Deck 6: Designing Organizational Structure: Specialization and Coordination

Full screen (f)
exit full mode
Question
When a company must change a product's characteristics quickly to respond to changing customer preferences, a _ structure is most appropriate.

A)product team
B)multidivisional
C)geographic
D)functional
Use Space or
up arrow
down arrow
to flip the card.
Question
A geographic structure organizes people according to:

A)the type of customer they serve.
B)the functions they perform.
C)what the people are required to produce.
D)the regional market they serve.
Question
Which of the following is a disadvantage of a network organization?

A)Higher bureaucratic costs
B)Lower quality
C)Mechanistic behavior
D)Motivation problems
Question
If control problems are due to the number and complexity of a company's products, which of the following structures is least appropriate?

A)Product team
B)Market
C)Product division
D)Multidivisional
Question
Transfer pricing is most commonly used in a structure.

A)multidivisional
B)product team
C)product division
D)geographic
Question
Bureaucratic costs are greatest in a structure.

A)multidivisional
B)product division
C)geographic
D)market
Question
A structure is a design that groups people together on the basis of their common expertise and experience or because they use the same resources.

A)team
B)core
C)product
D)functional
Question
Employees have two bosses in a structure.

A)product team
B)geographic
C)multidivisional matrix
D)multidivisional
Question
A product structure organizes people according to:

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.
Question
Success at Amazon.com has been due to the functional structure, which has provided all of the following except:

A)software development in the R&D department.
B)a narrow selection of books available in bookstores.
C)operations management in the information systems department.
D)planning in the strategic planning department.
Question
A computer manufacturer sells computers online to individual customers, and also has sales reps in the field that market the same computer systems to large businesses. Which of the following structures would be most appropriate for this organization?

A)Product division
B)Multidivisional
C)Product team
D)Market
Question
Which of the following is an advantage of a matrix structure?

A)A corporate staff oversees project teams.
B)Conflict over resources is reduced.
C)Teams are stable, which leads to core competences.
D)The importance of both cost and quality is recognized.
Question
What did BMO do in order to better manage IT investments?

A)Differentiated
B)Diversified
C)Centralized
D)Simplified
E)Both B and D
Question
A corporate headquarters staff is created in a structure.

A)product division
B)product team
C)multidivisional
D)matrix
Question
The IS department of a large organization decides to sell its information to the other divisions in order to better track profits. This is called .

A)an integrating mechanism
B)transfer pricing
C)multidivisional matrix
D)a communication problem
Question
With the new structure, General Motors realized all of the following except:

A)efficiency measured through statistics.
B)centralized decision- making.
C)added investment in profitable divisions.
D)increased morale.
Question
A _ _ structure provides for more integration between corporate and divisional managers and between divisional managers.

A)product division
B)complex
C)market
D)multidivisional matrix
Question
Chrysler moved from a _ structure to a structure.

A)functional/market
B)functional/geographic
C)division/product team
D)market/functional
Question
Which of the following mechanisms does a network structure use to coordinate activities?

A)Hierarchy of authority
B)Integrating roles
C)Teams
D)Contracts
Question
As The B.A.R. and Grille restaurant grew, the owners grouped people together on the basis of their common skills and expertise. This is called a .

A)hierarchy of authority
B)product structure
C)simple structure
D)functional structure
Question
A structure organizes divisions according to the requirements of the different locations in which an organization appears.

A)product
B)functional
C)simple
D)geographic divisional
Question
The creation of an internal labor market is an advantage of the structure.

A)functional
B)market
C)matrix
D)multidivisional
Question
Nike's product design and research function are located in Oregon and all the other production functions are outsourced to companies around the world. Nike uses a structure.

A)network
B)centralized
C)product team
D)geographic
Question
Employees move between teams most often in a _ structure.

A)product team
B)matrix
C)market
D)multidivisional matrix
Question
Deciding how much decision- making authority to centralize at corporate headquarters and how much to decentralize to the divisions can be a disadvantage of the structure.

A)multidivisional
B)matrix
C)functional
D)product division
Question
Integration is highest in a _ structure.

A)multidivisional matrix
B)product division
C)market
D)geographic
Question
As an organization grows, a functional structure does not create .

