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Exam 8: Adapting Organizations to Todays Markets

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Question 91

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A study at the Slumber Inn Corporation identified poor employee morale.Employee respondents indicated frustration with their inability to deal directly with customers' concerns and complaints.These employees feel that if they were empowered with the authority to make decisions,customer satisfaction would dramatically increase.This illustrates one of the disadvantages of decentralized authority.

A) True
B) False

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Question 92

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Small businesses often use a line organization model.

A) True
B) False

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Question 93

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Flat organizations have fewer managers.

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

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

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

The more complex the job,the narrower the span of control.

The ________ an organization's structure,the ________ the span of control.

Jason is a self-employed patent attorney.These days he is seldom without work.Large corporations hire him on an as-need basis to review prospective ideas and help with securing patents for a variety of inventions including surgical instruments,medicines,and high tech gadgets.Once he secures a contract,he knows approximately how many weeks or months he will work.Jason works for virtual corporations.

The optimum number of subordinates a manager should supervise is referred to as the span of control.

Bureaucratic organizations establish rules and regulations that everyone is expected to follow.

Young people today are often called __________ because they have never known life without the Internet.

Ashley experienced frustration with her new job at Walnut Securities,until she befriended a secretary from another department.Over lunch in the cafeteria,her new friend shared with Ashley the way things really work at Walnut Securities.Ashley quickly learned that:

Which of the following describes the activity of a firm that assigns specific functions,such as accounting or legal work,to other organizations rather than performing these functions themselves?

Mike prepared a paper for his class about organizational styles used in business.He found that one reason the traditional bureaucratic style is less popular than in the past is that:

If a particular function is one of a firm's core competencies,it typically performs this function itself rather than outsourcing it to another organization.

Gangsta Industries produces a variety of anti-crime and safety products such as burglar alarms,smoke detectors,surveillance cameras,and specialty locks.Gangsta sells to households,businesses,and government agencies.They have found that each market requires a different marketing strategy.Gangsta would probably benefit from departmentalization by:

Managing a growing business often requires managers to create departments to accomplish various tasks.

During the past six years,the marketing department manager at Creative Concepts International made a strong push to hire mover/shaker professionals that had superior performance records prior to joining this company.It didn't take long for these enthusiastic marketers to recognize the many talents within their department.They marveled at how much they were like each other and how they seemed to agree with each other's work styles and ideas.After a while,it became difficult for others in the organization to present to this group.If the idea did not originate within the marketing department,marketers did not give it much credence.Management counselors would describe this phenomenon as _____.

Because top managers supervise the firm's most talented workers,they generally have a broader span of control than middle or first line managers.