Question 1

Relative to the functional structure,the divisional structure:

Accepted Answer

The divisional structure groups employees based on products, customers, or geographical locations. This encourages decentralization as each division has its own set of resources and management, allowing for quicker decision-making and increased flexibility.

Question 2

Tristate Toasters Corporation has a finance department,a marketing department and a production department.Tristate uses a __________ structure.

Accepted Answer

Tristate Toasters Corporation's structure is functional as it has separate departments based on functions such as finance, marketing, and production.

Question 3

All of the following are advantages of a functional structure,except:

Accepted Answer

The concentration of decision-making at the top of the hierarchy is actually a potential disadvantage of a functional structure, as it can lead to slow and bureaucratic decision-making processes. The other options listed are advantages of a functional structure.

Question 4

Vipac Engineers and Scientists Ltd are Australian consultants specialising in a broad range of technology areas,with offices throughout Asia and development laboratories in Australia.According to the text,this company has adopted a __________ structure.

Accepted Answer

The description of Vipac Engineers and Scientists Ltd indicates a divisional structure, as it mentions the company specializes in a broad range of technology areas and has offices throughout Asia and development laboratories in Australia. This suggests the company is organized around its various projects, services, or geographic locations, which is characteristic of a divisional structure.

Question 5

The team approach to departmentalisation is a response to:

Accepted Answer

The team approach to departmentalisation is a response to various factors including lengthy decision making, centralised decision making, and the competitive global environment. This approach aims to make organizations more flexible, responsive, and competitive by leveraging the diverse skills and perspectives of team members.

Question 6

Which of these are brought together as a formal department in the organisation?

Accepted Answer

The answer of Which of these are brought together as...

Question 7

All of the following are advantages of a functional structure,except:

Accepted Answer

In a functional structure, coordination across different functions can be challenging due to the silo effect, where each department focuses on its own area without necessarily collaborating with others. This structure excels in specialization and development within functions, economies of scale, and technical problem-solving, but it can struggle with inter-departmental coordination.

Question 8

When its departments are grouped together on the basis of the organisation's outputs,the organisation is using a:

Accepted Answer

The divisional structure groups departments together based on the organisation's outputs, with each division being responsible for a specific product or service line. This allows for increased focus and coordination within each division, but may result in duplication of functions across divisions. Functional structure groups departments together based on similar functions, matrix structure combines functional and divisional structures, network structure emphasises collaboration with external partners, and team-based structure focuses on cross-functional teams working together.

Question 9

An advantage of the divisional structure is:

Accepted Answer

The divisional structure allows for a focus on specific customer needs, as each division can tailor its products and services to meet the needs of its particular market segment. This can lead to increased customer satisfaction and loyalty.

Question 10

An advantage of functional structures is the:

Accepted Answer

Functional structures allow for specialization in tasks, which can lead to economies of scale as employees become more efficient in their specific roles.

Question 11

Kempsey Herbal Solutions has been having numerous problems.Communication across departments is poor and decisions are backing up at the top of the organisation.Kempsey Herbal Solutions uses a __________ structure.

Accepted Answer

The poor communication across departments and backlog of decisions at the top of the organization suggest that Kempsey Herbal Solutions uses a functional structure, in which departments are grouped by similar functions or skills. In this type of structure, decision-making can become centralized, which may lead to delays and communication difficulties.

Question 12

Sean works for Better Bloke Paints,an organisation where coordination across organisational units is poor and the units perceive themselves as being in competition with one another for organisational resources.These characteristics are consistent with which of the following structures?

Accepted Answer

The description of poor coordination across organizational units and perceived competition for resources is indicative of a divisional structure. In this structure, divisions are made based on products, regions, or customer groups, and each division operates as a separate entity with its own functional departments. As a result, there can be a lack of communication and collaboration between the different divisions, leading to the issues described in the question.

Question 13

All of the following are disadvantages of a matrix structure,except:

Accepted Answer

Enlarged tasks for employees are not considered a disadvantage of a matrix structure. Instead, this can be seen as an advantage because it allows employees to develop a broader skill set and engage in a variety of tasks, which can lead to increased job satisfaction and personal growth.

Question 14

All of the following are advantages of a divisional structure,except:

Accepted Answer

The answer of All of the following are advantages of...

Question 15

Advantages of the matrix structure include:

Accepted Answer

All of these choices are advantages of the matrix structure. It increases employee participation by involving them in multiple projects or teams, making efficient use of human resources by allowing employees to use their specialized skills across different projects or departments, and working well in a changing environment by being adaptable and flexible. Additionally, the matrix structure develops both general and specialist management skills as managers must be able to work across different projects and manage cross-functional teams.

Question 16

The cross-functional team approach assumes:

Accepted Answer

The cross-functional team approach assumes that all employees, regardless of function, can contribute and help to solve problems. It recognizes that different perspectives and expertise are needed to solve complex issues and encourages collaboration and communication across functions. It does not assume that workers must be in teams to be motivated or that centralization of authority is good. It is also not a statement about the ideal organizational structure or whether management can function without cross-functional teams.

Question 17

In a __________ structure,all functions in a specific country or region report to the same division manager.

Accepted Answer

In a geographic-based structure, functions are organized based on the geographic location, and all functions in a specific country or region report to the same division manager. This structure is useful when the company operates in multiple locations or countries, and each location requires different strategies and approaches to succeed.

Question 18

An organisation that uses functional and divisional chains of command simultaneously is said to have a __________ structure.

Accepted Answer

A matrix structure combines both functional and divisional structures, allowing for more flexibility in decision-making and resource allocation. This type of structure is commonly used in complex organizations with multiple projects or products to manage.

Question 19

The matrix structure violates which of the following principles of management?

Accepted Answer

The matrix structure violates the principle of unity of command because employees have two bosses - a functional manager and a project manager - and may receive conflicting directives from each. This can create confusion and job dissatisfaction. The other principles listed are not necessarily violated by the matrix structure.

Question 20

The __________ approach to structure provides a formal chain of command for both functional and divisional relationships.

Accepted Answer

The horizontal matrix approach to structure combines both functional and divisional chains of command to create a grid structure, allowing for two lines of authority.

Quiz 10: Designing Organisation Structure

Relative to the functional structure,the divisional structure:

Tristate Toasters Corporation has a finance department,a marketing department and a production department.Tristate uses a __________ structure.

All of the following are advantages of a functional structure,except:

Vipac Engineers and Scientists Ltd are Australian consultants specialising in a broad range of technology areas,with offices throughout Asia and development laboratories in Australia.According to the text,this company has adopted a __________ structure.

The team approach to departmentalisation is a response to:

Which of these are brought together as a formal department in the organisation?

All of the following are advantages of a functional structure,except:

When its departments are grouped together on the basis of the organisation's outputs,the organisation is using a:

An advantage of the divisional structure is:

An advantage of functional structures is the:

Kempsey Herbal Solutions has been having numerous problems.Communication across departments is poor and decisions are backing up at the top of the organisation.Kempsey Herbal Solutions uses a __________ structure.

Sean works for Better Bloke Paints,an organisation where coordination across organisational units is poor and the units perceive themselves as being in competition with one another for organisational resources.These characteristics are consistent with which of the following structures?

All of the following are disadvantages of a matrix structure,except:

All of the following are advantages of a divisional structure,except:

Advantages of the matrix structure include:

The cross-functional team approach assumes:

In a __________ structure,all functions in a specific country or region report to the same division manager.

An organisation that uses functional and divisional chains of command simultaneously is said to have a __________ structure.

The matrix structure violates which of the following principles of management?

The __________ approach to structure provides a formal chain of command for both functional and divisional relationships.