Question 1

A divisional structure is characterized by reduced coordination across functional departments.

Accepted Answer

A divisional structure groups employees together based on products, services, or geographic locations, and encourages coordination across functional departments within each division. Therefore, it is characterized by increased coordination across functional departments within each division.

Question 2

Informal networks are sources of emotional support and friendship that satisfy members' social needs.

Accepted Answer

Informal networks provide social interaction and emotional support that fulfill members' social needs in a nonprofessional setting.

Question 3

In a functional structure, the functions become formalized not only on the organization chart, but also in the mind-sets of people.

Accepted Answer

In a functional structure, specific functions or departments are created and formalized on the organization chart, and this structure encourages people to think and work within the boundaries of their assigned functions. Over time, this can lead to people thinking about their work and the organization in terms of functions, which reinforces the functional structure both formally and informally.

Question 4

A social network analysis is a tool that identifies formal structures and their social relationships.

Accepted Answer

Social network analysis identifies both formal and informal structures by analyzing the relationships and interactions between individuals, groups, or organizations, not just formal structures.

Question 5

In a matrix structure, top managers are freed from lower-level problem solving to focus time on more strategic issues.

Accepted Answer

In a matrix structure, lower-level problem solving is delegated to specific functional teams, allowing top managers to focus on higher-level strategic issues.

Question 6

Functional structures tend to work best in relatively stable environments where problems are predictable and the demands for change and innovation are limited.

Accepted Answer

Functional structures are designed to maximize efficiency and productivity by dividing the organization into specialized units and departments. These structures are most effective in stable environments where the tasks and responsibilities are consistent and predictable. In dynamic environments where rapid changes and innovation are required, organizations may need to be more flexible and adaptive, shifting to a more decentralized or matrix organizational structure.

Question 7

Team meetings in matrix structures are short and quick.

Accepted Answer

In matrix structures, team meetings often involve discussions from multiple perspectives due to the cross-functional nature of the teams, which can lead to longer meetings.

Question 8

An organization structure is the system of tasks, workflows, reporting relationships, and communication channels that link together the work of diverse individuals and groups.

Accepted Answer

This is the correct definition of organization structure.

Question 9

An organization chart includes major subunits in which positions reporting to a common manager are shown.

Accepted Answer

An organization chart is a visual representation of an organization's structure, and it typically includes major subunits in which positions reporting to a common manager are shown.

Question 10

Workers in a matrix structure report to two supervisors-one within the function and the other within the team.

Accepted Answer

In a matrix structure, employees report to both a functional manager and a team manager.

Question 11

A product structure prompts managers to be responsive to changing market demands and customer tastes.

Accepted Answer

This is because a product structure is organized around the products being produced, which means that managers must pay close attention to changes in market demands and customer tastes to stay competitive and meet customer needs.

Question 12

A matrix structure is characterized by poor customer service.

Accepted Answer

A matrix structure is characterized by cross-functional teams and increased communication, which can actually improve customer service. However, it also has its own set of challenges such as confusion over roles and responsibilities, which can lead to poor customer service if not managed effectively.

Question 13

In a functional structure, people working on the same product, in the same area, with similar customers, or on the same processes, are grouped together.

Accepted Answer

In a functional structure, people are grouped based on their function or role within the organization, such as marketing, finance, or production, rather than by products, customers, or processes.

Question 14

Geographical structures are typically used when there is a need to differentiate products or services in various locations, such as in different parts of a country.

Accepted Answer

Geographical structures are commonly used to cater to the needs of different regions or locations. It helps in adapting products or services based on local requirements, cultural differences, or preferences.

Question 15

Workers in a matrix structure are allowed to be part of only one formal group at a time.

Accepted Answer

Workers in a matrix structure are allowed to be part of multiple formal groups at a time, as they are assigned to different projects and teams within the organization.

Question 16

Organizations that do not communicate, coordinate, or problem solve across functions have a functional silo problem.

Accepted Answer

Functional silos occur when departments or teams in an organization work independently without sharing information or collaborating with other departments or teams, resulting in inefficient operations and communication breakdowns.

Question 17

Divisional structures are common in organizations dealing with only one or a few products or services.

Accepted Answer

Divisional structures are typically used by organizations that have a wide range of products or services, allowing each division to focus on a specific line of products or services and market.

Question 18

Divisional structures can create unhealthy rivalries as divisions compete for resources and top management attention.

Accepted Answer

Divisional structures are characterized by separate divisions with their own goals, strategies, and operations. This can lead to divisional managers competing with each other for resources and top management attention. This competition can sometimes become unhealthy, with divisions focusing only on their own self-interest and neglecting the overall goals of the organization.

Question 19

One of the disadvantages of functional structures is that employees lack a clear career path within functions.

Accepted Answer

In functional structures, employees have a clear career path within their specialized functions, as these structures are organized by departments such as marketing, finance, and human resources, allowing for specialized career progression within each function.

Question 20

A customer structure is the least common structure in the consumer products industry.

Accepted Answer

A customer structure is actually the most common structure in the consumer products industry where companies organize their operations around specific customer groups or segments.

Quiz 11: Organization Structures