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A group of managers from various departments is in charge of evaluating the performance of the staff employees every year.This is a(n)


A) ad hoc committee.
B) permanent committee.
C) task force.
D) standing committee.
E) organisational review committee.

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

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Older, larger firms producing and selling various products base departmentalisation on function.

A) True
B) False

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It is important that every company use only one departmentalisation basis.

A) True
B) False

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Carl Smith overheard that Joe Dunn was blowing the whistle on managers at XYZ Company and that a full story would appear in Sunday's paper.Carl quickly alerted the managers, who were able to stop the newspaper from printing the article.This is an example of managers'


A) ignoring the grapevine.
B) involving the grapevine as a useless communication network.
C) trying to eliminate the grapevine.
D) using the grapevine as a managerial tool.
E) reducing the credibility of information from the grapevine.

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

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A common characteristic of a centralised organisation is


A) democratic decision making.
B) decision making by a few top-level managers.
C) a flat span of management.
D) placing decision making near the workplace.
E) authority placed at lower levels.

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

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Many online companies strive to have a corporate culture based on trust and friendship among employees, a strong commitment to the company, and a relaxed and informal atmosphere.This is a ____ culture.


A) communal
B) fragmented
C) networked
D) family
E) mercenary

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

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If a new company desires to departmentalise in a way that will simplify supervision and facilitate coordination, it will most likely departmentalise by


A) product.
B) location.
C) worker skill level.
D) customer.
E) function.

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

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Ann delegated work to an employee who mismanaged public funds.Ann, rather than the employee, was reprimanded for this mismanagement.Ann is now reluctant to delegate because she


A) does not care whether the work is properly done.
B) knows the person who delegates remains accountable for the work.
C) does not trust any of her subordinates.
D) fears a subordinate will do the work so well that he or she will attract the approval of top management.
E) is so disorganised that she simply cannot plan and assign work effectively.

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

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An informal organisation can be shown on a formal organisation chart.

A) True
B) False

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An analyst in the corporate finance department at Chase Manhattan Bank has been assigned to an interdepartmental project involving a major client.He must report to two different supervisors-the project manager and the manager of his department.This sort of organisational structure is called a ____ structure.


A) network
B) matrix
C) line
D) functional
E) hybrid

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

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A corporate culture is generally defined as the


A) manner in which employees interact with each other and with management.
B) incorporation of company policies and procedures into employee activities.
C) inner rites, rituals, heroes, and values of a firm.
D) management philosophy pertaining to customer service.
E) informal interaction of employees outside work during nonbusiness hours.

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

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A span of control may be wide when


A) managers and workers are located far from one another.
B) a great deal of interaction among levels is needed.
C) few new problems are expected to arise.
D) the manager has a lot of work other than managing.
E) new problems arise frequently.

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

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Cory is at the top of her company's organisation chart.Which of the following is most likely to be her job title?


A) Executive manager
B) President
C) Manager
D) Vice president, operations
E) Organisation leader

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

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When line managers in an organisation encounter issues that a staff member with specialised expertise can assist with, the staff member they consult with has ___ authority.


A) advisory
B) centralised
C) functional
D) line
E) decentralised

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

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Location, product, function, and customer are common bases for a firm's


A) span of management.
B) job design.
C) job specialisation.
D) chain of command.
E) departmentalisation.

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

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The legal affairs attorney working for Intel would most likely occupy a(n)


A) vice president position.
B) high position in the chain of command.
C) staff position.
D) nonessential position.
E) authoritarian position.

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

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Upon beginning her career at Davidson Inc., a small consulting firm, Stephanie Benjamin receives a copy of the firm's organisation chart, which will


A) demonstrate the firm's informal network of communication.
B) clarify positions and reporting relationships within the firm.
C) not be very useful because small firms don't usually adhere to a formal structure.
D) probably be outdated because small firms are always changing.
E) indicate the short-, medium-, and long-term goals of the company.

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

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The various tasks in IBM's manufacturing plant are arranged so that one worker draws the wiring, another strengthens the wires, a third cuts them, a fourth inserts them, and a fifth seals them together.This is an example of job


A) rotation.
B) redesign.
C) specialisation.
D) enrichment.
E) enlargement.

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

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The ____ structure is considered the simplest and the oldest form of organisational structure.


A) cross-functional team
B) Matrix
C) Formal
D) line-and-staff
E) Line

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

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Determining how many subordinates will report to each manager gives an organisation its


A) chain of command.
B) span of management.
C) degree of centralisation.
D) nature and degree of departmentalisation.
E) degree of specialisation.

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

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