Question 1

Commerce Insurance Services has five divisions. They are personal; core commercial; Main Street business; major commercial; and benefits. The company is also departmentalized along product lines. Commerce Insurance Services uses ____ departmentalization.

Accepted Answer

Matrix departmentalization is a hybrid organizational structure in which two or more forms of departmentalization are used together.

Question 2

The primary advantage of ____ departmentalization is the fact that it allows companies to manage large, complex tasks efficiently by minimizing duplication.

Accepted Answer

The answer of The primary advantage of ____ departmentalization is...

Question 3

In a(n) ____, managers from different parts of the matrix report to matrix managers who help them sort out problems and conflicts.

Accepted Answer

This is the definition of a complex matrix.

Question 4

____ departmentalization is notorious for confusion and conflict between project managers in different areas of the organization.

Accepted Answer

The presence of two bosses can lead to disagreements about scheduling, budgeting, and the sharing of other resources.

Question 5

As a result of their structures, matrix organizations automatically violate the principle of ____.

Accepted Answer

Unity of command is the principle that workers should report to just one boss.

Question 6

With divisions that focus on business clients and consumer clients, companies like Sprint, American Express, and others are examples of ____ departmentalization.

Accepted Answer

Customer departmentalization focuses on customers' needs.

Question 7

Honeywell Inc. reorganized its European operations along customer lines to prepare for a unified European Union. In doing so, it abandoned matrix departmentalization. Why would Honeywell engage in such restructuring?

Accepted Answer

One of the primary disadvantages of matrix departmentalization is the need for a high level of coordination. Alternatives A and D describe advantages of this form of departmentalization.

Question 8

With ____ departmentalization, most employees report to two bosses.

Accepted Answer

With matrix departmentalization, employees report to two bosses - one from a functional area (such as marketing or finance) and one from a product, project, or geographic area. This allows for more flexibility and a better utilization of resources, but can also lead to power struggles or confusion among employees.

Question 9

Because of problems associated with conflicts over schedules, budgets, and available resources (including employees), ____ departmentalization often evolves from a simple form to a more complex form.

Accepted Answer

Matrix departmentalization is often used in complex organizations where employees have multiple roles and responsibilities. This type of departmentalization allows for a more flexible structure that can adapt to changing needs and priorities. However, it can also lead to conflicts and challenges associated with coordinating resources and schedules, which is why it often evolves from a simpler form of departmentalization.

Question 10

Of all types of departmentalization, ____ departmentalization requires the highest level of management skill for successful implementation.

Accepted Answer

This is viewed as one of the disadvantages of matrix departmentalization.

Question 11

Which of the following types of departmentalization does NOT have a problem with the duplication of resources?

Accepted Answer

Functional departmentalization groups together employees who perform similar tasks or work in the same functional area, such as marketing or finance. This type of departmentalization does not have a problem with duplication of resources because each department focuses on a specific area and there is little overlap between departments. In contrast, other types of departmentalization such as product and customer or geographic and matrix may have overlapping responsibilities and can result in duplication of resources.

Question 12

Robert Strickland works in the legal department at a large consumer products manufacturer. It is his job to craft warnings on package labels. This is Strickland's ____.

Accepted Answer

A staff function is an activity that does not contribute directly to creating or selling the company's product.

Question 13

Organizational authority is traditionally characterized by ____.

Accepted Answer

Organizational authority is traditionally characterized by chain of command, which outlines the hierarchy of power and decision-making within an organization. Empowerment, behavioral informality, and reengineering are not necessarily traditional characteristics of organizational authority.

Question 14

In terms of the chain of command, ____ authority is the right to command immediate subordinates, while ____ authority is the right to advise but not command others who are not subordinates.

Accepted Answer

Line authority is the right to command immediate subordinates, while staff authority is the right to advise but not command others who are not subordinates. Therefore, option E is the correct choice.

Question 15

Large accounting agencies typically have separate departments that deal with households, businesses, and governments. This allows them to better serve the needs of their clients, by using ____ departmentalization.

Accepted Answer

Customer departmentalization is the best choice as it allows large accounting agencies to better serve the needs of their clients based on the type of client they are serving, whether it be households, businesses, or governments. This structure allows for more personalized service and specialized expertise for each type of client.

Question 16

The primary disadvantage of geographic departmentalization is ____.

Accepted Answer

Geographic departmentalization can lead to duplication of resources because each department may have its own set of resources and facilities. This can result in unnecessary expenses for the organization.

Question 17

Which of the following statements about matrix departmentalization is true?

Accepted Answer

All of these statements about matrix departmentalization are true. Matrix departmentalization is a complex organizational structure where employees report to both functional and project managers. This structure promotes cross-functional interaction and requires significant coordination between functional and project managers. It is commonly used in organizations that operate in multiple countries or have multiple product lines.

Question 18

The primary disadvantage of customer departmentalization is ____.

Accepted Answer

The customer basis of departmentalization tends to result in functional duplication (e.g., marketing employees in each customer group).

Question 19

A(n) ____ is a form of matrix departmentalization in which managers in different parts of the matrix negotiate conflicts and resources directly.

Accepted Answer

Simple matrix departmentalization involves a structure where managers in different parts of the matrix negotiate conflicts and resources directly, without a rigid hierarchy dictating the flow of decisions.

Question 20

Procter & Gamble has divisions for personal and beauty, house and home, health and wellness, baby and family, and pet nutrition and care. These divisions indicate that the company uses ____ departmentalization.

Accepted Answer

The divisions for personal and beauty, house and home, health and wellness, baby and family, and pet nutrition and care indicate that Procter & Gamble uses product departmentalization. This means that the company has organized its structure around its different product lines or categories, each with its own specific focus and specialties.

Quiz 9: Designing Adaptive Organizations