Business Principles: Chapter 7 – Flashcards
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____ refers to a firm's shared values, beliefs, traditions, philosophies, rules, and role models for behavior.
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Organizational Culture
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____ is the division of labor into small, specific tasks and the assignment of employees to do a single task.
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Specialization
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Which of the following is a disadvantage of job specialization?
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It can lead to dissatisfaction and boredom among employees if overly done.
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____ is the grouping of jobs into working units usually called units, groups, or divisions.
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Departmentalization
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All of the following are approaches to departmentalization EXCEPT:
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Seniority
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Small businesses commonly employ:
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functional departmentalization
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An airlines company having different departments for frequent travelers and occasional travelers illustrates ___ departmentalization.
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Customer
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Which of the following concepts deals with giving employees the power to make commitments and use resources to accomplish the assigned tasks?
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Delegation of authority
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____ is the principle that employees who accept an assignment and the authority to carry it out are answerable to a superior for the outcome.
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Accountability
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____ is usually preferred when the decisions of a company are very risky and low-level managers lack decision-making skills.
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Centralization
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When an organization has a structure in which decision-making authority is delegated as far down the chain of command as possible, it is said to be exercising:
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Decentralization
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Span of management refers to the:
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number of subordinate working for a manager
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Which of the following statements is true about span of management?
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A narrow span of management is appropriate when superiors and subordinates are not in close proximity
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Organizational layers, in the context of assigning responsibility in an organization, refer to:
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the levels of management in an organization
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An organization form that is based on direct lines of authority from the top executive to the lowest level of employees is called:
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line structure
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An advantage of line structure in organizations is that it:
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has a clear chain of command
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A disadvantage of line structure is that it:
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requires manager to possess a wide range of knowledge and skills
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Which of the following statements is true about the line-and-staff structure?
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It allows line managers to focus on their expertise in the business operation
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Multidivisional structures:
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organize departments into larger units, often based on geography, product, and/or customer
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Which of the following is NOT a basis for organizing using a multidivisional structure?
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Projects
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A ____ structure sets up teams from different departments, thereby creating two or more intersecting lines of authority.
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Matrix
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A permanent, formal group that performs a specific task is a:
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Committee
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Which of the following is a temporary group of employees, usually chosen for their expertise, responsible for bringing out a specific change?
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Task Force
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Which of the following statements is true about task forces?
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They may occasionally comprise of individuals from outside the organization.
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A ____ is a group of employees responsible for an entire work process or segment that delivers a product to an internal or external customer.
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Self-directed work team
