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The skill level of employees and the organizational culture are factors that should be considered in determining spans of control.

A) True
B) False

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When organizations divide the work in pursuing the common goal among groups and individuals performing separate but related tasks, this is called:


A) Coordination of effort
B) The chain of command
C) The hierarchy of authority
D) Division of labor
E) Aligned goals

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

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The type of structure that groups people according to the type of work they perform is called:


A) Divisional
B) Matrix
C) Functional
D) Horizontal
E) Open

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

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Define decentralized and centralized decision making.

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Centralized decision making occurs when ...

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___________ is achieved through formulation and enforcement of policies, rules, and regulations.


A) Hierarchy of authority
B) The strategic plan
C) Aligned goals
D) Division of labor
E) Coordination of effort

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

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What are the generic approaches to assessing an organization's effectiveness? Explain and give an example of each.

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Assessing organizational effectiveness i...

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Which of the following is not a benefit of horizontal structures?


A) Faster and more efficient new product development
B) Encourage knowledge sharing
C) Greater creativity
D) Greater opportunities for functional specialization
E) Rapid communication and reduction of cycle time

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

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Describe the three basic categories of organization design, and explain why each arose.

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Our changing world means that businesses...

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Identify the supporting forces for innovation that organizations can adopt. Explain each.

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Innovation won't happen as a matter of c...

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Product innovation is a change in the appearance or the performance of a product or service, or the creation of a new one.

A) True
B) False

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Which of the following is not a benefit of divisional structures?


A) Focus on the customers
B) Managers have the flexibility to make decisions that affect several functions to meet customers' needs
C) Can move faster if a new customer need arises
D) Can respond faster to competition
E) Possible duplication can add to costs

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

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In a learning organization, the ________ subprocess includes encoding, storing, and retrieving lessons learned from the organization's history.


A) Information acquisition
B) Information interpretation
C) Knowledge integration
D) Organizational memory
E) Information distribution

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

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_________ are flexible networks of multitalented individuals who perform a variety of tasks.


A) Organic organizations
B) Closed organizations
C) Market cultures
D) Virtual structures
E) Functional organizations

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

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When an organization's strategic goals cascade down through the organization so the employees work together in pursuit of common ends, this is called:


A) Coordination of effort
B) The chain of command
C) The hierarchy of authority
D) Division of labor
E) Aligned goals

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

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Which of the following is not one of the generic approaches to assessing an organization's effectiveness?


A) Resource acquisition
B) Goal accomplishment
C) Organizational culture
D) Strategic constitutencies satisfaction
E) Internal processes

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

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Over time, the wage gap between the layers of an organization chart has become smaller.

A) True
B) False

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Traditional organizational designs rely on vertical hierarchy and clear departmental boundaries and reporting relationships.

A) True
B) False

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Adam is a new product development manager for Hello.com, an Internet match-making service. He has only two employees reporting directly to him. From what you have read about organization charts, what do you know for sure?


A) His subordinates enjoy greater autonomy than others.
B) His subordinates take part in the decision-making process.
C) He has a narrow span of control.
D) His subordinates are not closely supervised.
E) He is encountering low administrative costs.

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

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A functional structure groups people according to similarity of products, services, customers, clients, or geographic regions.

A) True
B) False

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