Deck 11: Organization Structures and Design

Question 1

A product structure prompts managers to be responsive to changing market demands and customer tastes.

Answer 1

True

Question 2

A social network analysis is a tool that identifies formal structures and their embedded social relationships.

Answer 2

False

Question 3

Divisional structures are common in organizations dealing with only one or a few products or services.

Answer 3

False

Question 4

An organization chart includes major subunits in which positions reporting to a common manager are shown.

Question 5

Workers in a matrix structure report to two bosses-one within the function and the other within the team.

Question 6

A matrix structure is characterized by poor customer service.

Question 7

Functional structures tend to work best in relatively stable environments where problems are predictable and the demands for change and innovation are limited.

Question 8

A customer structure is the least common structure in the consumer products industry.

Question 9

In a functional structure,the functions become formalized not only on the organization chart,but also in the mindsets of people.

Question 10

One of the disadvantages of functional structures is that employees do not have a clear career path within functions.

Question 11

Divisional structures can create unhealthy rivalries as divisions compete for resources and top management attention.

Question 12

A divisional structure is characterized by reduced coordination across functional departments.

Question 13

Geographical structures are typically used when there is a need to differentiate products or services in various locations,such as in different parts of a country.

Question 14

Workers in a matrix structure are allowed to be part of only one formal group at a time.

Question 15

Informal networks are sources of emotional support and friendship that satisfy members' social needs.

Question 16

In a matrix structure,top managers are freed from lower-level problem solving to focus time on more strategic issues.

Question 17

Empowerment refers to letting others make decisions and exercise discretion in their work.

Question 18

An organization structure is the system of tasks,workflows,reporting relationships,and communication channels that link together the work of diverse individuals and groups.

Question 19

In a functional structure,people working on the same product,in the same area,with similar customers,or on the same processes,are grouped together.

Question 20

Team meetings in matrix structures are short and quick.

Question 21

Network structures result in increasing overhead and reducing operating efficiency.

Question 22

Organizations with team structures make extensive use of both permanent and temporary teams to solve problems,complete special projects,and accomplish day-to-day tasks.

Question 23

Which of the following are included in the basics of a formal organizational structure?

A)Communication channels
B)Friendship cliques
C)Social relationships
D)Grapevine
E)Sources of emotional support

Question 24

In an organizational structure,division of work refers to:

A)lines that show who reports to whom.
B)positions and titles that show work responsibilities.
C)the vertical layers of management.
D)lines that show formal communication flows.
E)positions that report to a common manager.

Question 25

Which of the following is true of a divisional structure?

A)It is common in organizations dealing with only one or a few products or services.
B)It tends to work best in relatively stable environments where problems are predictable.
C)Its main focus is to put together people within the same expertise and help them work together.
D)It is an attempt to gain the advantages and minimize the disadvantages of the matrix structure.
E)It overcomes the disadvantages of a functional structure,such as the functional chimneys problem.

Question 26

Which of the following is a disadvantage of informal structures?

A)They are characterized by too many vertical layers of management.
B)They are typified by the presence of complex formal communication flows.
C)They have very centralized systems that restrict employee freedom.
D)They are characterized by the existence of "in" and "out" groups.
E)They discourage informal learning as people work and interact together throughout the workday.

Question 27

In a virtual organization,when the work is complete,the alliance rests until next called into action.

Question 28

Which of the following asks people to identify others to whom they turn for help most often,with whom they communicate regularly,and who gives them energy and motivation?

A)Social network analysis
B)Formal structures
C)Forces analysis
D)SWOT analysis
E)Four corners model

Question 29

A ________ groups together people working on the same product,in the same area,with similar customers,or on the same processes.

A)functional structure
B)functional chimney
C)divisional structure
D)vertical structure
E)functional silo

Question 30

In an organizational structure,major subunits refer to:

A)positions and titles that show work responsibilities.
B)lines that show who reports to whom.
C)positions that report to a common manager.
D)lines that show how formal communication flows.
E)the vertical layers of management.

