MGMT CH. 10

Theresa works in an organization where coordination across organizational units is poor and the units perceived themselves to be in competition with one another for organizational resources. These characteristics are consistent with which of the following structures?

A divisional structure

Which of the following structures works best in an uncertain organizational environment?

A horizontal structure

In the _____ structure, the organization is viewed as a central hub surrounded by a network of outside specialists which are sometimes spread all over the world.

virtual network

Walt works for a large company. Recently, his organization began to contract out such functions as training, engineering, and computer service. This approach is consistent with a _____ structure.

virtual network

The _____ is an organization structure that divides the major functions of the organization into separate companies and coordinates their activities from a small headquarters organization.

virtual network approach

The _____ is an organization structure that divides the major functions of the organization into separate companies.

virtual network approach

Strategy defines _____ to do (it) while organizing defines _____ to do (it).

what; how

Which of the following is an incorrect fit in a stable organizational environment?

A horizontal structure

Boars' Nest Distributors is continually hampered by an inability to adapt to an unstable environment. Which of the following is a plausible explanation as to why?

Boars' Nest uses a vertical structure.

_____ means that decision authority is located near the _____ of the organization.

Centralization; top

Which is an advantage of the divisional structure?

Concern for customers' needs is high.

Which of the following is the basis for grouping positions into departments and departments into the total organization?

Departmentalization

_____ is also referred to as work specialization.

Division of labor

Which of the following structures is most consistent with a strategy of stability?

Functional structure

Salta Communications is a global telecommunications company that has operations on four continents. The CEO's direct supervisors include VPs for the North American South American, European, and the Asian divisions. Salta can best be described as using what organizational structure?

Geographic

_____ refers to the fact that services are perishable and cannot be stored in inventory.

Intangible output

Kevin's subordinates are highly trained and all perform similar tasks. Nichole's subordinates are spread over two locations and she has little available in the way of support systems. Which of the following statements is most correct?

Kevin's span of management can be larger than Nichole's.

Which of the following is(are) an advantage of team structure?

Less response time, quicker decisions

Which department performs tasks that reflect the organization's primary goals and mission?

Line

Which of the following happens as organizations grow?

Managers have to find ways to tie different departments.

Which of the following typically is NOT considered a staff department?

Manufacturing

Carly's Clothes, Inc. manufactures children's clothes. Which of the following departments for Carly's Clothes can be considered a line department?

Manufacturing department

Swift Move Facilities manufacturers two different bicycle models. The company produces a high volume of products using standardized production runs. The company does very little product customization. Swift Move uses what type of technology structure?

Mass production

Which of the following organizations have a flat structure compared to others?

Organization B with three hierarchical levels

Which of the following refers to the deployment of organizational resources to achieve strategic goals?

Organizing

_____ teams are brought together as a formal department in the organization.

Permanent

Which of the following is not an approach to structural design that reflects different uses of the chain of command?

Process approach

_____ refers to a clearly defined line of authority in the organization that includes all employees.

Scalar principle

_____ departments include all of those that provide specialized skills in support of _____ departments.

Staff; line

Which of the following characteristics distinguishes authority?

Subordinates accept it.

Which of the following factors is NOT associated with larger span of control?

Subordinates are located at various different locations.

Jacob, a customer service representative for AB Retailers, has seven levels of management between himself and the company's CEO. In contrast, his friend Rhonda, a customer service representative for YZ Retailers, has only four levels of management between her and the company CEO. Compared to YZ, Jacob's company has what type of organizational structure?

Tall

Which of the following is a contemporary approach to structural design in departmentalization?

Teams

Which of the following refers to the number of employees reporting to a supervisor?

The span of management

The matrix structure violates which of the following principles of management?

Unity of command

_____ means that each employee is held accountable to only one supervisor.

Unity of command

How does managerial authority flow through the organizational hierarchy?

Vertically

Which of the following structures is the leanest of all organization forms because little supervision is required?

