Question 1

Ramon Auto, an automobile manufacturer, operates in several countries. The company has three major brands which are headed by three separate managers. Each of these three managers look after all the jobs and activities associated with their respective brands. According to this information, which of the following organization structures is adopted by Ramon Auto?

Accepted Answer

Ramon Auto has separate managers responsible for each of their major brands, indicating a product structure where each brand operates under a separate division.

Question 2

Which of the following is true of a matrix structure?

Accepted Answer

A matrix structure involves creating permanent teams that cut across functions to support specific products, projects, or programs. Option A is incorrect because workers in a matrix structure are allowed to be part of multiple teams at the same time. Option B is incorrect because a matrix structure is designed to be flexible and adaptable to regional differences. Option D is incorrect because a matrix structure can involve both temporary and permanent teams. Option E is partially correct, as a matrix structure involves top management in decision-making, but not necessarily in lower-level problem solving.

Question 3

Employees who are involved in designing, engineering, and preparing models are grouped together at Zener Inc. Further, employees who engage in public relations, sales promotion, advertising, and direct marketing are put together in another team. Which of the following structures exists at Zener Inc.?

Accepted Answer

Zener Inc. is utilizing a process structure, as it groups employees based on the specific processes or activities they are involved in, such as design and marketing activities, rather than by product, geography, customer, or client.

Question 4

Brendon, a software engineer at Re-Soft Inc., has to report to two managers at the same time, a functional manager and a team manager. In the context of divisional structures, Brendon is working in a ___ structure.

Accepted Answer

Brendon is working in a matrix structure, where employees report to both a functional manager and a team manager. In this structure, employees are grouped by function and also by project or team, and their work is coordinated by both types of managers.

Question 5

Speak-Up, a cooperative group, meets every week to discuss its plans and actions for helping the community to learn more about organic farming. They form temporary teams based on tasks and actions. The size of the teams depends on the size of the tasks. In the context of team structures, Speak-Up group has the ___ structure.

Accepted Answer

The answer of Speak-Up, a cooperative group, meets every week...

Question 6

___ are particularly appealing because they can best serve the special needs of different customer groups.

Accepted Answer

Customer structures are designed to cater to the specific needs of different customer groups. They are organized around customer segments, such as geography, industry, or product type, and can provide a more personalized approach to customer service and support. This type of structure enables companies to better understand their customers and tailor their products and services to meet their unique needs, ultimately improving customer satisfaction and loyalty.

Question 7

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

Accepted Answer

A matrix structure allows for improved strategic management as it allows for better utilization of resources, expertise and communication across functional areas. The structure facilitates better coordination and integration between the functional and project teams, leading to better strategic decision making. The other options are not necessarily advantages of a matrix structure.

Question 8

___ structures are typically used when there is a need to differentiate products or services in various locations, such as in different regions of a nation or in international operations where there is a need to focus on the requirements of particular cultures and regions of the world.

Accepted Answer

Geographical structures are designed to cater to the specific requirements of different regions, cultures, and national boundaries. They are used to facilitate the localization of products or services, ensuring that they conform to the cultural and legal requirements of the areas they serve. This structure helps organizations to tailor their strategies and operations to the distinct needs of different markets and regions, which is particularly important in international business.

Question 9

Which structural approach makes use of permanent cross-functional teams to integrate functional expertise in support of a clear divisional focus on a product, project, or program?

Accepted Answer

The matrix approach involves the use of permanent cross-functional teams to integrate functional expertise in support of a clear divisional focus on a product, project, or program. This approach allows for more efficient use of resources and enhanced collaboration, as team members from different functional areas work together towards a common goal.

Question 10

Which of the following is a disadvantage of a matrix structure?

Accepted Answer

Adding team leaders to a matrix structure can result in higher costs due to the need for additional management roles and responsibilities.

Question 11

Workers in a matrix structure belong to at least two formal groups at the same time. These two groups are a ___ group and a ___ group.

