Question 1

As an organization grows, a functional structure does not create ________.

Accepted Answer

The answer of As an organization grows, a functional structure...

Question 2

Horizontal differentiation begins when a company adopts a ________ structure.

Accepted Answer

The answer of Horizontal differentiation begins when a company adopts...

Question 3

TheB.A.R. and Grille restaurant has expanded its locations to now include several major U.S. cities. All major functions, such as pricing, menu design, and hiring will still be done by Bob and Amanda. Which structure should they move towards?

Accepted Answer

Since Bob and Amanda are still handling all major functions centrally, there is no immediate need to change their organizational structure despite the expansion.

Question 4

A multidivisional matrix is a structure that entails several divisions adopting the matrix structure.

Accepted Answer

The answer of A multidivisional matrix is a structure that...

Question 5

Top managers spend so much time resolving everyday problems that they can't address long-term company issues. This is a ________ problem associated with the functional structure.

Accepted Answer

The problem described in the statement is a strategic problem, as it is related to the long-term issues and direction of the company. The functional structure of an organization can create silos where each department manages its own day-to-day operations, but this can hinder overall strategic planning and decision-making.

Question 6

A hybrid structure is most effective when the market is too unstable to just use one structure.

Accepted Answer

The answer of A hybrid structure is most effective when...

Question 7

As TheB.A.R. and Grille restaurant grew, the owners grouped people together on the basis of their common skills and expertise. This is called a ________.

Accepted Answer

A functional structure groups individuals together based on their common skills and expertise. This helps to ensure that everyone is working with others who have a similar knowledge base and can increase efficiency within the organization. The other listed options, product structure, hierarchy of authority, and simple structure, do not involve grouping individuals based on their skills and expertise.

Question 8

A ________ structure is a design that groups people together on the basis of their common expertise and experience or because they use the same resources.

Accepted Answer

A functional structure groups people together based on their common expertise or the use of the same resources. The other options do not necessarily group people based on these criteria. A core structure may refer to the key leadership team or set of values guiding an organization, a product structure groups people based on the products they work on, and a team structure groups people based on specific project teams.

Question 9

________ can sometimes overcome control problems in a functional structure, making it unnecessary to move to a more complex structure.

Accepted Answer

By improving integration among different functional areas, communication and coordination can be enhanced, and control problems can be reduced. This can allow a functional structure to operate efficiently without the need for a more complex structure.

Question 10

Location problems occur in a ________ structure.

Accepted Answer

In a functional structure, location problems can occur because departments are organized by function rather than by product or geography, which can lead to inefficiencies and coordination issues across different locations.

Question 11

Employee roles are clearly defined in a matrix structure.

Accepted Answer

In a matrix structure, roles may not always be clearly defined as employees often report to multiple managers or work on multiple projects simultaneously.

Question 12

A high-tech company is likely to experience more disadvantages using a network structure than a low-tech company.

Accepted Answer

A network structure requires a high level of coordination and communication, which can be difficult to achieve in a high-tech company where employees are often working on complex and specialized projects.

Question 13

Core competences first emerge when a company adopts a ________ structure.

Accepted Answer

The answer of Core competences first emerge when a company...

Question 14

A hybrid structure is for complex organizations that have many divisions and need to make use of several different structures.

Accepted Answer

The answer of A hybrid structure is for complex organizations...

Question 15

Success at Amazon.com has been due to the functional structure, which has provided all of the following except:

Accepted Answer

The functional structure of Amazon.com has provided operations management, planning, and software development which have led to their success. However, the functional structure did not restrict the selection of books available in bookstores but rather expanded the options available to customers through their online platform. Therefore, option B is not an accurate statement.

Question 16

TheB.A.R. and Grille restaurant has added a banquet room to serve large groups of customers. Which structure would they most likely move towards?

Accepted Answer

The answer of TheB.A.R. and Grille restaurant has added a...

Question 17

Production, marketing, and sales have little opportunity to specialize in the needs of a customer group. This is a ________ problem associated with a functional structure.

Accepted Answer

The answer of Production, marketing, and sales have little opportunity...

Question 18

How did William McComb restructure Liz Claiborne's organization?

Accepted Answer

William McComb restructured Liz Claiborne's organization by consolidating from five to two divisions.

Question 19

TheB.A.R. and Grille restaurant has expanded its menu to include Chinese food. This is causing some problems because the cooks don't know how to cook the food, and the waitstaff doesn't have the skills to serve many of the dishes, which require preparation at the table. They currently have a functional structure. Which structure should they move towards?

Accepted Answer

The answer of TheB.A.R. and Grille restaurant has expanded its...

Question 20

One problem with the matrix structure is that employees must report to two different bosses.

Accepted Answer

In a matrix structure, employees report to both a functional manager and a project manager, leading to dual reporting.

Quiz 6: Designing Organizational Structure: Specialization and Coordination