Question 1

Which structure uses teams/committees along with functional departments on a long-term basis?
A) Matrix
B) Functional
C) Conglomerate
D) Team-based duopoly
E) Divisional

Accepted Answer

A matrix structure uses teams or committees along with functional departments on a long-term basis to manage projects and tasks. This allows for a more flexible approach to work and enhances communication between departments. Unlike the functional structure, which is more rigid, the matrix structure allows for cross-functional collaboration and sharing of resources. The other options listed do not use this combination of teams and functional departments on a long-term basis.

Question 2

The firm is making a sales proposal which must include suggested computer hardware, software, an overall systems design, and estimated costs. A project manager is assigned who assembles a group of company specialists from various departments to prepare the proposal to the customer. Which organizational structure is used in this situation?
A) Strategic business unit structure
B) Product departmentalization
C) Geographic departmentalization
D) Matrix structure
E) Centralized structure

Accepted Answer

The matrix structure is used in this situation where the project manager assembles a group of specialists from various departments to work together on a specific project, in this case, preparing a sales proposal. The matrix structure allows for resources and expertise to be shared across departments and functional areas to achieve the project's goals.

Question 3

When clients of Global Research Consortium request various services, the staff of three permanent employees contracts out the work to people with appropriate skills. GRC is therefore a(n) ________ organization.
A) virtual
B) team
C) international
D) boundaryless
E) learning

Accepted Answer

GRC is a virtual organization because it relies on contracting out work to people with appropriate skills rather than having a fixed, physical workforce.

Question 4

With regard to organizational design for the twenty-first century, it is correct to say that
A) the boundaryless organization has become the most popular structure in the twenty-first century.
B) the team organization relies almost exclusively on the hierarchy to get work done.
C) the virtual organization is the opposite of the team organization.
D) the most frequent goals of a virtual organization are improved quality, continuous improvement, and performance measurement.
E) the boundaryless organization is evident at Walmart because some of its key suppliers are tied directly into Walmart's information system.

Accepted Answer

The statement that "the boundaryless organization has become the most popular structure in the twenty-first century" is not entirely accurate. While boundaryless organizations have gained popularity, there are still many traditional hierarchical organizations in existence. The statement that "the team organization relies almost exclusively on the hierarchy to get work done" is also incorrect, as team organizations tend to have flatter structures and rely on collaboration and communication between team members. The statement that "the virtual organization is the opposite of the team organization" is not necessarily true, as some virtual organizations can also rely on teams or collaboration between individuals. The statement that "the most frequent goals of a virtual organization are improved quality, continuous improvement, and performance measurement" is also not entirely accurate, as the goals of a virtual organization can vary depending on the specific organization and industry. The statement that "the boundaryless organization is evident at Walmart because some of its key suppliers are tied directly into Walmart's information system" is accurate and highlights the concept of boundaryless organizations, where boundaries between different entities are blurred or eliminated in order to achieve greater efficiency and effectiveness.

Question 5

Which of the following is an advantage of a functional structure?
A) Functional areas get approval from top management for a variety of decisions.
B) Expertise develops within each function.
C) No single function is responsible for overall company performance.
D) Conflicts between functional areas may arise.
E) None of these are correct.

Accepted Answer

A functional structure allows for expertise to develop within each function as employees are focused on specific areas of the business.

Question 6

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?
A) Functional
B) Process
C) Geographic
D) Divisional
E) Committee

Accepted Answer

Johnson & Johnson uses a divisional organizational structure, which is organized around the different types of products they produce (consumer health care products, medical devices and diagnostics, and pharmaceuticals) rather than specific functions or processes. This allows for greater focus and specialization within each division.

Question 7

All of the following are advantages of the divisional structure except
A) the structure facilitates the development of expertise in various areas of the company.
B) the structure encourages training for top management.
C) the structure increases accountability.
D) the structure accommodates change and expansion.
E) the structure focuses attention on the key activities that must be performed.

Accepted Answer

The divisional structure does not inherently focus attention on key activities; rather, it organizes the company into semi-autonomous units based on products, services, or markets, which can sometimes lead to duplication of activities and resources.

Question 8

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.
A) functional
B) international
C) matrix
D) conglomerate
E) divisional

Accepted Answer

The given scenario indicates that each brand was functioning as a separate division, with their own departments and resources. This type of structure is known as a divisional structure, where the organization is divided into self-contained divisions that operate independently. The lack of coordination and sharing of information between the three major brands is a characteristic of this structure, leading to competition and inefficient use of resources.

Question 9

An organization that customarily uses teams of individuals from several departments to work on special projects is using a(n) ________ organizational structure.
A) decentralized
B) matrix
C) international
D) line and staff
E) conglomerate

Accepted Answer

The description of teams from different departments points to a matrix organizational structure, where employees are assigned to both functional and project teams. This structure allows for a flexible allocation of resources depending on the needs of the project, while still maintaining the functional expertise of each department. Decentralized, international, line and staff, and conglomerate structures do not necessarily involve cross-functional project teams as a core element.

Question 10

A ________ organization has little or no formal structure, with only a handful of permanent employees.
A) learning
B) flexible
C) boundaryless
D) team
E) virtual

Accepted Answer

A virtual organization has little or no formal structure and relies on a network of independent workers and companies, often with only a few permanent employees.

