Question 1

One disadvantage of the functional structure is that people are not able to supervise one another.

Accepted Answer

A) True 
 B)False  False

Question 2

The move to a more complex structure is based on all design choices except:

Accepted Answer

A)  increasing vertical differentiation. 
B)  increasing integration. 
C)  increasing horizontal differentiation. 
D)  increasing formalization. 
A)  increasing vertical differentiation. 
B)  increasing integration. 
C)  increasing horizontal differentiation. 
D)  increasing formalization. D

Question 3

Most large U.S. companies use the ________ structure.

Accepted Answer

A)  multidivisional matrix 
B)  multidivisional 
C)  product team 
D)  global 
A)  multidivisional matrix 
B)  multidivisional 
C)  product team 
D)  global B

Question 4

A ________ structure has functions grouped together according to the specific demands of products, markets, or customers.

Accepted Answer

A)  simple 
B)  differentiated 
C)  functional 
D)  divisional 
A)  simple 
B)  differentiated 
C)  functional 
D)  divisional

Question 5

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)  network 
B)  geographic 
C)  centralized 
D)  product team 
A)  network 
B)  geographic 
C)  centralized 
D)  product team

Question 6

When a company moves from a functional structure to the more complex product division structure, a corporate headquarters staff is added.

Accepted Answer

A) True 
 B)False

Question 7

TheB.A.R. and Grille restaurant has expanded its locations to now include several major U.S. cities. All major functions, such as pricing, menu design, and hiring will still be done by Bob and Amanda. Which structure should they move towards?

Accepted Answer

A)  Geographic 
B)  Market 
C)  They do not need to change their structure because of these changes 
D)  Hybrid 
A)  Geographic 
B)  Market 
C)  They do not need to change their structure because of these changes 
D)  Hybrid

Question 8

An advantage of the multidivisional system is:

Accepted Answer

A)  profitability cannot be evaluated. 
B)  responsibility is unclear. 
C)  corporate managers monitor divisional managers. 
D)  decreased control. 
A)  profitability cannot be evaluated. 
B)  responsibility is unclear. 
C)  corporate managers monitor divisional managers. 
D)  decreased control.

Question 9

Transfer pricing is used in a multidivisional structure so that one division can sell its product or service to another division.

Accepted Answer

A) True 
 B)False

Question 10

Because Amazon.com sells products in all parts of the world, it needed to move from a functional structure to a geographic structure in order to maximize efficiency.

Accepted Answer

A) True 
 B)False

Question 11

I purchase a book from Amazon to give as a gift. What type of commerce is this?

Accepted Answer

A)  B2C 
B)  C2C 
C)  B2B 
D)  None of the above 
A)  B2C 
B)  C2C 
C)  B2B 
D)  None of the above

Question 12

Integration is highest in a ________ structure.

Accepted Answer

A)  multidivisional matrix 
B)  product division 
C)  geographic 
D)  market 
A)  multidivisional matrix 
B)  product division 
C)  geographic 
D)  market

Question 13

All of the following are potential disadvantages of the multidivisional structure except:

Accepted Answer

A)  high bureaucratic costs. 
B)  conflict over resources. 
C)  transfer pricing problems. 
D)  inability to monitor divisions. 
A)  high bureaucratic costs. 
B)  conflict over resources. 
C)  transfer pricing problems. 
D)  inability to monitor divisions.

Question 14

As organizations grow, they typically move to a more complex structure due to the inability to coordinate activities under a traditional functional structure.

Accepted Answer

A) True 
 B)False

Question 15

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?

Accepted Answer

X company needs to examine the reasons f

Question 16

Caterpillar needed to restructure its organization in order to reduce costs because of competition. Which structure did it use?

Accepted Answer

A)  Product Team 
B)  Matrix 
C)  Geographic 
D)  Multidivisional matrix 
A)  Product Team 
B)  Matrix 
C)  Geographic 
D)  Multidivisional matrix

Question 17

As TheB.A.R. and Grille restaurant grew, the owners grouped people together on the basis of their common skills and expertise. This is called a ________.

Accepted Answer

A)  product structure 
B)  functional structure 
C)  hierarchy of authority 
D)  simple structure 
A)  product structure 
B)  functional structure 
C)  hierarchy of authority 
D)  simple structure

Question 18

Horizontal differentiation begins when a company adopts a ________ structure.

