Question 1

Joel, an employee of the engineering department, was temporarily assigned to work with specialists from other departments to develop a new product. Upon completion of this project, Joel returned to his position in the engineering department. This arrangement illustrates the use of a cross-functional team.

Accepted Answer

The answer of Joel, an employee of the engineering department,...

Question 2

Benchmarking requires organizations to compare each organizational function against the best in the world.

Accepted Answer

The answer of Benchmarking requires organizations to compare each organizational...

Question 3

A virtual corporation is a networked organization made up of replaceable firms that join the network and leave it as needed.

Accepted Answer

A virtual corporation is a type of organization where companies join and leave the network as needed, with the goal of collaborating and achieving a common goal. These networked organizations can be made up of replaceable firms that contribute to the overall success of the virtual corporation.

Question 4

Networking requires transparency to work most effectively.

Accepted Answer

Networking requires open and transparent communication in order to build trust, establish relationships, and effectively collaborate. Without transparency, there can be misunderstandings and lack of accountability.

Question 5

Due to the competitive nature of companies that compete for the same customers, cross-functional teams never consist of individuals from more than one firm.

Accepted Answer

While it is true that cross-functional teams are made up of individuals from various departments within a single company, it is not true that they can never consist of individuals from more than one firm. In some cases, companies may form cross-functional teams with individuals from partner organizations or even competitors in order to work together towards a common goal.

Question 6

Cross-functional teams that go beyond company boundaries share production information but seldom market information.

Accepted Answer

Cross-functional teams are transparent. They share as much information as necessary to succeed in building a product that is needed by the marketplace. These teams go outside of the boundaries of one company. Sometimes the team will share information with government employees and/or employees from around the globe.

Question 7

Wizard Manufacturing makes small consumer electronics like mixers and toasters. The industry is relatively stable, having few new advances in product development. Wizard should use a line or line-and-staff organizational structure to ensure efficient operations.

Accepted Answer

A line or line-and-staff organizational structure would be appropriate for a stable industry like small consumer electronics where the focus is on efficient operations. This structure would allow for clear lines of authority and accountability, which is important for manufacturing processes.

Question 8

Julio is the owner of Celebration, Inc. a small party supply company. The company provides tents, tables, chairs, and related paraphernalia for wedding, Bar Mitzvah, Bot Mitzvah, graduation, birthday, and other celebratory events. As sales have increased, the organization has hired more personnel and departmentalized to more efficiently handle purchasing, sales, service, and accounting. Everyone is still responsible for achieving company goals. Upon seeing Celebration's organization chart, you agree it uses a line organization model.

Accepted Answer

The statement correctly describes Celebration, Inc. as using a line organization model.

Question 9

Transparency allows two companies to work more efficiently together.

Accepted Answer

Transparency between two companies creates a level of trust and openness, which leads to better communication and collaboration. This can ultimately result in more efficient and effective work between the two companies.

Question 10

Competitive benchmarking rates an organization's products and operations against the industry average.

Accepted Answer

The answer of Competitive benchmarking rates an organization's products and...

Question 11

Transparency describes the relationship between a firm and its stockholders.

Accepted Answer

Transparency refers to the practice of openly and honestly disclosing information to stakeholders (not limited to stockholders) about the company's operations, financial performance, and other relevant areas.

Question 12

The cross-functional team concept has resulted in lots of unhappy employees because less than 25% of employed workers do favor working with others.

Accepted Answer

There is no evidence to support the claim that the cross-functional team concept has resulted in lots of unhappy employees. Additionally, a study by Harvard Business Review found that 84% of survey respondents preferred working in teams over working alone, indicating that a significant majority favor collaborating with others.

Question 13

Alleta Publishing Company, Inc. is considering the use of cross-functional teams. In order to be most effective, Alleta should include customers as members of the teams.

Accepted Answer

Including customers in cross-functional teams allows for a better understanding of their needs and preferences, leading to more effective solutions and products.

Question 14

Networking uses communication technology to link organizations allowing them to work together on common objectives.

Accepted Answer

This statement accurately describes the purpose and function of networking.

Question 15

Julie is an attorney that works for Worldwide Food Science, Inc. that provides legal advice and assistance to the firm's managers. Julie's job with WFS, Inc. would be classified as a staff position.

Accepted Answer

Julie's role as an attorney providing legal advice and assistance to the firm's managers would be considered a staff position within the company.

Question 16

Buzzoff Corporation is a medium sized organization, organized with well-defined lines of authority and responsibility. Each employee reports to only one boss. The managers at Buzzoff complain that they have no expert support staff available to offer legal advice. Lately opportunities are slipping through the cracks due to inefficient long lines of communication. These characteristics suggest that Buzzoff employs a matrix organization.

Accepted Answer

The characteristics mentioned suggest that Buzzoff employs a traditional hierarchical organization, not a matrix organization. In a matrix organization, employees often report to multiple bosses and there is a greater emphasis on cross-functional teams. Additionally, matrix organizations typically have more support staff available to offer specialized advice.

Question 17

Barclay developed two interactive computer games. He didn't do it entirely alone. Last year he started a small company, hired two programmers, and a marketing graduate. He considers himself a cutting-edge kind of guy and wants to position his company the same. Soliciting your advice as to how he should structure his organization as he moves forward, you suggest that he hire a few potential customers to join his team of employees as product testers. And, maybe he should solicit globally. The structure you have described would simulate a line and staff organization.

Accepted Answer

The answer of Barclay developed two interactive computer games. He...

Question 18

Most companies are no longer self-sufficient or self-contained.

Accepted Answer

With globalization and increased specialization, many companies rely on partnerships, outsourcing, and global supply chains to operate effectively.

Question 19

A virtual corporation refers to a permanent network of firms linked by high-tech communication systems.

Accepted Answer

A virtual corporation is not permanent; it is a temporary network of independent companies—suppliers, customers, even erstwhile rivals—linked by information technology to share skills, costs, and access to one another's markets, allowing them to come together quickly to exploit rapidly changing opportunities.

Question 20

The Internet makes "real time" availability of data possible.

Accepted Answer

The Internet allows for instantaneous access to information stored on servers or other digital platforms, making "real time" availability of data possible.

Quiz 8: Structuring Organizations for Todays Challenges