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In the wagon wheel organizational structure, the _____ form the hub of the wheel.


A) suppliers
B) customers
C) middle managers
D) top-level managers

E) None of the above
F) A) and B)

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B

In the first stage of organizational growth, the owner/manager performs all the organizational activities.

A) True
B) False

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If there has been a strong history of growth in an organization, where mergers and acquisitions have occurred, then such an organization will most likely be:


A) centralized.
B) causal.
C) decentralized.
D) inflexible.

E) A) and D)
F) None of the above

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Explain the principle of unity of command. Why is this principle important?

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The unity of command principle states th...

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There is a trend in the United States toward increasing the number of levels of management and shifting toward more centralization.

A) True
B) False

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Most organizations use the matrix approach at the top and other approaches at lower levels.

A) True
B) False

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The morale in organizations following the unity of command principle is higher than in those organizations which do not follow this principle.

A) True
B) False

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In a decentralized organization, the upper management makes most of the important decisions that concern all levels or units within the organization.

A) True
B) False

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Explain the principle of the span of control. Why is it related to management level?

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The span of control principle states tha...

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List and explain the four stages of growth of an organization.

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The four stages of growth of an organization are:   Stage 1 : The one-person organization , where one person performs the three basic activities: financing, producing, and selling. Stage 2: The organization with assistants , where the owner hires assistants to help carry out the three primary activities. Stage 3: The line organization, where assistants are put in charge of major functions and the chief executive's span of management is reduced. Stage 4: The line-and-staff organization , where staff experts are hired to perform activities which assist line personnel.

In the one-person organization stage, _____.


A) all functions of the organization are performed by the owner and his/her assistants.
B) there are more than 150 employees, and each person has clearly defined responsibilities.
C) all functions of the organization are performed by the owner/founder.
D) specialists are hired to oversee the work of different departments.

E) B) and C)
F) B) and D)

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When a quality control specialist tells a production manager to adjust a machine to increase the quality of the product, he or she is using:


A) advisory authority.
B) unity of command.
C) functional authority.
D) line authority.

E) B) and D)
F) B) and C)

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According to the internal systems model developed by Likert, _____ reflect the internal state and health of the organization.


A) causal variables
B) end-result variables
C) intervening variables
D) structural variables

E) None of the above
F) All of the above

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There is a tendency toward more decentralization during poor economic times.

A) True
B) False

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Line-and-staff organizations:


A) have fewer employees than line organizations.
B) have specialists in certain positions to assist the line personnel.
C) have a large number of employees and do not face any conflicts between departments or between employees.
D) consider line personnel as more important than staff personnel.

E) A) and C)
F) None of the above

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Which of the following violates the unity of command principle?


A) Span of management
B) Line management
C) Functional authority
D) Centralization

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

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In _____ organizations, middle and lower levels of management make broader, more important decisions about their units.


A) decentralized
B) centralized
C) tightly controlled
D) one-person

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

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Geographically dispersed organizations tend to be centralized.

A) True
B) False

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The inverted pyramid structure is a very flat organization with few management levels.

A) True
B) False

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The unity of command principle states that everyone in an organization should report to and be accountable to only one boss for performing a given activity.

A) True
B) False

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True

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