Answer to Question 1
FALSE
Explanation: Problem-solving teams are typically composed of 5 to 12 hourly employees from the same department who meet for a few hours each week to discuss ways of improving quality, efficiency, and the work environment. Members share ideas or suggest how work processes and methods can be improved; they rarely have the authority to unilaterally implement any of their suggestions.
Answer to Question 2
When communication takes place among members of the same work group, members of work groups at the same level, managers at the same level, or any other horizontally equivalent workers, we describe it as lateral communication. Lateral communication saves time and facilitates coordination. Some lateral relationships are formally sanctioned. More often, they are informally created to short-circuit the vertical hierarchy and expedite action. So from management's viewpoint, lateral communications can be good or bad. Because strictly adhering to the formal vertical structure for all communications can be inefficient, lateral communication occurring with management's knowledge and support can be beneficial. But it can create dysfunctional conflicts when the formal vertical channels are breached, when members go above or around their superiors to get things done, or when bosses find actions have been taken or decisions made without their knowledge.
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