A)learning problems
B)customer problems
C)location problems
D)communication problems
Question
A geographic structure is most appropriate for which of the following companies?

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
The matrix structure requires a level of vertical coordination and a level of horizontal coordination.

A)high/low
B)low/high
C)low/low
D)high/high
Question
Which of the following is not a divisional structure?

A)Product team
B)Geographic
C)Market
D)Matrix
Question
Which of the following is a difference between the product team and the matrix structures?

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
A food manufacturer is experiencing coordination problems between its frozen food division and its canned food division. The main control problem is that each product requires an entirely separate system for ordering supplies, packaging the product, and storing the product upon completion. Which structure would help solve these coordination problems?

A)Multidivisional
B)Matrix
C)Market
D)Product division
Question
Hallmark organized around categories of greeting cards such as Mother's Day cards and Christmas cards. This structure is called _.

A)product team
B)functional
C)simple
D)geographic
Question
A market structure organizes people according to:

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

A)multidivisional
B)product team
C)functional
D)product division
Question
An advantage of the multidivisional system is:

A)decreased control.
B)profitability cannot be evaluated.
C)corporate managers monitor divisional managers.
D)responsibility is unclear.
Question
Caterpillar needed to restructure its organization in order to reduce costs because of competition. Which structure did it use?

A)Geographic
B)Multidivisional matrix
C)Matrix
D)Product Team
Question
A multidivisional matrix structure:

A)has low bureaucratic costs.
B)has a flatter hierarchy than a multidivisional structure.
C)enhances coordination between corporate headquarters and the divisions.
D)is a design in which most divisions have a matrix structure.
Question
A company will be able to handle more complex product choices when it moves from a structure to a structure.

A)multidivisional/matrix
B)multidivisional/market
C)functional/product division
D)functional/geographic
Question
A regional company markets ice cream, milk, and frozen yogurt. A structure is the most appropriate structure for this firm.

A)market
B)product team
C)product division
D)multidivisional
Question
Most large U.S. companies use the structure.

A)product team
B)multidivisional matrix
C)global
D)multidivisional
Question
is the moving of a value creation activity that was done inside the organization to the outside, where it is done by another company.

A)Outsourcing
B)Networking
C)Decentralization
D)Production
Question
Disadvantages of the matrix structure include .

A)conflict over resources
B)duplication of functions
C)a tall hierarchy
D)lack of concern for cost
Question
Which of the following is an advantage of the multidivisional structure?

A)Bureaucratic costs are low.
B)An internal labor market is created.
C)Development time is fast due to decentralization.
D)Functional specialists from each division can easily share information with each other.
Question
Location problems occur in a structure.

A)multidivisional
B)geographic
C)functional
D)matrix
Question
If control problems are due to different types of customers purchasing similar products, which of the following structures would be most appropriate?

A)Product team
B)Multidivisional
C)Market
D)Product division
Question
Which of the following structures maximizes the use of employees?

A)Multidivisional matrix
B)Matrix
C)Functional
D)Geographic
Question
A product division structure:

A)allows a company to operate in several markets.
B)has centralized support functions at the top of the organization.
C)has a corporate headquarters staff.
D)has self- contained operating units.
Question
A construction equipment manufacturer sells tractors and other farming equipment to individual farmers, large agricultural cooperatives, food processors, and the government. The company operates solely in the Midwest region of the United States. Which of the following structures is most appropriate for this organization?

A)Multidivisional
B)Functional
C)Product division
D)Market
Question
A _ _ structure has specialists from support functions combined into product development teams that specialize in the needs of a particular kind of product.

A)task force
B)group
C)product team
D)functional
Question
When a company moves from a functional structure to a divisional structure, it generally:

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
Wal- Mart needs to meet global customer needs, so it has a structure.

A)market
B)team
C)product division
D)functional
Question
Production, marketing, and sales have little opportunity to specialize in the needs of a customer group. This is a problem associated with a functional structure.

A)communication
B)customer
C)strategic
D)location
Question
All of the following are potential disadvantages of the multidivisional structure except:

A)high bureaucratic costs.
B)inability to monitor divisions.
C)transfer pricing problems.
D)conflict over resources.
Question
Specialist activities are duplicated in a structure.

