Deck 11: Organization Structures

Question 1

A divisional structure is characterized by reduced coordination across functional departments.

Answer 1

False

Question 2

Informal networks are sources of emotional support and friendship that satisfy members' social needs.

Answer 2

True

Question 3

In a functional structure, the functions become formalized not only on the organization chart, but also in the mind-sets of people.

Answer 3

True

Question 4

A social network analysis is a tool that identifies formal structures and their social relationships.

Question 5

In a matrix structure, top managers are freed from lower-level problem solving to focus time on more strategic issues.

Question 6

Functional structures tend to work best in relatively stable environments where problems are predictable and the demands for change and innovation are limited.

Question 7

Team meetings in matrix structures are short and quick.

Question 8

An organization structure is the system of tasks, workflows, reporting relationships, and communication channels that link together the work of diverse individuals and groups.

Question 9

An organization chart includes major subunits in which positions reporting to a common manager are shown.

Question 10

Workers in a matrix structure report to two supervisors-one within the function and the other within the team.

Question 11

A product structure prompts managers to be responsive to changing market demands and customer tastes.

Question 12

A matrix structure is characterized by poor customer service.

Question 13

In a functional structure, people working on the same product, in the same area, with similar customers, or on the same processes, are grouped together.

Question 14

Geographical structures are typically used when there is a need to differentiate products or services in various locations, such as in different parts of a country.

Question 15

Workers in a matrix structure are allowed to be part of only one formal group at a time.

Question 16

Organizations that do not communicate, coordinate, or problem solve across functions have a functional silo problem.

Question 17

Divisional structures are common in organizations dealing with only one or a few products or services.

Question 18

Divisional structures can create unhealthy rivalries as divisions compete for resources and top management attention.

Question 19

One of the disadvantages of functional structures is that employees lack a clear career path within functions.

Question 20

A customer structure is the least common structure in the consumer products industry.

Question 21

Sara's job includes dividing up the work and assigning tasks to each employee. She identifies people responsible for each task, decides the reporting structure, and decides employees' work relationships. Sarah is a part of the _____ team in her company.

A) financing
B) sourcing
C) controlling
D) decentralizing
E) organizing

Question 22

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

A) Economies of scale with efficient use of resources
B) Improved coordination across functional departments
C) Establishment of a sense of common purpose
D) Clear points of responsibility for product or service delivery
E) Expertise focused on specific customers, products, and regions

Question 23

Which of the following is a disadvantage of informal structures?

A) They are characterized by too many vertical layers of management.
B) They are typified by the presence of complex formal communication flows.
C) They have very centralized systems that restrict employee freedom.
D) They are characterized by the existence of "in" and "out" groups.
E) They discourage informal learning as people work and interact together throughout the workday.

Question 24

Fredent Corporation, an apparel manufacturer, creates groups of employees with similar skills performing similar tasks. Members of each such group share technical knowledge, skills, and responsibilities. Which of the following structures is being used by Fredent Corporation?

A) Product structure
B) Divisional structure
C) Functional structure
D) Geographical structure
E) Customer structure

Question 25

Which of the following is true of a functional structure?

A) It is characterized by low-quality technical problem solving.
B) It consists of task assignments consistent with expertise and training.
C) It does not have the advantage of economies of scale.
D) It is common in complex organizations with diverse operations.
E) It is the ideal structure when there is a need to differentiate products or services in various locations.

Question 26

Project teams are permanent in nature and cannot be disbanded.

Question 27

Network structures result in increasing overhead and reducing operating efficiency.

Question 28

In an organizational structure, major subunits refer to:

A) positions and titles that show work responsibilities.
B) lines that show who reports to whom.
C) positions that report to a common manager.
D) lines that show how formal communication flows.
E) the vertical layers of management.

Question 29

Which of the following asks people to identify others to whom they turn for help most often, with whom they communicate regularly, and who gives them energy and motivation?

A) Social network analysis
B) Formal structures
C) Forces analysis
D) SWOT analysis
E) Four corners model

Question 30

Self-enhancement bias is the tendency to see yourself as more capable, intelligent, and ethical than others.

Question 31

Which of the following is true of a formal structure?

A) Formal structures work only in organizations with diverse operations that extend across many products, customers, and work processes.
B) The lines of the formal structure cut across levels and move from side to side.
C) Formal structures are characterized by the existence of "in" and "out" groups.
D) Lines in a formal structure are drawn from person to person according to frequency and type of relationship maintained.
E) A formal structure consists of vertical layers of management.

Question 32

Which of the following is true of informal structures?