Virtual network approach

_____ is the trend in recent years.

Wider spans of management

Which of the following refers to the degree to which organizational tasks are subdivided into individual jobs?

Work specialization

Barney and Betty work at Mountain Peak, Inc. Although they both work on the assembly line, they have the authority to make many decisions about their job. Mountain Peak can be said to have:

a high degree of decentralization.

A task force is _____ committee(s) formed to solve a specific problem.

a temporary

Organizational structure includes which of these?

a. The set of formal tasks assigned to individuals b. The set of formal tasks assigned to departments c. The design of systems to ensure effective coordination of employees across departments d. Formal reporting relationships e. All of these are part of organizational structure.

Disadvantages of the virtual network approach include:

a. a lack of hands-on control. b. the possibility of losing an important part of the organization. c. weakened employee loyalty. d. all of these. e. a lack of hands-on control and weakened employee loyalty.

When the organization is structured along _____ lines, coordination is required.

a. functional b. divisional c. team d. all of these e. functional or divisional

Advantages of the matrix structure include:

a. it increases employee participation. b. it makes efficient use of human resources. c. it works well in a changing environment. d. it develops both general and specialist management skills. e. all of these.

Coordination is defined as:

a. the ability of the organization to produce timely products. b. the quality of collaboration across departments. c. differentiation. d. the quantity of goods produced by the organization. e. all of these.

The people with authority and responsibility are subject to reporting and justifying task outcomes to those above them in the chain of command. This is called _____.

accountability

Shooting Star, Inc. has slow response to external changes, centralized decision making, and poor coordination across departments. It is likely structured:

along functional lines.

The formal and legitimate right of a manager to make decisions is _____.

authority

In times of crisis or risk of company failure, authority should be:

centralized at the top.

Jacob was recently looking at his company's organization chart in an attempt to discover who reports to whom. Jacob is studying his organization's:

chain of command.

Unity of command and the scalar principle are both closely related to the:

chain of command.

In a _____ organization, the entire work flow is mechanized in a sophisticated and complex form of production technology.

continuous process production

Innovative Creations Corporation is designed along functional lines. New product development is very slow and the process is plagued by many problems. One of the problems is that the people in marketing never communicate with the people in production. This is an example of poor _____.

coordination

The outcome of information and cooperation is _____.

coordination

An organization strives for internal efficiency with a(n) _____ strategy.

cost leadership

Change and uncertainty in the environment are usually associated with _____.

decentralization

The use of teams may lead to too much:

decentralization.

Shoshanna is manager of a customer service firm where she oversees five subordinates. To help her subordinates learn more about the different roles within the company, Shoshanna regularly assigns them tasks that are not part of their normal routine. This is an example of:

delegation

Gina wishes to transfer authority and responsibility to her subordinates. This process is known as:

delegation.

With a(n) _____ strategy, the organization attempts to develop innovative products unique to the market.

differentiation

Organizations such as Amazon.com, Google, Facebook, and Priceline.com are examples of firms that are based on:

digital technology.

Self-contained unit structure is a term used for:

divisional structure.

Stephanie works in one of seven research and development departments at Tara's Terrace, Inc. This would suggest that Tara's Terrace has a:

divisional structure.

When departments are grouped together on the basis of organizational outputs, the organization is using a:

divisional structure.

The functional, _____, and _____ are traditional approaches that rely on the chain of command to define departmental groupings and reporting relationships along the hierarchy.

divisional, matrix

Louise works in the manufacturing department at Ice Sculptures. The work in Louise's department is low in task specialization. As a result, Louise:

does a variety of tasks and activities.

When work specialization is extensive:

employees perform a single task.

Relative to the functional structure, the divisional structure:

encourages decentralization.

All of the following are the major disadvantages of the matrix structure EXCEPT:

enlarged tasks for employees.

All of the following are advantages of a functional structure EXCEPT:

excellent coordination between functions.

