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Richard, the store manager at an Old Navy outlet, was speaking with Brescia, his new assistant manager, about the store's system of job relationships; he also explained whom she will report to and who will report to her. Richard said, "This system is one of the things that motivates our employees to work together to achieve our company's goals." Richard was telling Brescia about the store's


A) organizational structure.
B) organizational culture.
C) code of ethics.
D) diversity plan.
E) values statement.

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

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Antwan was recently promoted to the position of shift supervisor at If The Shoe Fits, and he is now responsible for making decisions on numerous matters in the store and giving orders to the floor staff. At the same time, Antwan has the obligation to perform the many new tasks assigned to him as a supervisor, such as overseeing the closing work and the cleaning of the store. Antwan's obligations are known as his


A) hierarchy.
B) power.
C) beliefs.
D) authority.
E) responsibility.

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

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________ tend to have a narrow span of control, whereas ________ have a wide span of control.


A) First-line supervisors; presidents
B) Managers; owners
C) Shift supervisors; floor managers
D) Presidents; first-line supervisors
E) First-line supervisor; shift supervisors

F) D) and E)
G) A) and B)

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Bianca, the CEO of Solar Tiles, has only three people reporting to her: the vice president of marketing, vice president of HR, and vice president of accounting. Bianca has a


A) narrow span of control.
B) small unity of command.
C) wide span of control.
D) focused span of control.
E) broad span of influence.

F) A) and C)
G) D) and E)

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Imagination Station uses an organizational structure that includes both functional divisions (such as marketing and HR) and a divisional chain of command (such as the marketing and sales divisions). For example, Raj, a salesperson for Imagination Station, reports to both the marketing manager and the sales manager as he starts to develop the Creative Minds account. Imagination Station uses a matrix structure.

A) True
B) False

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Ty has been working for Lyft for three months. He expected that his job would be to respond to requests on the app for a ride, pick up fares, and drop them off at their desired locations, but in his first few days on the job he realized that the job entails much more. He must keep his car clean and neat, and some days he will be assigned solely to go to people's houses to pick them up and bring them to the local airport, then wait at the airport to pick up arrivals and take them home, reducing their wait time. Within a few months, he has learned that Lyft drivers often express frustration with the people they call "civilians"-that is, non-Lyft drivers, whose driving skills they complain about incessantly. In his first few months on the job, ________ describes what Ty is undergoing.


A) a symbolic ritual
B) values training
C) hierarchical indoctrination
D) fit analysis
E) organizational socialization

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

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Contrast power and authority. How do power and authority differ between military organizations and typical business organizations?

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Authority refers to the rights inherent ...

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Without tiers or ranks of authority, a lone manager would have to confer with everyone in his or her domain,


A) making it easy to get things done.
B) creating unity around decisions.
C) making it difficult to get things done.
D) setting up an environment of collaboration.
E) valuing consensus.

F) All of the above
G) B) and C)

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During weekly conference calls, Zeke, a sales manager for a national chain of clothing stores, and the other managers in his district explain to their district manager the reasons for different decisions; they also explain why certain costs and sales were higher or lower than they were the previous week. ________ is the explanation of their decisions and work results.


A) Accountability
B) A stepped decision
C) A hierarchy of authority
D) Touching
E) Power

F) A) and C)
G) A) and D)

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Mow and Trim, a sole proprietorship that uses contract labor, has all of its authority centralized in a single person (the owner) , a flat hierarchy, few rules, and low work specialization. Mow and Trim is an organization with a


A) team-based design.
B) simple structure.
C) hollow structure.
D) functional structure.
E) horizontal design.

F) B) and C)
G) A) and E)

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When is the cultural tone of a company usually set?


A) during orientation
B) during the hiring process
C) when developing the job posting
D) when writing the job description
E) at an all-staff meeting

F) A) and E)
G) A) and B)

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Eriq and Steven, owners of Happy Times Ice Cream Shoppe, do not have a formal policy about dress code and work procedures because they see their company as a family place that provides enjoyable work. Eriq and Steven believe that if you treat employees like family, the company will do well and grow. ________ are the core beliefs that represent the core values of Happy Times Ice Cream Shoppe's culture.


A) A code of ethics
B) Basic assumptions
C) Espoused values
D) Rites and rituals
E) Observable artifacts

F) A) and D)
G) C) and E)

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Employees and customers are treated like a family at State Street Coffee House. Jason and Jill, the owners, work to encourage unity to increase their employees' job satisfaction and commitment. At their coffee house, Jason and Jill have built a(n)


A) market culture.
B) goal-driven agenda.
C) bureaucracy culture.
D) clan culture.
E) adhocracy culture.

F) C) and D)
G) B) and D)

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Dr. Potter is retiring as a veterinarian in private practice. He wants to start a ________, Vets on the Go, that will provide low-income individuals with pets in the United States with veterinary assistance at no cost.


A) for-profit organization
B) union
C) mutual-benefit organization
D) nonprofit organization
E) co-op

F) A) and B)
G) A) and D)

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Global IT has designed its corporate structure with divisions based on their location. For example, there are the Southern and Northern Divisions, and globally there are the European Division and the Asian Division. Global IT is an example of a structure with


A) geographic divisions.
B) matrix partitions.
C) customer divisions.
D) common area divisions.
E) product divisions.

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

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This question has two parts; be sure to answer both. First, distinguish among a hollow structure, a modular structure, and a virtual structure. Second, specify whether each of the following companies has a hollow, modular, or virtual structure. (a) Supreme Vacation Rentals, Inc., purchases every item that goes into its vacation rentals-from the furniture to the appliances and the bed linens-from suppliers all around the world. It then places all of these items into the vacation rentals before listing them for availability on the Internet. (b) Fan Fiction publishes comic novels. It has only two people on staff who perform the company's core publishing functions: an editor who acquires the books from authors, and a marketer who serves as a publicist. All other functions, such as typesetting, printing, binding, warehousing, and distribution are outsourced to companies that can perform these services less expensively. (c) Fly High is a small advertising agency. Its owner lives in Chicago, its account executive lives in Houston, its ad designer lives in Los Angeles, and its media buyer lives in Georgia. The four members of the Fly High team use Skype, Google Chats, and e-mail all day long to talk with one another and with their clients and prospective customers.

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In a hollow structure, often called a ne...

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Ford Motor Co. has separate divisions for passenger cars, for large trucks, and for farm products. Ford uses ________ in its organization.


A) geographic divisions
B) customer divisions
C) matrix partitions
D) a decentralized management structure
E) a global corporate culture

F) B) and E)
G) A) and E)

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Niall, the president of Tutors For Hire, told one of his new hires that "Managers at this company are encouraged to solve their own problems rather than buck the decision to a higher level, and decisions are made more quickly, which increases our organization's flexibility and efficiency." The key benefits of ________ are the advantages that Niall related to his new hires.


A) centralized authority
B) management accountability
C) management responsibility
D) decentralized authority
E) work specialization

F) A) and B)
G) A) and C)

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The nutritionists, chefs, and taste testers who work for Healthy Foods, an organization that creates health foods that taste good and are good for you, work together for a common goal of ending obesity and diabetes. This shows how Healthy Foods uses ________ in its organization.


A) diversity
B) contingency design
C) differentiation
D) integration
E) autocratic structure

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

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While figuring out how to save money for a bride who is having financial problems, Cadence, the catering manager of I Do I Do, asked her assistant, "What do you think is the best menu to offer under these particular circumstances? How can we offer the bride and groom's guests a great meal within their budget?" Cadence and her assistant are using the contingency approach.

A) True
B) False

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