are isolated from one another
D) Employee skills can be developed in depth

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

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The virtual corporation does all its business online with partners considered a permanent part of the network.

A) True
B) False

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Greenwave Garden Centers is a national chain of discount gardening stores. The top management at Greenwave realizes that different regions of the United States 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) B) and D)
F) A) and B)

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Line organizations follow Fayol's traditional management rules.

A) True
B) False

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True

Line organizations often experience the problem of employees reporting to more than one boss.

A) True
B) False

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Which of the following statements would best summarize Max Weber's views on the role of workers in an organization?


A) Workers should be empowered to do whatever it takes to satisfy the needs of customers
B) Workers will be promoted within the organization depending upon "who they know", rather than "what they know"
C) Workers should simply follow well-defined procedures
D) Although top managers must ultimately make the decisions, workers are an important creative resource for a firm, and top management should listen to their ideas

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

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C

The very best organizations have cultures that emphasize service to others, especially customers.

A) True
B) False

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Matrix organizational structures were first developed in:


A) Japan.
B) the aerospace industry.
C) the dot com Internet industry.
D) the chemicals industry.

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

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In order to improve services to customers, Northwest Electric, a regional monopoly recently rated their company's processes and products against the results achieved by the world's best at similar processes and products. Northwest Electric has adopted a policy of international standardization.

A) True
B) False

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In today's business environment, the trend is to decrease the span of control.

A) True
B) False

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Successful managers will find the balance between promoting the informal organization and maintaining a formalized structure, as well.

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

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For an inverted organization to be effective, it requires:


A) managers with strong position power.
B) managers who are both technologically savvy and conceptually savvy.
C) better educated, better trained, and better paid employees.
D) a focus on what is best for production.

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

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

A) True
B) False

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In a(n) organization, decision-making authority is concentrated at the top level of management.


A) bottom-up
B) decentralized
C) inverted
D) centralized

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

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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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As depicted in the Reaching Beyond our Borders, box, "General Electric Looks for More Profits", in order to compete globally, corporate strategy should not try to match the performance of competitors.

A) True
B) False

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Companies benefit today by inter-firm cooperation. One of the ways they cooperate is through networking. Another way is by seeking technological knowledge and learning new processes from other firms that usually fall outside of their respective industries. We call this:


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

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

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