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Exam 9: Adapting Organizations to Todays Markets

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Question 111

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Excite Enterprises uses an accounting firm to handle the payroll and tax functions for this firm.Using the services of another firm in this manner is an example of:

A) outsourcing.
B) functional reassignment.
C) core competencies.
D) benchmarking.

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

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Question 112

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Which of the following correctly identifies the rationale behind the unity of command principle of management?

A) All workers must share the same goal.
B) Every firm has one strong leader,and everyone should support that individual.
C) Workers can become frustrated and confused if they have more than one boss.
D) All authority should rest with top management,since only top managers carry the responsibility of bad decisions.

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

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Question 113

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The flatter an organization's structure,the fewer managers are needed.

Economies of scale can be achieved through departmentalization.

In a line organization,there are many specialists who serve as advisors and assistants to the managers who make decisions.

Most businesses adopted a bureaucratic organization in order to speed up their decision making process.

Gerald is a manager at Academy Manufacturing.He believes that it is very important for each worker at Academy to have only one boss.Gerald's view is consistent with Fayol's unity of command principle.

Which of the following is considered to be an advantage of departmentalization?

Self-managed teams consist of employees from different departments who work together on a long-term basis.

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

Span of control refers to the number of different markets a business can serve efficiently.

Economies of scale occur when a firm operates more efficiently as it grows larger.

All of the following are advantages of a line organization in a large business except:

Mass production causes a more complex production process.

The line organization is common among very small companies.

Restructuring involves relatively minor changes to an organization to better meet the needs of management.

The team specialists in a matrix organization remain part of the traditional line and staff structure.

Dean's Formals,an old local business,is experiencing some severe cash flow problems.Therefore,in order to effectively address these problems,the senior management has adopted the following decision making model:

The trend towards employee empowerment results in a wider span of control.

An organizational hierarchy establishes one person at the top of an organization.