MGMT chapter 8 True/False – Flashcards

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The organization chart depicts the positions of the board offices in corporate headquarters.
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False
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Differentiation means that differentiated units are put together so that work is coordinated into an overall product.
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False
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Division of labor and specialization are not closely related.
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False
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The numerous tasks that must be carried out in a large organization make specialization a necessity.
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True
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When there are many subunits and many kinds of specialists who think differently, differentiation is high.
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True
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Coordination refers to the procedures that link the various parts of the organization to achieve the organization's overall mission.
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True
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Authority resides in people and not in positions.
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False
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Stockholders are generally directly involved in managing the organization.
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False
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The board of directors determines the strategic direction in corporations.
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True
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The three broad levels of the organizational pyramid are commonly called the organizational structure.
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False
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Corporate governance is the role of the corporation's executive staff and board of directors in ensuring that the firm's activities meet the goals of the firm's stakeholders.
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True
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It is generally accepted that fewer hierarchical levels creates greater operating efficiency.
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True
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Tabitha, a manager at All-Bright Cleaning Services, Inc. supervises 139 front-line employees. She reports to is the President. All-Bright Cleaning Services, Inc. would be considered a tall organization.
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False
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Mallory manages a branch retail store for Simply Sweet, a retail bakery. She supervises ten people including the bakers and the clerks located in her branch. She reports directly to the owner of Simply Sweet. Simply Sweet would be considered a tall rather than a flat organization.
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False
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There is no specific ideal number of subordinates that a manager should supervise.
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True
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The number of subordinates who report directly to an executive or supervisor is called the span of control.
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True
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Murray works on an automobile assembly line. His job is to assemble the door on every vehicle that is on the line. The job is quite defined and specific as an incorrect assembly could endanger future drivers and passengers of the car. Murray is most likely supervised using a wide span of control.
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True
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The optimal span of control is five subordinates, according to Napoleon Bonaparte.
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True
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Delegation is the assignment of authority and responsibility to a subordinate at a lower level.
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True
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Delegation means that a person is assigned a task that he or she is supposed to carry out.
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False
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Delegation of work responsibilities is more effective when the manager does not delegate authority also.
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False
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If Consuelo, a manager at Nearly New, a consignment store chain, delegates responsibility to a subordinate, she is relieved of the ultimate responsibility and accountability for her subordinate's actions.
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False
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Accountability means the subordinate's manager has the right to expect the subordinate to perform the job, and the right to take corrective action if the subordinate fails to do so.
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True
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Effective delegation usually results in the manager losing control of the work to be accomplished.
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False
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One advantage of delegation is that it helps develop effective subordinates.
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True
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The first step in effective delegation is selecting the person to whom you will delegate.
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False
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If you are not delegating, you are merely doing things.
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True
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A basic characteristic of decentralized organizations is the delegating of authority to people at lower hierarchical levels to make decisions and take action.
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True
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In a centralized organization the high-level executives make most decisions and pass them down to lower levels for implementation.
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True
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Sometimes organizations change their degree of centralization.
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True
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Line departments are units that support staff departments.
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False
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The three basic approaches to departmentalization are line, staff, and matrix.
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False
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Robin Randalson works in the Human Resources Department for Kindly Kare Corporation, a retirement community. Therefore, Robin works for a staff department, rather than a line department.
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True
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The functional structure would be most appropriate in complex and changing environments.
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False
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Functional departmentalization occurs in only large organizations
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False
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A clear advantage of the functional form of departmentalization is that technical specialists are relatively free of administrative work.
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True
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The divisional organization has departmentalization that groups units around products, customer, or geographic regions.
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True
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Cambridge Computer Installations, Inc. (CCII) has separate company-wide marketing, production, design and research departments. CCII is a divisional organization.
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False
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A clear advantage of the product form of departmentalization is that task responsibilities are clear.
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True
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Macy's Group, has geographic divisions for its operations serving particular states or regions of the U.S. Macy's uses a customer division.
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False
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The primary advantage of both the product and customer/regional approaches to departmentalization is the ability to focus on customer needs and provide faster, better service.
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True
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A matrix organization is a hybrid form of organization in which functional and divisional forms overlap.
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True
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The unity-of-command principle states that a person should have multiple managers who lead together, giving subordinates the same unified message.
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False
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To a large degree, problems can be avoided if the key managers in a matrix learn the behavioral skills demanded in the matrix structure.
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True
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A network organization makes heavy use of the informal grapevine to run the firm.
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False
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Another name for a virtual corporation is a dynamic network.
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True
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A broker is someone who assembles and coordinates participants in a network.
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True
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When organizations differentiate their structures, they also need to be concerned about integration and coordination.
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True
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Coordination methods include standardization, plans and mutual adjustment
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True
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Gerry, the operations manager of the Douglas County School District requires all schools to use the same type of computers and operating systems. This simplifies both the purchasing and training processes. In this instance, Gerry can best be described as coordinating the school district using plans.
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False
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The presence of rules and regulations governing how people in the organization interact is called formalization.
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True
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Coordination by plan deals with exact rules and procedures that spell out what needs to be done and how.
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False
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Coordination by mutual adjustment involves feedback and discussions to jointly figure out how to approach problems and devise solutions that are agreeable to everyone.
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True
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The simplest and most flexible approach to coordination is by mutual adjustment.
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False
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Today's complex and dynamic organizations must either reduce the need for information or process more information to cope with high uncertainty and heavy information demands.
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True
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