9. A disadvantage of functional departmentalization is that administrative costs rise because each department
must have its own functional specialists for areas such as market research and financial analysis.
10. Divisions, units, sections, and bureaus are all synonyms for departments.
11. Most large corporations use one form of departmentalization.
12. The scalar principle suggests that each person within an organization must have a clear reporting
relationship to one and only one boss; newer models of organization design routinely¾and successfully¾violate
this premise.
13. Flat organizations result from broad spans of management.
14. Standardized procedures lead to narrower spans of control.
15. Delegation is power that has been legitimized by the organization.
16. No organization is ever completely decentralized or completely centralized; some firms position themselves
toward one end of the continuum, and some lean the other way.
17. Local networks, increasingly managed by hand-held electronic devices, are making it easier to coordinate
activities.