Question 1

A network structure increases the cost of production.

Accepted Answer

A) True 
 B)False

Question 2

In which of the following organizational structures do employees move between teams?

Accepted Answer

A)   product team structure
B)   matrix structure
C)   functional structure
D)   bureaucratic structureE) A) and B)
F) B) and D)

Question 3

Large complex organizations that have many divisions often simultaneously make use of many different structures; that is, they operate with a ________ structure.

Accepted Answer

A)   product divisional
B)   market
C)   hybrid
D)   beureaucraticE) A) and B)
F) A) and C)

Question 4

As an organization with a functional structure grows, the cost of each function's contribution to the development of each product becomes increasingly simple to measure.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is a difference between the product division structure and the multidivisional structure?

Accepted Answer

A)   Horizontal differentiation is increased in the multidivisional structure, but not in the product division structure.
B)   Vertical differentiation is increased in the product division structure, but not in the multidivisional structure.
C)   Support functions are centralized at the top of the organization in a multidivisional structure, but decentralized to the divisions in a product division structure.
D)   Divisions are independent in a multidivisional structure, but not in a product division structure.E) C) and D)
F) B) and D)

Question 6

In a multidivisional structure, corporate headquarters can identify the divisions in which an investment of capital will yield the highest returns.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A)   In a functional structure, it becomes easier for employees to supervise one another and control one another's behavior.
B)   In the case of a functional structure, people are grouped together according to the specific demands of products, markets, or customers.
C)   The use of the functional structure increases an organization's ability to quickly respond to the changing environment.
D)   The functional structure can be used only in the decentralized organizations.E) C) and D)
F) All of the above

Question 8

A ________ structure organizes divisions according to the requirements of the different locations in which an organization appears.

Accepted Answer

A)   geographic divisional
B)   product divisional
C)   functional
D)   multidivisionalE) A) and B)
F) A) and C)

Question 9

In a ________ structure, role and authority relationships are deliberately left vague because the underlying assumption of this structure is that when team members are given more responsibility than they have formal authority, they are forced to cooperate to get the job done.

Accepted Answer

A)   functional
B)   bureaucratic
C)   matrix
D)   product divisionalE) A) and B)
F) A) and C)

Question 10

Which of the following is an organizational design that groups people and resources in two ways simultaneously: by function and by product?

Accepted Answer

A)   product team structure
B)   market structure
C)   geographic structure
D)   matrix structureE) A) and B)
F) None of the above

Question 11

As an organization that uses a functional structure grows, ________.

Accepted Answer

A)   the extent of division of labor decreases
B)   the process of communication simplifies
C)   the cost of each function's contribution to the development of each product becomes increasingly difficult to measure
D)   the vertical differentiation within the organization decreasesE) None of the above
F) A) and D)

Question 12

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

Accepted Answer

A)   increased organizational flexibility
B)   clearly defined hierarchy of authority
C)   lack of role ambiguity and role conflict
D)   lack of movement of employees from team to teamE) B) and C)
F) A) and D)

Question 13

A product structure is a type of a functional structure.

Accepted Answer

A) True 
 B)False

Question 14

As an organization increases the kinds of goods it manufactures or the services it provides, a functional structure becomes more effective at coordinating task activities.

Accepted Answer

A) True 
 B)False

Question 15

A product team structure is a divisional structure in which divisions are organized according to the requirements of the different locations in which an organization operates.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following structures is most likely to be selected by an organization whose products are very complex technologically or whose characteristics change rapidly to suit changing customer needs?

Accepted Answer

A)   multidivisional structure
B)   functional structure
C)   product team structure
D)   geographic divisional structureE) A) and B)
F) A) and D)

Question 17

The price at which one division in an organization sells a product or information about innovations to another division in the same organization is called ________ price.

Accepted Answer

A)   developmental
B)   historic
C)   aggregated
D)   transferE) A) and B)
F) A) and C)

Question 18

A regional company markets ice cream, milk, and frozen yogurt. A ________ structure is the most appropriate structure for this firm.

Accepted Answer

A)   product division
B)   multidivisional
C)   product team
D)   marketE) A) and B)
F) B) and C)

Question 19

Functional structure provides people with the opportunity to learn from one another and become more specialized and productive.

Accepted Answer

A) True 
 B)False

Question 20

A corporate headquarters staff is created in a ________ structure.

Accepted Answer

A)   product division
B)   multidivisional
C)   product team
D)   matrixE) C) and D)
F) B) and D)

Exam 6: Designing Organizational Structure: Specialization and Coordination

Large complex organizations that have many divisions often simultaneously make use of many different structures; that is, they operate with a ________ structure.

Correct AnswerverifiedShow Answer

A regional company markets ice cream, milk, and frozen yogurt. A ________ structure is the most appropriate structure for this firm.

Correct AnswerverifiedShow Answer

As an organization increases the kinds of goods it manufactures or the services it provides, a functional structure becomes more effective at coordinating task activities.

Correct AnswerverifiedShow Answer

As an organization that uses a functional structure grows, ________.

Correct AnswerverifiedShow Answer

Which of the following is an organizational design that groups people and resources in two ways simultaneously: by function and by product?

Correct AnswerverifiedShow Answer

In a multidivisional structure, corporate headquarters can identify the divisions in which an investment of capital will yield the highest returns.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is a difference between the product division structure and the multidivisional structure?

Correct AnswerverifiedShow Answer

In a ________ structure, role and authority relationships are deliberately left vague because the underlying assumption of this structure is that when team members are given more responsibility than they have formal authority, they are forced to cooperate to get the job done.

Correct AnswerverifiedShow Answer

A ________ structure organizes divisions according to the requirements of the different locations in which an organization appears.

Correct AnswerverifiedShow Answer

A corporate headquarters staff is created in a ________ structure.

Correct AnswerverifiedShow Answer

The price at which one division in an organization sells a product or information about innovations to another division in the same organization is called ________ price.

Correct AnswerverifiedShow Answer

In which of the following organizational structures do employees move between teams?

Correct AnswerverifiedShow Answer

Functional structure provides people with the opportunity to learn from one another and become more specialized and productive.

Correct AnswerverifiedShow Answer

A product team structure is a divisional structure in which divisions are organized according to the requirements of the different locations in which an organization operates.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A network structure increases the cost of production.

Correct AnswerverifiedShow Answer

As an organization with a functional structure grows, the cost of each function's contribution to the development of each product becomes increasingly simple to measure.

Correct AnswerverifiedShow Answer

A product structure is a type of a functional structure.

Correct AnswerverifiedShow Answer

Which of the following structures is most likely to be selected by an organization whose products are very complex technologically or whose characteristics change rapidly to suit changing customer needs?

Correct AnswerverifiedShow Answer

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