Question 1

Which of the following is an advantage of the divisional structure?

Accepted Answer

The divisional structure allows organizations to be more responsive to the needs of their customers by focusing on specific products, services, or markets. This structure enables divisions to act somewhat independently, which can lead to a greater understanding of and responsiveness to customer needs.

Question 2

All of the following describe bossless upside-down structures except:

Accepted Answer

Bossless upside-down structures are characterized by flexible organization charts that empower employees at all levels to take initiative and collaborate on dynamic projects with fluid and operational project teams. These structures do not rely on rigid hierarchy or top-down leadership, making choice A (rigid organization charts) inconsistent with this approach. Therefore, the correct answer is A.

Question 3

Perhaps the most widespread trend in departmentalization in recent years has been the implementation of:

Accepted Answer

The trend in departmentalization in recent years has been towards implementing team concepts, where employees work together in cross-functional teams to achieve common goals. This approach is seen as more flexible and responsive to changing business circumstances, and also promotes employee empowerment and engagement. Self-contained units may also be used, but often work more independently and without as much collaboration. Dual-authority structures and command-and-control structures are becoming less popular due to their rigid and hierarchical nature. Relational coordination may be used in conjunction with team concepts to promote effective communication and coordination within teams.

Question 4

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

Accepted Answer

The divisional structure often leads to duplication of resources across divisions because each division operates semi-autonomously and may have its own set of functions such as marketing, finance, and HR, which can result in inefficiencies and increased costs.

Question 5

A frequent use of __________ is for change projects, such as new product or service innovation.

Accepted Answer

Cross-functional teams are often used for change projects, such as new product or service innovation, because they bring together individuals from different departments or areas of expertise to collaborate and leverage diverse perspectives and skills.

Question 6

The __________ is the product or functional boss, who is responsible for one side of the matrix.

Accepted Answer

The matrix boss is responsible for one side of the matrix in a matrix organizational structure, overseeing either the product or the functional aspect.

Question 7

Shooting Star, Inc. has slow response to external changes, centralized decision making, and poor coordination across departments. It is likely structured:

Accepted Answer

The slow response to external changes, centralized decision making, and poor coordination across departments all suggest a functional structure. In this type of structure, departments are organized by function (e.g. finance, marketing, operations) with each department having its own set of responsibilities and reporting to a central authority figure.

Question 8

In the __________ structure, the organization may be viewed as a central hub surrounded by a network of outside specialists, sometimes spread all over the world.

Accepted Answer

The virtual network structure describes an organization that operates more through coordination and outsourcing various functions to external specialists rather than maintaining those functions internally, effectively acting as a central hub in a network of external partnerships.

Question 9

Which of the following is an advantage of the matrix structure?

Accepted Answer

All of these are advantages of the matrix structure. Interdisciplinary cooperation allows for different perspectives and knowledge to be utilized, leading to more comprehensive problem-solving. More efficient use of resources than a single hierarchy is achieved by sharing resources across different teams, reducing redundancy and increasing productivity. Flexibility and adaptability to a changing environment is enabled by the multi-dimensional structure, which can be adjusted to changing circumstances. Expertise available to all divisions ensures that specialized knowledge is available to all areas of the organization, which improves decision-making and problem-solving.

Question 10

Organ Rentals Corporation has been having numerous problems. Communication across departments is poor and decisions are backing up at the top of the organization. Organ Rentals uses a __________ structure.

Accepted Answer

The poor communication across departments and top-level decision-making indicate a functional structure, where different functions or departments operate in a siloed manner, leading to organizational inefficiencies.

Question 11

Steve works at a company in which employees are involved in huge projects rather than in narrow departmental tasks. As a result, employee enthusiasm and morale is high; however, conflicts between employees are high, and a large amount of time is devoted to meetings to resolve the conflicts. Based on this information, Steve's employer uses a __________ structure.

Accepted Answer

The company's structure is team-based, as employees work on projects rather than in departments. The high employee enthusiasm and morale also suggest a strong team dynamic. However, conflicts between team members indicate that there may be communication or personality issues that need to be addressed. Meetings to resolve these conflicts are a common characteristic of team-based structures.

Question 12

The biggest advantages to a virtual network approach are __________ and __________ on a global scale.

Accepted Answer

The answer of The biggest advantages to a virtual network...

Question 13

The __________ approach is an organization structure in which the firm subcontracts most of its major functions to separate companies and coordinates their activities from a small organization at headquarters.

Accepted Answer

The virtual network approach is an organization structure in which the company outsources most of its major functions to separate companies and coordinates their activities from a small organization at headquarters. This approach is also known as the network structure, and it allows the firm to focus on its core competencies while leveraging the expertise of other companies in the network.

Question 14

Juan is a top manager at I.F.L., which uses a matrix structure. He oversees both the product and functional chains of command, and is responsible for maintaining a power balance between the two sides of the matrix. Juan is a:

Accepted Answer

Juan is a top leader because he is responsible for overseeing both the product and functional chains of command and maintaining a power balance in the matrix structure.

Question 15

Time lost to meetings and discussions devoted to resolving conflicts is a disadvantage of the __________ structure.

Accepted Answer

The matrix structure is characterized by multiple reporting lines, leading to a complex decision-making process that requires frequent meetings and discussions to resolve conflicts. This can lead to significant time-wasting, reducing efficiency and productivity. Therefore, the best choice is E, matrix.

Question 16

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

Accepted Answer

Functional structures benefit from economies of scale because they group similar tasks together, allowing for more efficient resource use and specialization.

Question 17

__________ are groups of employees who are organized in a way similar to a formal department.

Accepted Answer

The answer of __________ are groups of employees who are...

Question 18

Walt works for a large company. Recently, his organization began to subcontract out such functions as training, engineering, and computer service. This approach is consistent with a __________ structure.

Accepted Answer

The approach described is consistent with a virtual network structure, where a company subcontracts various functions to external organizations or individuals, focusing on its core competencies while relying on external partners for other functions.

Question 19

All of the following are advantages of a functional structure except:

Accepted Answer

In a functional structure, coordination across different functional departments can be challenging due to the silo effect, where each department focuses on its own area without necessarily collaborating with others. This structure is more about in-depth specialization, economies of scale, and efficient resource use within departments rather than across them.

Question 20

Which of the following structures is perhaps the leanest of all organization forms because little supervision is required?

Accepted Answer

The virtual network approach is characterized by a network of independent companies that collaborate to achieve a common goal. As a result, little supervision is required as companies are autonomous and responsible for their own operations.

Quiz 10: Designing Organization Structure