Question 11

Which of the following is correct with regard to the different types of organizational structures?
A) There is one basic type of international organizational structure that has emerged as competition on a global scale has become more intense.
B) In a matrix structure, after a team's work is completed, team members move back to their permanent functional jobs.
C) A glance at the organization charts of many organizations reveals an almost infinite variety of basic structures.
D) Divisions in organizations can be based on centralization or decentralization.
E) All of these are correct.

Accepted Answer

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

Question 12

Which of the following is correct with regard to divisional structures?
A) Unhealthy competition may arise between the divisions.
B) The different divisions all pursue the same corporate identity.
C) Different divisions do not share certain corporate-level resources like market research data.
D) If a lot of control is delegated to divisional managers, corporate managers have a better understanding of daily operations in the divisions.
E) There is little duplication of effort because the various divisions must work together to achieve overall corporate objectives.

Accepted Answer

Unhealthy competition may arise between the divisions because each division is responsible for its own profit and loss.

Question 13

Organizations in which traditional structures are minimized or eliminated are called ________ organizations.
A) learning
B) virtual
C) Smith's
D) boundaryless
E) international

Accepted Answer

Boundaryless organizations focus on minimizing or eliminating traditional organizational structures, such as hierarchies and bureaucratic procedures, in order to promote flexibility, collaboration, and innovation. This type of organization is designed to break down barriers both within the organization and between the organization and its external environment, such as customers, suppliers, and other stakeholders. Learning organizations (A) focus on continuous learning and improvement, virtual organizations (B) use technology to connect employees and contractors who work remotely, Smith's organizations (C) is not a recognized term in organizational theory, and international organizations (E) refer to organizations that operate in multiple countries or regions.

Question 14

In the ________ structure, teams are formed in which individuals report to two or more managers, usually including a line manager and a staff manager.
A) conglomerate
B) matrix
C) divisional
D) international
E) functional

Accepted Answer

The described structure is known as a matrix structure. In a matrix structure, individuals report to multiple managers, typically a line manager and a staff manager. The other options (conglomerate, divisional, international, and functional) do not typically involve reporting to multiple managers in the same way that a matrix structure does.

Question 15

In ________ organizations, people "float" from project to project as dictated by their skills and the demands of the project.
A) learning
B) virtual
C) team
D) boundaryless
E) international

Accepted Answer

The answer of In ________ organizations, people "float" from project...

Question 16

________ and ________ organizations are closely related because in both of them people are constantly moving around to different jobs as dictated by the work that is being done.
A) Virtual; functional
B) Functional; project
C) Matrix; team
D) Team; virtual
E) Divisional; functional

Accepted Answer

The answer of ________ and ________ organizations are closely related...

Question 17

Gerry owns a company that employs 78 people. His company would most likely have a ________ structure.
A) functional
B) international
C) matrix
D) conglomerate
E) divisional

Accepted Answer

A functional structure is the most likely choice for a company with 78 employees as it is designed for smaller organizations where employees are grouped by their specific functions or job roles. This structure helps to facilitate communication and decision-making within the organization while also allowing for departmental specialization. In comparison, international and conglomerate structures are usually reserved for larger, multinational organizations, matrix structures are more complex and suited to project-based work, and divisional structures are typically used for larger organizations with multiple business units or product lines.

Question 18

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?
A) Divisional
B) Matrix
C) Regional
D) Functional
E) International

Accepted Answer

Ace Products has a functional structure where the company is divided into functional areas such as finance, marketing, and operations, and each area is headed by a vice-president.

Question 19

Which of the following is the best explanation of a matrix structure?
A) Teams are formed in which employees report to two or more managers.
B) A matrix structure is based on the geographical area of the world.
C) A matrix occurs when one firm purchases another and combines the staff activities.
D) A matrix occurs when the organization is restructuring from a tall to a flat organization.
E) A matrix divides the organization into divisions, each of which operates as a semi-autonomous unit.

Accepted Answer

A matrix structure involves teams or groups of employees who report to two or more managers, often from different functional areas of the organization. This structure is designed to enhance communication, creativity, and flexibility within the organization.

Question 20

As companies get larger and more complex, they are likely to move away from the ________ structure.
A) matrix
B) international
C) functional
D) divisional
E) conglomerate

Accepted Answer

As companies grow larger and more complex, they tend to move away from a functional structure because it can hinder communication and decision-making between different departments. Instead, they often adopt a more flexible and adaptable structure, such as a matrix, divisional, or conglomerate structure. However, this may vary depending on the specific needs and goals of the company.

Quiz 7: Organizing the Business Enterprise

Which structure uses teams/committees along with functional departments on a long-term basis?

When clients of Global Research Consortium request various services, the staff of three permanent employees contracts out the work to people with appropriate skills. GRC is therefore a(n) ________ organization.

With regard to organizational design for the twenty-first century, it is correct to say that

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

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?

All of the following are advantages of the divisional structure except

An organization that customarily uses teams of individuals from several departments to work on special projects is using a(n) ________ organizational structure.

A ________ organization has little or no formal structure, with only a handful of permanent employees.

Which of the following is correct with regard to the different types of organizational structures?

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

Organizations in which traditional structures are minimized or eliminated are called ________ organizations.

In the ________ structure, teams are formed in which individuals report to two or more managers, usually including a line manager and a staff manager.

In ________ organizations, people "float" from project to project as dictated by their skills and the demands of the project.

and organizations are closely related because in both of them people are constantly moving around to different jobs as dictated by the work that is being done.

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

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?

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

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