Question 1

___ are particularly appealing because they can best serve the special needs of different customer groups.

Accepted Answer

A)   Product structures
B)   Process structures
C)   Matrix structures
D)   Customer structures
E)   Geographical structures D

Question 2

The purpose of an organization structure is to design titles for different workers and to assign daily work tasks to them.

Accepted Answer

A) True 
 B)False  True

Question 3

A highly adaptive organization can become one that is designed for continuous adaptation through problem solving, innovation, and learning. This type of organization is known as a ___.

Accepted Answer

A)   matrix organization
B)   learning organization
C)   new age organization
D)   contemporary organization
E)   change management organization B

Question 4

Any organization structure should ___ and ___.

Accepted Answer

A)   Allocate task assignments through a division of labour; provide for the coordination of performance results
B)   Allocate task assignments through a division of labour;; provide for the creation of a horizontal organization
C)   Allocate organizational resources to important departments; provide for the oversight of less important departments
D)   Assign good leaders to the effective work teams; assign poorer leaders to marginally effective work teams
E)   Assign organizational objectives to divisions, departments, and work teams; provide for the coordination of performance results

Question 5

The following five examples describe different types of relationships between employees at the Managementus Corporation. Which set of relationships indicates the existence of a shadow organization?

Accepted Answer

A)   Department managers report directly to the vice presidents in charge of their division.
B)   An employee asks questions of an immediate supervisor, gets answers, and works closely with this person.
C)   In one department, superior-subordinate relationships are strained. Subordinates take direction from the manager of another department.
D)   Members of a word processing pool provide secretarial services for all divisions on a first come, first served basis.
E)   The company president delegates authority to division managers, division managers delegate authority to department managers, and department managers delegate authority to support staff.

Question 6

Crexons Inc. finds that there is too much bureaucracy in their organization. The CEO of the company desires to increase flexibility in the organizational structure. To accomplish this, he must ___.

Accepted Answer

A)   create temporary matrix structures
B)   empower the employees to make their own decisions
C)   establish strict organizational policies
D)   create functional silos to make sure the functions have well-defined boundaries
E)   divide the organization based on processes

Question 7

Which of the following is true of a product structure?

Accepted Answer

A)   It groups together jobs and activities being performed in the same location.
B)   It is used when there is a need to differentiate products or services in various locations.
C)   It groups together jobs and activities that are serving the same customers or clients.
D)   It clearly links costs, profits, problems, and successes in a market area with a central point of accountability.
E)   It helps focus attention on the unique cultures and requirements of different nations.

Question 8

Network organizations own only the support functions and outsource core functions.

Accepted Answer

A) True 
 B)False

Question 9

An organization with narrow spans of control will have fewer managers and more subordinates per manager, whereas an organization with wide spans of control will have more managers and fewer subordinates per manager.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following statements about span of control is not accurate?

Accepted Answer

A)   When the span of control is narrow, relatively few people report directly to a given manager.
B)   Early management theorists sought to determine the optimum span of control for any manager.
C)   There is a limit to the number of people one manager can effectively supervise.
D)   Narrow spans of control create an organization that is less efficient and less flexible.
E)   Wider spans of control usually result in additional management overhead costs.

Question 11

A ___ structure has a central core of full-time employees surrounded by outside contractors and partners that supply essential services.

Accepted Answer

A)   functional
B)   divisional
C)   team
D)   network
E)   matrix

Question 12

Brandon & Sons Inc., a well-established electronics company, uses IT and the Internet to enter into business alliances with software firms spread across different nations to meet specific operating needs and objectives. Once the work is completed, the alliance rests until next called into action. Brandon & Sons Inc. is a ___.

Accepted Answer

A)   cross-functional team
B)   project team,
C)   virtual organization
D)   cross-functional team.
E)   formal organization.

Question 13

Network structures result in increasing overhead and reducing operating efficiency.

Accepted Answer

A) True 
 B)False

Question 14

Social network analysis identifies the informal structures and their embedded social relationships that are active in an organization.

Accepted Answer

A) True 
 B)False

Question 15

When an organization chart shows vice presidents of marketing, manufacturing, finance, and human resources reporting directly to the president of a company, the top management group is organized as a ___ structure.

Accepted Answer

A)   horizontal
B)   vertical
C)   functional
D)   divisional
E)   matrix

Question 16

Which of the following is an advantage of a divisional structure?

Accepted Answer

A)   expertise focused on specific customers, products, and regions
B)   economies of scale with efficient use of resources
C)   reduced costs because of common resources and efforts across divisions
D)   emphasis on the goals of the organization as a whole
E)   no scope for unhealthy rivalries within the organization

Question 17

Which of the following is true with regard to use of staff positions?

Accepted Answer

A)   Organizations can lower costs and increase efficiency by employing fewer staff personnel.
B)   When organizations have smaller staff units, they tend to incur high expenditures.
C)   Line personnel provide expert advice and guidance to people in staff positions.
D)   Organizations can create a central core of full-time staff personnel to improve efficiency.
E)   Organizations should focus on employing more staff personnel to increase efficiency.

Question 18

Narrow spans of control create an organization that is more efficient and flexible, whereas wider spans of control usually result in additional management overhead costs.

Accepted Answer

A) True 
 B)False

Question 19

As organizations grow, they get taller as more levels are added to the chain of command.

Accepted Answer

A) True 
 B)False

Question 20

Workers in a matrix structure belong to at least two formal groups at the same time. These two groups are a ___ group and a ___ group.

Accepted Answer

A)   functional; product, project, or program
B)   supplier; distributor
C)   union; product, project, or program
D)   functional; non-functional
E)   functional; total quality

Exam 11: Organization Structures and Design

___ are particularly appealing because they can best serve the special needs of different customer groups.

The purpose of an organization structure is to design titles for different workers and to assign daily work tasks to them.

A highly adaptive organization can become one that is designed for continuous adaptation through problem solving, innovation, and learning. This type of organization is known as a ___.

Any organization structure should _ and _.

The following five examples describe different types of relationships between employees at the Managementus Corporation. Which set of relationships indicates the existence of a shadow organization?

Crexons Inc. finds that there is too much bureaucracy in their organization. The CEO of the company desires to increase flexibility in the organizational structure. To accomplish this, he must ___.

Which of the following is true of a product structure?

Network organizations own only the support functions and outsource core functions.

An organization with narrow spans of control will have fewer managers and more subordinates per manager, whereas an organization with wide spans of control will have more managers and fewer subordinates per manager.

Which of the following statements about span of control is not accurate?

A ___ structure has a central core of full-time employees surrounded by outside contractors and partners that supply essential services.

Network structures result in increasing overhead and reducing operating efficiency.

Social network analysis identifies the informal structures and their embedded social relationships that are active in an organization.

When an organization chart shows vice presidents of marketing, manufacturing, finance, and human resources reporting directly to the president of a company, the top management group is organized as a ___ structure.

Which of the following is an advantage of a divisional structure?

Which of the following is true with regard to use of staff positions?

Narrow spans of control create an organization that is more efficient and flexible, whereas wider spans of control usually result in additional management overhead costs.

As organizations grow, they get taller as more levels are added to the chain of command.

Workers in a matrix structure belong to at least two formal groups at the same time. These two groups are a _ group and a _ group.