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Green Landscapes,Inc. ,a company that installs underground sprinkler systems serves several commercial customers,as well as residential customers.As the business expands,Green Landscapes management may want to consider departmentalizing by customer group and then by process.

A) True
B) False

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__________ believed that managers were trustworthy and companies would do well if employees simply did what they were told.


A) John Keynes
B) Adam Smith
C) Peter Drucker
D) Max Weber

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

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Team participants in a matrix organization model may report to two managers at one time.

A) True
B) False

Correct Answer

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Which of the following correctly identifies the explanation behind 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 C)
F) All of the above

Correct Answer

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Weber believed that large organizations required everyone to follow the established rules and guidelines precisely.

A) True
B) False

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Centralized authority provides for the delegation of authority to employees who are then better able to respond to customers' needs.

A) True
B) False

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It is strategically not sensible for a firm to consider asking suppliers and customers to join a cross-functional self-managed team that is testing iterations of future products.

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

Correct Answer

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Employee complaints that there are too many layers of management and too many rules and regulations suggest that Mucho Dinero is an) :


A) flat organization.
B) bureaucratic organization.
C) inverted organization.
D) wide organization.

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

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Matrix organization structures provide for more efficient use of organizational resources.

A) True
B) False

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Cross-functional teams serve as advisory committees offering their expertise to line decision makers.

A) True
B) False

Correct Answer

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The span of control for a manager:


A) should never exceed 7 subordinates.
B) is no longer a relevant issue in today's computerized offices.
C) depends on a number of factors,and can vary from one manager to another.
D) varies somewhat from manager to manager,but most managers operate best with a span of control of about 9 employees.

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

Correct Answer

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Bureaucratic organizations establish rules and regulations that everyone is expected to follow.

A) True
B) False

Correct Answer

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

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Springfield National Bank organizes its loan operations based on the market served,such as consumer,small business,and nonprofit organizations.Departmentalization based on ________ allows Springfield to better serve borrowers with different needs.


A) function
B) geography
C) process
D) customer group

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

Correct Answer

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Digital natives,those who grew-up with the Internet are an important customer group that most businesses want to reach.

A) True
B) False

Correct Answer

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Weber believed that employees should be empowered to make their own decisions.

A) True
B) False

Correct Answer

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Dividing tasks into smaller jobs is called:


A) job enrichment.
B) job specialization.
C) departmentalization.
D) division of authority.

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

Correct Answer

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The cross-functional team concept has resulted in lots of unhappy employees because less than 25% of employed workers do favor working with others.

A) True
B) False

Correct Answer

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A chain of command is a line of authority that moves from the lowest level of the hierarchy to the top.

A) True
B) False

Correct Answer

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