Question 1

Most organizations that produce multiple goods or services utilize a ____ design,since it reduces the information overload that managers face in a purely functional organization design.

Accepted Answer

A product design organizes the organization around its different product lines, reducing the information overload that can occur in a functional design where managers may be responsible for multiple products or services. The product design allows for a more focused approach and better coordination within each product line.

Question 2

In the ____ design,positions,teams,and departments may be created on the basis of either specialized activities (such as marketing,human resources,and purchasing)or on the basis of the process used (such as receiving,assembly,and inspection).

Accepted Answer

The functional design is organized on the basis of specialized activities, which can include departments such as marketing, human resources, and purchasing. This is in contrast to other designs such as the multidivisional design, which is organized on the basis of distinct business units, or the network design, which involves partnering with other organizations to achieve goals. Therefore, the functional design is the best choice for the given scenario.

Question 3

The simplest form of organization design would be the ____ design.

Accepted Answer

The functional design is the simplest and most common form of organization design. Under this design, the organization is divided into departments based on the specific functions or expertise required, such as finance, marketing, and operations. Each department is led by a manager who reports to the top leadership. This design is suitable for organizations with a single or closely related set of products or services, as it allows for efficient use of resources and specialization of skills.

Question 4

The ____ design is the most elementary type of organization design and often represents a base from which other types of designs evolve.

Accepted Answer

The functional design organizes employees by their specific functions or roles within the organization, such as finance, marketing, or operations. It is the most basic and commonly used organizational design, and other designs often evolve from it.

Question 5

Which of the following describes a circumstance for which a functional organization design may be appropriate?

Accepted Answer

A functional organization design is most effective when an organization has a narrow product line and is pursuing a low-cost or focused business strategy. In such cases, a functional design can help the organization minimize costs and optimize efficiency.

Question 6

_____design divides organizations into self-contained units that are responsible for developing,producing and selling their own products and services to their own markets.

Accepted Answer

The description given in the statement best fits the product design, which involves organizing a company's structure around its products or product lines. This means that each self-contained unit is responsible for the entire process of creating, producing, and selling its own products or services, catering to its own market. The other options, network, place, and functional designs, organize a company's structure around different factors such as interdepartmental communication, geographical location or specialized expertise, but not around its products.

Question 7

Organizations with a product design usually begin with a ____ design.

Accepted Answer

Organizations with a product design usually begin with a functional design, which focuses on the purpose and intended use of the product. This design approach is concerned with how the product will work, rather than its aesthetics or materials.

Question 8

Advantages of the product design include all of the following except:

Accepted Answer

Direct contact with customers in each locale is actually an advantage of the market/customer-focused design, not the product design. The other options are advantages of the product design.

Question 9

Disadvantages of the functional design include all of the following except:

Accepted Answer

The disadvantage mentioned in option A is not actually a disadvantage, but rather a potential advantage of the functional design. When employees identify with the organization rather than a specific department, they may be more likely to collaborate across departments and work towards the overall goals of the organization.

Question 10

The ____ design involves the creation of positions,teams,and departments on the basis of specialized activities.

Accepted Answer

The functional design involves creating positions, teams, and departments based on specialized activities or functions such as finance, marketing, operations, and human resources. This design is commonly used in organizations that have a clear hierarchy and standardized procedures. It allows for specialization and expertise in a particular area, which can increase efficiency and productivity.

Question 11

The most widely used and accepted form of departmentalization is:

Accepted Answer

Functional design is the most widely used and accepted form of departmentalization. This approach groups individuals based on their specialized skills, knowledge, and expertise, allowing for efficient coordination and clear lines of communication within the organization. Other forms of departmentalization, such as product or place design, may be suitable for specific industries or situations but are not as broadly applicable as functional design. Multidivisional design is a more complex and decentralized approach typically used by large corporations with diverse business units.

Question 12

Pitfalls of product design include all of the following except:

Accepted Answer

The other three choices - A, B, and D - are all potential pitfalls of product design. However, "wasting resources by over coordinating activities across product lines" is not listed as a potential pitfall. Instead, it is important to strike a balance between coordination and allowing teams to work efficiently on their specific products. Overcoordination can lead to wasted time and resources.

Question 13

_____design has problems with control and coordination in top management.Extensive use of rules is necessary to ensure uniformity and coordination these types of organizations.

Accepted Answer

The answer of _____design has problems with control and coordination...

Question 14

A major disadvantage of_____design is that employees will focus on their particular products this may create unhealthy competition between departments in an organization.

Accepted Answer

Product design can lead to employees focusing solely on their specific products, potentially fostering unhealthy competition among departments as they may prioritize their product's success over the company's overall objectives.

Question 15

All of the following are advantages of the functional design except:

Accepted Answer

Direct contact with customers is not one of the advantages of functional design. The functional design groups employees by functional specialties, such as finance, marketing, and operations, enabling them to focus on their specific areas of expertise. While this specialization can lead to better understanding and communication within each unit, it does not necessarily increase direct contact with customers.

Question 16

An entrepreneur forming a new organization to produce and market a single product line using a focused strategy probably should develop the organization structure according to the ____ design.

Accepted Answer

A focused strategy targeting a single product line typically benefits from a functional organizational structure. This structure groups together people with similar skills and tasks, allowing for efficiency and specialization in functions such as marketing, production, and finance, which are crucial for a new organization focusing on a single product.

Question 17

The ____ design involves the establishment of self-contained units,each capable of developing,producing,and marketing its own goods or services.

Accepted Answer

The product design involves creating self-contained units within an organization, each responsible for developing, producing, and marketing its own products or services. This approach allows for specialization and efficiency in handling specific product lines.

Question 18

A common theme of proponents of ____ design has been standardizing repetitive tasks and making them routine whenever possible so that management could concentrate on exceptions to eliminate gaps or overlaps.

Accepted Answer

The common theme mentioned in the sentence is related to the functional design, which focuses on standardizing tasks and processes to achieve efficiency and eliminate gaps or overlaps. Product design focuses on creating new products or improving existing ones, place design deals with physical spaces and layout of a facility, and network design deals with the optimization of communication and information flow between different units or locations. Therefore, the best choice for the blank is C, functional design.

Question 19

_____design fosters a concern for customer design and clearly defines responsibilities for each product line.

Accepted Answer

The mention of "responsibilities for each product line" suggests that the missing word pertains to product design. The other options (place design, functional design, and network design) do not relate to product lines in the same way.

Question 20

_____design is some times labeled divisional structures.

Accepted Answer

Product design, also known as divisional structure, is organized around specific products or services, with each division having its own functional areas, such as marketing and production. This structure is suitable for organizations that have diverse product lines as it enables each division to focus on its own products or services without interference from other divisions.

Quiz 15: Organization Design