A) They represent supervisory relationships.
B) They help in preventing the occurrence of rumors.
C) They are sources of emotional support and friendship.
D) They show the vertical layers of management.
E) They are characterized by the presence of major subunits.

Question 33

In an organizational structure, division of work refers to:

A) lines that show who reports to whom.
B) positions and titles that show work responsibilities.
C) the vertical layers of management.
D) lines that show formal communication flows.
E) positions that report to a common manager.

Question 34

Agile organizations are structured to be slow moving so that they can adequately adjust to changing market conditions.

Question 35

Organizations with team structures make extensive use of both permanent and temporary teams to solve problems, complete special projects, and accomplish day-to-day tasks.

Question 36

Which of the following are included in the basics of a formal organizational structure?

A) Communication channels
B) Friendship cliques
C) Social relationships
D) Grapevine structures
E) Sources of emotional support

Question 37

Empowerment refers to letting others make decisions and exercise discretion in their work.

Question 38

Supplier strategic alliances link businesses in preferred supplier-customer relationships that guarantee a smooth and timely flow of quality supplies among the partners.

Question 39

An organization structure refers to:

A) a relationship between two or more firms to meet a particular business need.
B) the group of employees who perform jobs together in the same location.
C) the network of employees in a particular team.
D) a system of tasks, reporting relationships, and communication linkages.
E) a cooperation agreement with another organization to jointly pursue activities of mutual interest.

Question 40

A _____ structure groups together people with similar skills who perform similar tasks.

A) product
B) divisional
C) geographical
D) customer
E) functional

Question 41

Which of the following is true about a team structure?

A) A temporary team does not have prominence in a team structure.
B) A team structure is most often observed in a vertical organization.
C) The intention of a team structure is to create more effective lateral relations around and across the organization.
D) In a team structure, cross-functional structures are convened for a particular task or project and disbanded once the task is completed.
E) The main focus of a team structure is to improve and maintain the hierarchical system of management.

Question 42

Which of the following is true of a matrix structure?

A) Workers in a matrix structure are allowed to be part of only one team at a time.
B) A matrix structures does not have the ability to be flexible while dealing with regional differences.
C) It is accomplished by creating permanent teams that cut across functions to support specific products, projects, or programs.
D) A matrix structure is made up of temporary teams that are disbanded after each project.
E) A matrix structure involves top management in lower-level problem solving.

Question 43

Employees who are involved in designing, engineering, and preparing models are grouped together at Zener Inc. Further, employees who engage in public relations, sales promotion, advertising, and direct marketing are put together in another team. Which of the following structures exists at Zener Inc.?

A) Geographical structure
B) Product structure
C) Customer structure
D) Client structure
E) Process structure

Question 44

Rezter Group, a consumer goods company, owns several brands that produce different goods. Each brand is focused on a single consumer good and has a separate chief executive who is responsible for the manufacturing, sales, costs, profits, and losses of his or her brand. This implies that each brand at Rezter Group is applying a _____ structure in the organization.

A) geographical
B) product
C) customer
D) functional
E) process

Question 45

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

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 46

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

A) Improved strategic management
B) No scope for issues such as "groupitis" across teams
C) Clearly defined tasks and no conflict in work priorities
D) No power struggles across teams
E) Fast and effective team meetings

Question 47

Which of the following is true of a product structure?

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 48

An order fulfillment by a catalog retailer, a procedure that takes an order from point of initiation by the customer to point of fulfilment by a delivered product is an example of a _____.

A) operational chimney
B) functional silo
C) directional array
D) work process
E) strategic alliance

Question 49

Which of the following is a limitation of having a team structure?

A) The total time spent together in a team meeting is not productive.
B) A team structure is associated with poor performance.
C) Project teams are informal structures that group together jobs and activities focused on a single product or service.
D) People working in a team structure often experience a reduced sense of identification.
E) A team structure is not very effective at mobilizing talents.

Question 50

Slice-It Inc., a fast food organization operating in many countries, varies its menus in different countries according to local tastes and preferences. It groups together employees and tasks working in the same location. Which of the following structures is Slice-It Inc. using?

A) Geographical structure
B) Product structure
C) Customer structure
D) Functional structure
E) Process structure

Question 51

Which of the following is true of a divisional structure?

A) It is common in organizations dealing with only one or a few products or services.
B) It tends to work best in relatively stable environments where problems are predictable.
C) Its main focus is to put together people within the same expertise and help them work together.
D) It is an attempt to gain the advantages and minimize the disadvantages of the matrix structure.
E) It overcomes the disadvantages of a functional structure, such as the functional chimneys problem.

