Organizational Organizational Theory, Design, and Change, Change , 7e (Jones) 7e (Jones) Chapter 6 Designing Organizational Organizational Structure: Structure: Specialization Specialization and Coordination 1) A divisional structure is a design that groups people into separate functions or departments ecause the! share common s"ills and e#pertise ecause the! ma"e use of the same resources$ Ans%er: &A'S age *ef: 1+, Difficult!: as! 'O: 6-1 .) &unctional structure is the foundation of horizontal differentiation$ Ans%er: /*0 age *ef: 1+, Difficult!: as! 'O: 6-1 ) &unctional structure provides people %ith the opp ortunit! to learn from one another and ecome more specialized and productive$ Ans%er: /*0 age *ef: 123 Difficult!: as! 'O: 6-1 +) As an organization organization %ith a functional structure gro%s4 the cost of each function5s contriution to the development of each product ecomes increasingl! simple to measure$ Ans%er: &A'S age *ef: 121 Difficult!: as! 'O: 6-1 2) Servicing the needs of ne% "inds of customer groups and tailoring products to suit them are relativel! simple in a functional structure$ Ans%er: &A'S age *ef: 121 Difficult!: as! 'O: 6-1 6) /he higher the level of differentiation4 the more comple# the integrating mechanisms that managers need to use to control organizational activities$ Ans%er: /*0 age *ef: 12 Difficult!: as! 'O: 6-1
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) A functional structure groups functions according to the specific demands of products4 mar"ets4 or customers$ Ans%er: &A'S age *ef: 12+ Difficult!: as! 'O: 6-. ,) 7n a product division structure4 a centralized set of support functions services the needs of a numer of different product lines$ Ans%er: /*0 age *ef: 12+ Difficult!: as! 'O: 6-. 8) /he structure that organizations most commonl! adopt to solve the control prolems that result from producing man! different "inds of products in man! different locations for man! different t!pes of customers is the divisional structure$ Ans%er: /*0 age *ef: 12+ Difficult!: as! 'O: 6-. 13) /he goal ehind the change to a divisional structure is to create smaller4 more manageale suunits %ithin an organization$ Ans%er: /*0 age *ef: 12+ Difficult!: as! 'O: 6-. 11) As an organization increases the "inds of goods it manufactures or the services it provides4 a functional structure ecomes more effective at coordinating tas" activities$ Ans%er: &A'S age *ef: 12+ Difficult!: as! 'O: 6-. 1.) A functional structure has greater vertical and horizontal differentiation than a divisional structure and emplo!s more comple# integrating mechanisms$ Ans%er: &A'S age *ef: 12+ Difficult!: 9oderate 'O: 6-.
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1) A product structure is a t!pe of a functional structure$ Ans%er: &A'S age *ef: 12+ Difficult!: as! 'O: 6-. 1+) 7n a multidivisional structure4 each division is independent an d self-contained$ Ans%er: /*0 age *ef: 12 Difficult!: as! 'O: 6-. 12) A multidivisional structure is characterized ! a corporate headuarters staff %hich is composed of corporate managers %ho are responsile for overseeing the activities of the divisional managers heading up the different d ifferent divisions$ Ans%er: /*0 age *ef: 12 Difficult!: as! 'O: 6-. 16) 9ost &ortune 233 companies use a functional structure ecause it allo%s them to gro% and e#pand their operations %hile maintaining control over their ac tivities$ Ans%er: &A'S age *ef: 12 Difficult!: as! 'O: 6-. 1) 7n a multidivisional structure4 corporate headuarters can identif! the divisions in %hich an investment of capital %ill !ield the highest returns$ Ans%er: /*0 age *ef: 163 Difficult!: as! 'O: 6-. 1,) 0se of multidivisional structure avoids duplication of organizational activities$ Ans%er: &A'S age *ef: 161 Difficult!: 9oderate 'O: 6-. 18) 9ultidivisional structures tend to e the tallest of all organizational structures$ Ans%er: /*0 age *ef: 161 Difficult!: as! 'O: 6-.
.3) /he more centralized an organization4 the more of a prolem communication %ill e$ Ans%er: /*0 age *ef: 161 Difficult!: as! 'O: 6-. .1) A product team structure is more decentralized than a functional structure$ Ans%er: /*0 age *ef: 16. Difficult!: as! 'O: 6-. ..) A product division structure is more decentralized than a product team structure$ Ans%er: &A'S age *ef: 16. Difficult!: as! 'O: 6-. .) A product team structure is a divisional structure in %hich divisions are organized according to the reuirements of the different locations in %hich an organization operates$ Ans%er: &A'S age *ef: 16. Difficult!: as! 'O: 6-. .+) mplo!ee roles are clearl! defined in a matri# structure$ Ans%er: &A'S age *ef: 166 Difficult!: as! 'O: 6- .2) One prolem %ith the matri# structure is that emplo!ees must report to t%o different superiors$ Ans%er: /*0 age *ef: 166 Difficult!: as! 'O: 6- .6) 9atri# structures are a principal form of organic structure$ Ans%er: /*0 age *ef: 16 Difficult!: as! 'O: 6-
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.) A net%or" structure is a cluster of different organizations %hose actions are coordinated ! contracts and agreements4 rather than ! a formal hierarch! of authorit!$ Ans%er: /*0 age *ef: 11 Difficult!: as! 'O: 6-+ .,) A net%or" structure increases the cost c ost of production$ Ans%er: &A'S age *ef: 11 Difficult!: as! 'O: 6-+ .8) 7n general4 the more comple# co mple# the value-creation activities necessar! to produce an d mar"et goods and services4 the more prolems are associated %ith using a net%or" structure$ Ans%er: /*0 age *ef: 1. Difficult!: as! 'O: 6-+ 3) A ;;;;;;;; structure is a design that groups g roups people together on the asis asis of their common e#pertise and e#perience or ecause the! use the same resources$ A) team <) functional C) divisional D) product Ans%er: < age *ef: 1+, Difficult!: as! 'O: 6-1 1) As the /ast! /ast!
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.) >hich of the follo%ing organizational structures is the foundation of horizontal differentiation= A) functional structure <) product structure C) matri# structure D) divisional structure Ans%er: A age *ef: 1+, Difficult!: as! 'O: 6-1 ) >hich of the follo%ing statements is true regarding a functional structure= A) 7n a functional structure4 structure4 it ecomes easier for emplo!ees to supervise one another and control one another5s ehavior$ <) 7n the case of a functional structure4 people are grouped together ac cording to the specific demands of products4 mar"ets4 or customers$ C) /he use of the functional structure increases an organization5s ailit! to uic"l! respond to the changing environment$ D) /he functional structure can e used onl! in the decentralized organizations$ Ans%er: A age *ef: 123 Difficult!: 9oderate 'O: 6-1 +) As an organization that uses a functional structure gro%s4 ;;;;;;;;$ A) the e#tent of division of laor decreases <) the process of communication simplifies C) the cost of each function5s contriution to the development of each product ecomes increasingl! difficult to measure D) the vertical differentiation %ithin the organization decreases Ans%er: C age *ef: 121 Difficult!: 9oderate 'O: 6-1 2) >hich of the follo%ing situations causes communication prolems %ithin an organization that uses functional structure= A) the organization uses the s!stem of management ! o?ectives <) the organization operates in a stale environment C) the organization operates in a rich environment D) the organization develops more functions that are increasingl! distant from one another Ans%er: D age *ef: 121 Difficult!: 9oderate 'O: 6-1
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6) 7n %hich of the follo%ing situation4 servicing the need s of ne% "inds of customer groups and an d tailoring products to suit them are is most li"el! to e relativel! difficult= A) the organization operates in a rich environment <) the organization uses functional structure C) the organization has a monopol! in its respective usiness D) the organization uses matri# structure Ans%er: < age *ef: 121 Difficult!: 9oderate 'O: 6-1 ) >hen ;;;;;;;;4 the cost of each function5s contriution to the development of each product ecomes increasingl! difficult to measure$ measure$ A) an organization %ith a divisional structure uses the s!stem of management ! o?ectives <) an organization %ith a functional structure gro%s and the numer and comple#it! of their functions and products increases C) an organization %ith a matri# structure operates in a stale environment D) an organization %ith a divisional structure operates in a rich ut comple# environment Ans%er: < age *ef: 121 Difficult!: 9oderate 'O: 6-1 ,) >hich of the follo%ing %ill allo% managers to regain control of their organizations %hen the! decide to adopt a more comple# structure= A) decreasing vertical v ertical differentiation <) increasing horizontal differentiation differentiation C) decreasing integration D) increasing formalization Ans%er: < age *ef: 12 Difficult!: 9oderate 'O: 6-1 8) /he ;;;;;;;;4 the more comple# the integrating mechanisms that managers need to use to control organizational activities$ A) fe%er the numer of levels in the hierarch! of the organization <) higher the level of environmental richness C) higher the level of differentiation D) fe%er the numer and t!pe of the products manufactured ! the compan! Ans%er: C age *ef: 12 Difficult!: 9oderate 'O: 6-1
+3) >hich of the follo%ing %a!s can e used ! a manager to increase vertical differentiation= A) increase the numer of levels in the hierarch! <) increase the richness of the environment C) diversif! the usiness D) manufacture products at several different locations Ans%er: A age *ef: 12 Difficult!: 9oderate 'O: 6-1 +1) A(n) ;;;;;;;; structure has functions grouped together according to the specific demands of products4 mar"ets4 or customers$ A) divisional <) concurrent C) functional D) differentiated Ans%er: A age *ef: 12+ Difficult!: as! 'O: 6-. +.) A food manufacturer is e#periencing coordination prolems et%een its frozen food division and its canned food division$ /he main control prolem is that each product reuires an entirel! separate s!stem for ordering supplies4 pac"aging the product4 and storing the product upon completion$ >hich structure %ould help solve these coordination prolems= A) product division structure <) mar"et structure C) multidivisional structure D) geographic divisional structure Ans%er: A age *ef: 12+ Difficult!: as! 'O: 6-. +) >hich of the follo%ing statements is true regarding a divisional structure= A) /he goal ehind the change to a divisional structure from a functional structure is to create larger suunits %ithin an organization$ <) As compared to functional structure4 divisional structure has lo%er levels of vertical differentiation$ C) A divisional structure emplo!s more comple# integrating mechanisms than a functional structure$ D) As compared to functional structure4 divisional structure has lo%er levels of horizontal differentiation$ Ans%er: C age *ef: 12+ Difficult!: 9oderate 'O: 6-. ,
++) A ;;;;;;;; structure is commonl! used ! food processors4 furniture ma"ers4 and companies that ma"e personal care products4 paper products4 or other products that are roadl! similar and use the same set of support functions$ A) product division <) mar"et C) multidivisional D) product team Ans%er: A age *ef: 12+ Difficult!: as! 'O: 6-. +2) A regional compan! mar"ets ice cream4 mil"4 and an d frozen !ogurt$ A ;;;;;;;; structure is the most appropriate structure for this firm$ A) product division <) multidivisional C) product team D) mar"et Ans%er: A age *ef: 12+ Difficult!: 9oderate 'O: 6-. +6) >hich of the follo%ing is a divisional structure in %hich a centralized set of support functions services the needs of a numer of different product lines= A) product team structure <) multidivisional structure C) product division structure D) mar"et structure Ans%er: C age *ef: 12+ Difficult!: as! 'O: 6-. +) >hich of the follo%ing structures is most li"el! to e selected ! a n organization %hose products are ver! comple# technologicall! or %hose characteristics change rapidl! to suit changing customer needs= A) multidivisional structure <) functional structure C) product team structure D) geographic divisional structure Ans%er: C age *ef: 12+ Difficult!: as! 'O: 6-.
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+,) >hich of the follo%ing t!pes of organizational structures is the most suitale for an organization %hose products are ver! different and %hich operates in several different mar"ets or industries= A) functional structure <) multidivisional structure C) mar"et structure D) product divisional structure Ans%er: < age *ef: 12+ Difficult!: as! 'O: 6-. +8) hich of the follo%ing statements is true regarding a product division structure= A) 7n a product division structure4 each division is independent and self-contained$ <) 0se of product division structure leads to duplication of organizational activities$ C) /!picall! /!picall!44 a product division structure is used ! an organization %hich produces a %ide variet! of comple# products$ D) 7n a product division structure4 support functions are centralized at the top of the organization$ Ans%er: D age *ef: 122 Difficult!: 9oderate 'O: 6-.
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2.) A ;;;;;;;; structure is a structure in %hich support functions are placed in self-contained divisions$ A) mar"et <) product division C) multidivisional D) functional Ans%er: C age *ef: 126 Difficult!: as! 'O: 6-. 2) A corporate headuarters staff is created in a ;;;;;;;; ;;;;;;; ; structure$ A) product division <) multidivisional C) product team D) matri# Ans%er: < age *ef: 126 Difficult!: as! 'O: 6-. 2+) >hich of the follo%ing is a difference et%een the product d ivision structure and the multidivisional structure= A) @orizontal differentiation is increased in the multidivisional structure4 ut not in the product division structure$ <) ertical ertical differentiation is increased in the produ ct division structure4 ut not no t in the multidivisional structure$ C) Support functions are centralized at the top of the organization in a multidivisional structure4 ut decentralized to the divisions in a product division structure$ D) Divisions are independent in a multidivisional structure4 ut not in a product division structure$ Ans%er: D age *ef: 12 Difficult!: 9oderate 'O: 6-. 22) 9ost &ortune 233 companies use a ;;;;;;;; structure ecause it allo%s a llo%s them to gro% and e#pand their operations %hile maintaining control over their ac tivities$ A) functional <) product divisional C) multidivisional D) mar"et Ans%er: C age *ef: 12 Difficult!: as! 'O: 6-.
