Question 1

When Lakefront Marine Company groups its business units around the different lines of boats such as the Shark, Bass, and Catfish, which of the following structures is it creating?

Accepted Answer

A)   simple
B)   product
C)   functional
D)   geographic
E)   client-basedF) B) and E)
G) All of the above

Question 2

Mazie heads Grass Roots Diversified, a company that started making garden rakes in Oregon and has now diversified into a huge range of areas totally unrelated to gardening. Grass Roots has become impossible to run under its current configuration. How should Mazie redesign the organization?

Accepted Answer

A)   create complete business units in Oregon, Kansas, and Alabama
B)   group business units by rakes, furniture, shelving, and kitchen goods
C)   group employees by accounting, marketing, design, production, and so on
D)   structure business units according to the technology used to create products
E)   organize the business units around serving the government, gardening stores, and kitchen storesF) A) and C)
G) A) and B)

Question 3

Formalization refers to

Accepted Answer

A)   where decisions are formally made in organizations.
B)   the degree to which tasks in an organization are divided into separate jobs.
C)   how many employees each manager in the organization has responsibility for.
D)   the answer to the question of "who reports to whom?" and signifies formal authority relationships.
E)   the degree to which rules and procedures are used to standardize behaviors and decisions in an organization.F) B) and D)
G) A) and B)

Question 4

Describe the three multi-divisional structures. Draw their organizational charts.

Accepted Answer

Multi-divisional structures are bureaucr...

Question 5

Wide spans of control allow managers to be much more hands-on with employees.

Accepted Answer

A) True 
 B)False

Question 6

Centralization reflects

Accepted Answer

A)   where decisions are formally made in organizations.
B)   the degree to which tasks in an organization are divided into separate jobs.
C)   how many employees each manager in the organization has responsibility for.
D)   the answer to the question of "who reports to whom?" and signifies formal authority relationships.
E)   the degree to which rules and procedures are used to standardize behaviors and decisions in an organization.F) A) and D)
G) D) and E)

Question 7

The biggest weakness of a functional structure is that

Accepted Answer

A)   it is not efficient when the organization as a whole has a relatively narrow focus.
B)   it is not efficient when the organization has fewer product lines or services.
C)   it cannot operate efficiently in a stable environment.
D)   employees do not communicate as well across functions as they do within functions.
E)   employee efficiency is decreased due to a high degree of work specialization.F) A) and B)
G) D) and E)

Question 8

Talia formed a technology start-up in her garage, and it has grown more rapidly than she ever imagined. She has always kept tabs on all of her people, and her company has just passed 150 employees. What should she do now?

Accepted Answer

A)   send managers to large corporations to bring back a sense of largeness
B)   add more structure for communication and decision-making
C)   decrease structure for communication and decision-making
D)   increase the number of decisions that only she can make
E)   eliminate some positions to keep numbers manageableF) A) and C)
G) C) and E)

Question 9

The method by which an organization transforms its inputs into outputs refers to its

Accepted Answer

A)   structure.
B)   technology.
C)   specialization.
D)   quality.
E)   projects.F) C) and E)
G) None of the above

Question 10

Work specialization refers to

Accepted Answer

A)   where decisions are formally made in organizations.
B)   the degree to which tasks in an organization are divided into separate jobs.
C)   how many employees each manager in the organization has responsibility for.
D)   answering the question of "who reports to whom?" and signifies formal authority relationships.
E)   the degree to which rules and procedures are used to standardize behaviors and decisions in an organization.F) A) and B)
G) A) and C)

Question 11

Ray is employed by Perpetual Products. Recently, Perpetual has grown too broad to be managed the way it always has been, so the company has implemented a matrix structure in response to its changing needs. Define matrix structure. Identify one strength and one weakness of such a structure from Ray's viewpoint.

Accepted Answer

Student answers will vary but should dem...

