Business Chapter 7 example #14106

7 September 2023
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question
Which of the following is an advantage of product departmentalization?
answer
It simplifies decision making and helps coordinate all activities related to a product.
question
At Consolidated Infrastructure, specialists from different departments are deployed together to form a project team and work on a single project, such as building a bridge or restoring a road. As a result, employees have to report to their functional managers and the concerned project managers. Thus, Consolidated Infrastructure is using a _____ structure.
answer
matrix
question
An organizational form that is based on direct lines of authority from the top executive to the lowest level of employees is called a _____ structure.
answer
line
question
Which of the following statements is true about the line-and-staff structure?
answer
It allows line managers to focus on their expertise in the business operation.
question
Smooth Sailing Cruises has different departments for frequent travelers and occasional travelers. This illustrates _____ departmentalization.
answer
customer
question
Which of the following is an advantage of multidivisional structures?
answer
They allow divisional and department managers to specialize.
question
In an automobile company, the vice president of research and development wants to plan and coordinate the launch of a new car with the vice president of marketing. Any related communication between them will be referred to as _____ communication.
answer
horizontal
question
Which of the following statements is true about e-mail communication?
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Using work e-mail accounts to send personal information may be against company policy.
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Which of the following is true regarding monitoring communications?
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Failing to monitor employees' use of e-mail, social media, and the Internet can be costly.
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Keith's company uses internal networks to share information with employees. What is an advantage of using this type of network?
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It can help with the flow of everyday business activities.
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Which of the following is an advantage of job specialization?
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it makes training employees easier
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If the type of departmentalization used by an organization tends to emphasize departmental units rather than the organization as a whole and decision making is slow, then these would be weaknesses indicative of _____ departmentalization.
answer
functional
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Liz is taking a college business class. Her professor splits the class into work teams to complete a project. Each team must create a fictional company, create a business plan for a new product, and market that product in a class presentation. Which of the following would be true of Liz's work team?
answer
Team members share leadership and create collective work products.
question
Which of the following statements accurately describes the difference between tall and flat organizations?
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Tall organizations have a narrow span of management, whereas flat organizations have a wide span of management.
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Which of the following is a similarity between customer departmentalization and geographical departmentalization?
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Neither focuses on the organization as a whole.
question
Freda, the president of ClassPub, an educational publishing company, delegates responsibility for all editorial activities to Susan, the executive editor. Susan accepts this responsibility and has the authority to obtain all relevant information, make decisions about what to publish, and delegate activities to her subordinates. She delegates all the editorial activities to the managing editors of each academic discipline. In turn, these managers assign specific projects to their development editors. Who is ultimately accountable to Freda for all the editorial activities?
answer
Susan
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Project teams are
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in control of their operation and have total control of a specific work project.
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Several years ago, Rick started his own heating and HVAC business. As his business grew, Rick noticed that his traditional structure was becoming difficult to coordinate, making communication difficult and decision making slow. He decided to restructure his business, organizing his departments into six larger groups: (1) heating repairs, (2) heating sales, (3) heating installation, (4) air-conditioning repairs, (5) air-conditioning sales, and (6) air-conditioning installation. What type of structure has Rick adopted?
answer
multidivisional
question
Small businesses commonly employ _____ departmentalization.
answer
functional
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An electronics company has a computer electronics division, telecommunications equipment division, and kitchen appliances division. Which of the following methods of departmentalization does the company use to structure its organization?
answer
product departmentalization
question
Kobe is the owner of a popular restaurant. He supervises all of the staff in the restaurant. Thus, Kobe's restaurant is using a _____ structure.
answer
line
question
Which of the following is a disadvantage of matrix structures?
answer
They are generally expensive and quite complex.
question
Which of the following is an advantage of decentralization?
answer
It may increase the organization's productivity
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Auto Corp., a large auto parts store, did an experiment to see whether it was faster to have one person work on each car repair or have a team of people work together on a repair. It found that each employee working independently could do one to three auto repairs per day. However, when one person removed the old part, another person prepared the new part, and a third person installed the new part, they were able to complete up to twenty repairs per day. This scenario demonstrates that
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people can perform more efficiently if they master just one task rather than all tasks.
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Which of the following statements is true about delegation of authority in the context of an organization?
answer
It does not relieve a superior of accountability for a delegated job.