A)multidivisional
B)functional
C)geographic
D)matrix
Question
can sometimes overcome control problems in a functional structure, making it unnecessary to move to a more complex structure.

A)Increasing horizontal differentiation
B)Improving integration
C)Increasing vertical differentiation
D)Diversification
Question
A functional structure is most appropriate for companies that:

A)sell many products to one type of customer.
B)sell many products in one location.
C)sell a small number of products to one type of customer.
D)sell one product in many locations.
Question
The move to a more complex structure is based on all design choices except:

A)increasing formalization.
B)increasing integration.
C)increasing vertical differentiation.
D)increasing horizontal differentiation.
Question
Which of the following is not an advantage of a network organization?

A)Ability to act in an organic manner
B)Ability to develop core competences
C)Lower production costs
D)Lower bureaucratic costs
Question
The boundaryless organization is characterized by all of the following except:

A)a matrix structure.
B)members who are transferred to projects as their services are needed.
C)the use of contracts.
D)the use of electronic means to connect people.
Question
In a product division structure, a centralized set of support functions service the needs of a number of different product lines.
Question
A structure has support functions placed in self- contained divisions.

A)team
B)multidivisional
C)functional
D)geographic
Question
A _ structure has functions grouped together according to the specific demands of products, markets, or customers.

A)differentiated
B)functional
C)divisional
D)simple
Question
Mellon Bank centralized its advertising, market research, and computer functions.
Question
A large U.S. company operated in several businesses, including computers, disk drives, financial services, and defense satellites. Each division was self- contained. However, due to an economic downturn and changing market conditions, the company sold its noncore businesses of financial services and defense satellites in order to focus only on
computer- related products. However, after making these sales, its costs were still high. What was the problem and how can it be resolved?
Question
Which of the following structures is the flattest?

A)Product team
B)Geographic
C)Market
D)Matrix
Question
Horizontal differentiation begins when a company adopts a structure.

A)global
B)matrix
C)product division
D)functional
Question
Each division within a product division structure can have a different organizational structure.
Question
Amazon.com focused on the best way to divide into functions the total task of creating value for customers.
Question
A high- tech company is likely to experience more disadvantages using a network structure than a low- tech company.
Question
Under the leadership of Alfred Sloan, General Motors:

A)eliminated the corporate level in the organization.
B)grouped businesses into self- contained divisions.
C)centralized support functions at the top of the organization.
D)centralized decision- making authority.
Question
People in a group can supervise each other in a functional structure.
Question
Decision- making is most decentralized in a structure.

A)product division
B)functional
C)geographic
D)product team
Question
X company is organized into five product divisions and has been successful in the past. However, due to changing conditions and increased competition, its market share has started to erode. What should this company do to maintain its competitive advantage?
Question
Because managers in each division hire managers and workers independently, the lack of an internal labor market is one disadvantage to a multidivisional structure.
Question
A matrix structure is characterized by .

A)vague authority relationships
B)fixed product teams
C)a tall hierarchy
D)low integration
Question
As a consultant to a technological company, you find in surveys that most employees are stressed in their jobs. Complaints include different people telling employees to do different things, and employees not having the opportunity to get to know coworkers. What is the problem and how can it be resolved?
Question
Which of the following is a difference between the product division structure and the multidivisional structure?

A)Divisions are independent in a multidivisional structure, but not in a product division structure.
B)Vertical differentiation is increased in the product division structure, but not in the multidivisional structure.
C)Support functions are centralized at the top of the organization in a multidivisional structure, but decentralized to the divisions in a product division structure.
D)Horizontal differentiation is increased in the multidivisional structure, but not in the product division structure.
Question
Employee roles are clearly defined in a matrix structure.
Question
Top managers spend so much time resolving everyday problems that they can't address long- term company issues. This is a _ problem associated with the functional structure.

A)strategic
B)measurement
C)customer
D)location
Unlock Deck
Sign up to unlock the cards in this deck!
Unlock Deck
Unlock Deck
1/96
auto play flashcards
Play
simple tutorial
Full screen (f)
exit full mode
Deck 6: Designing Organizational Structure: Specialization and Coordination
1
When a company must change a product's characteristics quickly to respond to changing customer preferences, a _ structure is most appropriate.