Question 12

Decentralized organizational structures tend to concentrate power and authority within a relatively tight group of individuals in the firm.

Accepted Answer

A) True 
 B)False

Question 13

In Big Bluff Heirlooms, a furniture manufacturing company, the arrival and departure times to and from work are specified to the minute, with time clocks used to control deviant behavior. It can be said that the company is high in

Accepted Answer

A)   formalization.
B)   centralization.
C)   decentralization.
D)   division of labor.
E)   work differentiation.F) A) and D)
G) D) and E)

Question 14

At LMNO Creating, employees are grouped according to their expertise in an area. All marketing employees are in one department, all finance employees are grouped in another department, and similarly, all human resources and manufacturing employees are in their respective departments. Which of the following structures does LMNO Creating use?

Accepted Answer

A)   client-based
B)   geographic
C)   functional
D)   product
E)   simpleF) B) and E)
G) A) and C)

Question 15

Katarina is the East Coast manager of Boots for You. Other managers are in charge of the West Coast, South, and Great Lakes divisions. Her brother, Jordan is a marketing manager at a different firm who enjoys watching sports with the finance and operations managers from his company. Katarina likely works in a company with a ________ structure, while Jordan most likely works in a company with a ________ structure.

Accepted Answer

A)   product; functional
B)   geographic; product
C)   product; client-based
D)   geographic; functional
E)   client-based; geographicF) B) and D)
G) B) and C)

Question 16

A large pharmaceutical company recently adopted a structure in order to give its top managers more responsibility and flexibility. The company is now structured around five customer groupings: major healthcare provider networks, individual consumers, small and mid-sized pharmacies, military bases and government employee facilities, and public clinics. Which of the following organizational structures has this company created?

Accepted Answer

A)   client-based
B)   geographic
C)   functional
D)   product
E)   simpleF) C) and D)
G) A) and D)

Question 17

In a mechanistic organization, employees are

Accepted Answer

A)   encouraged to engage in lateral communication.
B)   required to make their own decisions when appropriate.
C)   given a very narrow view of the tasks they are to perform.
D)   urged to develop knowledge outside of their specialization.
E)   asked to think more broadly in terms of where their responsibilities lie.F) A) and D)
G) None of the above

Question 18

Which of the following statements about companies that adopt a low-cost producer strategy is True?

Accepted Answer

A)   They believe that people will pay more for a product that is unique in some way.
B)   They rely on selling products at the lowest possible cost.
C)   They depend on being able to adjust to changing environments quickly.
D)   Such companies are more likely to take an organic approach to organizational design.
E)   They focus on supplying high-quality differentiated products to customers.F) C) and D)
G) A) and B)

Question 19

Shane is the project manager of the organizational development team at Solid Hardwoods. Shane's team has been assigned the task of studying and evaluating Solid Hardwoods' organizational structure. Shane divided the tasks among the team members to collect preliminary information on different elements of Solid Hardwoods' structure. Meg was asked to collect information on the degree to which tasks are divided into separate jobs. Andrea was asked to collect information on formal authority relationships. Francine started looking into how many employees each manager has responsibility for, and Carol was asked to collect evidence on the degree to which rules and procedures are used to standardize behaviors at Solid Hardwoods. Shane decided to personally collect information and evidence on where exactly decisions are formally made at Solid Hardwoods. The team decided to meet with information in two weeks. On which element of organizational structure was Carol asked to collect evidence?

Accepted Answer

A)   centralization
B)   formalization
C)   span of control
D)   chain of command
E)   work specializationF) A) and E)
G) B) and D)

Question 20

Organic organizations are

Accepted Answer

A)   efficient, rigid, predictable, and standardized organizations that thrive in stable environments.
B)   more complex designs that try to take advantage of two types of structures at the same time.
C)   flexible, adaptive, outward-focused organizations that thrive in dynamic environments.
D)   business units grouped around different products that the company produces.
E)   flat organizations with one person as the central decision-making figure.F) B) and D)
G) D) and E)

Exam 15: Organizational Structure

Decentralized organizational structures tend to concentrate power and authority within a relatively tight group of individuals in the firm.