Accepted Answer

In a matrix structure, workers belong to a functional group (such as marketing, finance, or operations) and a product, project, or program group (such as the team responsible for a specific product or project). Therefore, the best choice is A. The other choices (B, C, D, and E) do not accurately describe the groups that workers belong to in a matrix structure.

Question 12

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

Accepted Answer

A divisional structure allows for expertise to be focused on specific customers, products, and regions. This allows for specialization and customization of products and services tailored to specific markets, which can lead to increased customer satisfaction and competitive advantage.

Question 13

An order fulfillment by a catalog retailer, a procedure that takes an order from point of initiation by the customer to point of fulfillment by a delivered product is an example of a ___.

Accepted Answer

The process of taking an order from the customer and delivering the product is a work process. An operational chimney, functional silo, directional array, or strategic alliance do not accurately describe this process.

Question 14

Slice-It Inc., a fast food organization operating in many countries, varies its menus in different countries according to local tastes and preferences. It groups together employees and tasks working in the same location. Which of the following structures is Slice-It Inc. using?

Accepted Answer

Slice-It Inc. is using a geographical structure, as it is organizing its employees and tasks based on the different countries in which it operates. This allows for customization of menus to meet local tastes and preferences, as well as more efficient communication and coordination among employees working in the same location.

Question 15

If an organization is concerned about frequently adding and deleting new products or services and also wants to make sure that customers or clients always have a program manager available to respond to questions and concerns, the___ structural form is a good choice.

Accepted Answer

The matrix structure is designed to handle complex and dynamic environments, making it suitable for organizations that frequently add and delete products or services. It also provides for dual reporting lines and the presence of a program manager to handle customer concerns and queries.

Question 16

Traves Inc., a transcription services company, manages all its core processes with a small team of highly skilled employees. However, it outsources five of its processes to contractors. This helps the company to lower its costs and have a high degree of flexibility. In this context, Traves Inc. is using a(n) ___ structure to carry out its functions.

Accepted Answer

Traves Inc. is using a network structure as it outsources five of its processes to contractors to lower costs and have high flexibility, while managing all its core processes with a small team of highly skilled employees. In a network structure, organizations outsource non-core activities to other companies to streamline operations, lower costs, and increase flexibility.

Question 17

A matrix structure basically combines elements of ___and ___ structures.

Accepted Answer

A matrix structure combines both functional and divisional structures. The functional structure divides work based on specialized skills and expertise, while the divisional structure divides work based on products, customers, or geographic location. The matrix structure combines both of these structures by creating cross-functional teams that are organized around a specific project or product.

Question 18

Emerald World Inc.'s organizational structure combines jobs that serve clients based on factors such as their ages, tastes, and preferences. Which of the following organizational structures exists at Emerald World Inc.?

Accepted Answer

Emerald World Inc. is using a customer structure, which groups jobs based on factors related to their customers. This allows the company to better serve its clients based on their ages, tastes, and preferences.

Question 19

Which of the following is true about the geographical structure?

Accepted Answer

Geographical structure groups together activities and jobs based on their location and helps focus attention on the unique cultures and requirements of particular regions.

Question 20

Which of the following is a disadvantage of divisional structures?

Accepted Answer

Divisional structures often lead to duplication of resources and efforts across different divisions, which results in increased costs. This is because each division may have its own staff, equipment, and resources that could be used more efficiently if centralized. Additionally, the separation of divisions may create competition and conflicts that reduce the level of cooperation and coordination across functional departments. While there may be reduced flexibility in adding, removing, or changing operations, it is not necessarily a disadvantage if the divisional structure is designed to allow for some autonomy and specialization. The other options, such as making it impossible to focus on specific customers or requiring the deletion of divisions, are not necessarily disadvantages and may depend on the specific goals and needs of the organization.

Quiz 11: Organization Structures and Design