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Benchmarking requires organizations to compare each function against the best in the world.

A) True
B) False

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Max Weber used the term________ to describe middle managers whose job was to implement the orders of top management.


A) autocrats
B) bureaucrats
C) staff personnel
D) management

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

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An advantage of a tall organization is that it ensures fast and efficient communication throughout the organization.

A) True
B) False

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Staff personnel perform functions that contribute directly to the primary goals of the organization,such as production and marketing.

A) True
B) False

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Assigning various functions that a firm might do for itself to outside organizations is known as competitive allocation.

A) True
B) False

Correct Answer

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In an inverted organization,the job of management is to:


A) make all of the basic decisions.
B) closely monitor employee performance.
C) establish rules and regulations to guide worker behaviour.
D) assist and support front-line people.

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

Correct Answer

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The informal organization is best suited for reasoned decision making on big issues.

A) True
B) False

Correct Answer

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In the Quebec City plant of the ABC Company,workers are supervised by a foreman.The foreman reports to the shift supervisor who reports to the head of the production department,who then reports to the assistant plant manager,who reports to the plant manager.The plant manager,in turn,reports to a district manager,who then reports to a product group manager,who reports to an assistant vice president of operations,who keeps in close touch with an executive vice president.It appears that ABC is a tall organization.

A) True
B) False

Correct Answer

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Departmentalization by function typically increases the cost of doing business.

A) True
B) False

Correct Answer

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Bull's-eye,a regional discount retailer,watches carefully the operations of their best rivals.Bull's-eye rates and compares their operations to the best in the market.This firm is involved in:


A) outsourcing.
B) competitive benchmarking.
C) functional positioning.
D) core competency ranking.

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

Correct Answer

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As a result of rapidly changing markets and global differences in consumer tastes,more firms are considering centralized authority.

A) True
B) False

Correct Answer

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Vaughan Studios organizes its operations by activity,such as production,marketing,accounting,and finance.Vaughn utilizes ________departmentalization in order to maximize their efficiency:


A) product
B) functional
C) standardized
D) customer

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

Correct Answer

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An organization that has contact people at the top and the chief executive officer at the bottom is known as a(n) :


A) improvised organization.
B) bureaucracy.
C) inverted organization.
D) oligarchy.

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

Correct Answer

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refers to the linking of organizations with communications technology so that they can work together to achieve common objectives.


A) Functional sharing
B) Strategic planning
C) Networking
D) Structural linking

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

Correct Answer

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In today's business environment,the trend is to decrease the span of control.

A) True
B) False

Correct Answer

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Line organizations clearly define the lines of authority and responsibility.

A) True
B) False

Correct Answer

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Dividing the required work among a group of employees is called:


A) division of labour.
B) separation of control.
C) departmentalization.
D) delegation of responsibility.

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

Correct Answer

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Which of the following describes the redesigning of an organization so that it can more effectively and efficiently serve its customers?


A) Radical reorganizing
B) Extroverted organization
C) Reengineering
D) Restructuring

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

Correct Answer

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HairNet,a cosmetology trade publication,utilizes people and resources from other organizations as needed.Business relationships are temporary and flexible.HairNet is a networked organization made up of replaceable firms that join the network and leave it as needed.This unique organization is an example of:


A) core competency ranking.
B) real time transparency.
C) virtual corporation.
D) competitive benchmarking.

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

Correct Answer

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Max Weber favoured all of the following principles of organization except:


A) consistent procedures,regulations,and policies.
B) staffing and promotions based on qualifications.
C) worker participation in decision making.
D) written rules.

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

Correct Answer

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