QUESTION 10

1. The anchoring effect describes when decision makers fixate on initial information as a starting point and then, once set, fail to adequately adjust for subsequent information. The sunk costs error occurs when decision makers forget that current choices cannot correct the past.

   True

   False

1 points

QUESTION 11

1. When the overhead cranes crashed into each other for the third time, Joe formed a team to look into ways to avoid future crashes. After a brainstorming session, the team settled on three ideas, any of which might work. The team's next step will be to evaluate and select an alternative.

   True

   False

1 points

QUESTION 12

1. According to one definition, organizations are social entities that are goal directed, deliberately structured activity systems with a permeable boundary. Here, social entities means the gathering of people so organizations cease to exist if there were no people to run them.

   True

   False

1 points

QUESTION 13

1. Authority gives management the power to enforce obedience on subordinate workers. It can be centralized or decentralized. One type of authority is charismatic authority, which is based on the belief that acceptance of authority is a function of advantages obtained from it.

   True

   False

1 points

QUESTION 14

1. Span of control, also known as span of management, relates to the number of people directly reporting to a single manager in a hierarchy. The span of control affects how managers carry out their responsibility and there are no impacts regardless of whether the organization is tall or flat.

   True

   False

1 points

QUESTION 15

1. ALL of the following are characteristics of a mechanistic organization:

   A) cross-functional teams

   B) free flow of information

   C) wide spans of control

   D) clear chain of command

   True

   False