Question 1

Kohber is a Swiss-company that makes medical equipment.It recently purchased a company, which manufactures packaging for high-value drugs.Since it will run the packaging company as a separate division, it would seem that Kohber is departmentalized by:
A)customer
B)function
C)size
D)geography
E)product

Accepted Answer

Kohber's decision to run the newly acquired packaging company as a separate division, which specializes in manufacturing packaging for high-value drugs, indicates that the company is departmentalized by product. This approach allows for specialized focus on different product lines, in this case, medical equipment and drug packaging.

Question 2

The Cooke family has worked for various General Motors's divisions for over four decades.Bennett Cooke works at the Cadillac division.Rondella Cooke works at the Buick division.Their son Tyrone works at the Corvette plant, and their daughter Niome works at the Saturn plant.The Cooke family could tell you that GM is departmentalized by:
A)customer
B)size
C)geography
D)product
E)process

Accepted Answer

The Cooke family's employment across different divisions of General Motors, each focusing on a specific brand or product (Cadillac, Buick, Corvette, Saturn), illustrates that GM is departmentalized by product.

Question 3

A structure in which authority and responsibility are held by a group of workers rather than a single manager is called a _____ structure.
A)matrix
B)committee
C)functional
D)subordinated
E)cluster

Accepted Answer

A committee structure is characterized by authority and responsibility being shared among a group of workers rather than centralized in a single manager. This approach emphasizes collaborative decision-making and shared responsibilities.

Question 4

As part of her marketing project, Lily Unruh is studying how Marriott operates.Since she thought it was simply a hotel chain, she was amazed to learn that its food divisions provide food for school cafeterias, airlines, hotels, and fast-food restaurants.Marriott's food divisions are departmentalized by:
A)product
B)function
C)geography
D)customer
E)process

Accepted Answer

Marriott's food divisions are departmentalized by customer, as they provide food specifically tailored to the needs of different types of customers such as school cafeterias, airlines, hotels, and fast-food restaurants. This approach focuses on meeting the unique requirements and preferences of each customer group.

Question 5

Coca-Cola Enterprises (CCE) is the largest bottler and distributor of Coke products in the world.It is organized around its North America division and its European division.This departmentalization by _____ allows CCE to respond to the demands of different markets.
A)process
B)customer
C)geography
D)function
E)product

Accepted Answer

CCE's organization around its North America division and its European division is an example of departmentalization by geography, as it groups activities based on location to cater to specific regional markets.

Question 6

One of the disadvantages of the matrix structure is:
A)inflexibility
B)inability to use teamwork
C)reduce performance
D)lack of cohesiveness
E)all of the above

Accepted Answer

The matrix structure, which combines elements of both functional and project-based structures, can lead to a lack of cohesiveness due to the dual reporting relationships. This can create confusion and conflict among team members as they may receive conflicting priorities and directives from multiple managers.

Question 7

An advertising agency that has separate departments for artwork, creative design, print advertising, radio advertising, television advertising, and specialty advertising is using _____ departmentalization.
A)customer
B)functional
C)size
D)geographic
E)hierarchical

Accepted Answer

The advertising agency is using functional departmentalization because it is organizing its departments based on the functions or tasks (such as artwork, creative design, print advertising, etc.) that need to be performed.

Question 8

A network of Bennetton retail sales agents select the Bennetton designs that they feel will appeal to Bennetton retail customers.The responsibility for picking the next "hot style" is in the hands of this group.This is an example of a _____ structure.
A)matrix
B)committee
C)functional
D)subordinated
E)cluster

Accepted Answer

This scenario describes a committee structure, where a group (in this case, a network of retail sales agents) collectively makes decisions (selecting designs they believe will appeal to customers). This collaborative decision-making process is characteristic of a committee structure.

Question 9

_____ could be used to explain why members of the night shift at a textile mill refuse to fill openings on the day shift even though most of the people who work at the plant feel day work is preferable to night work.
A)Team synergy
B)Group cohesiveness
C)Organizational philosophy
D)Group custom
E)Group resistance

Accepted Answer

Group cohesiveness refers to the bonds that link members of a group together, which can lead to a preference for maintaining the current group dynamics, such as staying on the night shift together.

Question 10

American Express is organized into four divisions that cater to businesses, consumers, travelers, and investors.American Express uses _____ departmentalization.
A)process
B)customer
C)geographic
D)functional
E)product

Accepted Answer

American Express is organized based on the types of customers it serves (businesses, consumers, travelers, and investors), which is an example of customer departmentalization.

Question 11

Which of the following statements about the committee structure is true?
A)Committees limit the range of possible solutions to a problem.
B)Committees can be slow to reach a decision.
C)Committee structures are not dominated by any single individual.
D)Committee meetings are typically short and reach solutions quickly.
E)All of the above statements about the committee structure are true.

Accepted Answer

Committees can often be slow to reach a decision due to the need to discuss and agree upon a course of action among multiple members, which can be a time-consuming process.

Question 12

_____ is a permanent organization structure that combines functional and product departmentalization.
A)A functional organization
B)Subordinated management
C)A cartel
D)A matrix structure
E)A committee structure

Accepted Answer

A matrix structure is a type of organizational structure that combines aspects of both functional and product-based departmentalization, allowing for more flexibility and dynamic team collaboration.

