Question 1

A_________ structure organizes divisions according to the requirements of the different locations in which an organization appears.
A)product
B)functional
C)simple
D)geographic divisional

Accepted Answer

A geographic divisional structure organizes divisions based on the different locations where an organization operates, allowing for regional management and decision-making.

Question 2

The creation of an internal labor market is an advantage of the _________structure.
A)functional
B)market
C)matrix
D)multidivisional

Accepted Answer

The multidivisional structure allows for the creation of internal labor markets by enabling divisions to operate semi-independently, which can lead to more specialized roles and career development opportunities within the organization.

Question 3

Nike's product design and research function are located in Oregon and all the other production functions are outsourced to companies around the world. Nike uses a _________structure.
A)network
B)centralized
C)product team
D)geographic

Accepted Answer

Nike uses a network structure, where the core functions like design and research are kept in-house, while production is outsourced globally.

Question 4

Employees move between teams most often in a __________ structure.
A)product team
B)matrix
C)market
D)multidivisional matrix

Accepted Answer

In a matrix structure, employees often move between teams as they work on different projects or tasks, allowing for flexibility and dynamic team composition.

Question 5

Deciding how much decision- making authority to centralize at corporate headquarters and how much to decentralize to the divisions can be a disadvantage of the_________ structure.
A)multidivisional
B)matrix
C)functional
D)product division

Accepted Answer

The multidivisional structure involves dividing the organization into semi-autonomous units or divisions, which can lead to challenges in determining the appropriate level of decision-making authority to centralize or decentralize.

Question 6

Integration is highest in a __________ structure.
A)multidivisional matrix
B)product division
C)market
D)geographic

Accepted Answer

A multidivisional matrix structure integrates various divisions and functions, allowing for high levels of coordination and communication across different parts of the organization.

Question 7

As an organization grows, a functional structure does not create_________ .
A)learning problems
B)customer problems
C)location problems
D)communication problems

Accepted Answer

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

Question 8

A geographic structure is most appropriate for which of the following companies?
A)An oil producer that sells gas, a commodity, in five different regions
B)A telecommunications company that makes technologically complex equipment
C)A retailer who specializes in clothing and operates in five different regions of the United States
D)A large manufacturer that wants to produce automobiles in Mexico and computers in Southeast Asia

Accepted Answer

The answer of A geographic structure is most appropriate for...

Question 9

The matrix structure requires a _________level of vertical coordination and a_________ level of horizontal coordination.
A)high/low
B)low/high
C)low/low
D)high/high

Accepted Answer

The answer of The matrix structure requires a _________level of...

Question 10

Which of the following is not a divisional structure?
A)Product team
B)Geographic
C)Market
D)Matrix

Accepted Answer

The matrix structure is not a divisional structure; it is a hybrid structure that combines elements of both functional and divisional structures, allowing for dual reporting relationships.

Question 11

Which of the following is a difference between the product team and the matrix structures?
A)Employees move between teams in a product team structure but not in a matrix structure.
B)Employees move between teams in a matrix structure but not in a product team structure.
C)Employees have two bosses in a product team structure and only one boss in a matrix structure.
D)A matrix structure has a taller hierarchy than a product team structure.

Accepted Answer

In a matrix structure, employees often report to two managers and may move between teams, whereas in a product team structure, employees typically remain within their designated product team.

Question 12

A food manufacturer is experiencing coordination problems between its frozen food division and its canned food division. The main control problem is that each product requires an entirely separate system for ordering supplies, packaging the product, and storing the product upon completion. Which structure would help solve these coordination problems?
A)Multidivisional
B)Matrix
C)Market
D)Product division

Accepted Answer

Product division structure groups similar products together, which would allow the frozen food and canned food divisions to have their own separate systems for ordering supplies, packaging, and storing products.

Question 13

Hallmark organized around categories of greeting cards such as Mother's Day cards and Christmas cards. This structure is called __________.
A)product team
B)functional
C)simple
D)geographic

Accepted Answer

This structure is called a product team structure because it is organized around specific product categories, such as Mother's Day cards and Christmas cards.

Question 14

A market structure organizes people according to:
A)the functions they perform.
B)the regional markets they serve.
C)what the people are required to produce.
D)the types of customers they serve.

Accepted Answer

The answer of A market structure organizes people according to:
A)the...

Question 15

Core competences first emerge when a company adopts a __________ structure.
A)multidivisional
B)product team
C)functional
D)product division

Accepted Answer

Core competences first emerge when a company adopts a functional structure, as this structure allows for specialization and development of expertise within specific functions.

Question 16

An advantage of the multidivisional system is:
A)decreased control.
B)profitability cannot be evaluated.
C)corporate managers monitor divisional managers.
D)responsibility is unclear.

Accepted Answer

The multidivisional system allows corporate managers to effectively monitor and evaluate the performance of divisional managers, enhancing control and accountability.

Question 17

Caterpillar needed to restructure its organization in order to reduce costs because of competition. Which structure did it use?
A)Geographic
B)Multidivisional matrix
C)Matrix
D)Product Team

Accepted Answer

Caterpillar used the Product Team structure to streamline operations and reduce costs by focusing on specific product lines and improving efficiency.

Question 18

A multidivisional matrix structure:
A)has low bureaucratic costs.
B)has a flatter hierarchy than a multidivisional structure.
C)enhances coordination between corporate headquarters and the divisions.
D)is a design in which most divisions have a matrix structure.

Accepted Answer

A multidivisional matrix structure enhances coordination between corporate headquarters and the divisions by allowing for better communication and resource sharing across different parts of the organization.

Question 19

A company will be able to handle more complex product choices when it moves from a_________ structure to a_________ structure.
A)multidivisional/matrix
B)multidivisional/market
C)functional/product division
D)functional/geographic

Accepted Answer

The answer of A company will be able to handle...

Question 20

A regional company markets ice cream, milk, and frozen yogurt. A _________structure is the most appropriate structure for this firm.
A)market
B)product team
C)product division
D)multidivisional

Accepted Answer

A product division structure is suitable for a company that offers distinct product lines like ice cream, milk, and frozen yogurt, allowing each division to focus on its specific product.

Quiz 6: Designing Organizational Structure: Specialization and Coordination

A_________ structure organizes divisions according to the requirements of the different locations in which an organization appears.

The creation of an internal labor market is an advantage of the _________structure.

Nike's product design and research function are located in Oregon and all the other production functions are outsourced to companies around the world. Nike uses a _________structure.

Employees move between teams most often in a __________ structure.

Deciding how much decision- making authority to centralize at corporate headquarters and how much to decentralize to the divisions can be a disadvantage of the_________ structure.

Integration is highest in a __________ structure.

As an organization grows, a functional structure does not create_________ .

A geographic structure is most appropriate for which of the following companies?

The matrix structure requires a _level of vertical coordination and a_ level of horizontal coordination.

Which of the following is not a divisional structure?

Which of the following is a difference between the product team and the matrix structures?

Hallmark organized around categories of greeting cards such as Mother's Day cards and Christmas cards. This structure is called __________.

A market structure organizes people according to:

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

An advantage of the multidivisional system is:

Caterpillar needed to restructure its organization in order to reduce costs because of competition. Which structure did it use?

A multidivisional matrix structure:

A company will be able to handle more complex product choices when it moves from a_ structure to a_ structure.

A regional company markets ice cream, milk, and frozen yogurt. A _________structure is the most appropriate structure for this firm.