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Lockdown Industries produces a variety of anti-crime and safety products such as burglar alarms, smoke detectors, surveillance cameras, and specialty locks. Lockdown sells to households, businesses, and government agencies. They have found that each market requires a different marketing strategy. Lockdown would probably benefit from departmentalization by:


A) function.
B) process.
C) customer type.
D) market opportunities.

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

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Improvements in information technology have permitted companies to increase their span of control.

A) True
B) False

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In large businesses, a line organization provides firms the ability to respond quickly to a changing environment.

A) True
B) False

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Flat organizations have fewer managers.

A) True
B) False

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Samad accepted a managerial position at City Bank. In order to be more effective in his new position, he should try to learn who the important people are in City's informal organization.

A) True
B) False

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Weber put great trust in the creativity, skills, and pride of employees and believed that managers should act more as coaches than as bosses.

A) True
B) False

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Top management at Topdown, Inc., wants to encourage communication among different departments to prevent employees from becoming narrow specialists. The best way to accomplish these goals is to departmentalize Topdown's organization by function.

A) True
B) False

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Once a company has restructured a firm to be more competitive in today's market, it alleviates the need to scan the external environment.

A) True
B) False

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A recent trend in organization models is the development of cross-functional, self-managed teams of employees who work together on a long-term basis.

A) True
B) False

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The ___________ is the nerve center of the informal organization


A) organizational database
B) intranet
C) grapevine
D) company newsletter

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

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Vaughn Studios organizes its operations by activity, such as production, marketing, accounting, and finance. Vaughn utilizes _____________ departmentalization in order to maximize their efficiency


A) product
B) customer
C) functional
D) standardized

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

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When we experience economies of scale, this means that as production levels rise (we make more of something), the cost of supplies and the cost of labor that go into the production go down.

A) True
B) False

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The informal organization of a business is probably best suited to:


A) give workers a clear idea of where they stand in the organization.
B) provide helpful guidelines about how to handle routine problems.
C) provide a mechanism that generates careful reasoned decisions about critical issues.
D) create a feeling of camaraderie among employees and encourage teamwork.

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

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According to the Adapting to Change box titled "When Open Communication Should Not Be So Open," France is considering legislation to block work e-mails and phone calls to allow workers time to rest.

A) True
B) False

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Which of the following statements explains the unity of command principle of management?


A) All workers must share the same goal.
B) Every firm has one strong leader, and everyone should support that individual.
C) Workers can become frustrated and confused if they have more than one boss.
D) All authority should rest with top management, since only top managers carry the responsibility of bad decisions.

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

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Which of the following are common responses of employees when faced with change?


A) "That's the way we've always done things."
B) "Perhaps I'll be able to get a promotion now."
C) "I'm excited to learn something new."
D) "This should be easy to accept."

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

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Which of the following describes the redesigning of an organization so that it can more effectively and efficiently serve its customers?


A) Reinventing
B) Restructuring
C) Radical reorganizing
D) Extroverted reorganizing

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

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What is a cross-functional, self-managed team? Who would serve on such teams? Why do cross-functional, self-managed teams often lead to networking?

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a. A cross-functional team is a group of...

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As the span of control widens, there is usually a reduction of middle management and an emphasis on empowerment.

A) True
B) False

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__________ are responsible for directly achieving organizational goals


A) Organizational specialists
B) Line personnel
C) Chain of command managers
D) Staff personnel

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

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