Correct Answer
verified

Talia formed a technology start-up in her garage, and it has grown more rapidly than she ever imagined. She has always kept tabs on all of her people, and her company has just passed 150 employees. What should she do now?

Correct Answer
verified

Describe the three multi-divisional structures. Draw their organizational charts.

Correct Answer
verified
Multi-divisional structures are bureaucr...
View Answer

Correct Answer
verified

Correct Answer
verified

The method by which an organization transforms its inputs into outputs refers to its

Correct Answer
verified

Work specialization refers to

Correct Answer
verified

Mazie heads Grass Roots Diversified, a company that started making garden rakes in Oregon and has now diversified into a huge range of areas totally unrelated to gardening. Grass Roots has become impossible to run under its current configuration. How should Mazie redesign the organization?

Correct Answer
verified

When Lakefront Marine Company groups its business units around the different lines of boats such as the Shark, Bass, and Catfish, which of the following structures is it creating?

Correct Answer
verified

In Big Bluff Heirlooms, a furniture manufacturing company, the arrival and departure times to and from work are specified to the minute, with time clocks used to control deviant behavior. It can be said that the company is high in

Correct Answer
verified

Organic organizations are

Correct Answer
verified

Formalization refers to

Correct Answer
verified

Wide spans of control allow managers to be much more hands-on with employees.

Correct Answer
verified

Which of the following statements about companies that adopt a low-cost producer strategy is True?

Correct Answer
verified

In a mechanistic organization, employees are

Correct Answer
verified

The biggest weakness of a functional structure is that

Correct Answer
verified

Centralization reflects

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Student answers will vary but should dem...
View Answer

Correct Answer
verified

Exam 15: Organizational Structure

Decentralized organizational structures tend to concentrate power and authority within a relatively tight group of individuals in the firm.

Correct AnswerverifiedShow Answer

Talia formed a technology start-up in her garage, and it has grown more rapidly than she ever imagined. She has always kept tabs on all of her people, and her company has just passed 150 employees. What should she do now?

Correct AnswerverifiedShow Answer

Describe the three multi-divisional structures. Draw their organizational charts.

Correct AnswerverifiedMulti-divisional structures are bureaucr...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The method by which an organization transforms its inputs into outputs refers to its

Correct AnswerverifiedShow Answer

Work specialization refers to

Correct AnswerverifiedShow Answer

Mazie heads Grass Roots Diversified, a company that started making garden rakes in Oregon and has now diversified into a huge range of areas totally unrelated to gardening. Grass Roots has become impossible to run under its current configuration. How should Mazie redesign the organization?

Correct AnswerverifiedShow Answer

When Lakefront Marine Company groups its business units around the different lines of boats such as the Shark, Bass, and Catfish, which of the following structures is it creating?

Correct AnswerverifiedShow Answer

In Big Bluff Heirlooms, a furniture manufacturing company, the arrival and departure times to and from work are specified to the minute, with time clocks used to control deviant behavior. It can be said that the company is high in

Correct AnswerverifiedShow Answer

Organic organizations are

Correct AnswerverifiedShow Answer

Formalization refers to

Correct AnswerverifiedShow Answer

Wide spans of control allow managers to be much more hands-on with employees.

Correct AnswerverifiedShow Answer

Which of the following statements about companies that adopt a low-cost producer strategy is True?

Correct AnswerverifiedShow Answer

In a mechanistic organization, employees are

Correct AnswerverifiedShow Answer

The biggest weakness of a functional structure is that

Correct AnswerverifiedShow Answer

Centralization reflects

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedStudent answers will vary but should dem...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Multi-divisional structures are bureaucr...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Student answers will vary but should dem...
View Answer

Correct Answer
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