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Regional monopoly, Southeastern Electric, wants to improve services to customers. Management recently rated the company's processes and products against the results achieved by the world's best at similar processes and products. Southeastern Electric has adopted a policy of international standardization.

A) True
B) False

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In today's fast-paced business environment, Weber's bureaucratic ideas work well. These principles permit business to respond quickly to customer changes.

A) True
B) False

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Because top managers supervise the firm's most talented workers, they generally have a broader span of control than middle or first-line managers.

A) True
B) False

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In an inverted organization, the purpose of management is to assist and support the decisions of employees who work directly with customers.

A) True
B) False

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An informal organization can be a valuable asset to managers attempting to create an environment of harmony among workers and establish the corporate culture.

A) True
B) False

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An organizational hierarchy establishes one person at the top of an organization.

A) True
B) False

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While staff personnel have the authority to make policy decisions, line personnel have the authority to advise and make suggestions.

A) True
B) False

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Clean Sweep Corporation has seen rapid growth during its first five years. While still relatively small, Clean Sweep is now big enough that Sawyer, the firm's CEO, has decided to organize the firm into functional departments. Sawyer 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) B) and C)
F) A) and B)

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The Internet makes real-time availability of data possible.

A) True
B) False

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The degree to which an organization allows lower-level managers to make decisions reflects the degree of decentralization.

A) True
B) False

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Bureaucratic organizations are not very responsive to customers.

A) True
B) False

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A virtual corporation is a networked organization made up of replaceable firms that join the network and leave it as needed.

A) True
B) False

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An organization that consists of many layers of management is referred to as a(n) ________ organization.


A) flat
B) wide
C) tall
D) deep

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

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Inverted organizations define the role of front-line employees as those workers who follow the orders of top and middle management.

A) True
B) False

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Cross-functional self-managed teams are groups of employees empowered to work with suppliers and customers to develop new products and give great service.

A) True
B) False

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Transparency allows two companies to work more efficiently together.

A) True
B) False

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An advantage of decentralized authority is that those individuals closest to the customers and more familiar with local conditions make decisions.

A) True
B) False

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Which of the following is an example of a move to reorganize?


A) reducing the labor force within your business
B) revising plans by creating contingency plans
C) managing by objectives and clearing pathways for success
D) developing a way to monitor financial success

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

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Division of labor is difficult to achieve in small businesses.

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

Correct Answer

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