Question 1

Matrix management

Accepted Answer

Matrix management involves dual reporting relationships in which some employees report to two superiors. This means that they have more than one manager, often a functional manager and a project manager, and must balance competing demands from both. It allows for flexibility and collaboration across departments and projects, but can also lead to confusion and conflict if not managed effectively.

Question 2

To be effective, the ________ approach to departmentalization requires proper management of all the issues surrounding decentralization and delegation.

Accepted Answer

The product approach to departmentalization involves organizing departments around different products produced by the company. This approach can be very effective but requires careful management of decentralization and delegation issues, as each product division often operates semi-autonomously.

Question 3

A ________ is composed of temporary arrangements among members that can be assembled and reassembled to meet a changing competitive environment.

Accepted Answer

A modular network is specifically designed to be adaptable and flexible to changing circumstances, with its temporary arrangements allowing for easy reconfiguration based on the competitive environment. Mechanistic organizations tend to be rigid and bureaucratic, with a strong emphasis on hierarchy and rules, while divisional and functional organizations are typically structured around specific functions or business units. A hierarchical network may have some elements of modularity but is primarily focused on maintaining a top-down structure.

Question 4

In a horizontal structure, ________ deal directly with the organization's primary goods or services; they make things, sell things, or provide customer service.

Accepted Answer

Line departments are the ones that deal directly with the organization's primary goods or services such as manufacturing, sales, and customer service. Public relation divisions and accounting divisions are staff departments that support line departments. Organic structures refer to the overall organizational structure, not a specific department.

Question 5

A disadvantage of a matrix organization is that

Accepted Answer

In a matrix organization, managers may face difficulties in sharing subordinates, which causes jockeying for power and leads to conflicts among the managers.

Question 6

Trident Sports Inc. manufactures and distributes athletic wear, sporting equipment, and protective sports gear worldwide. They are departmentalized based on products sold to professional athletes, products sold to people who pursue sports only for leisure, and products sold to sports teams. Which approach to departmentalization does the company follow?

Accepted Answer

The company follows a customer-based approach to departmentalization, as they are departmentalized based on the customers to whom they sell their products (professional athletes, leisure sports enthusiasts, and sports teams).

Question 7

A(n) ________ is a person who assembles and coordinates participants in a network.

Accepted Answer

A broker is someone who brings together parties in a network or market to facilitate a transaction. They coordinate and negotiate the terms of the agreement between the parties involved. This role is critical in industries such as finance, real estate, and commodities trading.

Question 8

In a ________ organization, jobs (and departments) are specialized and grouped as production, marketing, human resources, research and development, finance, accounting, and so forth based on the skills they require.

Accepted Answer

In a functional organization, jobs are specialized and grouped based on their required skills into departments such as production, marketing, human resources, research and development, finance, accounting, and so on.

Question 9

Xtreme Xcellence, a worldwide leader in athletic apparel products, operates divisions in North America, South America, Europe, and Asia-Pacific. Each division is managed independently and has its own line and staff departments to better align with

Accepted Answer

The division of the company is managed independently and has its own line and staff departments to better align with the geographies.

Question 10

In the context of horizontal structure of a firm, ________ are those that have responsibility for the principal activities of the firm.

Accepted Answer

Line departments have responsibilities for the principal activities of the firm (e.g. production, marketing, sales). Staff departments provide support to line departments and do not have direct responsibility for the primary activities of the firm. Public relation divisions and human resource divisions are examples of staff departments. Geographic divisions may be part of a horizontal structure, but they do not necessarily have responsibility for principal activities.

Question 11

A ________ organization has departmentalization that groups units around products, customers, or geographic regions.

Accepted Answer

The description matches the characteristics of a divisional organization structure.

Question 12

A characteristic feature of matrix organizations is that

Accepted Answer

Matrix organizations provide employees with more career options as they are exposed to various projects and departments, allowing them to develop diverse skills and experiences. While there may be some challenges with resource utilization and decision-making, overall the benefits of increased career opportunities make matrix organizations a popular choice for many businesses.

Question 13

Peyton wanted to delegate an important task to a subordinate, and he had several candidates in mind. He decided to delegate the task to Von, who was not only capable but who would also

Accepted Answer

Delegating an important task to a subordinate who is capable and who can benefit from developing skills through assuming the additional responsibility associated with the task is a wise decision. It allows the subordinate to grow and become more skilled while also taking some burden off of the leader. Choosing someone who will not lose a sense of importance and commitment, engage in more innovation, or require close and time-consuming supervision is also important. Therefore, option B is the best choice.

Question 14

Susan Lane, CEO of VersaForm, decides to reorganize her firm into a(n) ________ organization. In this approach, VersaForm will collaborate with other independent, mostly single-function firms to provide a desired good or service.

Accepted Answer

The description provided best fits the definition of a network organization, where independent firms collaborate to provide a desired product or service.

Question 15

An advantage of functional departmentalization is that

Accepted Answer

Functional departmentalization allows for economies of scale because resources and expertise can be allocated and used more efficiently within each specialized department. This can lead to cost savings and improved productivity.

Question 16

Acme Farm Equipment operates worldwide and is organized into a(n) ________ structure. Within this structure, each of the four division presidents and their respective employees are committed to the tractor, planter, combine, and silo businesses, respectively. Within these four divisions, task responsibilities are clear, and managers are more independent and accountable.

Accepted Answer

The organization of Acme Farm Equipment into four divisions based on product (tractors, planters, combines, and silos) indicates a product structure. In this type of structure, each division focuses on a specific product line and has clearly defined tasks and responsibilities. This structure allows for more independence and accountability among managers within each division.

Question 17

In decentralized organizations, decision making occurs at the level of the people who are most directly_______________ and have the most ________ about the problem.

Accepted Answer

In decentralized organizations, decision making is pushed down to the level of the people who are most directly affected by the problem or decision. This allows for individuals with intimate knowledge and experience to make informed decisions, rather than relying solely on higher-level executives or managers who may be more removed from the situation. The option A, C, D represent negative feelings, which are not relevant to the concept of decentralized decision making. Therefore, option B is the best choice.

Question 18

In the ________ approach to organization structure, decision making is decentralized to a level where information is processed properly and relevant knowledge is applied.

Accepted Answer

The answer of In the ________ approach to organization structure,...

Question 19

Subdividing an organization into smaller units in a horizontal structure is

Accepted Answer

Departmentalization refers to the process of dividing an organization into smaller units or departments based on their functions, products, customers or geographic locations. A horizontal structure is typically characterized by a flat organization with few levels of hierarchy and more emphasis on collaboration and communication across departments. Thus, departmentalization is a key feature of a horizontal structure. Positioning refers to identifying and communicating the unique value proposition of a product or brand to a target audience. Decentralization refers to the process of delegating decision-making authority from top management to lower levels of the organization. Delegating refers to assigning tasks or responsibilities to subordinates. Standardization refers to establishing uniform procedures or guidelines for performing tasks or making decisions. While some of these concepts are related to organizational structure, departmentalization is the most relevant answer to describe the horizontal structure.

Question 20

The unity-of-command principle states that a person should have

Accepted Answer

The unity-of-command principle states that an individual should have only one boss to avoid conflicting instructions and confusion. Having multiple managers can lead to situations where a person receives conflicting instructions from different managers, which can negatively impact their performance and productivity. Therefore, option B, only one boss, is the best choice.

Quiz 7: Organizing for Success