b.
excellent coordination between functions.
c.
in-depth skill specialization and development.
d.
high quality technical problem solving.
e.
career progress within functional departments.
63. 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.
64. 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
65. 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.
66. 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
67. 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.
68. 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.
69. 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.
70. 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
71. 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.
72. 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
73. The team approach to departmentalization is a response to:
a.
lack of participative teams.
b.
centralized decision-making.
c.
the competitive global environment.
d.
all of these.
e.
both lack of participative teams and centralized decision-making.
74. 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
75. 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.
76. When the organization is structured along _____ lines, coordination is required.
a.
functional
b.
divisional
c.
team
d.
all of these
e.
functional or divisional
77. The outcome of information and cooperation is _____.
a.
organization
b.
planning
c.
coordination
d.
differentiation
e.
controlling
78. A task force is _____ committee(s) formed to solve a specific problem.
a.
a standing
b.
a permanent
c.
a temporary
d.
all of these
e.
none of these
79. 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
80. 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
81. 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.
82. 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
83. 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
84. 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
85. 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
86. 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
87. 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
88. 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
89. 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.
90. An organization strives for internal efficiency with a(n) _____ strategy.
a.
integration
b.
diversification
c.
differentiation
d.
defensive
e.
cost leadership
91. 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
92. A pure functional structure is most appropriate for achieving:
a.
innovation.
b.
differentiation.
c.
internal efficiency goals.
d.
flexibility.
e.
all of these
93. 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
94. 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.
95. 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
96. 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
97. 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
98. 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
99. 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
100. 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
101. _____ 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
CASE
Scenario – Javier Gomez
Javier is a veteran manager with Pixel International, Inc. (PII). Recently PII purchased a small
business in the printing industry. Javier has been assigned the task of managing this new acquisition
and is currently deciding how best to design its structure. Currently, employees are assigned to one of
three departments, including sales, production, and legal defense.
1. In determining Javier’s span of management, he should consider all of the following EXCEPT:
a.
is the work performed by subordinates stable and routine?
b.
do subordinates perform similar tasks?
c.
are rules and procedures defining task activities available?
d.
do Javier’s personal preferences and style favor a larger or small span?
e.
all of these.
2. Current departmentalization of Javier’s new division can be characterized primarily as:
a.
vertical functional.
b.
divisional.
c.
horizontal matrix.
d.
team-based.
e.
none of these.
3. If Javier organizes with a horizontal matrix structure, some potential advantages that he could
anticipate include all of the following, EXCEPT:
a.
a more efficient use of resources.
b.
greater flexibility and adaptability to a changing environment.
c.
development of both general and specialist management skills.
d.
decreased need for coordination among managers.
e.
all of these are potential advantages.
COMPLETION
1. The deployment of organizational resources to achieve strategic goals is known as _____.
2. The framework in which the organization defines how tasks are divided, resources are deployed, and
departments are coordinated is called _____.
3. The visual representation of an organization’s structure is called the _____.
4. Division of labor is also known as _____.
5. The degree to which organizational tasks are subdivided into individual jobs is called _____.
6. The _____ is an unbroken line of authority that links all persons in an organization and shows who
reports to whom.
7. When each employee is held accountable to only one supervisor, it is called _____.
8. The _____ refers to a clearly defined line of authority in the organization that includes all employees.
9. _____ is the formal and legitimate right of a manager to make decisions, issue orders, and allocate
resources to achieve organizationally desired outcomes.
10. The three characteristics of authority are that it must be _____, _____, and _____.
11. _____ is the duty to perform the task or activity an employee has been assigned.
12. _____ means that the people with authority and responsibility are subject to reporting and justifying
task outcomes to those above them in the chain of command.
13. _____ is the process managers use to transfer authority and responsibility to positions below them in
the hierarchy.
14. _____ departments perform tasks that reflect the organization’s primary goal and mission, while _____
departments include all those that provide specialized skills in support of _____ departments.
15. _____ means that people in management positions have formal authority to direct and control
immediate subordinates.
16. The _____ is the number of employees reporting to a supervisor.
17. A(n) _____ structure has a wide span, is horizontally dispersed, and has fewer hierarchical levels.
18. A(n) _____ structure has an overall narrow span and more hierarchical levels.
19. With _____ decision authority is pushed downward to lower organization levels.
20. _____ means that decision authority is located near the top of the organization.
21. A(n) ______ structure is the grouping of positions into departments based on similar skills, expertise,
and resource use.
22. The _____ structure occurs when departments are grouped together based on organizational outputs.
23. The divisional structure is sometimes called a(n) _____, _____, or _____.
24. An alternative for assigning divisional responsibility is to group company activities by _____.
25. The _____ combines aspects of both functional and divisional structures simultaneously, in the same
part of the organization.
26. _____ teams consist of employees from various functional departments who are responsible to meet as
a team and resolve mutual problems.
27. In the _____ approach of structural design, departments are independent, contracting services to the
central hub for a profit.
28. The _____ structure means that the firm subcontracts many of its major functions to separate
companies and coordinates their activities from a small headquarters organization.
29. The _____ approach is when a manufacturing company uses outside suppliers to provide large
components of the product, which are then assembled into a final product by a few workers.
30. A(n) _____ is a temporary team designed to solve a short-term problem involving several departments.
31. A(n) _____ is a person who is responsible for coordinating the activities of several departments for the
completion of a specific project.
32. _____ is the radical redesign of business processes to achieve dramatic improvements in cost, quality,
service, and speed.
33. A(n) _____ structure is most appropriate when the external environment is stable.
34. _____ refers to services that are perishable and, unlike physical products, cannot be stored in
inventory.
SHORT ANSWER
1. List the five approaches to departmentalization.
2. List three disadvantages of the divisional structure.
3. List the advantages of the virtual network structure.
4. List the three basic types of production technology.
5. Describe service technology.
ESSAY
1. Compare and contrast authority, responsibility, accountability, and delegation.
ANS:
2. Briefly explain the concept of line and staff departments and authority.
3. Define span of management and explain if there is an ideal span of management.
4. List the factors that are associated with less supervisor involvement and thus larger spans of control.
5. Identify the three factors that typically influence centralization versus decentralization.
6. What is the horizontal matrix approach to departmentalization and what are its main advantages?
7. What is(are) the difference(s) between cross-functional and permanent teams?
8. What is the team approach to departmentalization and what are its main disadvantages?
9. Describe reengineering and what it involves.
10. Define task forces and project management.