Question 31

Which of the following is true of informal structures?

A)They represent supervisory relationships.
B)They help in preventing the occurrence of rumors.
C)They are sources of emotional support and friendship.
D)They show the vertical layers of management.
E)They are characterized by the presence of major subunits.

Question 32

An organization structure refers to:

A)a relationship between two or more firms to meet a particular business need.
B)the group of employees who perform jobs together in the same location.
C)the network of employees in a particular team.
D)a system of tasks,reporting relationships,and communication linkages.
E)a cooperation agreement with another organization to jointly pursue activities of mutual interest.

Question 33

Which of the following is true of a formal structure?

A)Formal structures work only in organizations with diverse operations that extend across many products,customers,and work processes.
B)The lines of the formal structure cut across levels and move from side to side.
C)Formal structures are characterized by the existence of "in" and "out" groups.
D)Lines in a formal structure are drawn from person to person according to frequency and type of relationship maintained.
E)A formal structure consists of vertical layers of management.

Question 34

A ________ structure groups together people with similar skills who perform similar tasks.

A)product
B)divisional
C)geographical
D)customer
E)functional

Question 35

Project teams are permanent in nature and cannot be disbanded.

Question 36

Polka Corporation,an apparel manufacturer,creates groups of employees with similar skills performing similar tasks.Members of each such group share technical knowledge,skills,and responsibilities.Which of the following structures is being used by Polka Corporation?

A)Product structure
B)Divisional structure
C)Functional structure
D)Geographical structure
E)Customer structure

Question 37

Sara's job includes dividing up the work and assigning tasks to each employee.She identifies people responsible for each task,decides the reporting structure,and decides employees' work relationships.Sarah is a part of the ________ team in her company.

A)finance
B)public relations
C)controlling
D)decentralizing
E)organizing

Question 38

Which of the following is true of a functional structure?

A)It is characterized by low-quality technical problem solving.
B)It consists of task assignments consistent with expertise and training.
C)It does not have the advantage of economies of scale.
D)It is common in complex organizations with diverse operations.
E)It is the ideal structure when there is a need to differentiate products or services in various locations.

Question 39

Supplier strategic alliances link businesses in preferred supplier-customer relationships that guarantee a smooth and timely flow of quality supplies among the partners.

Question 40

Which of the following is an advantage of a functional structure?

A)Economies of scale with efficient use of resources
B)Improved coordination across functional departments
C)A sense of common purpose
D)Clear points of responsibility for product or service delivery
E)Expertise focused on specific customers,products,and regions

Question 41

Which of the following is true about the geographical structure?

A)It helps focus attention on the unique cultures and requirements of particular regions.
B)It groups together jobs and activities that are serving the same customers or clients.
C)It groups together jobs and activities that are part of the same processes.
D)It groups together people with similar skills who perform similar tasks.
E)Under this structure,each product division is given a chief executive who is responsible for its own profits and losses.

Question 42

Which of the following is an advantage of a divisional structure?

A)Expertise focused on specific customers,products,and regions
B)Economies of scale with efficient use of resources
C)Reduced costs because of common resources and efforts across divisions
D)Emphasis on the goals of the organization as a whole
E)No scope for unhealthy rivalries within the organization

Question 43

A ________ structure has a central core of full-time employees surrounded by outside contractors and partners that supply essential services.

A)functional
B)divisional
C)team
D)network
E)matrix

Question 44

An order fulfillment by a catalog retailer,a process that takes an order from point of initiation by the customer to point of fulfillment by a delivered product is an example of a ________.

A)functional chimney
B)functional silo
C)conglomerate
D)work process
E)strategic alliance

Question 45

Which of the following is true about a team structure?

A)A temporary team does not have prominence in a team structure.
B)A team structure is most often observed in a vertical organization.
C)The intention of a team structure is to create more effective lateral relations around and across the organization.
D)In a team structure,cross-functional structures are convened for a particular task or project and disbanded once the task is completed.
E)The main focus of a team structure is to improve and maintain the hierarchical system of management.

