Organizational Design

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Question 1
Free
Multiple Choice

 _____ is defined as the pattern of organizational roles, relationships, and procedures that enable coordinated action among employees.

Choose correct answer/s
A

Organizational structure

B

Value chain

C

Synergy

D

Organizational culture

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Question 2
Free
Multiple Choice

 Star Hydraulics is organized into self-supervising teams that are responsible for a set of tasks. In the teams, each member is cross-trained to be able to perform multiple tasks, and individual goals and values completely overlap with the organization's values. Workers collaborate on projects and must negotiate proper team behavior, using the organization's mission and values as a guide. Star Hydraulics has adopted a _____ approach to organizational control.

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A

clan

B

bureaucratic

C

mutually adaptive

D

totalitarian

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Question 3
Free
Multiple Choice

 Which of the following statements is true of division of labor?

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A

Horizontal specialization refers to how much an employee creates, executes, and administers activities in a certain area of the firm.

B

The repetitive nature of specialized jobs lends itself to quick and efficient training of new resources.

C

Extreme job specialization tend to increase the level of job satisfaction among workers.

D

Vertical specialization refers to the breadth of activities that are performed in a certain job.

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Question 4
Free
Multiple Choice

 Thomas, the head of the marketing department in an organization, has structured his department in such a way that the roles and responsibilities of his workers are loosely defined. Moreover, he does not exert too much control over his workers and encourages two-way communication. His workers tend to be highly satisfied with their jobs when compared to those in the finance department, headed by John who exerts more control. From this scenario it can be inferred that Thomas has adopted a _____ mechanism for coordinating.

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A

bureaucratic

B

authoritative

C

centralized

D

behavioristic

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Question 5
Free
Multiple Choice

 Moonbow, Inc., has a highly formalized structure with extensive rules, procedures, policies, and instructions. Positions are arranged hierarchically with top management dictating the direction and activity of the organization while lower-level managers and employees follow orders. The fundamental mechanism of monitoring involves close personal surveillance of subordinates by superiors. Moonbow, Inc., has adopted a _____ approach to organizational control.

Choose correct answer/s
A

clan

B

bureaucratic

C

mutually adaptive

D

totalitarian

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Question 6
Multiple Choice

 Which of the following is a key advantage of the clan approach?

Choose correct answer/s
A
Clearly defined roles and responsibilities
B
Self-regulating characteristics of employees
C
Close personal surveillance of superiors over subordinates
D
Extreme job specialization
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Question 7
Multiple Choice

 Which of the following firms is most likely to benefit from the clan approach?

Choose correct answer/s
A
A firm with highly uncertain working conditions
B
A firm with work activities that can be easily measured
C
A firm that lacks diverse working styles
D
A firm operating in a price-competitive industry
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Question 8
Multiple Choice

 Which of the following firms is most likely to benefit from a bureaucratic approach?

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A
A firm with constantly changing, dynamic markets
B
A start-up firm with less complexity
C
A firm involving creativity and innovation
D
A firm with high turnover and a diverse workforce
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Question 9
Multiple Choice

 In a functional structure, a firm

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A
groups diverse functions into separate divisions.
B
divides people into units in terms of the main activities that need to be performed.
C
gives equal authority to both divisional and functional managers.
D
categorizes its employees based on their performance and commitment.
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Question 10
Multiple Choice

 Which of the following terms refers to a structure where many employees have two bosses (one divisional and one functional) with equal authority in the organization?

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A
Functional structure
B
Divisional structure
C
Matrix structure
D
Network structure
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Question 11
Multiple Choice

 Which of the following statements about the divisional structure is true?

Choose correct answer/s
A
Coordination among functions in a divisional structure is less fluid than it is in a functional structure.
B
It allows for greater accountability because each division is a separate self-contained entity.
C
The general manager of a functional form has a broader purpose than the general manager in the divisional form.
D
Employees tend to identify more with their function than with their division.
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Question 12
Multiple Choice

 The factor that distinguishes functional organizational structure from divisional is that

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A
a functional structure is organized around the outputs a firm produces.
B
a functional structure is best suited to deal with environmental change.
C
a functional structure groups diverse functions into separate divisions.
D
a functional structure is organized in terms of the main activities to be performed.
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Question 13
Multiple Choice

 Which of the following is a weakness of the matrix structure?

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A
In matrix structure, the divisional managers have more authority than the functional managers, which causes an imbalance of power.
B
A manager cannot use a matrix structure when resources need to be shared and optimized across divisions and within functions.
C
When a firm's internal interrelationships are complex, it is not possible for managers to adopt a matrix structure.
D
It often creates confusion for its managers who are simultaneously accountable to distinct units that don't always share the same objectives.
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Question 14
Multiple Choice

 Which of the following statements is an advantage of a network structure?

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A
It is quite inexpensive for virtual teams to use communication technology.
B
It enables a firm to move quickly to adapt to a change in the marketplace.
C
Virtual teams often require less coordination.
D
It promotes greater accountability than divisional structure.
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Question 15
Multiple Choice

 In a _____ structure, "knowledge workers" are organized to work as individual contributors or to be a part of a work cluster that provides a certain expertise for the organization.

Choose correct answer/s
A
functional
B
divisional
C
matrix
D
network
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Question 16
Multiple Choice

 The Tidwell Company has a production department, a marketing department, a sales department, and an accounting department. The sales department is headed by the VP of sales and manages the department in a hierarchical manner. Employees are evaluated on achieving departmental goals. The Tidwell Company has a _____ structure.

Choose correct answer/s
A
functional
B
matrix
C
divisional
D
network
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Question 17
Multiple Choice

 The Nickells Advertising Agency assigns a team of individuals to work on a client's advertising campaign. When the project is completed, each of the team members will be assigned to new teams pulled together for new campaigns. The Nickells Advertising Agency has a _____ structure.

Choose correct answer/s
A
functional
B
matrix
C
divisional
D
network
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Question 18
Multiple Choice

 Which of the following is a disadvantage of a divisional structure?

Choose correct answer/s
A
It is not suited to competitive situations where coordinated action is needed for innovation.
B
This structure does not allow for much accountability.
C
It is not suited to business environments marked by high degrees of uncertainty.
D
Several core functions are duplicated, preventing the development of economies of scale for those functions.
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Question 19
Multiple Choice

 Fine Gadgets, a gadgets manufacturing company, has an organizational structure where the employees have to strictly follow rules and regulations stated by the management. Moreover, only the top management is allowed to make key decisions regarding organizational activities. Fine Gadgets is an example of a _____ organization.

Choose correct answer/s
A
decentralized
B
global
C
diversified
D
centralized
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Question 20
Multiple Choice

 A _____ structure is an organizational structure where key decisions are made at all levels of the firm, not only at the top.

Choose correct answer/s
A
decentralized
B
multinational
C
centralized
D
bureaucratic
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