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All of the following are results of establishing a positive organizational culture EXCEPT doing so
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can make employees unproductive and indifferent.
question
When a large accounting firm reorganized and laid off 50 employees, it faced lawsuits alleging that the layoffs targeted minorities and women. The firm developed a two-year group to address the allegations and provide recommendations for improving company reorganization practices. What type of group does this scenario describe?
answer
a task force
question
Red Finch Products Inc. groups employees based on whether they are going to handle the sales account of a wholesale customer, regular consumer, first-time buyer, or a one-time buyer. Which of the following methods of departmentalization is the company using?
answer
customer departmentalization
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Kevin is a salesman at a large computer company where all the decisions are made by the top levels of management. However, his managers give him the responsibility to carry out his daily and routine sales activities. What type of organization does Kevin work for?
answer
centralized
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Mary, a project manager at a software company, informs her subordinates of the organization's new policies and code of conduct. This is an example of _____ communication.
answer
downward
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Leonard and Carl are both managers at a home improvement store. Leonard oversees the flooring, lighting, appliances, and hardware departments. Carl provides each of these departments with advice and support in the areas of finance and human resources. Which of the following is true regarding Leonard and Carl's roles in the company?
answer
Leonard is a line manager, while Carl is a staff manager.
question
Software Solutions Inc., a large software company, has different representatives to assist business clients and individual clients. This is an example of _____ departmentalization.
answer
customer
question
Razor Automobiles Inc. has slightly different versions of the same car for the American, European, and Asian markets. Its employees are grouped into divisions based on the market they have been assigned. This is an example of _____ departmentalization.
answer
geographical
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Which of the following is a disadvantage of geographical departmentalization?
answer
It results in duplication of tasks.
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All of the following are true of teams EXCEPT they
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function best when they have more than 10 members.
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Which of the following is a disadvantage of job specialization?
answer
It can lead to an increase in injuries.
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________ refers to a firm's shared values, beliefs, traditions, philosophies, rules, and role models for behavior.
answer
Organizational culture
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Which of the following is true of organizational culture?
answer
Organizational culture is more commonly expressed informally.
question
Jenna is interviewing to work at a doctor's office. During the interview process, the hiring manager had her come in and talk to some of the employees about the office's culture. All of the following things she learned relate to the office's culture EXCEPT
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her job will consist of answering phones, checking patients in and out, and filing patient information.
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Which of the following is a means of informally expressing an organization's culture?
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employee dress codes
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Which of the following is a formal expression of an organization's culture?
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codes of ethics
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Saddle Up, a small tack store in Massachusetts, stresses a culture of excellent customer service. To ensure customer satisfaction, the store allows customers to return most items hassle-free, even certain items that have been opened and used, such as boots, helmets, and saddles, as long as they are still in good condition. The store has a bargain section at the back of the store to sell returned items at lower prices. However, certain items, such as vet supplies, fly spray, supplements, and tack cleaning supplies, can only be returned if they are still sealed. In implementing its return policy, the store trusts its employees to
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use their best judgment.
question
The managers of Rug Emporium, a large rug store, decide to have a sale. The store manager works with the advertising department to make the public aware of the sale, with department managers to schedule enough salespeople to handle the increased customer traffic, and with merchandise buyers to ensure that enough rugs are available to meet expected consumer demand. What does this scenario best describe?
answer
how people must work together to achieve the store's objectives
question
Which of the following is a primary function of an organizational chart?
answer
It is a visual display of the organizational structure.
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Which of the following does an organizational chart display?
answer
chain of command
question
Greg owns a local ice cream store. His business started small, but over the years, word of mouth brought more people into town to try his delicious homemade ice cream. Since business is booming, Greg has decided to expand his business and open three additional stores in surrounding towns. What does growth like this require in terms of structure?
answer
Growth requires developing a formal structure to function efficiently.
question
________ is the division of labor into small, specific tasks and the assignment of employees to do a single task.
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Specialization
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What is the rationale for specialization?
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efficiency
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18th-century economist Adam Smith illustrated improvements in efficiency in manufacturing units through the application of
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specialization.
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_______ is the grouping of jobs into working units usually called units, groups, or divisions.
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Departmentalization
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Small businesses commonly employ ________ departmentalization.
answer
functional
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A company that has departments for marketing, finance, personnel, and production is organized by
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function.
