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Business Principles: Chapter 7

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

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