Question 1

Which organizational structure is designed to take advantage of scarce resources and provide a better accounting of the costs associated with specific projects or products?

Accepted Answer

The matrix structure is designed to utilize resources efficiently and provide clear accountability for costs by combining functional and project-based structures, allowing for better management of specific projects or products.

Question 2

Which is not one of the five management decisions underlying the STAR model?

Accepted Answer

The five management decisions underlying the STAR model are strategy, structure, processes, people, and rewards. Policy is not one of the decisions.

Question 3

Which type of organizational structure is an alliance in which companies form partnerships to cooperate and deliver a product or service under an operating agreement?

Accepted Answer

A virtual organizational structure involves companies forming partnerships to cooperate and deliver a product or service under an operating agreement, often leveraging technology to work together across distances.

Question 4

List and discuss the six, key building blocks that differentiate organizations.

Accepted Answer

The answer of List and discuss the six, key building...

Question 5

Which organizational structure has the advantages of being able to transcend national borders, respond quickly to change, and can harness the efforts of their numerous members?

Accepted Answer

The answer of Which organizational structure has the advantages of...

Question 6

Which organizational structure is a "soft structure" of informal relationships, and communities connected by the demands of the task?

Accepted Answer

A networked organizational structure is characterized by informal relationships and communities that are connected by the demands of the task, rather than by formal reporting relationships. This structure is sometimes referred to as a "soft structure" because it lacks the rigid hierarchy of more traditional organizational structures. In a networked structure, individuals and teams work collaboratively to achieve their goals, sharing information and resources in a decentralized and flexible manner. Therefore, option A) is the most appropriate choice for this question.

Question 7

The biggest disadvantage of ________ organizational structures is that they violate the unity of command by giving every employee two managers instead of one.

Accepted Answer

The matrix organizational structure gives every employee two managers, one from the functional department and one from the project or product team. This can lead to confusion and conflicts, as employees may receive conflicting instructions from their two bosses. This violates the principle of unity of command, which states that each employee should have only one direct supervisor.

Question 8

Which organizational structure has the advantages of reduced overhead, increased focus on assembly, and reduced need for highly-skilled specialists necessary to produce an entire product in-house?

Accepted Answer

The modular structure involves using specialized suppliers to provide components that are assembled into a finished product by the focal firm. This reduces overhead as the firm can focus on assembly and only need to maintain a small core staff of highly skilled specialists.

Question 9

Which type of organizational structure is a hybrid, using a functional structure and a relatively level hierarchy, with a correspondingly wide span of control?

Accepted Answer

A flatarchy is a hybrid organizational structure that combines elements of a functional structure with a flat hierarchy, resulting in a wide span of control.

Question 10

Which type of organization needs people who can manage conflict and get things done without possessing formal authority?

Accepted Answer

In a matrix organization, employees report to multiple managers, which can lead to conflicts. People who can manage conflict and influence others without formal authority are essential in such environments.

Question 11

Which organizational structure has the key disadvantage of losing control over potentially important jobs, which could cause serious problems for the organization?

Accepted Answer

In a hollow organizational structure, the organization outsources or contracts important jobs to other companies or individuals. This can lead to the organization losing control over these jobs and potentially important functions, which could cause serious problems for the company. For example, if the marketing function is outsourced to an external agency, the organization may not have full control over the marketing message and branding, which could harm the company's image and reputation. Therefore, the key disadvantage of the hollow structure is the loss of control over potentially important jobs.

Question 12

A major disadvantage of the ________ organizational structure is that it creates confusion due to large spans of control and the amount of freedom provided to employees.

Accepted Answer

Flatarchy organizational structure can lead to confusion due to its large spans of control and the high level of autonomy given to employees, which can result in a lack of clear direction and oversight.

Question 13

Two key features of ________ organizations are small multidisciplinary teams and divisions, and a decentralized structure.

Accepted Answer

Networked organizations are characterized by small multidisciplinary teams and divisions, as well as a decentralized structure.

Question 14

In the STAR model, the decision about ________ directs the way work and information are going to flow through the organization.

Accepted Answer

The answer of In the STAR model, the decision about...

Question 15

A major benefit of the ________ organizational structure is that it encourages company-wide innovation.

Accepted Answer

The flatarchy organizational structure encourages company-wide innovation by promoting collaboration and communication among employees at all levels. It eliminates traditional hierarchies and allows for more fluid roles and responsibilities, giving employees the freedom to take risks and try new ideas. This type of structure is particularly effective for startups and smaller organizations that need to be agile and responsive to changing market conditions.

Question 16

Proctor and Gamble and NASA are famous examples of organizations that use a ________ organizational structure.

Accepted Answer

Proctor and Gamble and NASA use a matrix organizational structure, which combines elements of both functional and divisional structures, allowing for more flexibility and efficient use of resources.

Question 17

Some of the major hurdles faced by a ________ organization are that the process of implementing new roles and responsibilities can be time consuming and confusing, and employees may resist the changes and leave the organization.

Accepted Answer

The term "boundaryless organization" refers to an organization that has eliminated traditional hierarchies and structures, allowing for more flexibility and collaboration. However, implementing new roles and responsibilities in a boundaryless organization can still be difficult, as employees may not be accustomed to this type of structure and may resist the changes. This can lead to turnover and confusion within the organization.

Question 18

Which type of organization combines functional and divisional organizational structures?

Accepted Answer

A matrix structure combines functional and divisional structures to create a hybrid organization. It allows for more flexibility and collaboration between departments and teams, as employees are often grouped by both function and project or product lines.

Question 19

Which type of organizational structure uses an outsourcing approach in which organizations keep their essential core tasks internal to the organization, and then outsource any noncore tasks?

Accepted Answer

Hollow organizational structures are characterized by outsourcing noncore tasks to external providers, while keeping essential core tasks internal to the organization.

Question 20

Which organizational structure involves outsourcing components of a product, usually by keeping a core part of it in-house and outsourcing noncore portions?

Accepted Answer

The modular approach involves outsourcing non-core portions of a product while keeping a core part in-house. This approach allows for more flexibility and efficiency in the production process, as the company can focus on its strengths while outsourcing other components to specialized firms. The other organizational structures listed (boundaryless, networked, virtual, and hollow) do not specifically involve outsourcing components of a product in this way.

Quiz 14: Organizational Structure Design