A)product team
B)multidivisional
C)geographic
D)functional
A
2
A geographic structure organizes people according to:

A)the type of customer they serve.
B)the functions they perform.
C)what the people are required to produce.
D)the regional market they serve.
D
3
Which of the following is a disadvantage of a network organization?

A)Higher bureaucratic costs
B)Lower quality
C)Mechanistic behavior
D)Motivation problems
D
4
If control problems are due to the number and complexity of a company's products, which of the following structures is least appropriate?

A)Product team
B)Market
C)Product division
D)Multidivisional
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
5
Transfer pricing is most commonly used in a structure.

A)multidivisional
B)product team
C)product division
D)geographic
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
6
Bureaucratic costs are greatest in a structure.

A)multidivisional
B)product division
C)geographic
D)market
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
7
A structure is a design that groups people together on the basis of their common expertise and experience or because they use the same resources.

A)team
B)core
C)product
D)functional
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
8
Employees have two bosses in a structure.

A)product team
B)geographic
C)multidivisional matrix
D)multidivisional
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
9
A product structure organizes people according to:

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.
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
10
Success at Amazon.com has been due to the functional structure, which has provided all of the following except:

A)software development in the R&D department.
B)a narrow selection of books available in bookstores.
C)operations management in the information systems department.
D)planning in the strategic planning department.
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
11
A computer manufacturer sells computers online to individual customers, and also has sales reps in the field that market the same computer systems to large businesses. Which of the following structures would be most appropriate for this organization?

A)Product division
B)Multidivisional
C)Product team
D)Market
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
12
Which of the following is an advantage of a matrix structure?

A)A corporate staff oversees project teams.
B)Conflict over resources is reduced.
C)Teams are stable, which leads to core competences.
D)The importance of both cost and quality is recognized.
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
13
What did BMO do in order to better manage IT investments?

A)Differentiated
B)Diversified
C)Centralized
D)Simplified
E)Both B and D
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
14
A corporate headquarters staff is created in a structure.

A)product division
B)product team
C)multidivisional
D)matrix
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
15
The IS department of a large organization decides to sell its information to the other divisions in order to better track profits. This is called .

A)an integrating mechanism
B)transfer pricing
C)multidivisional matrix
D)a communication problem
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
16
With the new structure, General Motors realized all of the following except:

A)efficiency measured through statistics.
B)centralized decision- making.
C)added investment in profitable divisions.
D)increased morale.
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
17
A _ _ structure provides for more integration between corporate and divisional managers and between divisional managers.

A)product division
B)complex
C)market
D)multidivisional matrix
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
18
Chrysler moved from a _ structure to a structure.

A)functional/market
B)functional/geographic
C)division/product team
D)market/functional
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
19
Which of the following mechanisms does a network structure use to coordinate activities?

A)Hierarchy of authority
B)Integrating roles
C)Teams
D)Contracts
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
20
As The B.A.R. and Grille restaurant grew, the owners grouped people together on the basis of their common skills and expertise. This is called a .

A)hierarchy of authority
B)product structure
C)simple structure
D)functional structure
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
21
A structure organizes divisions according to the requirements of the different locations in which an organization appears.

A)product
B)functional
C)simple
D)geographic divisional
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
22
The creation of an internal labor market is an advantage of the structure.

A)functional
B)market
C)matrix
D)multidivisional
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
23
Nike's product design and research function are located in Oregon and all the other production functions are outsourced to companies around the world. Nike uses a structure.

A)network
B)centralized
C)product team
D)geographic
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
24
Employees move between teams most often in a _ structure.

A)product team
B)matrix
C)market
D)multidivisional matrix
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
25
Deciding how much decision- making authority to centralize at corporate headquarters and how much to decentralize to the divisions can be a disadvantage of the structure.

A)multidivisional
B)matrix
C)functional
D)product division
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
26
Integration is highest in a _ structure.

A)multidivisional matrix
B)product division
C)market
D)geographic
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
27
As an organization grows, a functional structure does not create .

A)learning problems
B)customer problems
C)location problems
D)communication problems
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
28
A geographic structure is most appropriate for which of the following companies?

