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Chapter 11 - Organizational Structure
Chapter 11
Organizational Structure
Multiple Choice Questions
1. (p. 321) What is meant by organizational structure?
2. (p. 321) A ___________ usually prevails in the smallest of businesses.
3. (p.321) A ________ is one where there is an owner and usually a few employees where the
arrangement of tasks, responsibilities and communication is highly informal and
accomplished through direct supervision.
4. (p. 321) In a _________, communication is highly informal.
5. (p. 321) __________ is used in a simple structure.
6. (p. 321) The structure of a simple organization:
7. (p. 321) Simple structures encourage employees to:
8. (p. 321) Simple organizational structures are most efficacious in businesses that serve:
9. (p. 321) Most businesses in this country and around the world are:
10. (p. 322) Once a business grows from a simple structure, it usually leads to the need for a:
11. (p. 322) A __________ is one in which the tasks, people and technologies necessary to do
the work of the business are divided into separate groups with increasingly formal procedures
for coordinating and integrating their activities to provide the business's products and
services.
12. (p. 322) Functional structures predominate in firms with:
13. (p. 322) Specialization among workers is most used in a:
14. (p. 322) The strategic challenge presented by the functional structure is _____________ of
the functional units.
15. (p. 322) The narrow technical expertise achieved through __________ can lead to limited
perspectives in the priorities of the functional units.
16. (p. 322) __________ such as project teams or planning committees is frequently used in
functionally organized firms to enhance coordination and to facilitate understanding across
functional areas.
17. (p. 322) When a firm diversifies, top management may be:
18. (p. 322) A _______ is one in which a set of relatively autonomous units are governed by a
central corporate office but where each operation has its own functional specialists who
provide products or services that are different from those of other operations.
19. (p. 323) Manufacturers often organize sales into divisions based on:
20. (p. 323) A divisional structure allows corporate management to ________ for the strategic
management of distinct business entities.
21. (p. 323) Delegation ________ in response to varied competitive environments.
22. (p. 324) The division, in a divisional structure is usually ________, which facilitates accurate
assessment of profit and loss.
23. (p. 324) When the diversity, size and number of units continue to increase, it may become
necessary to ________ in order to improve implementation, promote synergy and gain greater
control over the diverse business interests.
24. (p. 325) The _______ is an adaptation of the divisional structure whereby various divisions
or parts of divisions are grouped together based on some common strategic elements, usually
linked to distinct product/market differences.
25. (p. 325) The advantages and disadvantages of the ________ are very similar to those of
divisional structures.
26. (p. 325) The ________ has the potential disadvantage of increased costs of coordination with
another "pricy" level of management.
27. (p. 324) Which of the following is NOT a strategic advantage of a divisional organizational
structure?
28. (p. 324) Which of the following is NOT a strategic disadvantage of the divisional
organizational structure?
29. (p. 325) The ______ is where the corporate entity is a broad collection of often unrelated
businesses and divisions such that it acts as financial overseer having the ownership interest in
various parts of the company but has little direct managerial involvement.
30. (p. 325) The divisions in a _______ operate autonomously.
31. (p. 326) A ______ is used to temporarily put people and resources where they are most
needed.
32. (p. 326) The _______ is one in which functional and staff personnel are assigned to both a
basic functional area and to a project or product manager.
33. (p. 326) The _______ combines the advantages of functional specialization with the
advantages of product-project specialization.
34. (p. 327) Which structure provides dual channels of authority, performance responsibility,
evaluation and control?
35. (p. 327) The matrix structure increases the number of ______ who exercise general
management responsibilities, typically as project managers.
36. (p. 327) The matrix structure:
37. (p. 327) Problems with the matrix structure's implementation are heightened ________ with
the complications introduced by distance, language, time and culture.
38. (p. 327) To avoid the deficiencies that might arise from a permanent matrix structure, some
firms are accomplishing particular strategic tasks by means of a "temporary" or "flexible":
39. (p. 328) The _______ seeks to simplify and amplify the focus of resources on a narrow but
strategically important product, market, customer or innovation.
40. (p. 328) The team in a product-team structure is usually created at _______ and they stay
with it indefinitely if it becomes a viable business.
41. (p. 328) Team members in a product-team structure are:
42. (p. 328) The temporary nature of the product-team structure's teams results in:
43. (p. 328) Product teams:
44. (p. 329) In the twentieth century, successful organizations required:
45. (p. 329) Twenty-first-century corporations reflect:
46. (p. 329) Which of the following is NOT a fundamental trend driving decisions about
effective organizational structures in the twenty-first century?
47. (p. 330) _______ of all industry either operates globally or will soon do so.
48. (p. 330) Today, the primary motivation of workers is:
