Question 1

Which of the following is a disadvantage of informal structures?

Accepted Answer

Informal structures can lead to the creation of "in" and "out" groups, where certain individuals or teams may feel excluded or marginalized. This can lead to a lack of cohesion and collaboration within the organization.

Question 2

Potential disadvantages of functional structures include all of the following except

Accepted Answer

The potential disadvantages of functional structures include difficulties in pinpointing responsibilities for cost containment, product or service quality, timeliness, and innovation; a sense of cooperation and common purpose tends to break down; narrow view of performance objectives; and too many decisions referred upward in the organizational hierarchy. However, providing clear career paths is not a disadvantage of the functional structure.

Question 3

All of the following are potential advantages of using a divisional structure except

Accepted Answer

Duplication of resources and efforts across divisions is not an advantage of a divisional structure, but rather a disadvantage as it can lead to inefficiencies and increased costs.

Question 4

A(n)___identifies the informal structures and their embedded social relationships that are active in the organization.

Accepted Answer

Social network analysis is a tool used in organizational behavior that identifies the informal structures and embedded social relationships that are active in the organization. This analysis helps to understand communication patterns, decision-making processes, and power dynamics within the organization. Option A (informal structure) is incorrect because it is the structure itself that is being studied, not identified. Option C (organization chart) is incorrect because it only shows the formal structure and does not provide information on informal relationships. Option D (functional chimney) and Option E (functional structure) are irrelevant to the concept discussed in the question.

Question 5

Three common types of traditional organizational structures are ___.

Accepted Answer

The three common types of traditional organizational structures are functional, divisional, and matrix. Option D lists these three types. Option A is incorrect because integrated is not a traditional type of organizational structure. Option B is incorrect because horizontal and vertical are not types of organizational structures, but rather orientations within structures. Option C is incorrect because centralized and line are not types of structures, but rather characteristics of structures. Option E is incorrect because staff is not a traditional type of organizational structure.

Question 6

___ clearly identify costs, profits, problems, and successes in a market area with a central point of accountability.

Accepted Answer

The answer of ___ clearly identify costs, profits, problems, and...

Question 7

Which of the following is true of a functional structure?

Accepted Answer

A functional structure is one in which tasks are assigned based on expertise and training. This allows for specialization and efficiency in completing tasks. The other options are not true of a functional structure.

Question 8

The following five examples describe different types of relationships between employees at the Managementus Corporation. Which set of relationships indicates the existence of a shadow organization?

Accepted Answer

In option C, subordinates are taking direction from a manager in another department, indicating the existence of a shadow organization that operates outside the formal hierarchy of the company.

Question 9

Rezter Group, a consumer goods company, owns several brands that produce different goods. Each brand is focused on a single consumer good and has a separate chief executive who is responsible for the manufacturing, sales, costs, profits, and losses of his or her brand. This implies that each brand at Rezter Group is applying a ___ structure in the organization.

Accepted Answer

Each separate brand within Rezter Group is focused on a single consumer good, indicating that the company is organized by product. Each chief executive is responsible for the manufacturing, sales, costs, profits, and losses of their respective brand, further reinforcing the idea of a product-based structure.

Question 10

The process of grouping work positions into formal teams and departments, and then linking them together within the organization is known as ___.

Accepted Answer

Departmentalization is the process of grouping work positions into formal teams and departments, and then linking them together within the organization. Differentiation refers to the process of dividing and assigning tasks to specific individuals or groups. Structural team development and functional team management are not commonly used terms in organizational design. Organizing is a more general term that refers to the act of arranging or coordinating resources in order to achieve specific goals.

Question 11

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 ___ structure.

Accepted Answer

This describes a functional structure, where the organization is divided into departments based on functions such as marketing, manufacturing, finance, and human resources, each led by a vice president reporting to the president.

Question 12

The ___ problem refers to the lack of communication, coordination, and collaborative problem solving across functions.

Accepted Answer

The answer of The ___ problem refers to the lack...

Question 13

Alpha Sportswear Corporation, an apparel manufacturer, creates groups of employees with similar skills performing similar tasks. Members of each such group share technical knowledge, skills, and responsibilities. Which of the following structures is being used by Alpha Sportswear Corporation?

Accepted Answer

Alpha Sportswear Corporation is using a functional structure, which organizes employees based on similar skills and tasks. This allows for efficient sharing of technical knowledge and responsibilities within each group.

Question 14

___ structures group together jobs and activities that are being performed in the same location.

Accepted Answer

Geographical structures group together jobs and activities that are being performed in the same location or region. This can be effective for organizations that operate across different geographic locations, as it allows for greater coordination and control over operations.

Question 15

Which of the following is true of a divisional structure?

Accepted Answer

Divisional structures are often adopted to overcome the limitations of functional structures, such as the functional chimneys problem, where communication and coordination across different functions are poor. This structure organizes the company around divisions, each of which operates almost like a separate business, allowing for greater focus and flexibility in responding to changes in the market or customer needs.

Question 16

The functional chimneys problem can ___.

Accepted Answer

The functional chimneys problem refers to the silo mentality, which creates barriers between departments or functions, leading to slow decision making, diminished cooperation, difficulties in pinpointing responsibilities, and interference in coordination across functions. Therefore, all of the above options are correct.

Question 17

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

Accepted Answer

A functional structure allows for economies of scale and efficient use of resources by grouping together employees based on the functions they perform within the organization, leading to specialization and efficiency in each function.

Question 18

Lilliana, a recent MBA graduate in the field of accounting, is the finance manager of PLUS Company. Lilliana has a problem with a shadow organization in her division. One sensible first step in Lilliana's management strategy might be ___.

Accepted Answer

Seeking to understand and work with the shadow organization would be the best first step in Lilliana's management strategy. Firing or assuming her staff is trying to undermine her without fully understanding the situation could lead to a toxic work environment and resentment amongst employees. Meeting with her employees to assert her authority and promising bonuses for compliance could also be ineffective and potentially damaging. By seeking to understand the shadow organization, Lilliana may be able to address any underlying issues and work towards a collaborative solution.

Question 19

Which of the following is true of a product structure?

Accepted Answer

The answer of Which of the following is true of...

Question 20

A ___ groups together people working on the same product, in the same area, with similar customers, or on the same processes.

Accepted Answer

A divisional structure groups employees based on product lines, geographic locations, customer segments, or processes. This allows for more focused and specialized teams, but can create duplication of tasks and resources across divisions.

Quiz 11: Organization Structures and Design