Accepted Answer

A)  global 
B)  functional 
C)  matrix 
D)  product division 
A)  global 
B)  functional 
C)  matrix 
D)  product division

Question 19

Product team structures consist of groups of individuals whose allegiance is to specific products as opposed to specific functions.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A)  A matrix structure has a taller hierarchy than a product team structure. 
B)  Employees move between teams in a matrix structure but not in a product team structure. 
C)  Employees move between teams in a product team structure but not in a matrix structure. 
D)  Employees have two bosses in a product team structure and only one boss in a matrix structure. 
A)  A matrix structure has a taller hierarchy than a product team structure. 
B)  Employees move between teams in a matrix structure but not in a product team structure. 
C)  Employees move between teams in a product team structure but not in a matrix structure. 
D)  Employees have two bosses in a product team structure and only one boss in a matrix structure.

One disadvantage of the functional structure is that people are not able to supervise one another.

The move to a more complex structure is based on all design choices except:

Most large U.S. companies use the ________ structure.

A ________ structure has functions grouped together according to the specific demands of products, markets, or customers.

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.

When a company moves from a functional structure to the more complex product division structure, a corporate headquarters staff is added.

TheB.A.R. and Grille restaurant has expanded its locations to now include several major U.S. cities. All major functions, such as pricing, menu design, and hiring will still be done by Bob and Amanda. Which structure should they move towards?

An advantage of the multidivisional system is:

Transfer pricing is used in a multidivisional structure so that one division can sell its product or service to another division.

Because Amazon.com sells products in all parts of the world, it needed to move from a functional structure to a geographic structure in order to maximize efficiency.

I purchase a book from Amazon to give as a gift. What type of commerce is this?

Integration is highest in a ________ structure.

All of the following are potential disadvantages of the multidivisional structure except:

As organizations grow, they typically move to a more complex structure due to the inability to coordinate activities under a traditional functional structure.

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?

Caterpillar needed to restructure its organization in order to reduce costs because of competition. Which structure did it use?

As TheB.A.R. and Grille restaurant grew, the owners grouped people together on the basis of their common skills and expertise. This is called a ________.

Horizontal differentiation begins when a company adopts a ________ structure.

Product team structures consist of groups of individuals whose allegiance is to specific products as opposed to specific functions.

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

Organizations and Organizational Effectiveness

Stakeholders, Managers, and Ethics

Managing in a Changing Global Environment

Basic Challenges of Organizational Design

Designing Organizational Structure: Authority and Control

Creating and Managing Organizational Culture Environment

Organizational Design and Strategy in a Changing Global Environment

Organizational Design, Competences, and Technology

Managing Innovation and Change

Organizational Birth, Growth, Decline, and Death

Decision Making and Organizational Learning

Managing Innovation, Intrapreneurship, and Creativity

Managing Conflict, Power, and Politics

Filters

Exam 6: Designing Organizational Structure: Specialization and Coordination

One disadvantage of the functional structure is that people are not able to supervise one another.

The move to a more complex structure is based on all design choices except:

Most large U.S. companies use the ________ structure.

A ________ structure has functions grouped together according to the specific demands of products, markets, or customers.

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.

When a company moves from a functional structure to the more complex product division structure, a corporate headquarters staff is added.

TheB.A.R. and Grille restaurant has expanded its locations to now include several major U.S. cities. All major functions, such as pricing, menu design, and hiring will still be done by Bob and Amanda. Which structure should they move towards?

An advantage of the multidivisional system is:

Transfer pricing is used in a multidivisional structure so that one division can sell its product or service to another division.

Because Amazon.com sells products in all parts of the world, it needed to move from a functional structure to a geographic structure in order to maximize efficiency.

I purchase a book from Amazon to give as a gift. What type of commerce is this?

Integration is highest in a ________ structure.

All of the following are potential disadvantages of the multidivisional structure except:

As organizations grow, they typically move to a more complex structure due to the inability to coordinate activities under a traditional functional structure.

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?

Caterpillar needed to restructure its organization in order to reduce costs because of competition. Which structure did it use?

As TheB.A.R. and Grille restaurant grew, the owners grouped people together on the basis of their common skills and expertise. This is called a ________.

Horizontal differentiation begins when a company adopts a ________ structure.

Product team structures consist of groups of individuals whose allegiance is to specific products as opposed to specific functions.

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

Organizations and Organizational Effectiveness

Stakeholders, Managers, and Ethics

Managing in a Changing Global Environment

Basic Challenges of Organizational Design

Designing Organizational Structure: Authority and Control

Creating and Managing Organizational Culture Environment

Organizational Design and Strategy in a Changing Global Environment

Organizational Design, Competences, and Technology

Managing Innovation and Change

Organizational Birth, Growth, Decline, and Death

Decision Making and Organizational Learning

Managing Innovation, Intrapreneurship, and Creativity

Managing Conflict, Power, and Politics

Filters