Question 1

Which form of departmentalization tends to have a very flat hierarchy, little formalization and organizes employees around work processes?

Accepted Answer

A team-based organizational structure is usually organic.There is a wide span of control because teams operate with minimal supervision.Many team-based structures have low formalization because teams are given relatively few rules about how to organize their work.

Question 2

A team-based organizational structure has a:

Accepted Answer

Team structures are highly decentralized because almost all day-to-day decisions are made by team members rather than someone further up the organizational hierarchy.Many team-based structures have low formalization because teams are given relatively few rules about how to organize their work.

Question 3

Creative Advertising Corp.wants its 100 employees to work together around specific clients yet maintain an equal emphasis on alignment with their skill specializations (advertising, graphics, copywriting and public relations).Which of the following organizational structures would work best for Creative Advertising Corp.?

Accepted Answer

Under the given circumstances, matrix structure that overlays project teams with a functional structure would work best for Creative Advertising Corp.This matrix structure focuses employees on the final product yet keeps them organized around their expertise to encourage knowledge sharing.

Question 4

A wholesale grocery business operates in one city and provides one service-stocking retailers with fresh produce.The company wants to ensure that employees develop expertise in their skill specialization and that these specializations are used efficiently.The aim is to create specialized pools of talent that serve everyone in the company.Which of the following forms of departmentalization would be most appropriate here?

Accepted Answer

A functional structure would be most appropriate in this scenario.A functional structure organizes employees around specific knowledge or other resources.The functional structure creates specialized pools of talent that typically serve everyone in the organization.

Question 5

Communication flows in all directions with little concern for the formal hierarchy in a(n) _____ structure, but this structure is costly to maintain due to the need for ongoing interpersonal skill training.

Accepted Answer

Communication flows in all directions with little concern for the formal hierarchy in a team-based structure.A cross-functional team structure improves communication and cooperation across traditional boundaries.Team-based structures have low formalization because teams are given relatively few rules about how to organize their work.

Question 6

Most employees at Quokka Systems are organized into project teams.Employees report to the project leader, but they also report to a leader responsible for their functional specialization (such as engineering or marketing).Quokka Systems has a:

Accepted Answer

Matrix structure is an organizational structure that overlays two structures (such as a geographic divisional and a functional structure) in order to leverage the benefits of both.Employees working at the matrix level have two bosses and, consequently, two sets of priorities.Quokka Systems has a matrix structure.

Question 7

Many companies are moving away from divisionalized structures that organize people around:

Accepted Answer

Many companies are moving away from structures that organize people around geographic clusters.Clients can purchase products online and communicate with businesses from almost anywhere in the world, so local representation is less critical.Reduced geographic variation is another reason for the shift away from geographic structures.

Question 8

Freer trade, advances in information technology, and more global customers are pressuring many large global companies to:

Accepted Answer

Freer trade, advances in information technology, and more global customers are pressuring many large global companies to shift away from geographically-based to more client-based divisionalized structures.This shift away from geographic and toward product or client-based divisional structures reflects the trend toward the globally integrated enterprise.

Question 9

Organic structures are better than mechanistic structures for:

Accepted Answer

Hostile environments are typically dynamic ones because they reduce the predictability of access to resources and demand for outputs.Organic structures tend to be best in hostile environments.

Question 10

The _____ structure tends to duplicate resources, such as production equipment and engineering or information technology expertise.

Accepted Answer

The divisional structure tends to duplicate resources, such as production equipment and engineering or information technology expertise.Also, unless the division is quite large, resources are not used as efficiently as they are in functional structures where resources are pooled across the entire organization.

Question 11

A consumer products firm with a functional structure is expanding from a single product line into several diverse product groups, with most sales within one country.Which of the following should it eventually adopt to manage the new conditions most effectively?

Accepted Answer

The firm should eventually adopt a divisional product structure to manage the new conditions most effectively.The divisional structure groups employees around geographic areas, outputs (products or services), or clients.The product/service divisional structure organizes employees around distinct outputs.

Question 12

The increasing recognition that an organization has only a few core competencies is one of the forces pushing towards more:

Accepted Answer

One of the main forces pushing toward a network structure is the recognition that an organization has only a few core competencies.A core competency is a knowledge base that resides throughout the organization and provides a strategic advantage.

Question 13

One of the defining characteristics of a matrix organizational structure is that it:

Accepted Answer

Matrix structure is an organizational structure that overlays two structures (such as a geographic divisional and a functional structure) in order to leverage the benefits of both.The matrix structure usually makes good use of resources and expertise, making it ideal for project-based organizations with fluctuating workloads.

Question 14

Which organizational structure actually consists of several organizations?

Accepted Answer

A network structure consists of several organizations.It is an alliance of several organizations for the purpose of creating a product or serving a client.BMW, Daimler Benz, and many other organizations are moving toward a network structure as they design and build a product or serve a client through an alliance of several organizations.

Question 15

Team-based organizational structures are usually found:

Accepted Answer

Team-based structures are usually found within the manufacturing or service operations of larger divisional structures.For example, several GE Aircraft Engines plants are organized as team-based structures, but these plants operate within GE's larger divisional structure.

Question 16

Organizational size, technology, and environment are:

Accepted Answer

Most organizational behavior theories and concepts have contingencies; ideas that work well in one situation might not work as well in another situation.This contingency approach is certainly relevant when choosing the most appropriate organizational structure.The four contingencies of organizational design are: external environment, size, technology, and strategy.

Question 17

When functional structures are compared with divisionalized structures, functional structures are known to:

Accepted Answer

The functional structure creates specialized pools of talent that typically serve everyone in the organization.This provides more economies of scale than are possible if functional specialists are spread over different parts of the organization.

Question 18

Team-based organizations have:

Accepted Answer

A team-based organizational structure is built around self-directed teams that complete an entire piece of work, such as manufacturing a product or developing an electronic game.This type of structure is usually organic.There is a wide span of control because teams operate with minimal supervision.

Question 19

One problem with a functional structure is that:

Accepted Answer

Compared with other structures, the functional structure usually produces higher dysfunctional conflict and poorer coordination in serving clients or developing products.These problems occur because employees need to work with coworkers in other departments to complete organizational tasks, yet they have different subgoals and mental models of ideal work.

Question 20

For which type of environment should organizations adopt an organic structure?

Accepted Answer

Organic structures are better suited to dynamic type of environment so the organization can adapt more quickly to changes, but only if employees are experienced and coordinate well in teamwork.Dynamic environments have a high rate of change, leading to novel situations and a lack of identifiable patterns.

Quiz 13: Designing Organizational Structures