Question 1

Which organizational structure has the disadvantage of ambiguous roles for some senior executives?
A) Functional
B) Divisional
C) Strategic Business Unit (SBU)
D) Matrix
E) Process

Accepted Answer

The answer of Which organizational structure has the disadvantage of...

Question 2

With a divisional structure, it is possible that competition between divisions may become so intense that it leads to improved sharing of ideas and resources for the common good of the firm.

Accepted Answer

Competition between divisions in a divisional structure often leads to siloed operations and a lack of cooperation, which can hinder the sharing of ideas and resources.

Question 3

What is NOT one of the basic ways a divisional structure can be organized?
A) By geographic area
B) By product
C) By customer
D) By process
E) By cost

Accepted Answer

Divisional structures are typically organized by geographic area, product, customer, or process, but not by cost.

Question 4

What is the most complex form of organizational structure?
A) Divisional
B) SBU
C) Matrix
D) Functional
E) Geographic

Accepted Answer

The matrix structure is considered the most complex form of organizational structure because it involves multiple reporting lines and combines aspects of both functional and divisional structures, leading to dual authority and increased complexity in management.

Question 5

A functional structure can be effective at eliminating short-term and narrow thinking.

Accepted Answer

A functional structure often leads to short-term and narrow thinking because departments focus on their specific functions rather than the organization's overall goals.

Question 6

Which organizational structure is the most widely used?
A) Departmental
B) Strategic business unit
C) Functional
D) Decentralized
E) Matrix

Accepted Answer

The functional organizational structure is the most widely used because it groups employees based on their specialized roles or functions, which allows for efficiency and expertise development within departments.

Question 7

Medium-sized firms tend to use which type of structure?
A) Divisional
B) Matrix
C) SBU
D) Functional
E) Centralized

Accepted Answer

Divisional structure is commonly used by medium-sized firms because it allows for a more decentralized decision-making process and greater flexibility in responding to market changes.

Question 8

Tasks and activities are grouped together by business function in a divisional organizational structure.

Accepted Answer

In a divisional organizational structure, tasks and activities are grouped based on products, services, or geographic locations, not by business function.

Question 9

According to Alfred Chandler "changes in strategy lead to changes in organizational structure."

Accepted Answer

Alfred Chandler, a business historian, argued that a company's strategy determines its structure, meaning that when a company changes its strategy, it often needs to change its organizational structure to support the new strategy effectively.

Question 10

The Omega Company sells two very different types of products, each of which needed special emphasis. The type of structure that would best suit the Omega Company is the ________ structure.
A) divisional-by-size
B) divisional-by-process
C) divisional-by-geography
D) divisional-by-region
E) divisional-by-product

Accepted Answer

A divisional-by-product structure is best for companies like Omega that sell different types of products, as it allows each product line to be managed independently with specialized focus and resources.

Question 11

What type of organizational structure promotes specialization of labor and allows rapid decision making?
A) Divisional structure by product
B) Functional structure
C) Divisional structure by customer
D) Strategic business unit
E) Matrix structure

Accepted Answer

A functional structure promotes specialization of labor by grouping employees based on their specific skills and roles, allowing for rapid decision-making within each specialized department.

Question 12

Which divisional structure stands out for effectiveness when a few major customers are of paramount importance and many different services are provided to these customers?
A) By geographic area
B) By customer
C) By product
D) By process
E) By cost

Accepted Answer

By customer structure is most effective when a few major customers are of paramount importance and many different services are provided to these customers.

Question 13

With the matrix structure it is common for functional resources to be duplicated.

Accepted Answer

In a matrix structure, resources are shared across different projects or functions, reducing duplication and promoting efficient resource use.

Question 14

With a divisional structure by customer, an organization can effectively cater to the requirements of clearly defined customer groups.

Accepted Answer

A divisional structure by customer allows an organization to focus on specific customer needs and preferences, leading to more tailored products and services.

Question 15

Medium-sized firms tend to be divisionally structured, whereas large firms tend to use an SBU (strategic business unit) or matrix structure.

Accepted Answer

Medium-sized firms often use divisional structures to manage different product lines or geographic areas, while large firms may adopt more complex structures like SBUs or matrix structures to handle diverse operations and strategic objectives.

Question 16

A divisional structure by geographic area is most appropriate when
A) organizations have similar branch facilities located in widely dispersed areas.
B) an organization offers only a limited number of products or services.
C) consumption patterns for its products and/or services are the same worldwide.
D) the company's customers in different geographic locations have similar needs and characteristics.
E) the firm serves one geographic area.

Accepted Answer

A divisional structure by geographic area is most appropriate when organizations have similar branch facilities located in widely dispersed areas, as it allows for better management and adaptation to local markets and conditions.

Question 17

The most complex of all organizational structures is a matrix structure.

Accepted Answer

A matrix structure combines functional and divisional structures, creating a dual chain of command, which can lead to complexity in communication and decision-making.

Question 18

Policies largely dictate how structure will be established.

Accepted Answer

The answer of Policies largely dictate how structure will be...

Question 19

Because activities are organized according to the way work is actually performed, a divisional structure by process is similar to the matrix structure.

Accepted Answer

A divisional structure by process organizes activities based on specific processes, while a matrix structure combines functional and divisional structures, focusing on both functions and projects or products. They are not similar in their organization approach.

Question 20

Most large companies have abandoned the functional structure in favor of decentralization.

Accepted Answer

Decentralization is a more common organizational structure for large companies than the functional structure.

Quiz 7: Implementing Strategies: Management and Marketing Issues

Which organizational structure has the disadvantage of ambiguous roles for some senior executives?

With a divisional structure, it is possible that competition between divisions may become so intense that it leads to improved sharing of ideas and resources for the common good of the firm.

What is NOT one of the basic ways a divisional structure can be organized?

What is the most complex form of organizational structure?

A functional structure can be effective at eliminating short-term and narrow thinking.

Which organizational structure is the most widely used?

Medium-sized firms tend to use which type of structure?

Tasks and activities are grouped together by business function in a divisional organizational structure.

According to Alfred Chandler "changes in strategy lead to changes in organizational structure."

The Omega Company sells two very different types of products, each of which needed special emphasis. The type of structure that would best suit the Omega Company is the ________ structure.

What type of organizational structure promotes specialization of labor and allows rapid decision making?

Which divisional structure stands out for effectiveness when a few major customers are of paramount importance and many different services are provided to these customers?