Question 46

Which of the following is an advantage of a matrix structure?

A)Improved strategic management
B)No scope for issues such as "groupitis" across teams
C)Clearly defined tasks and no conflict in work priorities
D)No power struggles across teams
E)Fast and effective team meetings

Question 47

Employees who are involved in designing,engineering,and preparing models are grouped together at Auro Inc.Further,employees who engage in public relations,sales promotion,advertising,and direct marketing are put together in another team.Which of the following structures exists at Auro Inc.?

A)Geographical structure
B)Product structure
C)Customer structure
D)Client structure
E)Process structure

Question 48

Noah Books Ltd.,an international library headquartered in Alabama,has many branches across different countries.It uses information technology to be in regular contact with its various outside suppliers of books and magazines.Which of the following organizational structures is being used by the library?

A)Functional structure
B)Network structure
C)Divisional structure
D)Team structure
E)Matrix structure

Question 49

Acme Ltd.'s organizational structure combines jobs that serve clients based on factors such as their ages,tastes,and preferences.Which of the following organizational structures exists at Acme Ltd.?

A)Geographical structure
B)Product structure
C)Customer structure
D)Functional structure
E)Process structure

Question 50

Which of the following is a horizontal structure that brings together members from different departments such as marketing,production,and accounting?

A)Divisional structure
B)Functional structure
C)Cross-functional team
D)Process structure
E)Product team

Question 51

A network structure helps lower costs and improves flexibility in dealing with changing environments because:

A)it brings together members from different functional departments in the organization.
B)the central core is relatively small and the surrounding networks can be expanded or shrunk as needed.
C)it uses permanent and temporary cross-functional teams to improve lateral relations.
D)it has vertical levels of management and hierarchical levels of authority.
E)the central core is relatively big,and that provides the advantage of economies of scale.

Question 52

Petunia Group,a consumer goods company,owns several brands that produce different goods.Each brand is focused on a single product,and has a separate chief executive who is responsible for the manufacture,sales,costs,profits and losses of his or her brand.This implies that each brand at Petunia Group is applying a ________ structure in the organization.

A)geographical
B)product
C)customer
D)functional
E)process

Question 53

Which of the following is a disadvantage of divisional structures?

A)There is reduced flexibility in adding,removing,or changing operations to meet changing demands.
B)They increase costs through the duplication of resources and efforts across divisions.
C)They lead to a lack of communication,coordination,and problem solving across functions.
D)There are a lot of chances for functional chimneys to occur under this structure.
E)A functional silos problem occurs frequently when this structure is applied.

Question 54

Which of the following is true of a product structure?

A)It groups together jobs and activities being performed in the same location.
B)It is used when there is a need to differentiate products or services in various locations.
C)It groups together jobs and activities that are serving the same customers or clients.
D)It clearly links costs,profits,problems,and successes in a market area with a central point of accountability.
E)It helps focus attention on the unique cultures and requirements of different nations.

Question 55

Twist Inc.,a fast food organization operating in many countries,varies its menus in different countries according to local tastes and preferences.It groups together employees and tasks working in the same location.Which of the following structures is Twist Inc.using?

A)Geographical structure
B)Product structure
C)Customer structure
D)Functional structure
E)Process structure

Question 56

Which of the following is a disadvantage of a matrix structure?

A)The requirement of adding the team leaders to a matrix structure can result in higher costs.
B)A matrix structure results in reduced performance accountability through the program,product,or project managers.
C)Matrix structures are associated with very poor customer service.
D)A matrix structure stresses that top managers must engage in both lower-level problem as well as more strategic issues.
E)Matrix structures lead to reduced flexibility in adding,removing,or changing operations to meet changing demands.

Question 57

Which of the following is true of a project team?

A)Project teams are examples of traditional vertical structures.
B)Project teams are characterized by a lack of communication and coordination across functions.
C)Project teams are informal structures that group together jobs and activities focused on a single product or service.
D)Project teams are temporary and disband once the task is completed.
E)Project teams are created at the beginning of a project and cannot be disbanded as they are retained for future projects.

