Exam 15: Organizational Structure

Henry Ford was a strong believer in work specialization.

Ross and Tony, father and son, opened a large boutique named Tradus in Chicago. Being the owners of the business concern, they decide about the important matters. All the rest of the decisions like product, finance, marketing, and personnel are carried out by the department heads, who have to act according to Ross's and Tony's instructions and orders. Which of the following is Trueabout Tradus?

Once a company becomes large, it is impossible to retain a centralized structure. Large companies must use decentralized structures.

A _____ structure is a flat organization with one person as the central decision-making figure.

Current research suggests that:

Define span of control. Describe the relationship between a span of control and organizational performance.

TP Pencils is the low-cost producer of one type of standard pencils. Given that it operates in a fairly stable environment, the company focuses on making its product as efficiently as possible. Which of the following approaches to organizational design is likely to be appropriate for TP Pencils?

A large company recently adopted a structure in order to give its top managers more responsibility and flexibility. The company is now structured around four customer groupings: consumers, corporations, small and mid-sized businesses, and government and educational buyers. Which of the following organizational structures has this company created?

More complex forms of organizational design that try to take advantage of two types of structures at the same time are called _____ structures.

Dynamic environments allow organizations to focus on efficiency and require little change over time.

The process of changing an organizational structure is called:

What steps can an organization take to reduce the negative effects of restructuring efforts on employees? Explain.

_____ reflects where decisions are formally made in organizations.

Matrix structures try to take advantage of two types of structure at the same time.

Gabrielle is the West Coast manager of Umbrellas Are Us. Other managers are in charge of the East Coast, South, and Central divisions. Her brother, Ryan is a marketing manager at a different firm who enjoys watching sports with the finance and operations managers from his company. Gabrielle most likely works in a company with a ______ structure, while Ryan most likely works in a company with a ______ structure.

Melissa is describing her company's organizational structure. Which of the following terms and concepts would she not use in her description?

Although not much is known about the effect of restructuring on affective commitment, restructuring generally results in _____ level of affective commitment on the part of employees.

Which of the following is a bureaucratic organizational form in which employees are grouped into divisions around products, geographic regions, or clients?

Organizational structure can have a significant impact on an organization's financial performance.

Splash Hair Care Inc. is growing very fast in both sales and number of employees. It manufactures and sells hair products for youth, male, female, elderly, and ethnic populations all over the United States and several other countries. So far, the company has followed a simple structure. However, with fast-paced growth, it has become a necessity that the company explores other organizational structures. John, a long-time employee at Splash Hair Care, has collected information on how some of its competitors have organized their companies. Streaks Inc. groups its employees by their different areas of expertise such as Marketing, Finance, Human Resources, and Operations. Pure Oil, primarily in the United States, groups its activities as Northeast Division, Southeast Division, Northwest Division, Southwest Division, and Central Division. Curlz Inc. has organized its employees according to the accounts they serve, such as Large Company contracts, Internet Sales, Individual Sales, and Small Salon Direct Sales. Finally, Color Lite International has grouped its business units around popular colors such as Red Division, Silver Division, Rainbow Division, Black and Brown Division, and Shades of Blonde Division. Which of the following describes Curlz's organizational structure?