Question 1

Internet trade between consumers and companies is called ________.
A) Boundaryless transactions
B) Wireless trading
C) B2B Commerce
D) B2C Commerce

Accepted Answer

B2C commerce stands for "business-to-consumer" commerce, which refers to the online trade that takes place between a business and individual customers. This involves selling products or services directly to consumers over the internet. Therefore, D is the correct answer. A refers to the absence of boundaries between businesses or countries, B refers to trading over wireless networks, and C refers to commerce between businesses.

Question 2

Which of the following is an advantage of a matrix structure?
A) Teams are stable, which leads to core competences.
B) A corporate staff oversees project teams.
C) Conflict over resources is reduced.
D) The importance of both cost and quality is recognized.

Accepted Answer

In a matrix structure, both functional and project management structures are combined. This allows for a balance between cost and quality objectives, making choice D the correct answer. Option A is incorrect because stable teams are a characteristic of a functional organizational structure, not a matrix structure. Option B is incorrect because the presence of a corporate staff overseeing project teams is not specific to matrix structures. Option C is incorrect because a matrix structure can increase conflict, as both functional and project managers have authority over employees.

Question 3

A ________ structure provides for more integration between corporate and divisional managers and between divisional managers.
A) market
B) complex
C) multidivisional matrix
D) product division

Accepted Answer

A multidivisional matrix structure combines elements of both a divisional and matrix structure, allowing for greater integration between corporate and divisional managers and between divisional managers. This structure is often used by larger companies with diverse product lines or services.

Question 4

Which of the following structures maximizes the use of employees?
A) Multidivisional matrix
B) Functional
C) Matrix
D) Geographic

Accepted Answer

The matrix structure maximizes the use of employees by allowing them to work on multiple projects and report to multiple managers. This increases cross-functionality and collaboration, leading to higher productivity and efficiency.

Question 5

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) network
B) geographic
C) centralized
D) product team

Accepted Answer

Nike uses a network structure, where the core functions like design and research are kept in-house, while production is outsourced to external companies globally.

Question 6

Disadvantages of the matrix structure include ________.
A) conflict over resources
B) duplication of functions
C) lack of concern for cost
D) a tall hierarchy

Accepted Answer

The matrix structure can lead to conflict over resources because employees report to multiple managers, which can create competition for resources and priorities.

Question 7

Integration is highest in a ________ structure.
A) multidivisional matrix
B) product division
C) geographic
D) market

Accepted Answer

In a multidivisional matrix structure, multiple divisions and functional departments work together to achieve common goals. This structure relies heavily on integration across different levels and functions, as well as coordination and communication between different divisions. Therefore, integration is likely to be the highest in a multidivisional matrix structure. Choice B, product division, focuses on organizing around specific products or services, while choice C, geographic, organizes around geographical regions. Both of these structures may not require as much integration compared to a matrix structure. Choice D, market, also referred to as a customer structure, organizes around specific customer groups, which may require some level of integration but not as much as a multidivisional matrix structure.

Question 8

A multidivisional matrix structure:
A) is a design in which most divisions have a matrix structure.
B) has low bureaucratic costs.
C) has a flatter hierarchy than a multidivisional structure.
D) enhances coordination between corporate headquarters and the divisions.

Accepted Answer

A multidivisional matrix structure enhances coordination between corporate headquarters and the divisions by having two chains of command. It allows for more efficient use of resources, improved communication, and faster decision-making. However, it may lead to higher costs and complexity due to the need for additional staff and resources to support the matrix.

Question 9

The boundaryless organization is characterized by all of the following except:
A) members who are transferred to projects as their services are needed.
B) a matrix structure.
C) the use of contracts.
D) the use of electronic means to connect people.

Accepted Answer

The matrix structure is actually a characteristic of the boundaryless organization, so it cannot be the correct answer. The other three choices are all characteristic of boundaryless organizations, including the use of contracts and electronic means to connect people, and the transfer of members to projects as needed. Therefore, the correct answer is B.

Question 10

Employees have two bosses in a ________ structure.
A) multidivisional matrix
B) product team
C) multidivisional
D) geographic

Accepted Answer

In a multidivisional matrix structure, employees report to at least two managers: one functional manager and one divisional manager. This structure allows for more efficient communication and decision-making across different departments or divisions but can also lead to potential conflicts or confusion among employees who have multiple bosses.

Question 11

Which of the following is not an advantage of a network organization?
A) Ability to act in an organic manner
B) Lower production costs
C) Ability to develop core competences
D) Lower bureaucratic costs

Accepted Answer

Ability to develop core competences is not an advantage of a network organization. Network organizations are designed to be flexible and adaptable, and they do not typically have the same level of specialization as traditional hierarchical organizations. As a result, they may not be as well-suited to developing and maintaining core competences.

