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Empowering employees to better serve customers requires________ front-line employees.


A) less training for
B) fewer
C) more support of
D) uniforms for

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

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While most organizations have a formal organization structure,only poorly managed firms also have an informal organization.

A) True
B) False

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An important challenge of management is to manage change.

A) True
B) False

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All organizations have two organizational systems known as the:


A) command system and the control system.
B) functioning system and backup system.
C) formal organization and the informal organization.
D) primary organization and secondary organization.

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

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Fayol's ________principle says that a spirit of pride and loyalty should be created among people within an organization.


A) hierarchy of loyalty
B) equity
C) unity of command
D) esprit de corps

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

Correct Answer

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Economies of scale can be achieved through departmentalization.

A) True
B) False

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Restructuring involves relatively minor changes to an organization to better meet the needs of management.

A) True
B) False

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Total quality management is not useful in bureaucratic organizations with many layers of management.

A) True
B) False

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The unity of command principle,introduced by Henri Fayol,suggests that all people in an organization should work toward the same objective.

A) True
B) False

Correct Answer

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Which of the following describes an environment in which data is instantly available via the Internet to organizational partners?


A) Virtual business
B) E-commerce
C) Networking
D) Real time

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

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


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

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

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The________ is the nerve system of the informal organization.


A) spider web
B) company newsletter
C) grapevine
D) organizational database

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

Correct Answer

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Chang is a project manager at Paradox Industries.He is able to borrow specialists from the organization on a regular basis to assist in major projects at his high-tech company.After the project ends,the specialists return to their former duties.Paradox Industries utilizes a:


A) bi-functional organization.
B) lateral transfer organization.
C) matrix organization.
D) line organization.

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

Correct Answer

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Managing change can include:


A) decentralized authority
B) centralized authority
C) redesigning the whole organizational structure
D) costing analysis

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

Correct Answer

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Henri Fayol and Max Weber are best known for their contributions to:


A) finance theory.
B) organization theory.
C) marketing theory.
D) production theory.

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

Correct Answer

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Some firms use a combination of departmentalization techniques.

A) True
B) False

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A recent trend in organization models is the development of permanent teams of employees from different departments of the firm.

A) True
B) False

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


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

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

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Which of the following correctly identifies the rationale behind the unity of command principle of management?


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

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

Correct Answer

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means that decision-making authority is delegated to lower-level managers and employees.


A) Decentralized authority
B) Standardized authority
C) Uniformity of authority
D) Specification of authority

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

Correct Answer

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