Question 58

Which of the following is true about a network structure?

A)It does everything for itself with full-time employees.
B)Its "networks" are composed of full-time employees.
C)It groups jobs and activities that are part of the same processes.
D)It consists of a relatively small central core that results in an increase in costs.
E)It employs a minimum staff and contracts out as much work as possible.

Question 59

Which of the following is a limitation of having a team structure?

A)The total time spent together in a team meeting is not productive.
B)A team structure is associated with poor performance.
C)Project teams are informal structures that group together jobs and activities focused on a single product or service.
D)People working in a team structure often experience a reduced sense of identification.
E)A team structure is not very effective at mobilizing talents.

Question 60

Which of the following is true of a matrix structure?

A)Workers in a matrix structure are allowed to be part of only one team at a time.
B)A matrix structures does not have the ability to be flexible while dealing with regional differences.
C)It is accomplished by creating permanent teams that cut across functions to support specific products,projects,or programs.
D)A matrix structure is made up of temporary teams that are disbanded after each project.
E)A matrix structure involves top management in lower-level problem solving.

Question 61

Mickey Juices Co.,well-known for its fruit juices with catchy names,has recently signed an agreement with Meridian Books Ltd.According to this agreement,Mickey Juices Co.has an outlet at each Meridian store.This agreement has led to an increase in profits for both the companies,as sales of both have increased.This is an example of a ________.

A)boundaryless organization
B)joint venture
C)cross-functional team
D)strategic alliance
E)co-operative structure

Question 62

Which of the following emphasizes formal authority,order,fairness,and efficiency?

A)Bureaucracy
B)Boundaryless organization
C)Decentralization
D)Strategic business unit
E)Strategic alliance

Question 63

PRZ Inc.functions with systematic order and a hierarchical system of management.It is characterized by formal channels of communication.The employees of the firm are required to strictly abide by the formal rules of the company.PRZ Inc.is an)________.

A)adaptive organization
B)bureaucracy
C)decentralized organization
D)boundaryless organization
E)strategic alliance

Question 64

The staff at Smith Grocery Store is assigned specific tasks such as receiving supply,arranging stock,making sales,preparing cash registers,and so on.They perform the same task every day.The firm is characterized by formal means of coordination.Smith Grocery Store is functioning with an)________ design.

A)organic
B)decentralized
C)mechanistic
D)adaptive
E)boundaryless

Question 65

Which of the following is true of adaptive organizations?

A)They work with narrow spans of control and formal coordination.
B)They operate with a distinguished feature of promotion based on competency.
C)They are built on a foundation of trust that people will do the right things on their own initiative.
D)They are characterized by vertical structures with a clear-cut division of labor and a hierarchy of authority.
E)They work best for organizations doing routine tasks in stable environments.

Question 66

Pop Pvt.Ltd.,a fast food corporation,entered into an agreement with Arc Inc.,a company that manufactures cheese,mayonnaise,and other toppings.Pop Pvt.Ltd.uses the toppings produced by Arc Inc.only.This business agreement has resulted in benefits for both the companies.This is an example of a ________.

A)boundaryless organization
B)joint venture
C)cross-functional team
D)co-operative structure
E)strategic alliance

Question 67

Which of the following is true of an organic design?

A)It is a horizontal structure with decentralized authority.
B)It has narrow spans of control.
C)It has a vertical structure of authority.
D)It is typified by many rules and procedures.
E)It is characterized by very precise division of labor.

Question 68

Which of the following is true of a bureaucracy?

A)It is characterized by open divisions of labor.
B)It encourages worker empowerment and teamwork.
C)It is built on a foundation of trust that people will do the right things on their own initiative.
D)It is a vertical structure with promotion based on competency.
E)It performs well in environments that demand flexibility in dealing with changing conditions.

Question 69

Which of the following is an advantage of a network structure?

