Question 1

Which of the following statements is true regarding a market structure?

Accepted Answer

A)   A market structure is a type of a functional structure.
B)   A market structure aligns functional skills and competences with the product needs of different customer groups.
C)   Organizations using the market structure have the tallest hierarchies.
D)   The market structure is the most suitable for a company that operates in a continuously changing environment and manufactures complex products.E) All of the above
F) A) and B)

Question 2

Which of the following types of organizational structures is the most suitable for an organization whose products are very different and which operates in several different markets or industries?

Accepted Answer

A)   functional structure
B)   multidivisional structure
C)   market structure
D)   product divisional structureE) All of the above
F) C) and D)

Question 3

Use of multidivisional structure avoids duplication of organizational activities.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following organizational structures is the foundation of horizontal differentiation?

Accepted Answer

A)   functional structure
B)   product structure
C)   matrix structure
D)   divisional structureE) None of the above
F) B) and C)

Question 5

Which of the following is a divisional structure in which a centralized set of support functions services the needs of a number of different product lines?

Accepted Answer

A)   product team structure
B)   multidivisional structure
C)   product division structure
D)   market structureE) B) and C)
F) All of the above

Question 6

A product division structure is more decentralized than a product team structure.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is a typical characteristic of a boundaryless organization?

Accepted Answer

A)   presence of tall organizational hierarchy
B)   use of electronic means to connect people
C)   use of a functional structure
D)   lack of organizational flexibilityE) C) and D)
F) A) and C)

Question 8

What are the advantages of a multidivisional structure?

Accepted Answer

The advantages of a multidivisional stru...

Question 9

Moving of a value creation activity that was done inside the organization to the outside, where it is done by another company is known as ________.

Accepted Answer

A)   mechanizing
B)   outsourcing
C)   networking
D)   decentralizingE) A) and B)
F) All of the above

Question 10

Which of the following statements is true regarding a matrix structure?

Accepted Answer

A)   A matrix structure has a clearly defined hierarchy of authority.
B)   An organization using a matrix structure can quickly respond to changing needs of customers.
C)   A matrix structure is characterized by clearly defined roles.
D)   Organizations with matrix structures tend to have the tallest hierarchies.E) A) and C)
F) A) and B)

Question 11

Employee roles are clearly defined in a matrix structure.

Accepted Answer

A) True 
 B)False

Question 12

Artists and writers in Hallmark are organized around categories of greeting cards such as Mother's Day cards and Christmas cards. Which of the following types of organizational structures is being used by Hallmark?

Accepted Answer

A)   geographic structure
B)   functional structure
C)   product team structure
D)   transactional structureE) A) and B)
F) C) and D)

Question 13

A multidivisional structure is characterized by a corporate headquarters staff which is composed of corporate managers who are responsible for overseeing the activities of the divisional managers heading up the different divisions.

Accepted Answer

A) True 
 B)False

Question 14

The goal behind the change to a divisional structure is to create smaller, more manageable subunits within an organization.

Accepted Answer

A) True 
 B)False

Question 15

A(n)  ________ structure has functions grouped together according to the specific demands of products, markets, or customers.

Accepted Answer

A)   divisional
B)   concurrent
C)   functional
D)   differentiatedE) None of the above
F) All of the above

Question 16

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

Accepted Answer

A)   lack of concern for cost
B)   possibility of a role conflict
C)   decreased ability of the organization to respond quickly to changing customer needs
D)   high level of differentiation between functionsE) A) and C)
F) None of the above

Question 17

A matrix structure is characterized by ________.

Accepted Answer

A)   a tall hierarchy
B)   low integration
C)   fixed product teams
D)   vague authority relationshipsE) A) and B)
F) All of the above

Question 18

One problem with the matrix structure is that employees must report to two different superiors.

Accepted Answer

A) True 
 B)False

Question 19

The ________, the more complex the integrating mechanisms that managers need to use to control organizational activities.

Accepted Answer

A)   fewer the number of levels in the hierarchy of the organization
B)   higher the level of environmental richness
C)   higher the level of differentiation
D)   fewer the number and type of the products manufactured by the companyE) A) and B)
F) None of the above

Question 20

A ________ structure has specialists from support functions combined into product development groups that specialize in the needs of a particular kind of product.

Accepted Answer

A)   product team
B)   task force
C)   transactional
D)   functionalE) A) and B)
F) A) and C)

Exam 6: Designing Organizational Structure: Specialization and Coordination

A ________ structure has specialists from support functions combined into product development groups that specialize in the needs of a particular kind of product.

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Which of the following statements is true regarding a market structure?

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A product division structure is more decentralized than a product team structure.

Correct AnswerverifiedShow Answer

Which of the following is a typical characteristic of a boundaryless organization?

Correct AnswerverifiedShow Answer

The goal behind the change to a divisional structure is to create smaller, more manageable subunits within an organization.

Correct AnswerverifiedShow Answer

Which of the following organizational structures is the foundation of horizontal differentiation?

Correct AnswerverifiedShow Answer

A matrix structure is characterized by ________.

Correct AnswerverifiedShow Answer

Which of the following is a divisional structure in which a centralized set of support functions services the needs of a number of different product lines?

Correct AnswerverifiedShow Answer

A multidivisional structure is characterized by a corporate headquarters staff which is composed of corporate managers who are responsible for overseeing the activities of the divisional managers heading up the different divisions.

Correct AnswerverifiedShow Answer

Moving of a value creation activity that was done inside the organization to the outside, where it is done by another company is known as ________.

Correct AnswerverifiedShow Answer

Employee roles are clearly defined in a matrix structure.

Correct AnswerverifiedShow Answer

The ________, the more complex the integrating mechanisms that managers need to use to control organizational activities.

Correct AnswerverifiedShow Answer

Which of the following types of organizational structures is the most suitable for an organization whose products are very different and which operates in several different markets or industries?

Correct AnswerverifiedShow Answer

A(n) ________ structure has functions grouped together according to the specific demands of products, markets, or customers.

Correct AnswerverifiedShow Answer

Which of the following statements is true regarding a matrix structure?

Correct AnswerverifiedShow Answer

Artists and writers in Hallmark are organized around categories of greeting cards such as Mother's Day cards and Christmas cards. Which of the following types of organizational structures is being used by Hallmark?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What are the advantages of a multidivisional structure?

Correct AnswerverifiedThe advantages of a multidivisional stru...View AnswerShow Answer

One problem with the matrix structure is that employees must report to two different superiors.

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Use of multidivisional structure avoids duplication of organizational activities.

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The advantages of a multidivisional stru...
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