Question 1

At PepsiCo,each of the company's three major beverage brands (Pepsi,Gatorade,and Tropicana)were formerly in separate departments.They competed for the same resources and there was very little coordination and sharing of information between them.This illustrates one of the problems with the ________ structure.

Accepted Answer

The divisional structure is organized around particular markets, customers, or geographic regions, with each division representing a unique business unit within the larger organization. Within the divisional structure, each unit has its own functional departments, which leads to competition for resources and very little coordination between units. This is illustrated by the example of PepsiCo's three major beverage brands.

Question 2

Geoff is a legal expert for Marks Inc.His special expertise involves counseling and advising other managers.This illustrates

Accepted Answer

Geoff's role as a legal expert who advises and counsels other managers indicates that he has staff authority. This means that he provides specialized expertise and advice to assist other managers in making decisions, but he does not directly make decisions or have control over resources.

Question 3

As companies get larger and more complex,they are likely to move away from the ________ structure.

Accepted Answer

As companies get larger and more complex, they are likely to move away from the functional structure, which is a simple and traditional form of organization that groups employees by their skill sets or job functions. Larger companies tend to rely on more complex structures that allow for greater flexibility and specialization, such as matrix, divisional, or conglomerate structures.

Question 4

At Ace Products,three vice-presidents report to the CEO,including the VP for Finance,the VP for Marketing,and the VP for Operations.What type of structure does Ace Products have?

Accepted Answer

Ace Products has a functional structure where departments are divided based on their functions, such as finance, marketing, and operations, and have a clear hierarchy where each department reports to the CEO.

Question 5

What is the difference between line managers and staff managers?

Accepted Answer

Line managers are directly involved in core activities like production and marketing, while staff managers provide support and expertise in areas like HR and legal.

Question 6

A group of top managers has been selected to guide the restructuring of the company's business.Because of the critical nature of its activities,the group has been granted

Accepted Answer

Committee and team authority is granted to groups formed to guide or manage specific tasks or projects within an organization, such as restructuring the company's business. This type of authority allows the group to make decisions and take actions within the scope of their assigned project.

Question 7

Gerry owns a company that employs 78 people.His company would most likely have a(n)________ structure.

Accepted Answer

The answer of Gerry owns a company that employs 78...

Question 8

Which of the following is an advantage of a functional structure?

Accepted Answer

A functional structure allows employees to specialize and develop expertise within their specific function, which can lead to greater efficiency and effectiveness in completing tasks related to that function. This can ultimately benefit the overall performance of the company. The other options presented are disadvantages of a functional structure.

Question 9

Employees with specific areas of expertise like accounting,law,and human resources,are usually given ________ authority,while managers of areas like production,finance,and marketing are usually given ________ authority.

Accepted Answer

Staff authority is typically given to specialized experts such as those in accounting, law, and human resources to advise and support line managers. Line authority, on the other hand, is granted to managers in charge of the core activities of the business like production, finance, and marketing, allowing them to make decisions and direct the work of subordinates.

Question 10

Departments which are directly linked to the production or sales of revenue-generating products are

Accepted Answer

Line departments are directly involved in the production or sales of revenue-generating products, while staff departments provide support and services to line departments. Function critical departments and matrix departments are not commonly used terms in organizational structure.

Question 11

Scott has reviewed the organizational structure of his company and found that there is a lot of specialization within each area,employees seem to have clearly defined career paths,and that there is little duplication of activities.He is most likely working in a company with a(n)________ structure.

Accepted Answer

A functional structure is characterized by specialization, clearly defined career paths, and little duplication of activities within each functional area. It is organized around specialized departments, such as marketing, finance, and human resources, that perform specific tasks related to their functions. This structure is common in organizations that have a narrow and specific product or service line.

Question 12

Ted,the human resources manager,is reviewing a batch of resumes that are in response to a job advertisement in a local paper.After selecting six candidates,the resumes are sent to the sales manager for selection of the candidates to be interviewed.Ted has what kind of authority?

Accepted Answer

Ted has staff authority as his role as a human resources manager involves providing assistance, support, and advice to other departments such as sales, but he does not have direct command over them. Line authority is the authority to make decisions and give orders to subordinates within a specific department. Expert authority is when a person has specialized knowledge or skills and is recognized for it. Direct authority is the power to give commands and enforce rules, while command authority is similar but specifically within military or law enforcement contexts.

Question 13

Michael is analyzing the structure of his new employer.The company is highly flexible and can readily adapt to changing circumstances.Employees report to two separate supervisors.The firm is probably using the ________ structure.

Accepted Answer

The matrix structure is characterized by flexibility and dual reporting relationships, where employees report to two separate supervisors, typically a functional manager and a project or product manager.

Question 14

The organization of the health care producer Johnson & Johnson includes consumer health care products,medical devices and diagnostics,and pharmaceuticals.What kind of organizational structure does this company use?

Accepted Answer

Johnson & Johnson uses a divisional structure, which is characterized by dividing the company into separate business units or divisions based on the products they produce or the markets they serve. Each division is responsible for its own functional areas, such as marketing, research and development, and production, allowing for more efficient decision-making and greater focus on specific products or markets.

Question 15

What is an advantage of the functional organization structure?

Accepted Answer

The answer of What is an advantage of the functional...

Question 16

Which of the following is correct with regard to divisional structures?

Accepted Answer

The answer of Which of the following is correct with...

Question 17

All of the following are either advantages or disadvantages of the functional structure except

Accepted Answer

Increases in accountability is not typically associated with a functional structure. In a functional structure, the organization is divided into different departments or functions (e.g., marketing, finance, operations), each led by a functional manager. While this can lead to specialization and efficiency within each function, it can also lead to silos where departments may prioritize their own goals over the organization's overall objectives, potentially decreasing overall accountability for organizational performance.

Question 18

Which of the following is not an advantage of the divisional structure?

Accepted Answer

Activities being duplicated across divisions is not an advantage of the divisional structure as it can lead to inefficiencies and increase costs. The other options are all advantages of the divisional structure. B) Training for top management is encouraged as they have to oversee multiple divisions. C) Accountability is increased as each division has its own set of responsibilities and goals to achieve. D) Developing expertise in the various divisions occurs as each division focuses on its specific area. E) Change and expansion are facilitated as the divisions have the flexibility to adapt to changes in their respective markets.

Question 19

In a firm that does marketing research for other firms,which of the following would be line positions?

Accepted Answer

Market researchers are the employees who directly contribute to the core business activities of a marketing research firm and are therefore considered line positions. The other options, such as accountants, legal experts, and human resource people, are support positions that provide indirect support to the core business activities and are considered staff positions.

Question 20

Which of the following is the best explanation of a matrix structure?

Accepted Answer

A matrix structure is characterized by teams that are formed in which employees report to two or more managers. This structure is used when organizations need to work on multiple projects simultaneously and the skills required for each project differ.

Quiz 7: Organizing the Business Enterprise