Question 1

Most Fortune 500 companies use a functional structure because it allows them to grow and expand their operations while maintaining control over their activities.

Accepted Answer

A) True 
 B)False

Question 2

Multidivisional structures tend to be the tallest of all organizational structures.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following ways can be used by a manager to increase vertical differentiation?

Accepted Answer

A)   increase the number of levels in the hierarchy
B)   increase the richness of the environment
C)   diversify the business
D)   manufacture products at several different locationsE) A) and D)
F) None of the above

Question 4

Which of the following is a difference between the product team and the matrix structures?

Accepted Answer

A)   Employees have two bosses in a product team structure and only one boss in a matrix structure.
B)   A product team structure uses teams to coordinate activities but a matrix structure does not use teams.
C)   Employees move between teams in a matrix structure but not in a product team structure.
D)   A matrix structure has a taller hierarchy than a product team structure.E) None of the above
F) A) and B)

Question 5

The structure that organizations most commonly adopt to solve the control problems that result from producing many different kinds of products in many different locations for many different types of customers is the divisional structure.

Accepted Answer

A) True 
 B)False

Question 6

A product team structure is more decentralized than a functional structure.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements is true regarding a product team structure?

Accepted Answer

A)   Use of product team structure increases the product development time.
B)   In a product team structure divisions are organized according to the requirements of the different locations in which an organization operates.
C)   A product team structure is more decentralized than a functional structure.
D)   Typically, a product team structure is used by an organization that operates in a stable environment where the requirements of the customers do not change quickly.E) None of the above
F) All of the above

Question 8

Which of the following statements is true regarding a network organization?

Accepted Answer

A)   A network structure is characterized by high production costs.
B)   The organizations that use network structures have the tallest hierarchies.
C)   An organization using a network structure experiences high beureaucratic costs.
D)   A network structure allows an organization to act in an organic way.E) A) and B)
F) All of the above

Question 9

Differentiate between matrix structure and product team structure.

Accepted Answer

Both matrix structure and product team s...

Question 10

Describe the characteristics of a boundaryless organization.

Accepted Answer

A boundaryless organization is composed ...

Question 11

Which of the following will allow managers to regain control of their organizations when they decide to adopt a more complex structure?

Accepted Answer

A)   decreasing vertical differentiation
B)   increasing horizontal differentiation
C)   decreasing integration
D)   increasing formalizationE) None of the above
F) A) and B)

Question 12

A ________ structure provides for more integration between corporate and divisional managers and between divisional managers.

Accepted Answer

A)   functional
B)   bureaucratic
C)   multidivisional matrix
D)   transactionalE) All of the above
F) None of the above

Question 13

What are the different types of divisional structures?

Accepted Answer

A divisional structure groups functions ...

Question 14

A functional structure groups functions according to the specific demands of products, markets, or customers.

Accepted Answer

A) True 
 B)False

Question 15

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.

Accepted Answer

A)   geographic divisional
B)   network
C)   functional
D)   product teamE) A) and D)
F) B) and C)

Question 16

Which of the following statements is true regarding a product division structure?

Accepted Answer

A)   In a product division structure, each division is independent and self-contained.
B)   Use of product division structure leads to duplication of organizational activities.
C)   Typically, a product division structure is used by an organization which produces a wide variety of complex products.
D)   In a product division structure, support functions are centralized at the top of the organization.E) A) and D)
F) A) and B)

Question 17

The more centralized an organization, the more of a problem communication will be.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following statements is true regarding a divisional structure?

Accepted Answer

A)   The goal behind the change to a divisional structure from a functional structure is to create larger subunits within an organization.
B)   As compared to functional structure, divisional structure has lower levels of vertical differentiation.
C)   A divisional structure employs more complex integrating mechanisms than a functional structure.
D)   As compared to functional structure, divisional structure has lower levels of horizontal differentiation.E) C) and D)
F) B) and D)

Question 19

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

Accepted Answer

A)   A multidivisional structure decreases division of labor which ultimately decreases organizational effectiveness.
B)   It becomes difficult for corporate headquarters to identify the divisions in which an investment of capital will yield the highest returns.
C)   A multidivisional structure is not suitable for an organization which produces a wide range of complex products.
D)   Multidivisional structures are very expensive to operate.E) None of the above
F) C) and D)

Question 20

When ________, the cost of each function's contribution to the development of each product becomes increasingly difficult to measure.

Accepted Answer

A)   an organization with a divisional structure uses the system of management by objectives
B)   an organization with a functional structure grows and the number and complexity of their functions and products increases
C)   an organization with a matrix structure operates in a stable environment
D)   an organization with a divisional structure operates in a rich but complex environmentE) B) and D)
F) A) and D)

Exam 6: Designing Organizational Structure: Specialization and Coordination

Most Fortune 500 companies use a functional structure because it allows them to grow and expand their operations while maintaining control over their activities.

Correct AnswerverifiedShow Answer

Describe the characteristics of a boundaryless organization.

Correct AnswerverifiedA boundaryless organization is composed ...View AnswerShow Answer

Which of the following statements is true regarding a product team structure?

Correct AnswerverifiedShow Answer

Differentiate between matrix structure and product team structure.

Correct AnswerverifiedBoth matrix structure and product team s...View AnswerShow Answer

A functional structure groups functions according to the specific demands of products, markets, or customers.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A ________ structure provides for more integration between corporate and divisional managers and between divisional managers.

Correct AnswerverifiedShow Answer

Which of the following statements is true regarding a divisional structure?

Correct AnswerverifiedShow Answer

When ________, the cost of each function's contribution to the development of each product becomes increasingly difficult to measure.

Correct AnswerverifiedShow Answer

Multidivisional structures tend to be the tallest of all organizational structures.

Correct AnswerverifiedShow Answer

What are the different types of divisional structures?

Correct AnswerverifiedA divisional structure groups functions ...View AnswerShow Answer

Which of the following statements is true regarding a network organization?

Correct AnswerverifiedShow Answer

Which of the following will allow managers to regain control of their organizations when they decide to adopt a more complex structure?

Correct AnswerverifiedShow Answer

The structure that organizations most commonly adopt to solve the control problems that result from producing many different kinds of products in many different locations for many different types of customers is the divisional structure.

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

The more centralized an organization, the more of a problem communication will be.

Correct AnswerverifiedShow Answer

Which of the following ways can be used by a manager to increase vertical differentiation?

Correct AnswerverifiedShow Answer

Which of the following statements is true regarding a product division structure?

Correct AnswerverifiedShow Answer

A product team structure is more decentralized than a functional structure.

Correct AnswerverifiedShow Answer

Which of the following is a difference between the product team and the matrix structures?

Correct AnswerverifiedShow Answer

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A boundaryless organization is composed ...
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Both matrix structure and product team s...
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A divisional structure groups functions ...
View Answer

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