Question 1

Social network analysis identifies the informal structures and their embedded social relationships that are active in an organization.

Accepted Answer

Social network analysis is a method to identify the informal structures and social relationships within an organization. It helps to understand the patterns of communication, information flow, and decision-making among employees, which can influence the effectiveness and efficiency of the organization.

Question 2

The purpose of an organization structure is to design titles for different workers and to assign daily work tasks to them.

Accepted Answer

True

Question 3

A social network analysis is a tool that identifies formal structures and their social relationships.

Accepted Answer

Social network analysis identifies both formal and informal structures and their social relationships, not just formal structures.

Question 4

A product structure prompts managers to be responsive to changing market demands and customer tastes.

Accepted Answer

Product structure is organized around the different products of the company, which allows managers to quickly respond to changes in the market and in customer preferences. This is because product structure typically involves creating small, self-contained teams that focus on developing and improving specific products, and these teams can quickly and flexibly adapt to changing circumstances.

Question 5

A potential disadvantage of functional structures concerns difficulties in pinpointing responsibilities for cost containment, product or service quality, timeliness, and innovation.

Accepted Answer

Due to the segmented nature of functional structures, it can be challenging to determine who is responsible for overall business goals such as cost containment, product or service quality, timeliness, and innovation. This can result in a lack of accountability and lower overall performance.

Question 6

Divisional structures are common in organizations dealing with only one or a few products or services.

Accepted Answer

Divisional structures are more commonly used in large organizations that operate in a wide range of industries or offer a wide range of products or services, allowing each division to focus on a specific line of products or services.

Question 7

An organization's ability to implement its strategy is greatly helped by a structure that allocates tasks through a division of labour and provides for the coordination of performance results.

Accepted Answer

A structure that defines roles, responsibilities, and communication channels helps to ensure that tasks are allocated efficiently and that everyone is working towards the same strategic goals. This improves an organization's ability to implement its strategy successfully.

Question 8

In a functional structure, the functions become formalized not only on the organization chart, but also in the mind-sets of people.

Accepted Answer

In a functional structure, each function becomes a formal department or unit, and this organizational structure is reflected not only on the organization chart but also in the behaviors and attitudes of people working in those functions. They tend to identify more with their department or function rather than the overall organization, and may prioritize the goals and interests of their function over those of the organization as a whole. This can lead to silos and difficulty in cross-functional collaboration.

Question 9

When problems occur between functions, they should immediately be referred up to a higher level for resolution.

Accepted Answer

When problems occur between functions, the first step should be to try to resolve them within the functions involved. If they cannot be resolved at that level, then they should be referred up to a higher level for resolution.

Question 10

Informal networks are sources of emotional support and friendship that satisfy members' social needs.

Accepted Answer

Informal networks provide social and emotional support, which can fulfill individuals' social needs and provide a sense of belonging and friendship.

Question 11

Informal structures always serve the best interests of the organization.

Accepted Answer

Informal structures may sometimes conflict with the formal structure or the goals of the organization. They can also create communication gaps and lead to the spread of rumors or misinformation. However, informal structures can also provide valuable support, networking, and problem-solving opportunities for employees. Ultimately, their impact on the organization depends on the specific context and dynamics of the informal structure in question.

Question 12

An organization structure is the system of tasks, workflows, reporting relationships, and communication channels that link together the work of diverse individuals and groups.

Accepted Answer

This statement accurately describes an organization structure.

Question 13

When an organization chart shows vice presidents of marketing, manufacturing, finance, and human resources reporting directly to the president of a company, the top management group is organized as a divisional structure.

Accepted Answer

The description provided outlines a functional structure, where the organization is divided based on specialized functional areas such as marketing, manufacturing, finance, and human resources, rather than a divisional structure which is organized around products, regions, or markets.

Question 14

The functional chimneys problem can slow decision making, diminish cooperation and commitment to a common purpose, and interfere with coordination across functions.

Accepted Answer

The statement is true. Functional chimneys refer to the isolation and lack of communication between different functions or departments within an organization, which can lead to various problems including those mentioned in the statement.

Question 15

Advantages of functional structures include the support of in-depth training and reduced accountability for total product or service delivery.

Accepted Answer

Functional structures actually increase accountability for total product or service delivery, as each department is responsible for a specific function or task. However, they do support in-depth training as employees are able to specialize in their respective functions.

Question 16

In a functional structure, people working on the same product, in the same area, with similar customers, or on the same processes, are grouped together.

Accepted Answer

In a functional structure, people are grouped based on their function or role within the organization, such as marketing, finance, or production, rather than by products, customers, or processes.

Question 17

Functional structures tend to work best in relatively stable environments where problems are predictable and the demands for change and innovation are limited.

Accepted Answer

Functional structures are designed to efficiently carry out routine tasks in a stable environment. They are less effective in environments where change and innovation are necessary, as they may struggle to adapt to new situations or ideas.

Question 18

One of the disadvantages of functional structures is that employees lack a clear career path within functions.

Accepted Answer

In functional structures, employees have a clear career path within their specialized functions, as these structures are organized by departments such as marketing, finance, and human resources, allowing for specialized career progression within each function.

Question 19

Informal structures always work against the achievement of high productivity.

Accepted Answer

Informal structures can actually enhance productivity by allowing for more fluid communication and faster decision-making. However, they can also lead to issues such as favoritism and exclusion of certain individuals or groups. It ultimately depends on how the informal structure is managed and whether it supports the goals of the organization.

Question 20

An organization chart includes major subunits in which positions reporting to a common manager are shown.

Accepted Answer

An organization chart typically shows subunits and positions reporting to a common manager.

Quiz 11: Organization Structures and Design