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Which of the following is a disadvantage of a multidivisional structure?
A) A multidivisional structure decreases division of labor which ultimately decreases
organizational effectiveness.
B) It becomes difficult for corporate headquarters to identify the divisions in which an
investment of capital will yield the highest returns.
C) A multidivisional structure is not suitable for an organization which produces a wide
range of complex products.
D) Multidivisional structures are very expensive to operate.
Which of the following is one of the organizational development (OD) techniques to
promote change?
A) reengineering
B) restructuring
C) process consultation
D) flexible work teams
Which of the following is an output created by an organization?
A) capital
B) competitors
C) machinery
D) salaries
Which of the following techniques controls the changeover from one operation to
another by means of the commands given to the machines through computer software
and eliminates the need to retool machines physically?
A) computer-integrated manufacturing (CIM)
B) computer-aided materials management (CAMM)
C) computer-aided design (CAD)
D) JIT inventory systems
A ________ structure is a cross between the product division structure and the
multidivisional structure.
A) functional
B) transactional
C) product team
D) geographic divisional
Jeffrey Bezos saw the opportunity to sell books over the Internet, which was growing.
So he started a Web site where people could buy new books and sell there existing
books. This was the first Web site dedicated to buying or selling books. This is an
example of ________.
A) social loafing
B) parallel marketing
C) surface bargaining
D) entrepreneurship
A retail clothing chain buys a real estate business and an investment banking firm.
Which of the following structures is most appropriate for this organization?
A) matrix structure
B) product team structure
C) mechanistic structure
D) conglomerate structure
The term population density refers to the number of organizations that ________.
A) have the same rate of growth in a particular industrial segment
B) operate in the same market segment and employ more than 1000 employees
C) can compete for the same resources in a particular environment
D) are at the same stage in the organizational life cycle at a particular time
Which of the following statements is true regarding a matrix structure?
A) A matrix structure has a clearly defined hierarchy of authority.
B) An organization using a matrix structure can quickly respond to changing needs of
customers.
C) A matrix structure is characterized by clearly defined roles.
D) Organizations with matrix structures tend to have the tallest hierarchies.
With reference to the types of production technologies identified by Joan Woodward,
which of the following technologies has the highest level of technical complexity?
A) small-batch technology
B) sequential-process technology
C) mass production technology
D) continuous-process technology
Which of the following is a potential disadvantage of a bureaucratic structure?
A) stagnation
B) role conflict
C) lack of standard operating procedures
D) role ambiguity
Which of the following statements is true regarding a global strategy?
A) A global strategy is oriented toward cost reduction.
B) A company pursuing a global strategy completely decentralizes control to
subsidiaries and divisions in each country in which it operates.
C) The bureaucratic costs incurred to solve communications and measurement problems
are much higher for a company pursuing a global strategy than that pursuing a
transnational strategy.
D) The organizational structure required for pursuing a multidomestic strategy is more
complex than that required for pursuing a global strategy.
Which of the following are contingencies that cause the organization to face
uncertainty?
A) organizational design and organizational processes
B) changing technology and organizational design
C) global environment and changing technology
D) organizational structure and global environment
Which of the following types of strategic alliances is the most formal?
A) long-term contract
B) network
C) minority ownership
D) joint venture
Typically, an organization that uses a differentiation strategy ________.
A) does not respond to market changes quickly
B) operates in a complex, uncertain environment
C) focuses its resources on producing one product
D) has a mechanistic structure
________ use their well-developed competences to compete for resources in many or
all niches in an environment.
A) Organizations following an r-strategy
B) Generalist organizations
C) Organizations following a K-strategy
D) Specialist organizations
To speed innovation, many organizations have begun to ________.
A) adopt mechanistic organizational structures
B) increase the length of the organizational hierarchy
C) implement total quality management
D) move decision-making to lower levels in the organization
