56. 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
57. 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.
58. 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
59. 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.
60. 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
61. The use of teams may lead to too much
a.
division of labor.
b.
decentralization.
c.
authority and responsibility in top management’s hands.
d.
formalization.
e.
narrow span of management.
62. Disadvantages of the virtual network approach include
a.
a lack of hands-on control.
b.
the possibility of losing an important part of the organization.
c.
weakened employee loyalty.
d.
all of these.
e.
a lack of hands-on control and weakened employee loyalty.
63. Theresa works in an organization where coordination across organizational units is poor and the units
perceived themselves to be in competition with one another for organizational resources. These
characteristics are consistent with which of the following structures?
a.
A matrix structure
b.
A functional structure
c.
A divisional structure
d.
A team-based structure
e.
A virtual network structure
64. The matrix structure violates which of the following principles of management?
a.
Unity of direction
b.
Unity of command
c.
Work specialization
d.
Division of labor
e.
Span of management
65. All of the following are the major disadvantages of the matrix structure EXCEPT
a.
it generates a large amount of conflict.
b.
managers spend much time resolving conflict.
c.
the confusion caused by the dual chain of command.
d.
the power imbalance that can result between the sides of the matrix.
e.
enlarged tasks for employees.
66. The biggest advantage to a virtual network approach is ____ and ____ on a global scale.
a.
flexibility; competitiveness
b.
coordination; organization
c.
communication; organization
d.
communication; no cost
e.
flexibility; coordination
67. 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
68. 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
69. Coordination is defined as
a.
the ability of the organization to produce timely products.
b.
the quality of collaboration across departments.
c.
differentiation.
d.
the quantity of goods produced by the organization.
e.
all of these.
70. 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.
71. When the organization is structured along ____ lines, coordination is required.
a.
functional
b.
divisional
c.
team
d.
all of these
e.
functional or divisional
72. The outcome of information and cooperation is
a.
organization.
b.
planning.
c.
coordination.
d.
differentiation.
e.
controlling.
73. A task force is a ____ committee formed to solve a specific problem.
a.
standing
b.
permanent
c.
temporary
d.
all of these
e.
none of these
74. 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
75. 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
76. 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
77. 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
78. 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
79. An organization strives for internal efficiency with a(n) ____ strategy.
a.
integration
b.
diversification
c.
differentiation
d.
defensive
e.
cost leadership
80. 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
81. A pure functional structure is most appropriate for achieving
a.
innovation.
b.
differentiation.
c.
internal efficiency goals.
d.
flexibility.
e.
all of these
82. 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
83. 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
84. The ____________ delineates the chain of command, indicates departmental tasks and how they fit
together, and provides order and logic for the organization.
a.
management chart
b.
employee directory
c.
structural table
d.
administrative chart
e.
organizational chart
85. Rebecca works for a company that has clearly defined lines of authority. Each employee knows that
he or she has authority and responsibility for a distinct set of tasks. Employees are also aware of the
company’s reporting structure as well as successive management levels all the way to the top.
Rebecca’s company follows which principle?
a.
Specialization principle
b.
Unity of command principle
c.
Scalar principle
d.
Authority principle
e.
Responsibility principle
86. How does managerial authority flow through the organizational hierarchy?
a.
Vertically
b.
Sporadically
c.
Horizontally
d.
In a circular fashion
e.
Authority is static – it does not flow
87. Shoshanna is manager of a customer service firm where she oversees five subordinates. To help her
subordinates learn more about the different roles within the company, Shoshanna regularly assigns
them tasks that are not part of their normal routine. This is an example of:
a.
Responsibility
b.
Delegation
c.
Authority
d.
Chain of command
e.
Irrational decision making
88. Jacob, a customer service representative for AB Retailers, has seven levels of management between
himself and the company’s CEO. In contrast, his friend Rhonda, a customer service representative for
YZ Retailers, has only four levels of management between her and the company CEO. Compared to
YZ, Jacob’s company has what type of organizational structure?
a.
Narrow
b.
Wide
c.
Flat
d.
Tall
e.
Identical
89. In times of crisis or risk of company failure, authority should be:
a.
Decentralized
b.
Centralized at the bottom
c.
Centralized at the top
d.
Spread through a wide span of management
e.
Flat
90. Salta Communications is a global telecommunications company that has operations on four continents.
The CEO’s direct supervisors include VPs for the North American, South American, European, and
the Asian divisions. Salta can best be described as using what organizational structure?
a.
Network
b.
Matrix
c.
Functional
d.
Divisional
e.
Geographic
91. Juan is a top manager at I.F.L., a matrix organization. He oversees both the product and functional
chains of command, and is responsible for maintaining a power balance between the two sides of the
matrix. Juan is a(n):
a.
Political leader
b.
Functional leader
c.
Divisional leader
d.
Matrix leader
e.
Top leader
92. In the ________ structure, the organization is viewed as a central hub surrounded by a network of
outside specialists which are sometimes spread all over the world.
a.
virtual network
b.
matrix
c.
functional
d.
divisional
e.
geographic
93. 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
94. 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
95. 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.
Customer-induced production
d.
Small-batch production
e.
Continuous process production
96. 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.
customer-induced production
d.
small-batch production
e.
continuous process production
97. _________ 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
98. Organizations such as Amazon.com, Google, Facebook, and Priceline.com are examples of firms that
are based on:
a.
Digital technology
b.
Tangible output
c.
Direct contact with customers
d.
Mechanistic technology
e.
Products rather than services
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. The analysis of whether the new division should be centralized or decentralized should include all of
the following EXCEPT
a.
the level of change and uncertainty in the environment.
b.
fits the firm’s strategy.
c.
the threat of crisis or the risk of company failure.
d.
the structure of competitors and customers.
e.
all of these should be included.
3. 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.
4. 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. The three characteristics of authority are that it must be ____________________,
____________________, and ____________________.
10. ____________________ is the formal and legitimate right of a manager to make decisions, issue
orders, and allocate resources to achieve organizationally desired outcomes.
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. The quality of collaboration across departments is known as ____________________.
31. A(n) ____________________ is a temporary team designed to solve a short-term problem involving
several departments.
32. A(n) ____________________ is a person who is responsible for coordinating the activities of several
departments for the completion of a specific project.
33. ____________________ is the radical redesign of business processes to achieve dramatic
improvements in cost, quality, service, and speed.
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.
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. Define task forces and project manager.
10. Describe reengineering and what it involves.