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If the type of departmentalization used by an organization tends to emphasize departmental units rather than the organization as a whole and decision making is slow, then these would be weaknesses indicative of ________ departmentalization.
answer
functional
question
Kendall works at a small publishing house that groups jobs by functional activities. Her company has departments focused on editorial, marketing, finance, production, legal, and human resources. Which of the following is most likely true of the departments in Kendall's company?
answer
Each functional department is managed by an expert in the work done by the department.
question
Smooth Sailing Cruises has different departments for frequent travelers and occasional travelers. This illustrates ________ departmentalization.
answer
customer
question
Spicy Dish, a large distributor of canned beans and salsa, is organized into four business units: (1) North America Salsa, (2) North America Legume, (3) Latin America, and (4) Europe and Asia. What two types of departmentalization are illustrated in this example?
answer
product and geographical
question
Multinational corporations often use a geographical approach to departmentalization because
answer
of vast differences between different regions.
question
Razor Automobiles Inc. has slightly different versions of the same car for the American, European, and Asian markets. Its employees are grouped into divisions based on the market they have been assigned. This is an example of ________ departmentalization.
answer
geographical
question
Software Solutions Inc., a large software company, has different representatives to assist business clients and individual clients. This is an example of ________ departmentalization.
answer
customer
question
Which of the following concepts deals with giving employees the power to make commitments and use resources to accomplish the assigned tasks?
answer
delegation of authority
question
Melanie's Macaroni is a new restaurant that prepares childhood favorites in new ways to appeal to adults. The restaurant's owner has delegated to an employee the task of creating and implementing a new advertising campaign to attract customers. Which of the following is something the employee will need to carry out this assignment?
answer
the authority to make decisions about the advertising materials and costs
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________ is the obligation placed on employees through delegation to perform assigned tasks satisfactorily.
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Responsibility
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________ is the principle that employees who accept an assignment and the authority to carry it out are answerable to a superior for the outcome.
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Accountability
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The extent to which authority is delegated throughout an organization determines its
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degree of centralization.
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Which of the following is a drawback of centralization?
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It may take a long time for an organization as a whole to implement decisions and respond to changes and problems on a regional scale.
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________ is usually preferred when the decisions of a company are very risky and low-level managers lack decision-making skills.
answer
Centralization
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Which of the following is true of decentralization?
answer
It is characteristic of organizations that operate in complex environments.
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Kristen is a manager at a small diner in a tourist town. There are many competing restaurants in the area, so the restaurant owners depend on Kristen and her employees to pay attention to what customers order most often to determine what the daily and weekly specials should be. Kristen has the authority to make changes to the menu and offer promotions to attract more patrons. What type of organization does Kristen manage?
answer
decentralization
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When an organization has a structure in which decision-making authority is delegated as far down the chain of command as possible, it is called
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decentralized.
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Span of management refers to the
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number of subordinates reporting to a manager.
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A wide span of management is appropriate when
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subordinates are highly competent.
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A narrow span of management is appropriate when
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superiors and subordinates are not in close proximity.
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Which of the following statements is true about span of management?
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Wide spans of management are more common in decentralized firms whereas narrow spans of management are typical in centralized organizations.
question
Donna is a manager of an online clothing store. She has five employees who work remotely in their homes in New York, Texas, California, Colorado, and Florida. In addition to managing her employees and having a phone meeting with each of them weekly, Donna also orders merchandise, manages the inventory, coordinates shipping to customers, and manages the company's advertising and finances. What type of span of management does this scenario describe?
answer
narrow
question
Philip is a manager at a large office supplies store, where his main responsibility is managing 30 employees. His employees are highly competent, so he doesn't need to interact with them frequently, and few problems arise. His company has a set of specific operating procedures that govern his activities and the activities of his employees. What type of span of management does this scenario describe?
answer
wide
question
Organizational layers, in the context of assigning responsibility in an organization, refer to the levels of
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management in the organization.
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Which of the following statements is true about organizational layers?
answer
The more layers in an organization, the slower the communication.
question
Auto Mart, a large car company, has store managers, district managers, regional managers, and functional managers. Each manages only a few people. What type of organization does this describe?
answer
tall
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Carlos manages a hardware superstore where he supervises 50 employees. Because he manages a large number of employees, fewer management layers are needed. As a result, what is most likely true of Carlos' duties, in comparison with managers in tall organizations?
answer
He performs more administrative duties.
question
In the context of different forms of organizational structure, which of the following is true of line structure?
answer
It is the simplest organizational structure.
question
An organizational form that is based on direct lines of authority from the top executive to the lowest level of employees is called a ________ structure.
answer
line
question
Kobe is the owner of a popular restaurant. He supervises all of the staff in the restaurant. Thus, Kobe's restaurant is using a ________ structure.
answer
line
question
An advantage of line structure in organizations is that it
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enables managers to make decisions quickly.
