Chapter 08 – Structuring Organizations for Today’s Challenges
310. Which of the following would be the least likely to serve on a cross-functional team
for the Discovery Corporation?
A. A member of the Discovery marketing department
B. A production manager for a firm that is one of Discovery’s major customers
C. A production manager for one of Discovery’s main competitors
D. A representative of a firm that is one of Discovery’s major suppliers
Feedback: Discovery’s cross-functional teams certainly should include specialists from its
own marketing department, but to be really effective, cross-functional teams must know what
customers want. Thus, customers are valuable members of such teams. Suppliers and
distributors can also be valuable team members. The only person in the list who does not
belong on a cross-functional team is a competitor.
311. The organizational structure of the U.S. Army’s 1st Infantry Division provides for
direct two-way lines of responsibility, authority, and communication running from the top
to the bottom. Additionally, each person in the division reports to only one superior. The
1st Infantry Division is clearly an example of a(n):
A. matrix organization.
B. functional organization.
C. line organization.
D. service organization.
Feedback: A line organization is characterized by direct two-way lines of authority,
responsibility, and communication running from the top to the bottom of the organization. In
such an organization, each person reports to only one supervisor.
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314. Julio is the owner of Celebration, Inc. a small party supply company. The company
provides tents, tables, chairs, and related paraphernalia for wedding, Bar Mitzvah, Bot
Mitzvah, graduation, birthday, and other celebratory events. As sales have increased, the
organization has hired more personnel and departmentalized to more efficiently handle
purchasing, sales, service, and accounting. Everyone is still responsible for achieving
company goals. Upon seeing Celebration’s organization chart, you agree it uses a
_______________.
A. line organization model
B. line and staff organization model
C. matrix organization model
D. cross-functional team organization model
Feedback: Many small businesses begin as line organizations. In a line organization model
everyone in the organization is responsible for achieving the company goals.
315.
Chapter 08 – Structuring Organizations for Today’s Challenges
Barclay developed two interactive computer games. He didn’t do it entirely alone. Last
year he started a small company, hired two programmers, and a marketing graduate. He
considers himself a cutting-edge kind of guy and wants to position his company the same.
Soliciting your advice as to how he should structure his organization as he moves forward,
you suggest that he hire a few potential customers to join his team of employees as
product testers. And, maybe he should solicit globally. You are suggesting to Barclay that
he put together a ___________.
A. line organization model
B. line and staff organization model
C. matrix organization model
D. cross-functional team
Feedback: Including potential customers on a work team simulates a cross- functional self-
managed team.
316. Chang is a project manager at Paradox Industries. He is able to borrow specialists
from the organization on a regular basis to assist in major projects. After the project ends,
the specialists return to their functional units to await new assignments. Paradox Industries
utilizes a:
A. line organization model.
B. bi-functional organization model.
C. lateral transfer organization model.
D. matrix organization model.
Feedback: In a matrix organization, specialists from various departments are brought together
to work on specific projects, but they remain part of the line-and-staff structure and return to
their permanent positions when the project ends.
