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To understand such issues as reporting relationships, authority, responsibility, and related ideas, we need to begin with the ________ of an organization's structure.


A) vertical dimension
B) vertical integration
C) horizontal dimension
D) horizontal integration
E) vertical hierarchy

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

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In a matrix organization, each employee reports to a functional and a(n) ________ manager.


A) operational
B) first-line
C) divisional
D) centralized
E) accountability

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

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Sylvia has been promoted to a managerial position in SweeTime Bakery. One of her jobs is to determine the leave schedules of employees. However, the owner of the company overrides her decisions. Consequently, Sylvia's subordinates do not respect her position as a manager. Sylvia has identified the problem, and it is that the


A) company has a wide span of control.
B) owner has not delegated enough authority to enable her to do her work.
C) employees prefer to be guided by another manager.
D) owner wants to follow the unity-of-command principle.
E) company follows a decentralized decision-making process.

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

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Blake is a recently promoted manager at Budget Foods, winning the position over his former peers. His peers do not view Blake as their supervisor; they continue to think of him and treat him as a peer. As a result, Blake is having to rely more on ________ to delegate work and to manage his staff.


A) centralized decision making
B) external locus of control
C) authority
D) informal influence tactics
E) standardization

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

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Among the positions of the top managerial level is that of


A) chief financial officer.
B) frontline manager.
C) operational supervisor.
D) division supervisor.
E) first-line manager.

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

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PowerSounds Inc. is a manufacturer of audio equipment. The corporation has production, marketing, accounting, and finance departments. They have a department that makes speakers, turntables, and accessories for professional DJs, and a department that produces equipment for home use. Marlena works in the production department manufacturing speaker components. She reports to the production manager and her project manager. Emmanuel works in the accounting department and also manages public relations. The organization requires all the employees to wear the corporation's T-shirt as part of the uniform. There are also specific procedures that the employees must follow while manufacturing the instruments. By requiring all employees to follow specific procedures, PowerSounds Inc. is making use of the principle known as


A) formalization.
B) standardization.
C) unity of command.
D) delegation.
E) concentration.

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

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The procedures that link the various parts of the organization for the purpose of achieving the organization's overall mission are known as


A) specialization.
B) diversification.
C) coordination.
D) concentration.
E) delegation.

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

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One disadvantage of delegation is that it usually results in the manager losing touch with the status of the work to be accomplished.

A) True
B) False

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Stockholders of the Dearborn Automotive Group are voting on five new candidates to take an empty seat on the company's board of directors. The board of directors is currently made up of the company founder's two sons, one of the company's former marketing vice presidents, and a chief operating officer who has been with the company since its inception. Based on twenty-first century research and trends, the best person to fill the seat is


A) a retired former president and CEO of Dearborn Automotive.
B) Dearborn's vice president of product development.
C) the creator of the most successful advertising campaign in Deaborn's history.
D) the granddaughter of Dearborn Automotive's founder.
E) the vice president of product development for a software company.

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

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Darrell is a clothier whose company, 24-7 Activewear, has separate product lines for men, women, and children. He has grouped his organization into different departments such as production, marketing, and finance. Most of the employees report to two managers-a departmental head and a divisional head. Darrell encourages lower-level managers to make important decisions in order to promote quick and effective decision making. 24-7 Activewear is an example of a ________ divisional organization.


A) conglomerate
B) geographical
C) vertical
D) product
E) customer

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

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PowerSounds Inc. is a manufacturer of audio equipment. The corporation has production, marketing, accounting, and finance departments. They have a department that makes speakers, turntables, and accessories for professional DJs, and a department that produces equipment for home use. Marlena works in the production department manufacturing speaker components. She reports to the production manager and her project manager. Emmanuel works in the accounting department and also manages public relations. The organization requires all the employees to wear the corporation's T-shirt as part of the uniform. There are also specific procedures that the employees must follow while manufacturing the instruments. It can be inferred that Emmanuel is working in a ________ department.


A) flat
B) staff
C) wide
D) narrow
E) line

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

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As vice president of human resources at Premier Products Corporation, Pietro enjoys working alongside his peer vice presidents, largely because they all have different skills and all manage different parts of the organization, including research, engineering, production, construction, procurement, and finance. Premier Products Corporation is a(n) ________ organization.


A) functional
B) divisional
C) matrix
D) network
E) organic

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

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Define delegation and explain its importance.

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As work is spread out over various level...

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Narrow spans of control build ________ organizations.


A) flat
B) delegated
C) tall
D) decentralized
E) informal

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

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Thunderbolt Gaming Systems of San Jose, California, operates in a number of related fields, including computer gaming, virtual reality, simulation platforms, and other high-tech applications. In all likelihood, Thunderbolt Gaming Systems is an organization


A) with a high degree of differentiation.
B) in an industry whose paradigms change little.
C) in a relatively stable environment.
D) with the potential for standardization problems.
E) that employs strict rules of formalization.

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

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The number of subordinates who report directly to an executive or supervisor is called the


A) reporting order.
B) span of control.
C) delegation control.
D) bureaucratic span.
E) authoritative span.

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

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The ________ principle states that a person should have only one boss to avoid confusion.


A) mutual adjustment
B) division-of-labor
C) dynamic network
D) coordination-by-plan
E) unity-of-command

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

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Everyday Fashions Corp. is a clothing manufacturer. It has marketing, production, and finance departments, with a manager who heads each of the departments. Beatrice, the CEO, distributes the various organizational tasks to each manager by assigning authority and responsibility. Each manager has ten subordinates who are required to report to him or her. Each department works on its set of tasks in the organization. Beatrice is the top manager, followed by the department heads, and lastly the supervisors. All the managers are accountable to Beatrice alone. All managers in Everyday Fashions Corp. are required to report to the CEO alone. This is an example of an organization following


A) unity of command.
B) differentiation.
C) span of management.
D) integration.
E) span of control.

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

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An example of a line department is


A) public relations.
B) human resources.
C) product design.
D) accounting.
E) legal.

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

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Everyday Fashions Corp. is a clothing manufacturer. It has marketing, production, and finance departments, with a manager who heads each of the departments. Beatrice, the CEO, distributes the various organizational tasks to each manager by assigning authority and responsibility. Each manager has ten subordinates who are required to report to him or her. Each department works on its set of tasks in the organization. Beatrice is the top manager, followed by the department heads, and lastly the supervisors. All the managers are accountable to Beatrice alone. It can be understood that Everyday Fashions Corp. has a ________ span of control.


A) wide
B) narrow
C) tall
D) vertical
E) horizontal

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

Correct Answer

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