The biggest advantage to a virtual network approach is _____ and _____ on a global scale.

flexibility; competitiveness

The pure functional structure does not enable the organization to be:

flexible.

Organ Rentals Corporation has been having numerous problems. Communication across departments is poor and decisions are backing up at the top of the organization. Organ Rentals uses a _____ structure.

functional

All functions in a specific country or region report to the same division manager in _____ divisions.

geographic-based

Makai's Marketing Mix (MMM) does not use its resources wisely. The employees at MMM spend too much time in meetings and not enough time focusing on the task at hand. MMM's management should consider changing the organizational structure from _____ to _____.

horizontal, vertical

A pure functional structure is most appropriate for achieving:

internal efficiency goals.

The team approach to departmentalization is a response to:

lack of participative teams. centralized decision-making. the competitive global environment. all of these. both lack of participative teams and centralized decision-making.

A formal chain of command for both functional and divisional relationships is provided by the _____ approach to structure.

matrix

Global companies often use a _____ structure to achieve simultaneous coordination of products across countries.

matrix

The _____ is the product or functional boss, who is responsible for one side of the matrix.

matrix boss

In the _____ approach, a manufacturing company uses outside suppliers to provide entire chunks of a product, which are then assembled into a final product by a handful of workers.

modular

Relative to a flat organizational structure, a tall structure has a _____ span of management and _____ hierarchical levels.

narrow; more

The _____ delineates the chain of command, indicates departmental tasks and how they fit together, and provides order and logic for the organization.

organizational chart

A(n) ____ is responsible for coordinating the activities of several departments.

project manager

Flash Card Inc. recently underwent a significant company-wide change that involved revision of its manufacturing and leadership processes. The result of this was a stronger emphasis on horizontal coordination. This level of change is referred to as _____.

reengineering

An advantage of functional structures is the:

resulting economies of scale.

According to MANAGER'S SHOPTALK in Chapter 10, all of the following are effective ways for a manager to delegate EXCEPT:

save feedback for completion of the project.

Traditionally, a span of management of about _____ has been recommended.

seven

In _____ production, firms produce goods in batches of one or a few products designed to customer specification.

small batch

Marissa was recently assigned to a committee whose task is to research new product opportunities. Once this group generates a list of six or seven viable options, it will be disbanded. This group is also known as a _____.

task force

Typically, project managers have authority over _____ but not over _____ assigned to it.

the project; people

All of the following are advantages of a divisional structure EXCEPT:

there is little duplication of services across divisions.

Juan is a top manager at I.F.L., a matrix organization. He oversees both the product and functional chains of command, and is responsible for maintaining a power balance between the two sides of the matrix. Juan is a _____.

top leader

Mondavi Corporation has a finance department, a marketing department, and a production department. Mondavi:

uses a functional structure.

Kara's department is made up of people with similar skills and work activities. Her organization uses the _____ approach to departmentalization.

vertical functional

Lisa is responsible for coordinating the efforts of several different departments. Which of the following titles best describes her position?

Project manager

Which of the following leads to strong coordination across functional areas and greater flexibility in responding to changes in the environments?

Reengineering

Rebecca works for a company that has clearly defined lines of authority. Each employee knows that he or she has authority and responsibility for a distinct set of tasks. Employees are also aware of the company's reporting structure as well as successive management levels all the way to the top. Rebecca's company follows which principle?

Scalar principle

The organization chart:

a. shows the characteristics of the organization's vertical structure. b. is a visual representation of the organization's structure. c. details the formal reporting relationships that exist within an organization. d. all of these.

Organization structure is defined as the:

framework in which the organization defined how tasks are divided, resources are deployed, and departments are coordinated.

Kent works at the Tick Tock, Inc. He has two bosses, one a functional manager and the other a divisional manager. Tick Tock, Inc. has a _____ structure.

matrix

A(n) _____ works best in a stable organizational environment.

vertical structure