Question 52

A _____ groups together people working on the same product, in the same area, with similar customers, or on the same processes.

A) functional structure
B) silos structure
C) divisional structure
D) vertical structure
E) matrix structure

Question 53

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

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

Question 54

Which of the following is true of a project team?

A) Project teams are examples of traditional vertical structures.
B) Project teams are characterized by a lack of communication and coordination across functions.
C) Project teams are informal structures that group together jobs and activities focused on a single product or service.
D) Project teams are temporary and disband once the task is completed.
E) Project teams are created at the beginning of a project and cannot be disbanded as they are retained for future projects.

Question 55

Amethyst Inc.'s organizational structure combines jobs that serve clients based on factors such as their ages, tastes, and preferences. Which of the following organizational structures exists at Amethyst Inc.?

A) Geographical structure
B) Product structure
C) Customer structure
D) Functional structure
E) Process structure

Question 56

Which of the following is true about the geographical structure?

A) It helps focus attention on the unique cultures and requirements of particular regions.
B) Under this structure, jobs and activities are grouped together based on preferences of similar clients.
C) It groups together jobs and activities that are part of the same processes.
D) It groups together people with similar skills who perform similar tasks.
E) Under this structure, each product division is given a chief executive who is responsible for its own profits and losses.

Question 57

Which of the following is a disadvantage of divisional structures?

A) There is reduced flexibility in adding, removing, or changing operations to meet changing demands.
B) They increase costs through the duplication of resources and efforts across divisions.
C) They reduce the level of coordination across functional departments.
D) They make it impossible to focus on specific customers, products, and regions.
E) They require the deletion of divisions in an organization.

Question 58

Which of the following is a disadvantage of a matrix structure?

A) The requirement of adding the team leaders to a matrix structure can result in higher costs.
B) A matrix structure results in reduced performance accountability through the program, product, or project managers.
C) Matrix structures are associated with very poor customer service.
D) A matrix structure stresses that top managers must engage in both lower-level problem as well as more strategic issues.
E) Matrix structures lead to reduced flexibility in adding, removing, or changing operations to meet changing demands.

Question 59

A network structure helps lower costs and improves flexibility in dealing with changing environments because:

A) it brings together members from different functional departments in the organization.
B) the central core is relatively small and the surrounding networks can be expanded or shrunk as needed.
C) the central core consists of temporary employees and focuses on cross-functional teams to improve lateral relations.
D) it has vertical levels of management and hierarchical levels of authority.
E) the central core is relatively big, and that provides the advantage of economies of scale.

Question 60

Which of the following is a horizontal structure that brings together members from different departments such as marketing, production, and accounting?

A) Divisional structure
B) Functional structure
C) Cross-functional team
D) Process structure
E) Product-oriented team

Question 61

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

A) Network structures are lean and fast.
B) If one part of the network breaks down or fails to deliver, the other parts of the network will continue working.
C) A network structure is characterized by technology that enables the organization to have control over activities contracted out.
D) A network structure has an efficient vertical management system.
E) Network structures have a relatively large central core that gives them stability.

Question 62

Delix Juices Co., well-known for its fruit juices with catchy names, has recently signed an agreement with Finred Books Ltd. According to this agreement, Delix Juices Co. has an outlet at each Finred store. This agreement has led to an increase in profits for both the companies as sales of both have increased. This is an example of a _____.

A) boundaryless organization
B) joint venture
C) cross-functional team
D) strategic alliance
E) co-operative structure

Question 63

A strategic alliance is a(n):

A) contract that brings together members from different functional departments in an organization.
B) cooperation agreement with another organization to jointly pursue activities of mutual interest.
C) organizational structure that combines the functional and divisional structures.
D) set-up that eliminates internal boundaries among subsystems and external boundaries with the external environment.
E) arrangement that emphasizes formal authority, order, fairness, and efficiency.

Question 64

Which of the following is true of a mechanistic design?

A) It is a horizontal structure with decentralized authority.
B) It is characterized by wide spans of control.
C) It is characterized by a precise division of labor.
D) It is typified by informal means of coordination.
E) It is a design with very few rules and procedures.

Question 65

The staff at Grace Grocery Store is assigned specific tasks such as receiving supply, arranging stock, making sales, preparing cash registers, and so on. They perform the same task every day. The firm is characterized by formal means of coordination. Grace Grocery Store is functioning with a(n) _____ design.

A) organic
B) decentralized
C) mechanistic
D) adaptive
E) boundaryless

Question 66

Which of the following is true of an organic design?

A) It is a horizontal structure with decentralized authority.
B) It has narrow spans of control.
C) It has a vertical structure of authority.
D) It is typified by many rules and procedures.
E) It is characterized by very precise division of labor.

