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In the context of horizontal structure of a firm, subdividing an organization into smaller units is known as:


A) departmentalization.
B) just-in-time.
C) decentralization.
D) span of control.
E) lean manufacturing.

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

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The functional structure of an organization is most appropriate in complex and changing environments.

A) True
B) False

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In the context of organizational agility, which of the following is true of learning organizations?


A) They hold lower-level employees accountable for delivering a good service.
B) They make decisions based on gut feelings.
C) They avoid benchmarking in order to keep up internal performance standards.
D) They ensure that there is a consensus about the direction in which the business is heading.
E) They are skilled at experimenting with new approaches.

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

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An organization skilled at creating, acquiring, and transferring knowledge as well as at modifying its behavior to reflect new knowledge and insights is known as a:


A) learning organization.
B) high-involvement organization.
C) mechanistic organization.
D) network organization.
E) matrix organization.

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

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Just-in-time is a companywide philosophy oriented toward eliminating waste and improving materials through-out all operations.

A) True
B) False

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Coordination by plan deals with exact rules and procedures that spell out what needs to be done and how.

A) True
B) False

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What is the difference between responsibility, authority, and accountability?

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Which of the following is an advantage of functional departmentalization?


A) Managers care more about their respective functions.
B) Employees are able to focus exclusively on customer satisfaction.
C) It encourages managers to become generalists.
D) Economies of scale can be realized.
E) There is increased coordination between different functions.

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

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In the context of coordination in an organization, explain the two strategies that can be used by managers to cope with high uncertainty and heavy information demands.

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Large organizations are typically less organic and more bureaucratic than small ones.

A) True
B) False

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In the context of the vertical structure of a firm, a wide span of control builds a _____ organization with fewer reporting levels.


A) flat
B) narrow
C) tall
D) bureaucratic
E) formal

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

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In the context of the vertical structure of a firm, the number of subordinates who report directly to an executive or supervisor is known as the:


A) formalization.
B) span of control.
C) authority.
D) division of labor.
E) specialization.

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

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The first step in the delegation process, defining the goal, requires a manager to:


A) identify the employee he or she favors the most.
B) understand the nature of each employee.
C) recognize the most responsible employee.
D) clearly understand the outcome he or she wants.
E) identify a tedious assignment that can be given.

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

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Two companies, Healthy Nutrition Inc. and the Simple Solutions Software Inc., have joined forces to produce a meal planning program for use at home. The two organizations have decided to work together on the project since they cannot develop the project only with individual resources. Both organizations will own the resulting program. This effort is known as a:


A) network organization.
B) strategic alliance.
C) cluster organization.
D) classical conglomerate.
E) high-involvement organization.

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

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The organization chart depicts the locations of the board offices in corporate headquarters.

A) True
B) False

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The production of both high-volume and high-variety products at the same time is referred to as:


A) lean manufacturing.
B) mass customization.
C) just-in-time.
D) formalization.
E) standardization.

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

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One of the most important contributions to total quality management has been the introduction of statistical tools to analyze the causes of product defects, in an approach called:


A) six sigma quality.
B) total quality integration.
C) ISO 9001.
D) modular network.
E) just-in-time.

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

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Organizations with an organic structure are much less rigid than mechanistic organizations.

A) True
B) False

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In the context of the vertical structure of a firm, traditionally authority resides in people and not in positions.

A) True
B) False

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Cambridge Computer Installations Inc. has separate company-wide marketing, production, design, and research departments. Thus, it is a divisional organization.

A) True
B) False

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