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
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
29
The matrix structure requires a level of vertical coordination and a level of horizontal coordination.

A)high/low
B)low/high
C)low/low
D)high/high
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
30
Which of the following is not a divisional structure?

A)Product team
B)Geographic
C)Market
D)Matrix
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
31
Which of the following is a difference between the product team and the matrix structures?

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.
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
32
A food manufacturer is experiencing coordination problems between its frozen food division and its canned food division. The main control problem is that each product requires an entirely separate system for ordering supplies, packaging the product, and storing the product upon completion. Which structure would help solve these coordination problems?

A)Multidivisional
B)Matrix
C)Market
D)Product division
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
33
Hallmark organized around categories of greeting cards such as Mother's Day cards and Christmas cards. This structure is called _.

A)product team
B)functional
C)simple
D)geographic
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
34
A market structure organizes people according to:

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.
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
35
Core competences first emerge when a company adopts a _ structure.

A)multidivisional
B)product team
C)functional
D)product division
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
36
An advantage of the multidivisional system is:

A)decreased control.
B)profitability cannot be evaluated.
C)corporate managers monitor divisional managers.
D)responsibility is unclear.
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
37
Caterpillar needed to restructure its organization in order to reduce costs because of competition. Which structure did it use?

A)Geographic
B)Multidivisional matrix
C)Matrix
D)Product Team
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
38
A multidivisional matrix structure:

A)has low bureaucratic costs.
B)has a flatter hierarchy than a multidivisional structure.
C)enhances coordination between corporate headquarters and the divisions.
D)is a design in which most divisions have a matrix structure.
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
39
A company will be able to handle more complex product choices when it moves from a structure to a structure.

A)multidivisional/matrix
B)multidivisional/market
C)functional/product division
D)functional/geographic
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
40
A regional company markets ice cream, milk, and frozen yogurt. A structure is the most appropriate structure for this firm.

A)market
B)product team
C)product division
D)multidivisional
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
41
Most large U.S. companies use the structure.

A)product team
B)multidivisional matrix
C)global
D)multidivisional
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
42
is the moving of a value creation activity that was done inside the organization to the outside, where it is done by another company.

A)Outsourcing
B)Networking
C)Decentralization
D)Production
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
43
Disadvantages of the matrix structure include .

A)conflict over resources
B)duplication of functions
C)a tall hierarchy
D)lack of concern for cost
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
44
Which of the following is an advantage of the multidivisional structure?

A)Bureaucratic costs are low.
B)An internal labor market is created.
C)Development time is fast due to decentralization.
D)Functional specialists from each division can easily share information with each other.
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
45
Location problems occur in a structure.

A)multidivisional
B)geographic
C)functional
D)matrix
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
46
If control problems are due to different types of customers purchasing similar products, which of the following structures would be most appropriate?

A)Product team
B)Multidivisional
C)Market
D)Product division
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
47
Which of the following structures maximizes the use of employees?

A)Multidivisional matrix
B)Matrix
C)Functional
D)Geographic
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
48
A product division structure:

A)allows a company to operate in several markets.
B)has centralized support functions at the top of the organization.
C)has a corporate headquarters staff.
D)has self- contained operating units.
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
49
A construction equipment manufacturer sells tractors and other farming equipment to individual farmers, large agricultural cooperatives, food processors, and the government. The company operates solely in the Midwest region of the United States. Which of the following structures is most appropriate for this organization?

A)Multidivisional
B)Functional
C)Product division
D)Market
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
50
A _ _ structure has specialists from support functions combined into product development teams that specialize in the needs of a particular kind of product.

A)task force
B)group
C)product team
D)functional
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
51
When a company moves from a functional structure to a divisional structure, it generally:

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.
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
52
Wal- Mart needs to meet global customer needs, so it has a structure.

A)market
B)team
C)product division
D)functional
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
53
Production, marketing, and sales have little opportunity to specialize in the needs of a customer group. This is a problem associated with a functional structure.

A)communication
B)customer
C)strategic
D)location
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
54
All of the following are potential disadvantages of the multidivisional structure except:

A)high bureaucratic costs.
B)inability to monitor divisions.
C)transfer pricing problems.
D)conflict over resources.
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
55
Specialist activities are duplicated in a structure.