Question 12

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

Accepted Answer

A matrix structure is characterized by complex and often vague authority relationships due to the dual reporting lines, where employees report to both functional and product managers.

Question 13

A hybrid structure is used when ________.
A) neither a mechanistic or organic structure fits the environment
B) a compromise is needed between varying management perspectives on how to operate
C) technology requires a more contemporary organizational design
D) complex organizations have different divisions requiring different structures

Accepted Answer

A hybrid structure is used in complex organizations where different divisions or units require different structures to effectively manage their unique environments and tasks.

Question 14

Employees move between teams most often in a ________ structure.
A) market
B) product team
C) multidivisional matrix
D) matrix

Accepted Answer

In a matrix structure, employees work on multiple projects and teams simultaneously, making it easier for them to move between teams. This is due to the cross-functional nature of the matrix structure, which encourages collaboration and teamwork across different departments and functions. In contrast, in a market structure, employees are assigned to specific business units based on their expertise, making it more difficult for them to move between teams. In a product team structure, employees work on specific products or projects, and in a multidivisional matrix, teams are organized by divisions or business units, making it more difficult for employees to move between teams.

Question 15

The matrix structure requires a ________ level of vertical coordination and a ________ level of horizontal coordination.
A) high/high
B) low/low
C) low/high
D) high/low

Accepted Answer

The matrix structure requires a low level of vertical coordination because there is no clear chain of command. Instead, employees report to both a functional manager and a project manager. This can lead to confusion and conflict. However, the matrix structure requires a high level of horizontal coordination because employees must work together across functional and project boundaries. This can be difficult to achieve, but it is essential for the success of the matrix structure.

Question 16

Which of the following mechanisms does a network structure use to coordinate activities?
A) Teams
B) Contracts
C) Integrating roles
D) Hierarchy of authority

Accepted Answer

The answer of Which of the following mechanisms does a...

Question 17

Which of the following is a disadvantage of a network organization?
A) Mechanistic behavior
B) Motivation problems
C) Lower quality
D) Higher bureaucratic costs

Accepted Answer

Network organizations can face motivation problems due to less direct supervision and potential lack of cohesion among distributed teams.

Question 18

________ is the moving of a value creation activity that was done inside the organization to the outside, where it is done by another company.
A) Networking
B) Outsourcing
C) Production
D) Decentralization

Accepted Answer

This process is known as outsourcing, where a company hires another company to perform a task or activity that was previously done in-house. It is a strategy often used to reduce costs and increase efficiency by allowing specialized companies to handle certain tasks.

Question 19

A construction equipment manufacturer sells tractors and other farming equipment to individual farmers, large agricultural cooperatives, food processors, and the government. The company operates solely in the Midwest region of the United States. Which of the following structures is most appropriate for this organization?
A) Market
B) Functional
C) Multidivisional
D) Product division

Accepted Answer

A market structure is most appropriate as the company serves different types of customers (individual farmers, cooperatives, processors, and government), allowing it to tailor its approach to each market segment.

Question 20

Internet trade between companies is called ________.
A) wholesale
B) collusion
C) B2B Commerce
D) B2C Commerce

Accepted Answer

B2B Commerce refers to internet trade between companies, also known as business-to-business commerce. Wholesale is a type of trade where products are bought in bulk at a lower price to be sold at a higher price to retailers or consumers, but it does not specifically refer to internet trade. Collusion refers to illegal and secret cooperation between companies to deceive the market or control prices, and is not related to internet trade. B2C Commerce, on the other hand, is internet trade between a business and individual consumers, which is different from B2B Commerce.

Quiz 6: Designing Organizational Structure: Specialization and Coordination

Internet trade between consumers and companies is called ________.

Which of the following is an advantage of a matrix structure?

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

Which of the following structures maximizes the use of employees?

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.

Disadvantages of the matrix structure include ________.

Integration is highest in a ________ structure.

A multidivisional matrix structure:

The boundaryless organization is characterized by all of the following except:

Employees have two bosses in a ________ structure.

Which of the following is not an advantage of a network organization?

A matrix structure is characterized by ________.

A hybrid structure is used when ________.

Employees move between teams most often in a ________ structure.

The matrix structure requires a level of vertical coordination and a level of horizontal coordination.

Which of the following mechanisms does a network structure use to coordinate activities?

Which of the following is a disadvantage of a network organization?

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

Internet trade between companies is called ________.