Exam 10: Designing Organizational Structures

Process departmentalization is a grouping of jobs by activity, such as marketing, finance, and production.

Hannah Keefer is a sales manager for a company that sells office equipment to retail stores in Ontario. She is responsible for five salespeople who report directly to her. Which of the following principles explains her relationship to these five people?

What does the management activity of organizing include?

The matrix structure is a combination of a line and a staff organization.

Kohber is a Swiss-company that makes medical equipment. It recently purchased a company that manufactures packaging for high-value drugs. Since it will run the packaging company as a separate division for its own use, it would seem that Kohber is departmentalized by which of the following?

The virtual corporation is one way that organizations can transform information technology into a competitive advantage.

Korber is the world's largest producer of cigarette manufacturing equipment. As growth in world tobacco consumption declines, it is obvious that Korber will face a bleak future unless it is able to divest itself of its connection to the cigarette industry and start anew. In other words, Korber needs to engage in which of the following activities?

A company with few managerial levels and a short chain of command usually has a wide span of control. Which type of organizational structure best describes this company?

What type of organizational structure is well suited to small, entrepreneurial companies?

Which is NOT one of the five types of departmentalization commonly used in most organizations?

Which of the following factors has little effect on the size of a manager's span of control?

What is one of the advantages of work group cohesiveness?

Kirk McCoy is district sales manager for the Jimmy Dean division of Sara Lee Corp. He has six sales managers who report to him. McCoy makes most of the decisions for his people and demands that they check with him on any changes in pricing, sales scheduling and routing, and sales presentation material. McCoy operates which of the following types of department?

When a person at a lower level skips a level in the organization chart and consults his or her boss's boss, that person is said to be violating which of the following principles?

What is another name for the matrix structure?

What is legitimate power granted by the organization and acknowledged by employees that allows an individual to request action and expect compliance?

Which of the following is the legitimate power granted by the organization and acknowledged by the employees?

A mechanistic organization has which of the following characteristics?

A company that is decentralized has given a great deal of decision-making authority to lower-level managers.

What does the management activity of organizing include?