Organizing the Business Enterprise
True or False

1 .       Organizational structure is the specification of the jobs to be done within an organization and the ways in which those jobs relate to one another. 

 
 


2 .       An organization chart's chain of command shows the reporting relationships within a company. 

 
 


3 .       The two activities that are the building blocks f all business organizations are coordination and integration. 

 
 


4 .       It is easier to replace a person who leaves an organization in a nonspecialized job than in a specialized job. 

 
 


5 .       After jobs have been appropriately specialized and grouped into manageable departments, the next step in organizing is to establish the decision-making hierarchy. 

 
 


6 .       In the decision-making hierarchy, distributing authority is the second step in the three-step process. 

 
 


7 .       When making a decision for a company, responsibility alone is of the utmost importance when assigning tasks. 

 
 


8 .       A company with a centralized authority system that typically requires multiple layers of management tends to resemble a flat organizational structure. 

 
 


9 .       When jobs are more diversified or prone to change, a narrow span of control is preferable. 

 
 


10 .       Matrix structures rely heavily on committee and team authority. 

 
 


11 .       In a virtual organization, as the needs of the organization change, its managers bring in temporary workers, lease facilities, and outsource basic support services to meet the demands of each unique situation. 

 
 


12 .       Management has no control over the grapevine. 

 
 






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