Question 1

From Scenario B, it can be inferred that Elena works in a _____ department.

Accepted Answer

A)  staff
B)  flat
C)  wide
D)  line
E)  narrow D

Question 2

Patrick is a new product designer for a cookware manufacturer. Patrick therefore works in a _____ department.

Accepted Answer

A)  staff
B)  line
C)  functional
D)  matrix
E)  service B

Question 3

Casa Caliente Inc. was voted producer of the best hot sauce in its city. It soon expanded and now manufactures and distributes sauces, kitchen equipment, and specialty spices nationwide, with a separate department for each. Which of the following forms of departmentalization does Casa Caliente Inc. have?

Accepted Answer

A)  Conglomerate
B)  Horizontal
C)  Geographic
D)  Customer
E)  Product E

Question 4

Who among the following individuals belongs to the top managerial level?

Accepted Answer

A)  Chief financial officer
B)  Frontline manager
C)  Operational supervisor
D)  Division supervisor
E)  First-line manager

Question 5

When there are many subunits and many kinds of specialists who think differently in an organization, differentiation is high.

Accepted Answer

A) True 
 B)False

Question 6

The three levels of the organizational hierarchy include

Accepted Answer

A)  top, first-line, and final levels.
B)  top, middle, and operational levels.
C)  functional, divisional, and matrix levels.
D)  top, strategic, and lower levels.
E)  top, operational, and frontline levels.

Question 7

The _____ of a firm's structure is the starting point in understanding the organizational issues such as reporting relationships, authority, and responsibility.

Accepted Answer

A)  vertical dimension
B)  vertical integration
C)  concentration
D)  span of control
E)  diversification

Question 8

A(n) _____ organization is a collection of independent, mostly single-function firms that collaborate to produce a good or service.

Accepted Answer

A)  integrated
B)  dynamic
C)  matrix
D)  network
E)  standardized

Question 9

A specific technique used to reduce the need for information is to

Accepted Answer

A)  create self-contained tasks.
B)  reduce the amount of inventory on hand.
C)  invest in information systems.
D)  create horizontal relationships.
E)  create strategic alliances.

Question 10

In Valley Solutions, Inc., important decisions usually are made at the top. Valley Solutions has a _____ organization.

Accepted Answer

A)  flat
B)  wide
C)  narrow
D)  centralized
E)  decentralized

Question 11

An organization with departmentalization that groups units around products, customers, or geographic regions is called a

Accepted Answer

A)  divisional organization.
B)  centralized organization.
C)  conglomerate organization.
D)  functional organization.
E)  virtual organization.

Question 12

Cambridge Networking Solutions has its global headquarters in Chicago, where companywide departments, such as marketing, accounting, and research, are housed. Cambridge is thus a divisional organization.

Accepted Answer

A) True 
 B)False

Question 13

Discuss the important features of the divisional organization structure.

Accepted Answer

The answer of Discuss the important features of the divisional...

Question 14

In Scenario A, Yvette is the top manager, followed by managers of each department, and then the supervisors. This is an example of

Accepted Answer

A)  a hierarchy.
B)  unity of command.
C)  a strategic map.
D)  integration.
E)  span of control.

Question 15

The legitimate right to make decisions and to tell other people what to do is referred to as ____.

Accepted Answer

A)  hierarchy
B)  delegation
C)  specialization
D)  legitimacy
E)  authority

Question 16

Which of the following depicts the positions in a firm and how they are arranged?

Accepted Answer

A)  Benchmarking
B)  Departmentalization
C)  Situational analysis
D)  Organization chart
E)  Value chain

Question 17

Integral Insurance has strictly defined job responsibilities and lines of communication. In this formal atmosphere, approval for any changes to standing procedures must be made by upper management. Here, the insurance firm has a

Accepted Answer

A)  wide span of control.
B)  high degree of centralization.
C)  decentralized authority.
D)  matrix design.
E)  flat structure.

Question 18

Subdividing an organization into smaller subunits is known as ____.

Accepted Answer

A)  departmentalization
B)  delegation
C)  centralization
D)  standardization
E)  diversification

Question 19

Compare and contrast differentiation and integration. How are differentiation and integration related in an effective organization?

Accepted Answer

The answer of Compare and contrast differentiation and integration. How...

Question 20

Explain the advantages of delegation and how managers should delegate.

Accepted Answer

The answer of Explain the advantages of delegation and how...

Exam 8: Organization Structure