A)multidivisional
B)functional
C)geographic
D)matrix
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
56
can sometimes overcome control problems in a functional structure, making it unnecessary to move to a more complex structure.

A)Increasing horizontal differentiation
B)Improving integration
C)Increasing vertical differentiation
D)Diversification
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
57
A functional structure is most appropriate for companies that:

A)sell many products to one type of customer.
B)sell many products in one location.
C)sell a small number of products to one type of customer.
D)sell one product in many locations.
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
58
The move to a more complex structure is based on all design choices except:

A)increasing formalization.
B)increasing integration.
C)increasing vertical differentiation.
D)increasing horizontal differentiation.
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
59
Which of the following is not an advantage of a network organization?

A)Ability to act in an organic manner
B)Ability to develop core competences
C)Lower production costs
D)Lower bureaucratic costs
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
60
The boundaryless organization is characterized by all of the following except:

A)a matrix structure.
B)members who are transferred to projects as their services are needed.
C)the use of contracts.
D)the use of electronic means to connect people.
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
61
In a product division structure, a centralized set of support functions service the needs of a number of different product lines.
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
62
A structure has support functions placed in self- contained divisions.

A)team
B)multidivisional
C)functional
D)geographic
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
63
A _ structure has functions grouped together according to the specific demands of products, markets, or customers.

A)differentiated
B)functional
C)divisional
D)simple
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
64
Mellon Bank centralized its advertising, market research, and computer functions.
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
65
A large U.S. company operated in several businesses, including computers, disk drives, financial services, and defense satellites. Each division was self- contained. However, due to an economic downturn and changing market conditions, the company sold its noncore businesses of financial services and defense satellites in order to focus only on
computer- related products. However, after making these sales, its costs were still high. What was the problem and how can it be resolved?
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
66
Which of the following structures is the flattest?

A)Product team
B)Geographic
C)Market
D)Matrix
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
67
Horizontal differentiation begins when a company adopts a structure.

A)global
B)matrix
C)product division
D)functional
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
68
Each division within a product division structure can have a different organizational structure.
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
69
Amazon.com focused on the best way to divide into functions the total task of creating value for customers.
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
70
A high- tech company is likely to experience more disadvantages using a network structure than a low- tech company.
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
71
Under the leadership of Alfred Sloan, General Motors:

A)eliminated the corporate level in the organization.
B)grouped businesses into self- contained divisions.
C)centralized support functions at the top of the organization.
D)centralized decision- making authority.
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
72
People in a group can supervise each other in a functional structure.
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
73
Decision- making is most decentralized in a structure.

A)product division
B)functional
C)geographic
D)product team
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
74
X company is organized into five product divisions and has been successful in the past. However, due to changing conditions and increased competition, its market share has started to erode. What should this company do to maintain its competitive advantage?
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
75
Because managers in each division hire managers and workers independently, the lack of an internal labor market is one disadvantage to a multidivisional structure.
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
76
A matrix structure is characterized by .

A)vague authority relationships
B)fixed product teams
C)a tall hierarchy
D)low integration
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
77
As a consultant to a technological company, you find in surveys that most employees are stressed in their jobs. Complaints include different people telling employees to do different things, and employees not having the opportunity to get to know coworkers. What is the problem and how can it be resolved?
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
78
Which of the following is a difference between the product division structure and the multidivisional structure?

A)Divisions are independent in a multidivisional structure, but not in a product division structure.
B)Vertical differentiation is increased in the product division structure, but not in the multidivisional structure.
C)Support functions are centralized at the top of the organization in a multidivisional structure, but decentralized to the divisions in a product division structure.
D)Horizontal differentiation is increased in the multidivisional structure, but not in the product division structure.
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
79
Employee roles are clearly defined in a matrix structure.
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
80
Top managers spend so much time resolving everyday problems that they can't address long- term company issues. This is a _ problem associated with the functional structure.

A)strategic
B)measurement
C)customer
D)location
Unlock Deck
Unlock for access to all 96 flashcards in this deck.
Unlock Deck
k this deck
locked card icon
Unlock Deck
Unlock for access to all 96 flashcards in this deck.