Question 1

Which of the following statements is true regarding a network organization?
A) A network structure is characterized by high production costs.
B) The organizations that use network structures have the tallest hierarchies.
C) An organization using a network structure experiences high beureaucratic costs.
D) A network structure allows an organization to act in an organic way.

Accepted Answer

A network structure is characterized by a flattened hierarchy and decentralized decision-making, allowing for more flexibility and adaptability in response to changing environments. This organic approach allows for innovation and collaboration among diverse groups, but may require additional coordination and communication efforts. However, it does not necessarily result in higher production costs or bureaucratic costs.

Question 2

What are the different types of divisional structures?

Accepted Answer

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Question 3

Describe the various control problems that emerge in a functional structure.

Accepted Answer

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Question 4

What are the advantages of a functional structure?

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Question 5

Describe the advantages of a network structure.

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Question 6

In a ________ structure, employees have two superiors.
A) product team
B) functional
C) product divisional
D) matrix

Accepted Answer

In a matrix structure, employees have two superiors - a functional manager and a project manager. This allows for more flexibility and collaboration across departments and projects.

Question 7

A ________ structure is a cluster of different organizations whose actions are coordinated by contracts and agreements, rather than by a formal hierarchy of authority.
A) product divisional
B) network
C) market
D) multidivisional

Accepted Answer

A network structure is characterized by a group of independent organizations, often with complementary skills and resources, that work together through contracts and agreements to achieve common objectives. Decision-making in a network structure is decentralized and based on cooperation and collaboration among the member organizations. Product divisional, market, and multidivisional structures are based on formal hierarchies of authority within a single organization.

Question 8

Describe the characteristics of a boundaryless organization.

Accepted Answer

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Question 9

Moving of a value creation activity that was done inside the organization to the outside, where it is done by another company is known as ________.
A) mechanizing
B) outsourcing
C) networking
D) decentralizing

Accepted Answer

This process is referred to as outsourcing, where a company shifts a specific activity or process to be done by another company outside of its own organization. The activity is still performed but by a third party.

Question 10

A matrix structure is characterized by ________.
A) a tall hierarchy
B) low integration
C) fixed product teams
D) vague authority relationships

Accepted Answer

Matrix structures often involve dual reporting relationships, rather than a clear hierarchy, leading to potentially vague authority relationships as employees may report to both a functional manager and a project or product manager.

Question 11

What are the disadvantages of a matrix structure?

Accepted Answer

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Question 12

Nike's product design and research function are located in Oregon and all the other production functions are outsourced to companies around the world. Nike uses a ________ structure.
A) geographic divisional
B) network
C) functional
D) product team

Accepted Answer

Nike's use of a network structure is characterized by its outsourcing of production functions to various companies around the world while keeping its product design and research centralized in Oregon. This approach allows Nike to focus on its core competencies while leveraging the capabilities of its global partners.

Question 13

What are the three different types of product structures?

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Question 14

What are the advantages of a multidivisional structure?

Accepted Answer

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Question 15

Large complex organizations that have many divisions often simultaneously make use of many different structures; that is, they operate with a ________ structure.
A) product divisional
B) market
C) hybrid
D) beureaucratic

Accepted Answer

Large complex organizations often use a hybrid structure, which combines multiple structures such as product divisional, market, or bureaucratic. This allows for greater flexibility and adaptability to changing conditions in various divisions and markets.

Question 16

A ________ structure provides for more integration between corporate and divisional managers and between divisional managers.
A) functional
B) bureaucratic
C) multidivisional matrix
D) transactional

Accepted Answer

A multidivisional matrix structure combines elements of both functional and divisional structures, allowing for more integration and collaboration between different parts of the organization. This is achieved through the use of cross-functional teams and a dual reporting structure, which promotes communication and coordination across different departments and divisions. Bureaucratic and transactional structures are not designed to promote this kind of integration, while a purely functional or divisional structure may not provide the necessary coordination and communication required for larger organizations.

Question 17

Describe the characteristics of a product team structure.

Accepted Answer

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Question 18

Which of the following is a typical characteristic of a boundaryless organization?
A) presence of tall organizational hierarchy
B) use of electronic means to connect people
C) use of a functional structure
D) lack of organizational flexibility

Accepted Answer

A boundaryless organization is typically characterized by the use of electronic means to connect people, breaking down traditional hierarchical structures and creating more flexible and dynamic teams. The presence of a tall hierarchy, use of functional structure, and lack of organizational flexibility would actually go against the idea of a boundaryless organization.

Question 19

Which of the following is a disadvantage of the matrix structure?
A) lack of concern for cost
B) possibility of a role conflict
C) decreased ability of the organization to respond quickly to changing customer needs
D) high level of differentiation between functions

Accepted Answer

The matrix structure can create role conflicts as employees may receive conflicting directions and priorities from multiple managers, leading to confusion and decreased productivity. The other options, lack of concern for cost, decreased ability to respond quickly to changing customer needs, and high level of differentiation between functions, are not necessarily inherent disadvantages of the matrix structure, but rather potential issues that can arise depending on how the structure is implemented and managed.

Question 20

Differentiate between matrix structure and product team structure.

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Quiz 6: Designing Organizational Structure: Specialization and Coordination

Which of the following statements is true regarding a network organization?

What are the different types of divisional structures?

Describe the various control problems that emerge in a functional structure.

What are the advantages of a functional structure?

Describe the advantages of a network structure.

In a ________ structure, employees have two superiors.

A ________ structure is a cluster of different organizations whose actions are coordinated by contracts and agreements, rather than by a formal hierarchy of authority.

Describe the characteristics of a boundaryless organization.

Moving of a value creation activity that was done inside the organization to the outside, where it is done by another company is known as ________.

A matrix structure is characterized by ________.

What are the disadvantages of a matrix structure?

Nike's product design and research function are located in Oregon and all the other production functions are outsourced to companies around the world. Nike uses a ________ structure.

What are the three different types of product structures?

What are the advantages of a multidivisional structure?

Large complex organizations that have many divisions often simultaneously make use of many different structures; that is, they operate with a ________ structure.

A ________ structure provides for more integration between corporate and divisional managers and between divisional managers.

Describe the characteristics of a product team structure.

Which of the following is a typical characteristic of a boundaryless organization?

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

Differentiate between matrix structure and product team structure.