Question 1

_____________ is a method of managing or coordinating employees based upon the operations that they perform.
A) Direct supervision
B) Standardization of work processes
C) Outcome oversight
D) Standardization of skills

Accepted Answer

Standardization of work processes involves organizing work tasks and procedures in a specific, repeatable manner, which helps to manage and coordinate employees based on their roles and functions within the organization. This method can increase efficiency and productivity, and reduce errors and expenses. Direct supervision involves a manager overseeing each employee's work directly, outcome oversight focuses on the end result rather than the process, and standardization of skills involves ensuring all employees have the same level of proficiency in certain skills.

Question 2

One difficulty that employees face when organized into a matrix structure is that:
A) They each report to two bosses
B) There is no clear path for advancement
C) Functional area managers make unreasonable demands
D) There is no clear way to physically arrange people to facilitate communication

Accepted Answer

The matrix structure involves employees reporting to both a functional manager and a project or product manager. This duality of reporting can create confusion and conflict for employees, as they may receive conflicting instructions or priorities from each boss.

Question 3

Identify the primary features of the divisional structure.

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Question 4

Explain the entrepreneurial organizational structure,highlight advantages and disadvantages.

Accepted Answer

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Question 5

A method for managing or coordinating a large number of employees based on their abilities and proficiencies as validated by some external authority is called:
A) Loosely-coupled management
B) Tacit coordination
C) Standardization of work skills
D) Minimal interference management

Accepted Answer

The method described in the question is called standardization of work skills, which involves using external validation to determine the abilities and proficiencies of employees. This can help ensure that employees are matched to the roles that best fit their skills, leading to more efficient and effective use of resources. Loosely-coupled management, tacit coordination, and minimal interference management are not specific methods for managing or coordinating employees based on their abilities and proficiencies.

Question 6

Summarize the five main structural forms.

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Question 7

Functional structures are an effective way to organize when:
A) The company begins reporting its financial results publicly
B) A company has completed the process of downscoping
C) Business activity or volume has outgrown a simple structure
D) There is a need to train employees for general management positions

Accepted Answer

Functional structures are typically used when a company's business activity or volume has grown to the point where a simple structure is no longer sufficient. In a functional structure, employees are grouped according to the function they perform, such as marketing or operations. This allows for greater specialization and efficiency as the company grows. The other options may not directly relate to the need for a functional structure.

Question 8

A simple structure is best suited for organizations that:
A) Produce a single product or service
B) Are new or nearly new
C) Are trying to maintain an entrepreneurial orientation
D) All of the above

Accepted Answer

A simple structure is best suited for organizations that produce a single product or service, are new or nearly new, and are trying to maintain an entrepreneurial orientation. Therefore, the correct answer is D, which includes all of the above options.

Question 9

What is a matrix structure and when should it be used?

Accepted Answer

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Question 10

Identify the key advantages and disadvantages of the functional structure.

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Question 11

What is a strategic control system?

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Question 12

A ________ organizational structure is where employees are grouped by expertise or similar activities such as marketing or accounting/finance.
A) Functional
B) Divisional
C) Matrix
D) Simple

Accepted Answer

A functional organizational structure is where employees are grouped by their areas of expertise or similar activities such as marketing, accounting/finance, human resources, etc. This structure is often utilized by smaller organizations and allows employees to collaborate and share their knowledge within their respective departments.

Question 13

In a ________ organizational structure all areas of the company report to a single person.
A) Functional
B) Simple
C) One-dimensional
D) Creative

Accepted Answer

A simple organizational structure, also known as a flat structure, has a small number of levels of hierarchy, and all areas of the company report to a single person, typically the owner or CEO. Functional structures divide the company into departments based on function or specialization, and each department has its own manager. One-dimensional structures are not a recognized type of organizational structure, and creative structures are characterized by flexibility and innovation in the organization's design.

Question 14

What is restructuring and how might a firm restructure?

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Question 15

A(n)________ organizational structure is used when everyone in a group is working toward a well-defined goal but the means to achieve that goal are not clear.
A) Matrix
B) Management by objectives (MBO)
C) Adhocracy
D) Incremental

Accepted Answer

Adhocracy is an organizational structure used when the goal is clear, but there is no clearly defined path to achieve that goal. Therefore, the structure is flexible and adaptable to change as the team experiments with different approaches to achieve the goal. Matrix structure is used when a project requires input from different functional areas or departments, MBO is a system of management where goals are set collaboratively between management and employees, and incremental structure involves making small improvements to an existing process or product.

Question 16

Describe the three key groups of people that can be found in every organization.

Accepted Answer

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Question 17

The type of organizational structure in which a company is divided into discrete parts,each of which consists of a fully functioning entity with a complete value chain,is called a(n)________ structure.
A) Matrix
B) Divisional
C) Complex
D) Incubator

Accepted Answer

The description provided matches the characteristics of a divisional structure, where the company is divided into separate divisions or units, each responsible for its own operations and value chain. This structure is commonly used in large organizations with diverse products or markets, allowing for greater focus and specialization within each division. The other options - matrix, complex, and incubator - do not specifically match the description provided.

Question 18

Describe the roles that the structural facets of specialization,centralization and formalization play in the design of organizations.

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Question 19

The organizational structure that creates both a functional home and divisional home for each employee is called a(n)________ structure.
A) M-form
B) Matrix
C) Business neighbourhood
D) Integrated

Accepted Answer

A matrix structure combines both functional and divisional structures, allowing employees to have a home in both areas. The other options (M-form, business neighborhood, integrated) do not specifically refer to this combination of functional and divisional homes.

Question 20

Identify the main features of the holding company structural form and the situations where it may be appropriate.

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Quiz 15: Organizational Structure and Controls

_____________ is a method of managing or coordinating employees based upon the operations that they perform.

One difficulty that employees face when organized into a matrix structure is that:

Identify the primary features of the divisional structure.

Explain the entrepreneurial organizational structure,highlight advantages and disadvantages.

A method for managing or coordinating a large number of employees based on their abilities and proficiencies as validated by some external authority is called:

Summarize the five main structural forms.

Functional structures are an effective way to organize when:

A simple structure is best suited for organizations that:

What is a matrix structure and when should it be used?

Identify the key advantages and disadvantages of the functional structure.

What is a strategic control system?

A ________ organizational structure is where employees are grouped by expertise or similar activities such as marketing or accounting/finance.

In a ________ organizational structure all areas of the company report to a single person.

What is restructuring and how might a firm restructure?

A(n) ________ organizational structure is used when everyone in a group is working toward a well-defined goal but the means to achieve that goal are not clear.

Describe the three key groups of people that can be found in every organization.

The type of organizational structure in which a company is divided into discrete parts,each of which consists of a fully functioning entity with a complete value chain,is called a(n) ________ structure.

Describe the roles that the structural facets of specialization,centralization and formalization play in the design of organizations.

The organizational structure that creates both a functional home and divisional home for each employee is called a(n) ________ structure.

Identify the main features of the holding company structural form and the situations where it may be appropriate.