Question 1

An advantage of functional departmentalization is the fact that

Accepted Answer

Functional departmentalization allows for a clear structure where decision-making processes and lines of communication are straightforward and easily understood. This structure groups together employees who perform similar functions or tasks, leading to specialization and efficiency within departments.

Question 2

Subdividing an organization into smaller subunits is known as

Accepted Answer

Subdividing an organization into smaller subunits is known as departmentalization.

Question 3

Get in the Game Footwear, Inc., makes athletic shoes. Its departments are structured around products sold to professional athletes, novice athletes, and nonathletes. Get in the Game Footwear uses ________ departmentalization.

Accepted Answer

The answer of Get in the Game Footwear, Inc., makes...

Question 4

In a ________ organization, jobs are specialized and grouped according to the role they perform and the skills they require, such as marketing, finance, operations, accounting, and human resources.

Accepted Answer

In a functional organization, jobs are specialized based on the functions or activities they perform, such as marketing, finance, operations, accounting, and human resources. This allows for efficient use of skills and resources, as well as clear career paths for employees within a specific area of expertise.

Question 5

In a four-year time period, Isaiah's organization has grown from a one-man motorcycle repair shop to a custom bike manufacturing/assembly and rebuild business employing 24 mechanics and technicians. Due to Isaiah's difficulty in delegating responsibility, he makes almost all important business and design/technical decisions. As a result, he is working 80 hours per week, and the business has stopped expanding. The business is suffering an employee turnover problem. Isaiah's business is a(n)________ organization.

Accepted Answer

Isaiah's difficulty in delegating responsibility and making almost all important decisions shows that his organization is centralized, meaning decision-making and authority are concentrated in one person or group at the top. This can lead to employee dissatisfaction, turnover, and stunted growth as the organization relies too heavily on one person's ideas and decisions.

Question 6

Terri Blackstone, CEO of Xlnt Products, decides to reorganize her firm into a(n)________ organization. In this approach, Xlnt Products will flexibly and collaboratively work with other independent, mostly single-function firms to provide a desired good or service.

Accepted Answer

The description matches with a network organization, where firms collaborate to provide a desired good or service.

Question 7

Under the product structure of divisional organization,

Accepted Answer

In a divisional organization structure, decision-making is decentralized because each division operates semi-autonomously, making decisions that best suit its own operations and objectives. This allows for greater flexibility and responsiveness to changes in the market or specific product demands.

Question 8

Andre is a new product designer for a restaurant supply company. Andre therefore works in a ________ department.

Accepted Answer

The answer of Andre is a new product designer for...

Question 9

Global Beverage Corporation is planning a worldwide celebration on a particular day in July that marks the centennial of the company's founding. However, this has caused a problem in one of its overseas markets, where that day happens to coincide with a solemn national holiday. How should Global Beverage handle the situation?

Accepted Answer

Allowing the local management team to develop plans for an alternative celebration in consultation with national leaders and other local personnel is the best option. This shows respect for the national holiday and allows for a celebration that fits the local culture and traditions. It also allows for input from all relevant parties to ensure the celebration is appropriate and well-received. Option A is not feasible as a personal visit by the CEO may not be possible due to logistics and time constraints. Option B may not be well-received as it implies that the company did not respect the local traditions. Option D is too rigid and does not allow for local input. Option E is too vague and may not result in an appropriate alternative celebration.

Question 10

Line departments

Accepted Answer

Line departments are responsible for the core business functions that directly contribute to the production of goods or services. They are involved in creating, selling, and distributing the organization's products or services. Examples of line departments in a manufacturing company include production, marketing, and sales. Therefore, option B is the correct choice as it deals directly with the organization's primary goods and services.

Question 11

Rihanna Carpenter, CEO of BlueTone Corporation, announced the new corporate structure, naming Fujio Nakamura VP of the Far East Division, Basri Nassar VP of the Middle East Division, Lena Bauer VP of the European Division, and Pete Jackson VP of the Americas Division. Bluetone Corporation's new structure follows the ________ approach to departmentalization.

Accepted Answer

The new corporate structure of Bluetone Corporation is based on geographic divisions, with VP's appointed for different regions like Far East, Middle East, Europe, and the Americas. This suggests the company has adopted a geographic approach to departmentalization.

Question 12

An example of a line department is

Accepted Answer

A line department is directly involved in the production and delivery of a company's products or services. Product design is a key function in the manufacturing or service industry as it is responsible for creating and developing new products or improving existing ones. Hence, product design can be considered as a line department.

Question 13

Bill meets with his supervisor, Nick, and says, "Nick, I have conflicting direction from several managers. Dave wants me in the field next week across town. Claire wants me in the field next week out of state. And I know that you would like me to work next week in the office." Nick says, "Bill, we will solve this problem through communications and prioritization. We work for a ________ organization and having dual or even more lines of command can be confusing."

Accepted Answer

The situation described indicates that Bill may be in a matrix organization, where employees have dual reporting lines and may receive conflicting direction from different managers. Nick's mention of the need for communication and prioritization supports this idea. Therefore, the best choice is E, matrix.

Question 14

Global AgSystems operates worldwide and is organized into a(n)________ structure. Within this structure, each of the four division presidents and their respective employees are committed to the tractor, planter, combine, and silo businesses, respectively. Within these four divisions, task responsibilities are clear, and managers are more independent and accountable.

Accepted Answer

The division of the company into tractor, planter, combine, and silo businesses reflects a product structure, where each division focuses on a specific product category. Additionally, the clear delineation of task responsibilities within each division suggests that the company further emphasizes a product-based approach to organizing its activities.

Question 15

Departmentalization that groups units around products, customers, or geographic regions is a defining characteristic of a ________ organization.

Accepted Answer

Divisional organization groups units around products, customers, or geographic regions with decentralized decision-making authority.

Question 16

Stylish Fitness, a worldwide leader in athletic apparel products, operates divisions in North America, South America, Europe, and Asia-Pacific. Each division is managed independently and has its own line and staff departments to better align with

Accepted Answer

Each division is managed independently and has its own line and staff departments to better align with geographies.

Question 17

As vice president of human resources at Premier Products Corporation, Pietro enjoys working alongside his peer vice presidents, largely because they all have different skills and all manage different parts of the organization, including research, engineering, production, construction, procurement, and finance. Premier Products Corporation is a(n)________ organization.

Accepted Answer

Premier Products Corporation is described as having different parts of the organization managed by vice presidents with different skills, such as research, engineering, production, construction, procurement, and finance. This structure, where the organization is divided into departments based on functions, is characteristic of a functional organization.

Question 18

The three basic approaches to departmentalization are

Accepted Answer

The three basic approaches to departmentalization are functional, divisional, and matrix. Line and staff are not approaches to departmentalization but rather refer to the relationship between managers and their assistants.

Question 19

Research, accounting, and human resources are considered ________ departments.

Accepted Answer

Research, accounting, and human resources are considered staff departments because they provide support and specialized services to line departments, which are directly involved in core business operations.

Question 20

Sun Dynasty Foods was voted producer of the best egg rolls nationwide. It soon expanded and now manufactures and distributes a whole line of frozen foods, kitchen equipment, and specialty sauces, with a separate department for each. Sun Dynasty is characterized by the ________ approach to departmentalization.

Accepted Answer

Sun Dynasty Foods uses product departmentalization, where each department is organized around a specific product line, such as frozen foods, kitchen equipment, and specialty sauces. This allows for greater focus and specialization within each department.

Quiz 8: Organization Structure