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A disadvantage of the line structure is that it
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requires managers to possess a wide range of knowledge and skills.
question
Which of the following is a disadvantage of line-and-staff structures?
answer
They create ambiguous lines of communication.
question
Which of the following is a disadvantage of a multidivisional structure?
answer
It inevitably creates work duplication.
question
At Consolidated Infrastructure, specialists from different departments are deployed together to form a project team and work on a single project, such as building a bridge or restoring a road. As a result, employees have to report to their functional managers and the concerned project managers. Thus, Consolidated Infrastructure is using a ________ structure.
answer
matrix
question
Which of the following is a basis for using a matrix structure within an organization?
answer
projects
question
Which of the following organizational structures is also called a project management structure?
answer
matrix structure
question
Which of the following is true of matrix structures?
answer
In matrix structures, employees are responsible to two managers.
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Which of the following is an advantage of a matrix structure?
answer
It provides flexibility, enhanced cooperation, and creativity.
question
Compared to work teams, work groups
answer
have individual accountability.
question
What is the purpose of work teams?
answer
collaboration
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Which of the following statements is true of work groups?
answer
They create individual work products.
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A permanent, formal group that performs a specific task is a
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committee.
question
MB Inc. has an independent, permanent work group that develops and revises codes of ethics, suggests ways the organization can contribute to preserving the environment, and regularly reviews other specific issues and concerns within the organization. This is an example of a
answer
committee.
question
Which of the following is a temporary group of employees, usually chosen for their expertise, who are responsible for bringing about a particular change?
answer
task force
question
Which of the following statements is true about task forces?
answer
They may occasionally include individuals from outside an organization.
question
A special type of project team that focuses on devising, designing, and implementing a new product is a
answer
product-development team.
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To meet the competition in the mobile-phone industry, Vibgyor Electronics Inc. has created a new project team to conceive, design, and implement a smart phone that will have some breakthrough features. The team includes specialists from various divisions, such as the computer division, software division, and television division. This project team is an example of a
answer
product-development team.
question
Which of the following teams consists of fairly small groups of workers brought together to address specific quality, service, or productivity problems within an organization?
answer
quality-assurance teams
question
A ________ is a group of employees responsible for an entire work process or segment that delivers a product to an internal or external customer.
answer
self-directed work team
question
Which of the following is true of self-directed work teams?
answer
They are designed to give employees a feeling of ownership of a whole job.
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Which of the following is a problem created by increased access to the Internet at work?
answer
Employees may abuse company e-mail and Internet access.
question
What is upward communication?
answer
communication that flows from lower to higher levels of an organization
question
Katie is a supervisor at a fast food restaurant. Every week, she submits a progress report to Molly, the restaurant manager, to let her know how the restaurant is doing and to bring any employee performance concerns and customer feedback to her attention. What type of communication does this scenario describe?
answer
upward communication
question
Which of the following is an example of downward communication?
answer
assignment of tasks
question
Hector is a manager of a bookstore. At the end of each year, he gives his employees performance reviews to let them know what they are doing well, what they need to improve, and their annual raise amount. This is a form of ________ communication.
answer
downward
question
Downward communication typically conveys
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assignments of tasks and responsibilities.
question
In an automobile company, the vice president of research and development wants to plan and coordinate the launch of a new car with the vice president of marketing. Any related communication between them will be referred to as ________ communication.
answer
horizontal
question
Mark and Dan are both managers at a sporting goods store. Mark is the manager of the finance department and Dan is a lower-level manager from the shoe department. When these managers communicate, it is known as ________ communication.
answer
diagonal
question
Tamiko and Gwen are friends who work at the same company but in different departments. They often go out for lunch and drinks after work, and sometimes they send each other personal e-mails and instant messages at work. Such friendships comprise the ________ of a firm.
answer
informal organization
question
Which of the following is a part of informal communication channels?
answer
gossip
question
Kalena is a manager of a real estate company. She is aware that her company has an active grapevine because she has heard her employees gossiping in the lunch room and around the office. All of the following are things she can do to use the grapevine to her advantage EXCEPT
answer
confronting her employees about gossip.
question
Which of the following refers to the exchange of information among colleagues and peers on the same organizational level?
answer
horizontal communication
question
Mary, a project manager at a software company, informs her subordinates of the organization's new policies and code of conduct. This is an example of ________ communication.
answer
downward
question
Diagonal communication
answer
occurs when individuals from different units and departments within an organization communicate.
question
Versus Electronics Inc. wants to ensure that its products best suit the needs of its customers, so the head of the marketing department holds a meeting with the managers of the production department. This illustrates ________ communication.
answer
diagonal