Question 1

What type of authority flows up and down the chain of command?

Accepted Answer

The answer of What type of authority flows up and...

Question 2

All-Canadian Burger is a nationwide fast food chain that competes with McDonald's, Burger King, and Wendy's. Management at All-Canadian Burger is debating whether to have a more centralized or a more decentralized organizational structure. Which of the following, if true, would most strongly support the conclusion that All-Canadian Burger should operate in a highly centralized manner?

Accepted Answer

A)  All-Canadian Burger restaurants are spread over a large geographic area. 
B)  A greater number of managers have expressed an interest in making policy. 
C)  Entry-level workers at All-Canadian Burger are likely to be part-time or flex-time employees. 
D)  The organizations that choose more centralized operations are likely to be organizations in crisis. 
E)  Customers choose All-Canadian Burger in large part because of the consistency of the dining experience.

Question 3

All things considered, the divisional structure is probably the best one.

Accepted Answer

A) True 
 B)False

Question 4

At PepsiCo, each of the company's three major beverage brands (Pepsi, Gatorade, and Tropicana) were formerly in separate departments. They competed for the same resources and there was very little coordination and sharing of information between them. This illustrates one of the problems with the ________ structure.

Accepted Answer

A)  functional 
B)  international 
C)  matrix 
D)  conglomerate 
E)  divisional

Question 5

Global Research Consortium offers research and consulting services to firms doing business in Asia and is an example of a learning organization.

Accepted Answer

A) True 
 B)False

Question 6

The men's clothing department at Hudson's Bay is an example of a

Accepted Answer

A)  functional department. 
B)  process department. 
C)  product department. 
D)  profit centre. 
E)  matrix structure.

Question 7

Which organizational structure relies on product departmentalization?

Accepted Answer

A)  Functional 
B)  Matrix 
C)  Divisional 
D)  Project 
E)  International

Question 8

The organization of the health care producer Johnson & Johnson includes consumer health care products, medical devices and diagnostics, and pharmaceuticals. What kind of organizational structure does this company use?

Accepted Answer

A)  Functional 
B)  Process 
C)  Geographic 
D)  Divisional 
E)  Committee

Question 9

The chain of command shown on an organization chart reflects manager and subordinate relationships.

Accepted Answer

A) True 
 B)False

Question 10

Generally speaking, a team organization is more effective than a virtual organization.

Accepted Answer

A) True 
 B)False

Question 11

Which structure uses teams/committees along with functional departments on a long-term basis?

Accepted Answer

A)  Matrix 
B)  Functional 
C)  Conglomerate 
D)  Team-based duopoly 
E)  Divisional

Question 12

What is an advantage of the functional organization structure?

Accepted Answer

A)  The members of the organization speak a foreign language. 
B)  The organization is staffed with people who have expert knowledge about the product. 
C)  Coordinating highly specialized functions is easy. 
D)  Members of the organization report to two or more managers. 
E)  The functions are performed by experts in their field.

Question 13

Describe the five most common methods of departmentalization within an organization. Identify the advantages of each method.

Accepted Answer

The answer of Describe the five most common methods of...

Question 14

Michael is analyzing the structure of his new employer. It is highly flexible and can readily adapt to changing circumstances. It also is heavily dependent upon committee and team authority. The firm is probably using the ________ structure.

Accepted Answer

A)  matrix 
B)  functional 
C)  conglomerate 
D)  divisional 
E)  international

Question 15

What is responsibility?

Accepted Answer

The answer of What is responsibility?...

Question 16

Interstate Insurance is looking to upgrade the company's information technology. Information technology is used for a variety of purposes, so the company needs to prioritize its needs and find out in what areas the company needs to improve its information technology. Interstate's marketing director thinks that the company's data mining ability should be upgraded. Which of the following, if true, would strengthen his position?

Accepted Answer

A)  Executives at Interstate want to use decision support systems to test business models. 
B)  Interstate uses VSAT communications to relay confidential information among its various branches. 
C)  Interstate's various branches do a lot of electronic conferencing with one another. 
D)  Customers complain that the company's website is too difficult to use. 
E)  Interstate's rate of new customer acquisition has steadily declined over the last two years.

Question 17

Organizational structure refers to the specification of the jobs to be done within a business and how those jobs relate to one another.

Accepted Answer

A) True 
 B)False

Question 18

Canadian Wood Products has three divisions. The Lumberjack division is involved in harvesting trees and transporting them to lumber mills. The Milling division transforms cut timber into dimensional lumber for building. The Paper Products division makes paper and cardboard from the remnants of the milling process. What type of departmentalization is this an example of?

Accepted Answer

A)  Functional departmentalization 
B)  Process departmentalization 
C)  Customer departmentalization 
D)  Geographic departmentalization 
E)  Brand departmentalization

Question 19

A ________ organization has little or no formal structure, with only a handful of permanent employees.

Accepted Answer

A)  learning 
B)  flexible 
C)  boundaryless 
D)  team 
E)  virtual

Question 20

At Appleson Publishing, products are produced by a team representing different functional groups, none of which have supervisory authority over any of the others. Represented departments include design, production, and marketing. Design department members are skilled at identifying customer requirements and creating product specifications. Their success is measured by return on product investment, which takes into account both the money earned by a product and the money spent on that product.
Production department members are skilled at project execution. They are responsible for creating products according to the Design department members' specification. The Production department is considered successful when it completes projects according to schedule and project spending does not exceed the project's budget.
Marketing department members are responsible for building profitable relationships with target market segments. They are skilled at communicating a product's value and persuading customers to make purchases. Marketing department members' success is measured by the revenue that the products take in.
Executives claim that this division of labour keeps employees focused on the tasks that fit their skills and leads to a better product. Which of the following, if true, would strengthen that claim?

Accepted Answer

A)  During every project, design department members spend a large amount of time consulting with marketing department members to learn how the marketing department will attempt to sell the completed project. 
B)  When environmental changes that take place after the project has been launched make the project unattractive to customers, the production department attempts to complete the project according to the original schedule and budget. 
C)  After a product specification is completed, knowledge of the thinking that went into the product specification is not necessary to complete the project effectively. 
D)  The team process is based on the process that Appleson's executives used during the era of print-only product development. 
E)  The reasoning behind the team process is presented to new employees as part of their initial orientation.

Exam 7: Organizing the Business Enterprise

What type of authority flows up and down the chain of command?

All things considered, the divisional structure is probably the best one.

Global Research Consortium offers research and consulting services to firms doing business in Asia and is an example of a learning organization.

The men's clothing department at Hudson's Bay is an example of a

Which organizational structure relies on product departmentalization?

The organization of the health care producer Johnson & Johnson includes consumer health care products, medical devices and diagnostics, and pharmaceuticals. What kind of organizational structure does this company use?

The chain of command shown on an organization chart reflects manager and subordinate relationships.

Generally speaking, a team organization is more effective than a virtual organization.

Which structure uses teams/committees along with functional departments on a long-term basis?

What is an advantage of the functional organization structure?

Describe the five most common methods of departmentalization within an organization. Identify the advantages of each method.

Michael is analyzing the structure of his new employer. It is highly flexible and can readily adapt to changing circumstances. It also is heavily dependent upon committee and team authority. The firm is probably using the ________ structure.

What is responsibility?

Organizational structure refers to the specification of the jobs to be done within a business and how those jobs relate to one another.

A ________ organization has little or no formal structure, with only a handful of permanent employees.