Exam 10: Designing Organization Structure

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Salta Communications is a global telecommunications company that has operations on four continents. The CEO's direct supervisors include vice presidents for the North American, South American, European, and Asian divisions. Salta can best be described as using which of the following organizational structures?

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__________ is the process that managers use to transfer authority and responsibility to positions below them in the hierarchy.

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A(n) __________ is a temporary team or committee designed to solve a problem involving several departments.

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__________ is also referred to as work specialization.

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The primary difference between divisional and functional structures is that the divisional structure:

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In a geographic-based structure, all functions in a specific country or region report to the same division manager.

(True/False)
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The acceptance theory of authority argues that:

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Quick response to environmental changes is an advantage of the vertical functional structure.

(True/False)
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Authority is the formal and legitimate right of a manager to make decisions, issue orders, and allocate resources to achieve organizationally desired outcomes.

(True/False)
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Describe re-engineering.

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A frequent use of __________ is for change projects, such as new product or service innovation.

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The trend in recent years has been toward narrower spans of control as a way to facilitate delegation.

(True/False)
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Identify the three factors that typically influence centralization versus decentralization.

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The distinctive feature of the project manager position is that the person is not a member of one of the departments being coordinated.

(True/False)
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What are the differences between cross-functional and permanent teams?

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Organ Rentals Corporation has been having numerous problems. Communication across departments is poor and decisions are backing up at the top of the organization. Organ Rentals uses a __________ structure.

(Multiple Choice)
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The pure functional structure is appropriate for achieving internal efficiencygoals in a stable environment.

(True/False)
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The acceptance theory of authority argues that a manager has authority because subordinates do not have a choice in choosing to accept his or her commands.

(True/False)
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Strategy defines __________, whereas organizing defines __________.

(Multiple Choice)
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At Boars' Nest Distributors, there are only two levels of hierarchy. Little supervision of employees is required, and the company has been successful at competing on a global scale. However, employee loyalty is weak, and turnover is quite high. Based on this information, Boars' Nest most likely operates using a __________ structure.

(Multiple Choice)
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