1. Which of the following statements is true regarding a flat organization?

a. A flat organization has more hierarchical levels than a tall organization.

b. Managers of a flat organization possess relatively more authority than those of a tall organization.

c. A flat organization has more managers than a tall organization.

d. The flatter the organization, the less motivated are the employees.

2. Which of the following is an output created by an organization?

a. capital

b. competitors

c. salaries

d. machinery

3. According to the principle of minimum chain of command, ________.

a. managers increase the number of subordinates to improve their status in the organization

b. an organization should be kept as flat as possible

c. a functional structure improves the speed of decision-making

d. a large number of hierarchical levels will increase bureaucratic costs

4. Jeffrey Bezos saw the opportunity to sell books over the Internet, which was growing. So he started a Web site where people could buy new books and sell there existing books. This was the first Web site dedicated to buying or selling books. This is an example of ________. A cell-phone manufacturer forms a temporary committee to find new ways to position its products. Identify the integrating mechanism used in this case.

a. integrating role

b. task force

c. team

d. integrating department

5. According to the ________, an organization should minimize its dependence on other organizations for resources and develop strategies to make resources available.

a. organizational theory

b. group theory

c. resource dependence theory

d. contingency theory

6. ________ is the process of giving employees throughout the organization the authority to make important decisions and to be responsible for their outcomes.

a. Operant conditioning

b. Empowerment

c. Reciprocal logrolling

d. Value engineering

7. To be effective, an organization must ________.

a. consider employees as the most important stakeholder group and give priority to their interests over the interests of all the other stakeholders

b. ignore external stakeholders and focus exclusively upon internal stakeholders.

c. consider customers as the most important stakeholder group and give priority to their interests over the interests of all the other stakeholders

d. at least minimally satisfy the interests of all the stakeholders

8. _______ is the process by which managers select and manage aspects of structure and culture so an organization can control the activities necessary to achieve its goals.

a. Environmental scanning

b. Competitive analysis

c. Organizational design

d. Arbitration

9. ________ are people who are closest to an organization and have the strongest or most direct claim on organizational resources.

a. Whistle-blowers

b. Early adopters

c. Free riders

d. Internal stakeholders