Question 67

Which of the following is a disadvantage of network structures?

A) The central core of network structures is relatively small and the surrounding networks tend to expand or shrink continuously.
B) There is a potential to experience a lack of loyalty among contractors who are used infrequently.
C) A network structure is characterized by lack of flexibility which leads to problems while dealing with changing environments.
D) Network structures are broad and complex.
E) Network structures tend to increase overheads of an organization and reduce its operating efficiency.

Question 68

Suppose you start a new business to compete with Uber. You design an easy-to-use app and arrange for drivers to get paid a percentage for each ride. This is an example of a ____.

A) cross-functional team
B) functional chimney
C) matrix structure
D) network structure
E) strategic alliance

Question 69

Which of the following emphasizes formal authority, order, fairness, and efficiency?

A) Bureaucracy
B) Boundaryless organization
C) Decentralization
D) Strategic business unit
E) Strategic alliance

Question 70

An organizational design:

A) is the process of creating structures that accomplish mission and objectives.
B) is a system of tasks, reporting relationships, and communication linkages.
C) is a group of related tasks that collectively creates a valuable work product.
D) identifies the informal structures and their embedded social relationships that are active in an organization.
E) is a cooperation agreement with another organization to jointly pursue activities of mutual interest.

Question 71

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 _____.

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

Question 72

Feast-It Inc., a fast food corporation, entered into an agreement with Spark Inc., a company that manufactures cheese, mayonnaise, and other toppings. Feast-It Inc. exclusively uses the toppings produced by Spark Inc. This business agreement has resulted in benefits for both the companies. This is an example of a _____.

A) boundaryless organization
B) joint venture
C) cross-functional team
D) co-operative structure
E) strategic alliance

Question 73

LMZ Inc. functions with systematic order and a hierarchical system of management. It is characterized by formal channels of communication. The employees of the firm are required to strictly abide by the formal rules of the company. LMZ Inc. is a(n) _____.

A) adaptive organization
B) bureaucracy
C) decentralized organization
D) boundaryless organization
E) autocracy

Question 74

Adzen Inc., an advertising firm, has a horizontal structure with simple rules and procedures. It achieves targets by having personal means of coordination. The firm values the existence of informal groups and does not believe in division of labor. Which of the following designs is being used by Adzen Inc.?

A) Organic
B) Centralized
C) Bureaucratic
D) Nonadaptive
E) Authoritative

Question 75

Which of the following is true about a network structure?

A) It does everything for itself with full-time employees.
B) It consists of networks that are composed of full-time employees.
C) It groups jobs and activities that are part of the same processes.
D) It consists of a relatively small central core that results in an increase in costs.
E) It employs a minimum staff and contracts out as much work as possible.

Question 76

A _____ uses IT and the Internet to engage a shifting network of strategic alliances.

A) formal structure
B) project team
C) virtual organization
D) bureaucratic structure
E) matrix organization

Question 77

Zack Books Ltd., an international library headquartered in Alabama, has many branches across different countries. It uses information technology to be in regular contact with its various outside suppliers of books and magazines. Which of the following organizational structures is being used by the library?

A) Functional structure
B) Network structure
C) Divisional structure
D) Team structure
E) Matrix structure

Question 78

Which of the following is true of a bureaucracy?

A) It is characterized by open divisions of labor.
B) It encourages worker empowerment and teamwork.
C) It is built on a foundation of trust that people will do the right things on their own initiative.
D) It is a vertical structure with promotion based on competency.
E) It performs well in environments that demand flexibility in dealing with changing conditions.

Question 79

A CEO at Widgets R Us takes a new opportunity at Create-A-Cart. The CEO knows the same matrix structure that worked at Widgets R Us ___ at Create-A-Cart because

A) will work; every organization emphasizes formal authority, order, fairness, and efficiency.
B) may not work; every organization faces its own set of unique problems and opportunities.
C) may not work; all organizations are not affected by situational contingencies such as task, technology, environment, and people.
D) will work; every organization has narrow spans of control and structures of the traditional pyramid form.
E) will work; all organizations have sufficient resources to jointly pursue mutual interests with another organization.

Question 80

The best organizational design is the one that:

A) emphasizes formal authority, order, fairness, and efficiency.
B) is centralized, with many rules and procedures, a clear-cut division of labor, narrow spans of control, and formal coordination.
C) emphasizes a vertical structure, hierarchy of authority, and promotion based on competency.
D) achieves a good match between structure and situational contingencies.
E) has narrow spans of control and structures of the pyramid form.