Question 1

Which of the following structures is implemented to use organization resources effectively?

Accepted Answer

Typically, managers first decide to group jobs into departments and they design a functional structure to use organizational resources effectively. As an organization grows and becomes more difficult to control, managers must choose a more complex organizational design, such as a divisional structure or a matrix or product team structure.

Question 2

When designing an organization, if managers are grouped both by function and by product at the same time, the organizational structure being used is the ________ structure.

Accepted Answer

In a matrix structure, managers group people and resources in two ways simultaneously: by function and by product. Employees are grouped by functions to allow them to learn from one another and become more skilled and productive. In addition, employees are grouped into product teams in which members of different functions work together to develop a specific product.

Question 3

At Cosmeto & Co., Pat is assigned to a team to develop a new kind of shampoo. He reports to both the marketing manager and the personal care product manager. The organization is pursuing a ________ organizational structure.

Accepted Answer

In a matrix structure, each person in a product team reports to two managers: (1) a functional boss, who assigns individuals to a team and evaluates their performance from a functional perspective, and (2) the boss of the product team, who evaluates their performance on the team. Thus, team members are known as two-boss employees.

Question 4

The units of Zach, Ltd. are grouped together such that the functions that work together to produce a product are grouped together. This is an example of a(n) ________ structure.

Accepted Answer

Most managers of large organizations choose a divisional structure and create a series of business units to produce a specific kind of product for a specific kind of customer. Each division is a collection of functions or departments that work together to produce the product.

Question 5

Employees organized according to a matrix structure are grouped by ________.

Accepted Answer

In a matrix structure, managers group people and resources in two ways simultaneously: by function and by product. Employees are grouped by functions to allow them to learn from one another and become more skilled and productive.

Question 6

When managers pursue a multidomestic strategy, they most likely use a ________ strategy.

Accepted Answer

In adopting a global geographic structure, managers locate different divisions in each of the world regions where the organization operates. Managers are most likely to do this when they pursue a multidomestic strategy, because customer needs vary widely by country or world region.

Question 7

Xpress Delivery Corporation organizes its managers according to the different regions of the world in which the managers work. This is an example of a ________ structure.

Accepted Answer

Xpress Delivery Corporation is following a geographic structure, in which divisions are broken down by geographic location.

Question 8

How does the product team structure differ from the matrix structure?

Accepted Answer

The product team structure differs from a matrix structure in two ways: (1) It does away with dual reporting relationships and two-boss employees, and (2) functional employees are permanently assigned to a cross-functional team that is empowered to bring a new or redesigned product to market.

Question 9

The organizational design in which employees are correctly referred to as two-boss employees is a ________ structure.

Accepted Answer

In a matrix structure, each person in a product team reports to two managers: (1) a functional boss, who assigns individuals to a team and evaluates their performance from a functional perspective, and (2) the boss of the product team, who evaluates their performance on the team. Thus, team members are known as two-boss employees.

Question 10

Which of the following explains Hackman and Oldham's theory of how the job characteristics model affects three critical psychological states?

Accepted Answer

Hackman and Oldham argue that these five job characteristics affect an employee's motivation because they affect three critical psychological states. The more employees feel that their work is meaningful and that they are responsible for work outcomes and responsible for knowing how those outcomes affect others, the more motivating work becomes and the more likely employees are to be satisfied and to perform at a high level.

Question 11

Managers are able to be responsive to the needs of their customers and maintain flexibility in making decisions regarding customers' changing needs with a ________ structure.

Accepted Answer

A market structure is an organizational structure in which each kind of customer is served by a self-contained division. A market structure allows managers to be responsive to the needs of their customers and allows them to act flexibly in making decisions in response to customers' changing needs.

Question 12

In the design of an organization, another name for "market structure" is "________ structure."

Accepted Answer

Market structure is also known as customer structure, as it is an organizational structure in which each kind of customer is served by a self-contained division.

Question 13

At Xen, Ltd., each product line is managed within a division. In each of these divisions, the division manager is responsible for creating the business-level strategy for the product line. Xen, Ltd., is utilizing a ________ structure.

Accepted Answer

Using a product structure, managers place each distinct product line or business in its own self-contained division and give divisional managers the responsibility for devising an appropriate business-level strategy to allow the division to compete effectively in its industry or market.

Question 14

When different managers from different functional areas are brought together to work on an organizational task, they are known as a(n) ________ team.

Accepted Answer

A cross-functional team is a group of managers brought together from different departments to perform organizational tasks.

Question 15

An organizational structure consisting of all the departments within the company is a ________ structure.

Accepted Answer

A functional structure is an organizational structure composed of all the departments that an organization requires to produce its goods or services.

Question 16

When customers around the world are willing to buy the same kind of product, or slight variations thereof, managers are more likely to pursue a ________ structure.

Accepted Answer

In a global product structure, each product division, not the country and regional managers, takes responsibility for deciding where to manufacture its products and how to market them in countries worldwide.

Question 17

Which of the following structures is an organizational structure composed of separate business units within which are the functions that work together to produce a specific product for a specific customer?

Accepted Answer

Divisional structure is an organizational structure composed of separate business units within which are the functions that work together to produce a specific product for a specific customer.

Question 18

What is the main problem with the matrix structure's dual reporting relationship?

Accepted Answer

The dual reporting relationships that are at the heart of a matrix structure have always been difficult for managers and employees to deal with. Often the functional boss and the product boss make conflicting demands on team members, who do not know which boss to satisfy first.

Question 19

What structure do organizations adopt when they organize divisions according to the type of customers they focus on?

Accepted Answer

When managers organize divisions according to the type of customer they focus on, they adopt a market structure.

Question 20

The major goals of the manufacturing function are to keep costs under control and ________.

Accepted Answer

At the functional level, the manufacturing function typically has a short-term view; its major goal is to keep costs under control and get the product out the factory door on time.

Quiz 7: Designing Organizational Structure