A)Network structures are lean and streamlined.
B)If one part of the network breaks down or fails to deliver,the other parts of the network will continue working.
C)A network structure is characterized by technology that enables the organization to have control over activities contracted out.
D)A network structure has an efficient vertical management system.
E)Network structures have a relatively large central core that gives them stability.

Question 70

An organizational design:

A)is the process of creating structures that accomplish mission and objectives.
B)is a system of tasks,reporting relationships,and communication linkages.
C)is a group of related tasks that collectively creates a valuable work product.
D)identifies the informal structures and their embedded social relationships that are active in an organization.
E)is a cooperation agreement with another organization to jointly pursue activities of mutual interest.

Question 71

Which of the following implies that an organizational design of the same kind does not apply in all circumstances?

A)Every organization emphasizes formal authority,order,fairness,and efficiency.
B)Every organization faces its own set of unique problems and opportunities.
C)All organizations are not affected by situational contingencies such as task,technology,environment,and people.
D)Every organization has narrow spans of control and structures of the traditional pyramid form.
E)All organizations have sufficient resources to jointly pursue mutual interests with another organization.

Question 72

Mayer Inc.,an advertising firm,has a horizontal structure with simple rules and procedures.It achieves targets by having personal means of coordination.The firm values the existence of informal groups and does not believe in division of labor.Which of the following designs is being used by Mayer Inc.?

A)Organic
B)Centralized
C)Bureaucratic
D)Formal
E)Authoritative

Question 73

A strategic alliance is an):

A)contract that brings together members from different functional departments in an organization.
B)cooperation agreement with another organization to jointly pursue activities of mutual interest.
C)organizational structure that combines the functional and divisional structures.
D)set-up that eliminates internal boundaries among subsystems and external boundaries with the external environment.
E)arrangement that emphasizes formal authority,order,fairness,and efficiency.

Question 74

An)________ performs well in environments that demand flexibility in dealing with changing conditions.

A)authoritative structure
B)centralized system
C)mechanistic design
D)adaptive organization
E)bureaucracy

Question 75

Which of the following is true of a mechanistic design?

A)It is a horizontal structure with decentralized authority.
B)It is characterized by wide spans of control.
C)It is characterized by a precise division of labor.
D)It is typified by informal means of coordination.
E)It is a design with very few rules and procedures.

Question 76

Which of the following is a disadvantage of network structures?

A)The central core of network structures is relatively small and the surrounding networks tend to expand or shrink continuously.
B)There is a potential to experience a lack of loyalty among contractors who are used infrequently.
C)A network structure is characterized by lack of flexibility which leads to problems while dealing with changing environments.
D)Network structures are broad and complex.
E)Network structures tend to increase overheads of an organization and reduce its operating efficiency.

Question 77

A ________ uses IT and the Internet to engage a shifting network of strategic alliances.

A)formal structure
B)project team
C)virtual organization
D)bureaucracy
E)matrix organization

Question 78

The best organizational design is the one that:

A)emphasizes formal authority,order,fairness,and efficiency.
B)is centralized,with many rules and procedures,a clear-cut division of labor,narrow spans of control,and formal coordination.
C)emphasizes a vertical structure,hierarchy of authority,and promotion based on competency.
D)achieves a good match between structure and situational contingencies.
E)has narrow spans of control and structures of the pyramid form.

Question 79

Nolan & Sons Inc.,a well-established electronics company,uses IT and the Internet to enter into business alliances with software firms spread across different nations,to meet specific operating needs and objectives.Once the work is completed,the alliance rests until next called into action.Nolan & Sons Inc.is a ________.

A)cross-functional team
B)project team
C)virtual organization
D)cross-functional team
E)formal organization

Question 80

Which of the following is true of a boundaryless organization?

A)Internal to the boundaryless organization,formal lines of authority replace spontaneous teamwork and communication.
B)A boundaryless organization does not encourage continuous meetings and information sharing.
C)A boundaryless organization is characterized by significant hierarchy.
D)Impermanence is not accepted in boundaryless organizations.
E)In a boundaryless organization,people work together in teams that form and disband as needed.