Question 13

Which of the following is NOT an advantage associated with matrix structures?
A)The company can tackle more complex tasks through teamwork.
B)Managers can build large, permanent teams of specialists.
C)Employees are more productive when they work on a special project.
D)Special projects give employees opportunities for personal and professional development.
E)The group can be disbanded if it is no longer needed.

Accepted Answer

Matrix structures typically involve forming teams that are temporary and project-based rather than building large, permanent teams of specialists. This flexibility allows organizations to adapt to changing needs and projects.

Question 14

Gambrinus is a large company that owns and operates the breweries that produce Moosehead Lager, Bridgeport Ale, Pete's Wicked Ale, Corona beer, Trumer Pilsner, and Shiner Bock.Each brewery is run as an independent division and each produces a malt liquor that appeals to a different market.This is an example of departmentalization by:
A)customer
B)size
C)geography
D)product
E)process

Accepted Answer

This is an example of departmentalization by product, as each brewery produces a different type of beer or malt liquor, appealing to different market segments.

Question 15

Which of the following is NOT a commonly used method for departmentalizing a firm?
A)by customer
B)by product
C)by function
D)by managerial level
E)by geography

Accepted Answer

Departmentalization refers to the method of dividing an organization into different departments, which perform specific tasks or roles. Common methods include by function (e.g., marketing, finance), by product (e.g., different product lines), by geography (e.g., regional operations), and by customer (e.g., consumer vs. business markets). Departmentalizing by managerial level is not a commonly used method, as managerial levels are more about the hierarchy within departments rather than a method of organizing departments themselves.

Question 16

_____ is the degree to which group members want to stay in the group and tend to resist outside influences.
A)Team synergy
B)Group cohesiveness
C)Organizational culture
D)Group norming
E)Group resistance

Accepted Answer

Group cohesiveness refers to the bond that holds a group together, making members want to remain part of the group and making the group resistant to external pressures and influences.

Question 17

One of the advantages of the matrix structure is:
A)the ability to balance conflicting objectives
B)higher performance
C)flexibility
D)teamwork
E)all of these

Accepted Answer

The matrix structure combines functional and project-based structures, offering advantages such as balancing conflicting objectives, higher performance due to specialized teams, flexibility in managing projects, and enhanced teamwork by fostering collaboration across different functions.

Question 18

Both Kennedy and LaGuardia Airports have established airport management committees.These structures are advantageous because it:
A)makes the coordination of activities much easier
B)the decision-making process faster
C)does not require employees to waste time in meetings
D)encourages individual accountability
E)reduces dependence on group norms

Accepted Answer

Airport management committees facilitate easier coordination of activities by bringing together various stakeholders to streamline operations and address issues collaboratively.

Question 19

Another name for the matrix structure is the:
A)quality management approach
B)line-and-staff structure
C)project management approach
D)networking approach
E)committee structure

Accepted Answer

The matrix structure is also known as the project management approach because it organizes teams and resources around projects, combining functional and project-based structures.

Question 20

Pharmacie & Upjohn, a pharmaceutical company, uses a functional structure (research, development, manufacturing, and marketing) within each of its three largest major product divisions.This company is an example of a:
A)functional organization
B)product organization
C)committee structure
D)networked organization
E)matrix structure

Accepted Answer

Pharmacie & Upjohn uses a matrix structure because it combines functional and product divisions, where each product division has its own functional departments.

Quiz 7: Designing Organizational Structures

Kohber is a Swiss-company that makes medical equipment.It recently purchased a company, which manufactures packaging for high-value drugs.Since it will run the packaging company as a separate division, it would seem that Kohber is departmentalized by:

A structure in which authority and responsibility are held by a group of workers rather than a single manager is called a _____ structure.

Coca-Cola Enterprises (CCE) is the largest bottler and distributor of Coke products in the world.It is organized around its North America division and its European division.This departmentalization by _____ allows CCE to respond to the demands of different markets.

One of the disadvantages of the matrix structure is:

An advertising agency that has separate departments for artwork, creative design, print advertising, radio advertising, television advertising, and specialty advertising is using _____ departmentalization.

A network of Bennetton retail sales agents select the Bennetton designs that they feel will appeal to Bennetton retail customers.The responsibility for picking the next "hot style" is in the hands of this group.This is an example of a _____ structure.

_____ could be used to explain why members of the night shift at a textile mill refuse to fill openings on the day shift even though most of the people who work at the plant feel day work is preferable to night work.

American Express is organized into four divisions that cater to businesses, consumers, travelers, and investors.American Express uses _____ departmentalization.

Which of the following statements about the committee structure is true?

_____ is a permanent organization structure that combines functional and product departmentalization.

Which of the following is NOT an advantage associated with matrix structures?

Which of the following is NOT a commonly used method for departmentalizing a firm?

_____ is the degree to which group members want to stay in the group and tend to resist outside influences.

One of the advantages of the matrix structure is:

Both Kennedy and LaGuardia Airports have established airport management committees.These structures are advantageous because it:

Another name for the matrix structure is the:

Pharmacie & Upjohn, a pharmaceutical company, uses a functional structure (research, development, manufacturing, and marketing) within each of its three largest major product divisions.This company is an example of a: