Question 1

A product structure organizes people according to:

Accepted Answer

A)  what the people are required to produce.
B)  the functions they perform.
C)  the type of customer they serve.
D)  the regional market they serve. A

Question 2

Hallmark organized around categories of greeting cards such as Mother's Day cards and Christmas cards. This structure is called __________.

Accepted Answer

A)  product team
B)  functional
C)  simple
D)  geographic A

Question 3

A divisional structure groups functions according to the specific demands of products, markets, or customers.

Accepted Answer

A) True 
 B)False  True

Question 4

A __________ structure has functions grouped together according to the specific demands of products, markets, or customers.

Accepted Answer

A)  differentiated
B)  functional
C)  divisional
D)  simple

Question 5

Core competences first emerge when a company adopts a __________ structure.

Accepted Answer

A)  multidivisional
B)  product team
C)  functional
D)  product division

Question 6

Bureaucratic costs are greatest in a_________ structure.

Accepted Answer

A)  multidivisional
B)  product division
C)  geographic
D)  market

Question 7

Which of the following structures is the flattest?

Accepted Answer

A)  Product team
B)  Geographic
C)  Market
D)  Matrix

Question 8

Which of the following is a difference between the product team and the matrix structures?

Accepted Answer

A)  Employees move between teams in a product team structure but not in a matrix structure.
B)  Employees move between teams in a matrix structure but not in a product team structure.
C)  Employees have two bosses in a product team structure and only one boss in a matrix structure.
D)  A matrix structure has a taller hierarchy than a product team structure.

Question 9

When a company moves from a functional structure to a divisional structure, it generally:

Accepted Answer

A)  increases vertical differentiation and increases horizontal differentiation.
B)  does not change differentiation but increases integration.
C)  increases vertical differentiation and decreases horizontal differentiation.
D)  increases horizontal differentiation and reduces vertical differentiation.

Question 10

_________can sometimes overcome control problems in a functional structure, making it unnecessary to move to a more complex structure.

Accepted Answer

A)  Increasing horizontal differentiation
B)  Improving integration
C)  Increasing vertical differentiation
D)  Diversification

Question 11

A market structure organizes people according to:

Accepted Answer

A)  the functions they perform.
B)  the regional markets they serve.
C)  what the people are required to produce.
D)  the types of customers they serve.

Question 12

Decision- making authority is more decentralized in a product team structure than in a product division structure.

Accepted Answer

A) True 
 B)False

Question 13

Specialist activities are duplicated in a_________ structure.

Accepted Answer

A)  multidivisional
B)  functional
C)  geographic
D)  matrix

Question 14

Which of the following is not a divisional structure?

Accepted Answer

A)  Product team
B)  Geographic
C)  Market
D)  Matrix

Question 15

Employee roles are clearly defined in a matrix structure.

Accepted Answer

A) True 
 B)False

Question 16

A geographic structure is most appropriate for which of the following companies?

Accepted Answer

A)  An oil producer that sells gas, a commodity, in five different regions
B)  A telecommunications company that makes technologically complex equipment
C)  A retailer who specializes in clothing and operates in five different regions of the United States
D)  A large manufacturer that wants to produce automobiles in Mexico and computers in Southeast Asia

Question 17

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

Accepted Answer

A)  Higher bureaucratic costs
B)  Lower quality
C)  Mechanistic behavior
D)  Motivation problems

Question 18

A regional company markets ice cream, milk, and frozen yogurt. A _________structure is the most appropriate structure for this firm.

Accepted Answer

A)  market
B)  product team
C)  product division
D)  multidivisional

Question 19

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

Accepted Answer

A)  Ability to act in an organic manner
B)  Ability to develop core competences
C)  Lower production costs
D)  Lower bureaucratic costs

Question 20

One problem with the matrix structure is that employees must report to two different bosses.

Accepted Answer

A) True 
 B)False

Exam 6: Designing Organizational Structure: Specialization and Coordination

A product structure organizes people according to:

Hallmark organized around categories of greeting cards such as Mother's Day cards and Christmas cards. This structure is called __________.

A divisional structure groups functions according to the specific demands of products, markets, or customers.

A __________ structure has functions grouped together according to the specific demands of products, markets, or customers.

Core competences first emerge when a company adopts a __________ structure.

Bureaucratic costs are greatest in a_________ structure.

Which of the following structures is the flattest?

Which of the following is a difference between the product team and the matrix structures?

When a company moves from a functional structure to a divisional structure, it generally:

_________can sometimes overcome control problems in a functional structure, making it unnecessary to move to a more complex structure.

A market structure organizes people according to:

Decision- making authority is more decentralized in a product team structure than in a product division structure.

Specialist activities are duplicated in a_________ structure.

Which of the following is not a divisional structure?

Employee roles are clearly defined in a matrix structure.

A geographic structure is most appropriate for which of the following companies?

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

A regional company markets ice cream, milk, and frozen yogurt. A _________structure is the most appropriate structure for this firm.

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

One problem with the matrix structure is that employees must report to two different bosses.