Which of the following statements accurately describes centralized organizations?

* 1. In a centralized organization, decision-making authority isconcentrated at the top levels of management.* 2. In today's business environment, companies have to find ways to remain profitableby coping with increased competition and rapid changes in technology. Manyestablished companies reorganize, eliminating layers of management. This actionusually results in a _______ span of control.broad* 3. A _______ organization consists of many layers of management.tall* 4. During her career at Focus International, a large textile producer, Sheila hasobserved a shift in decision making authority. Top management no longer makes all ofthe decisions, resulting in a more decentralized structure. As a manager, Sheilarecognizes that this has led tofaster decision making.* 5. Companies that are departmentalized by different types of goods and/or servicesare departmentalized byproduct.

As New Belgium Brewery grew, the owners discovered they needed to hire more and more workers in order to keepup with demand. They needed to devise a division of labor, set up teams or departments to do specific tasks, andassign responsibility and authority to people. This process is calledorganizing.New Belgium Brewery uses a newer form of organization that allows employees to not only know what management isdoing, but to participate in management decisions. Many organizations in the past were designed more to facilitatemanagement than to please customers. Companies designed many rules and regulations to give managers controlover employees. This reliance on rules is calledbureaucracy.New Belgium Brewery has few layers of managers. Its organizational structure can be described asFlatEmployees at all levels of New Belgium Brewery are empowered to make decisions. The delegation of decisionmaking to lower-level managers and employees more familiar with conditions is calleddecentralization.At New Belgium Brewery, people make friends, form cliques, establish social organizations, and lines of authorityoutside the traditional organization chart. These relationships are part of the company's

informal organization.* 1. Social networking within an organization and between companies can be extremelyuseful. The system of relationships that develop spontaneously between employees isknown as the _______ organization.

* 2. A company's _______ is comprised of the values, beliefs and behaviors thatdetermine how its employees and management interact and handle outside businesstransactions.

* 3. Informal organizations canyield creative solutions to problems.* 4.The structure that details lines of responsibility, authority, and position in anorganization is theformal organization.

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Which of the following statements is true of centralized organizations?

Which of the following is a defining characteristic of centralized organizations?

Which of the following best defines the concept of centralized authority?

Which of the following statements describing organizational culture is true?