94. An advantage of functional structures is the:
a. resulting economies of scale.
b. enlarged tasks for employees.
c. easy pinpointing of responsibility for product problems.
d. development of general management skills.
e. flexibility in an unstable environment.
95. Which of the following structures is the leanest of all organization forms because little supervision is required?
a. Functional approach
b. Virtual network approach
c. Team approach
d. Matrix approach
e. Divisional approach
96. Shooting Star, Inc. has slow response to external changes, centralized decision making, and poor coordination
across departments. It is likely structured:
a. along divisional lines.
b. along functional lines.
c. based on the team approach.
d. based on the virtual network approach.
e. none of these.
97. Organ Rentals Corporation has been having numerous problems. Communication across departments is poor and
decisions are backing up at the top of the organization. Organ Rentals uses a structure.
a. geographic
b. product
c. functional
d. matrix
e. team-based
98. All of the following are advantages of a divisional structure EXCEPT:
a. high concern for customers’ needs.
b. fast response, flexibility in an unstable environment.
c. emphasis on overall product and division goals.
d. development of general management skills.
e. there is little duplication of services across divisions.
99. Which is an advantage of the divisional structure?
a. Concern for customers’ needs is high.
b. There is little duplication of services across divisions.
c. There is good coordination across divisions.
d. Top management retains tight control of the organization.
e. There is no competition for corporate resources.
100. Advantages of the matrix structure include:
a. it increases employee participation.
b. it makes efficient use of human resources.
c. it works well in a changing environment.
d. it develops both general and specialist management skills.
e. all of these.
101. Which of the following is(are) an advantage of team structure?
a. Increased barriers among departments
b. Unplanned decentralization
c. Time and resources spent on meetings
d. Less response time, quicker decisions
e. All of these
102. Stephanie works in one of seven research and development departments at Tara’s Terrace, Inc. This would suggest
that Tara’s Terrace has a:
a. functional structure.
b. divisional structure.
c. wide span of control.
d. high degree of centralization.
e. matrix structure.
103. Which of the following is a contemporary approach to structural design in departmentalization?
a. Functional
b. Divisional
c. Traditional divisions
d. Teams
e. Geographic-based
104. Innovative Creations Corporation is designed along functional lines. New product development is very slow and the
process is plagued by many problems. One of the problems is that the people in marketing never communicate with
the people in production. This is an example of poor .
a. coordination
b. planning
c. motivating
d. leading
e. controlling
105. Which of the following happens as organizations grow?
a. Positions and departments are deleted.
b. Management layers are eliminated to save cost.
c. Managers have to find ways to tie different departments.
d. Top management becomes more autocratic.
e. None of these.
106. Marissa was recently assigned to a committee whose task is to research new product opportunities. Once this
group generates a list of six or seven viable options, it will be disbanded. This group is also known as a .
a. team
b. standing committee
c. permanent committee
d. task force
e. none of these
107. Which of the following leads to strong coordination across functional areas and greater flexibility in responding to
changes in the environments?
a. Reengineering
b. Layoffs
c. Downsizing
d. A temporary committee
e. An ad hoc committee
108. Boars’ Nest Distributors is continually hampered by an inability to adapt to an unstable environment. Which of the
following is a plausible explanation as to why?
a. Boars’ Nest’s structure is too loose.
b. Boars’ Nest’s structure is too horizontal.
c. Boars’ Nest uses a vertical structure.
d. All of these.
e. Both Boars’ Nest‘s structure is too loose and structure is too horizontal.
109. Makai’s Marketing Mix (MMM) does not use its resources wisely. The employees at MMM spend too much time
in meetings and not enough time focusing on the task at hand. MMM‘s management should consider changing the
organizational structure from to .
a. horizontal, vertical
b. team based, horizontal
c. vertical, team based
d. mechanistic, rigid
e. team-based, virtual network
110. Flash Card Inc. recently underwent a significant company-wide change that involved revision of its manufacturing
and leadership processes. The result of this was a stronger emphasis on horizontal coordination. This level of
change is referred to as .
a. reorganization
b. reengineering
c. e–engineering
d. strategic planning
e. corporate structuring
111. A(n) is responsible for coordinating the activities of several departments.
a. department manager
b. line manager
c. project manager
d. operative
e. moderating manager
112. Lisa is responsible for coordinating the efforts of several different departments. Which of the following titles best
describes her position?
a. Department manager
b. Middle manager
c. First-level supervisor
d. Project manager
e. Chairman of the board
113. Typically, project managers have authority over but not over assigned to it.
a. people; the project
b. the project; people
c. resources; the project
d. people; other resources
e. finances; products
114. Which of the following is not an approach to structural design that reflects different uses of the chain of command?
a. Matrix approach
b. Team-based approach
c. Process approach
d. Divisional approach
e. Virtual network approach
115. Kara‘s department is made up of people with similar skills and work activities. Her organization uses the
approach to departmentalization.
a. team-based
b. horizontal matrix
c. divisional
d. vertical functional
e. process
116. Mondavi Corporation has a finance department, a marketing department, and a production department. Mondavi:
a. uses a functional structure.
b. has a geographic structure.
c. uses a divisional structure.
d. uses product-based structure.
e. uses a matrix structure.
117. An organization strives for internal efficiency with a(n) strategy.
a. integration
b. diversification
c. differentiation
d. defensive
e. cost leadership
118. With a(n) strategy, the organization attempts to develop innovative products unique to the market.
a. differentiation
b. integration
c. reengineering
d. cost leadership
e. defensive
119. A pure functional structure is most appropriate for achieving:
a. innovation.
b. differentiation.
c. internal efficiency goals.
d. flexibility.
e. all of these
120. Which of the following structures is most consistent with a strategy of stability?
a. Team based structure
b. Organic structure
c. Matrix structure
d. Functional structure
e. Learning structure
121. The pure functional structure does not enable the organization to be:
a. a cost leader.
b. efficient.
c. flexible.
d. stable.
e. all of these.
122. Which of the following structures works best in an uncertain organizational environment?
a. A tight structure
b. A mechanistic structure
c. A horizontal structure
d. A functional structure
e. A vertical structure
123. A(n) works best in a stable organizational environment.
a. loose organizational structure
b. vertical structure
c. organic structure
d. horizontal structure
e. loose organizational structure or an organic structure
124. Which of the following is an incorrect fit in a stable organizational environment?
a. A tight structure
b. A rigid structure
c. A functional structure
d. A horizontal structure
e. A vertical structure
125. In production, firms produce goods in batches of one or a few products designed to customer specification.
a. service
b. customer–induced
c. continuous process
d. small batch
e. mass
126. Swift Move Facilities manufacturers two different bicycle models. The company produces a high volume of
products using standardized production runs. The company does very little product customization. Swift Move uses
what type of technology structure?
a. Service production
b. Mass production
c. Large-batch production
d. Small–batch production
e. Continuous process production
127. In a organization, the entire work flow is mechanized in a sophisticated and complex form of production
technology.
a. service production
b. mass production
c. large–batch production
d. small-batch production
e. continuous process production
128. refers to the fact that services are perishable and cannot be stored in inventory.
a. Boundarylessness
b. Tangible output
c. Intangible output
d. Flexible operations
e. Centralization
129. The deployment of organizational resources to achieve strategic goals is known as .
130. The framework in which the organization defines how tasks are divided, resources are deployed, and departments
are coordinated is called .
131. The visual representation of an organization’s structure is called the .
132. Division of labor is also known as .
133. The degree to which organizational tasks are subdivided into individual jobs is called .