Exam 11: Organization Structures and Design

Leisure Life is a major tour operator in the country. Four senior managers look after the company's operations in 20 locations. All these senior managers report to the general manager of the company who is stationed at the company headquarters in Chicago. This description represents the ___ of the company.

Which of the following is true of an organic design?

Yummy Inc., a fast food corporation, entered into an agreement with Garnish Inc., a company that manufactures cheese, mayonnaise, and other toppings. Yummy Inc. exclusively uses the toppings produced by Garnish Inc. This business agreement has resulted in benefits for both the companies. This is an example of a ___.

Positions and job titles, lines of authority, and formal communication channels are often demonstrated for a company by drawing a special diagram. This diagram is called ___.

LST Inc. functions with systematic order and a hierarchical system of management. It is characterized by formal channels of communication. The employees of the firm are required to strictly abide by the formal rules of the company. LST Inc. is a(n) ___.

Informal structures always serve the best interests of the organization.

Franklin Inc. encourages its employees at all levels to provide ideas, opinions, and support the process of decision making. This indicates that the firm has a(n) ___.

People who perform a technical service or provide special problem-solving expertise for other parts of the organization are called ___.

A potential disadvantage of functional structures concerns difficulties in pinpointing responsibilities for cost containment, product or service quality, timeliness, and innovation.

Span of control refers to the number of subordinates reporting directly to a manager.

When decision-making authority is dispersed by extensive delegation throughout all levels of management, the organization is decentralized.

Which of the following asks people to identify others to whom they turn for help most often, with whom they communicate regularly, and who gives them energy and motivation?

A network structure helps lower costs and improves flexibility in dealing with changing environments because

A potential disadvantage of the matrix structure is that problem solving is forced down the hierarchy to where the best information is available.

Tom Burns and George Stalker found that the mechanistic organizations thrived when the environment was unstable and changing because it provided a necessary counterbalancing sense of order.

Organic designs are laissez-faire systems in which a lot of work gets done through informal structures and networks of interpersonal contacts.

Potential disadvantages of functional structures include all of the following except

At Goode Bank, all operational decisions regarding promotional measures, interest rates, benefits, and customers are made completely by the top management. This implies that Goode Bank has a(n) ___.

The current trend in delegation is ___.

Due to the absence of structural barriers, boundaryless organizations have few communication and coordination problems.