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The human resources department of Baxter International distributes an employee manual that includes a thorough description of the responsibilities of each position within the firm.This helps to decrease line-staff conflicts.

A) True
B) False

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Departmentalization by location allows an organization to readily respond to the unique demands of each geographic area.

A) True
B) False

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Cross-functional teams are not very effective structures to use when developing a new product or service.

A) True
B) False

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Which of the following is a disadvantage of departmentalization by function?


A) Supervision is very difficult because workers are involved in different types of activities.
B) This method tends to emphasize the department rather than the organization as a whole.
C) It causes duplication of the same specialized activities throughout the organization.
D) This method requires an extremely large administrative staff.
E) Coordination is very complex because of the way job duties are distributed.

F) B) and C)
G) B) and E)

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Joel Green has been working at The Bicycle Superstore for about two weeks.This morning he noticed that the store's inventory on bicycle tire repair kits is out, but he is unsure of whom he should report to for approval to place an order for more kits.Joel is unclear about the


A) chain of command.
B) degree of specialization.
C) level of authority.
D) span of management.
E) nature and degree of departmentalization.

F) A) and E)
G) A) and C)

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When authority is concentrated at the top level of management, the organization is said to be decentralized.

A) True
B) False

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Delegation is the act of distributing work and power to subordinates.

A) True
B) False

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When a manager has few subordinates, a narrow span of management exists.

A) True
B) False

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Citibank has one group of loan officers who handle consumer loans and another group who work in the commercial loan area.Grouping work units this way is known as departmentalization by _____.


A) function
B) customer
C) product
D) specialty
E) location

F) A) and B)
G) B) and C)

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Most large organizations use


A) departmentalization by product.
B) departmentalization by location.
C) departmentalization by customer.
D) a combination of departmentalization bases.
E) no departmentalization.

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

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Select a local organization and discuss the basis on which it is organized.

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Sherry, a sales representative, is placed in a group with an engineer from operations, a human resource specialist, and a financial manager to develop new uses for one of the company's existing products in order to increase sales.This group is a _____.


A) standing committee
B) task force
C) bureaucracy
D) cross-functional team
E) multifaceted work group

F) A) and D)
G) D) and E)

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Mark Stanford is the vice president of the northwest division of his company.Mark's company is departmentalized by _____.


A) area
B) product
C) function
D) location
E) customer

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

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Personal rather than formal relationships among employees are associated with _____.


A) span of management
B) chain of command
C) informal organization
D) bureaucratic structure
E) grapevine

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

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Arthur Fry, an employee at 3M, combined an innovative idea and the 3M facilities at his disposal to develop Post-It Notes.Fry is an example of an _____.


A) entrepreneur
B) innovator
C) initiator
D) inventor
E) intrapreneur

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

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Grouping the United States into the Northeast Region, the Northwest Region, the Southeast Region, and the Southwest Region would be departmentalization by _____.


A) location
B) customer
C) function
D) product
E) task

F) B) and D)
G) A) and B)

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Why is job specialization needed?

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Job specialization is needed for several...

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Dana is assigned to create a training program for newly hired mortgage loan officers.She has the ____ to complete this assignment.


A) authority
B) delegation
C) network
D) responsibility
E) accountability

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

Correct Answer

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The degree of centralization of an organization is based on the


A) degree of departmentalization.
B) level of bureaucracy.
C) organization chart.
D) delegation of authority.
E) degree of job specialization.

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

Correct Answer

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Accountability is the power within an organization to accomplish an assigned job or task.

A) True
B) False

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