Question 1

Managers are grouped according to their expertise in the product divisional structure.

Accepted Answer

In the product divisional structure, managers are grouped based on the products or services they are involved with, not necessarily their expertise.

Question 2

Which of the following is not an advantage of tall organizations?

Accepted Answer

C

Question 3

Because the functional structure groups specialists and fosters economies of scale,it tends to address cost and quality concerns well.

Accepted Answer

The functional structure allows for efficient grouping of specialists and cost advantages through economies of scale, leading to effective management of cost and quality concerns.

Question 4

Vertical growth refers to an increase in the breadth of an organization's structure.

Accepted Answer

Vertical growth refers to an increase in the depth of an organization's structure, meaning the number of hierarchical levels and the amount of authority and responsibility delegated to each level. Horizontal growth refers to an increase in the breadth or size of an organization, such as expanding into new markets or adding new product lines.

Question 5

Horizontal growth refers to an increase in the length of the organization's hierarchy.

Accepted Answer

Horizontal growth refers to an increase in the range of products or services offered by the organization. Vertical growth refers to an increase in the length of the organization's hierarchy.

Question 6

Geographic and product divisional structures are typically more flexible than matrix and functional structures.

Accepted Answer

Geographic and product divisional structures are more rigid in their focus on specific products or regions, whereas matrix and functional structures allow for more flexibility by combining different functions or projects across the organization.

Question 7

The product divisional structure is most commonly used in organizations that operate in industries with high rates of technological change.

Accepted Answer

The product divisional structure is most commonly used in organizations that produce multiple products or services, allowing for specialization and focus on product lines, rather than being specifically tied to industries with high rates of technological change.

Question 8

The geographic divisional structure divides the organization's activities into self-contained entities,each responsible for producing,distributing,and selling its own products.

Accepted Answer

The geographic divisional structure organizes an organization's activities by geographical regions, not by self-contained entities each responsible for producing, distributing, and selling its own products.

Question 9

Which of the following is not an advantage of flat organizations?

Accepted Answer

Less difficulty in planning is not an advantage of flat organizations. Flat organizations have fewer levels of management, which can make it more difficult to plan and coordinate activities.

Question 10

Managers in tall organizations exercise a relatively high degree of control over their subordinates,and authority tends to be relatively centralized.

Accepted Answer

In tall organizations, there are multiple levels of hierarchy and a narrow span of control, which leads to centralization of authority and a greater degree of control by managers over subordinates.

Question 11

The number of employees reporting to each manager represents that manager's span of control.

Accepted Answer

This statement is true. The span of control refers to the number of employees or subordinates that a manager is responsible for overseeing or managing.

Question 12

A flat organization is comprised of many hierarchical levels and narrow spans of control.

Accepted Answer

A flat organization has few hierarchical levels and wide spans of control.

Question 13

Strategy implementation considerations should be made before a strategic alternative is selected and then detailed after a strategy is formulated.

Accepted Answer

Strategy implementation is a crucial aspect of strategic management and should be considered throughout the entire strategic planning process, from the selection of strategic alternatives to the formulation of a detailed action plan.

Question 14

The formal means by which work is coordinated in an organization is called

Accepted Answer

The formal means by which work is coordinated in an organization is called organizational structure. Organizational structure refers to the formal system of authority, communication, roles, and responsibilities that specifies how various tasks are divided and coordinated among employees. Choice A, horizontal growth, and choice B, vertical growth, refer to expansion strategies rather than coordinative mechanisms, and choice C, span of control, refers to the number of subordinates that a manager can effectively supervise.

Question 15

There is no single best organizational structure for firms to seek to attain.

Accepted Answer

Different organizations have different needs and goals, and their optimal structure may vary depending on factors such as size, industry, and culture. What works for one company may not work for another, and it is important for organizations to evaluate their unique circumstances and choose a structure that best aligns with their objectives.

Question 16

The increase in the length of the organization's hierarchy is called

Accepted Answer

Vertical growth refers to the increase in the length of the organization's hierarchy by adding more levels of management or employees, while horizontal growth refers to an increase in the organization's size by adding more departments, products, or services. Span of control refers to the number of employees a manager can effectively supervise, and organizational structure refers to the formal arrangement of jobs and reporting relationships within an organization. Therefore, the best answer is B, as it specifically refers to the growth in hierarchy.

Question 17

Increasing both the length and breadth of the organizational structure is called

Accepted Answer

The answer of Increasing both the length and breadth of...

Question 18

Coordination and consistency are often strengths in firms with a product divisional structure.

Accepted Answer

The answer of Coordination and consistency are often strengths in...

Question 19

The matrix structure tends to be highly decentralized.

Accepted Answer

The matrix structure involves a high degree of cross-functional collaboration but also has a decentralized decision-making process.

Question 20

Corporate restructuring can include such actions as realigning divisions in the firm,reducing the amount of cash under the discretion of senior executives,and acquiring or divesting business units.

Accepted Answer

Corporate restructuring can involve a variety of actions including realigning divisions, reducing cash under the discretion of senior executives, and acquiring or divesting business units.

Quiz 10: Strategy Execution-Organizational Structure