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26) >hich of the follo%ing statements is true regarding a multidivisional structure= A) A multidivisional structure is the least suitale for an organization %hich produces produ ces a %ide range of comple# products$ <) A multidivisional structure decreases division of laor %hich ultimatel! decreases organizational effectiveness$ C) As an organization moves from functional to multidivisional structure4 the level of vertical differentiation differentiation increases$ D) A multidivisional multidivisional structure avoids duplication of organizational activities$ Ans%er: C age *ef: 12 Difficult!: @ard 'O: 6-. 2) As compared to other organizational structures4 an advantage of a multidivisional structure is that ;;;;;;;;$ A) it is the least e#pensive to operate <) the division of laor increases organizational effectiveness C) the duplication of organizational activities is avoided D) the communication prolems are least li"el! to occur in a multidivisional structure Ans%er: < age *ef: 163 Difficult!: 9oderate 'O: 6-. 2,) >hich of the follo%ing is a disadvantage of a multidivisional structure= A) A multidivisional structure decreases division of laor %hich ultimatel! decreases organizational effectiveness$ <) 7t ecomes difficult for corporate headuarters to identif! the divisions in %hich an investment of capital %ill !ield the highest returns$ C) A multidivisional structure is not suitale for an organization %hich produces a %ide range of comple# products$ D) 9ultidivisional structures are ver! e#pensive to operate$ Ans%er: D age *ef: 161 Difficult!: 9oderate 'O: 6-. 28) ;;;;;;;; structures tend to e the tallest of all organizational structures$ A) &unctional <) roduct division C) 9ar"et D) 9ultidivisional Ans%er: D age *ef: 161 Difficult!: as! 'O: 6-.
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63) >hich of the follo%ing t!pes of organizational structures is most li"el! to use transfer pricing= A) functional structure <) product team structure C) product division structure D) multidivisional structure Ans%er: D age *ef: 161 Difficult!: as! 'O: 6-. 61) /he price at %hich one division in an organization sells a product or information aout innovations to another division in the same organization is called ;;;;;;;; price$ A) developmental <) historic C) aggregated D) transfer Ans%er: D age *ef: 161 Difficult!: as! 'O: 6-. 6.) >hich of the follo%ing organizational structures has a disadvantage of e#tensive dup lication of activities %ithin the organization= A) functional structure <) product division structure C) multidivisional structure D) mar"et structure Ans%er: C age *ef: 161 Difficult!: as! 'O: 6-. 6) A ;;;;;;;; structure is a cross et%een the product division structure and the multidivisional structure$ A) functional <) transactional C) product team D) geographic divisional Ans%er: C age *ef: 161 Difficult!: as! 'O: 6-.
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6+) A ;;;;;;;; structure has specialists from support functions comined into product development groups that specialize in the needs of a particular "ind of product$ A) product team <) tas" force C) transactional D) functional Ans%er: A age *ef: 16. Difficult!: as! 'O: 6-. 62) >hich of the follo%ing organizational structures is the most decentralized= A) product division structure <) functional structure C) product team structure D) transactional structure Ans%er: C age *ef: 16. Difficult!: as! 'O: 6-. 66) Artists and %riters in @allmar" are organized around categories of greeting cards such as 9other5s Da! cards and Christmas cards$ >hich of the follo%ing t!pes of organizational structures is eing used ! @allmar"= A) geographic structure <) functional structure C) product team structure D) transactional structure Ans%er: C age *ef: 16. Difficult!: as! 'O: 6-. 6) >hich of the follo%ing statements is true regarding a product team structure= A) 0se of product team structure increases the product d evelopment time$ <) 7n a product team structure divisions are organized according to the reuirements of the different locations in %hich an organization operates$ C) A product team structure is more decentralized than a functional structure$ D) /!picall! /!picall!44 a product produc t team structure is used ! an organization o rganization that operates in a stale environment %here the reuirements of the customers do not change uic"l!$ Ans%er: C age *ef: 16. Difficult!: 9oderate 'O: 6-.
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6,) A ;;;;;;;; structure organizes divisions according to the reuirements of the different locations in %hich an organization appears$ A) geographic divisional <) product divisional C) functional D) multidivisional Ans%er: A age *ef: 16 Difficult!: as! 'O: 6-. 68) A geographic structure is most li"el! to e appropriate ap propriate for %hich of the follo%ing companies= A) a large manufacturer that %ants to produce automoiles in 9e#ico and computers in Southeast Asia <) an oil producer that sells gas4 a commodit!4 in five different regions C) a telecommunications compan! that ma"es technologicall! comple# euipment D) a retailer %ho specializes in clothing and operates in five different regions of the 0nited States Ans%er: D age *ef: 16 Difficult!: 9oderate 'O: 6-. 3) >hich of the follo%ing statements is most li"el! to e true regarding a geographic divisional structure= A) A geographic structure allo%s some functions to e centralized at one headuarters location and others to e decentralized to a regional level$ <) A geographic divisional structure is a divisional structure in %hich specialists from the support functions are comined into product development d evelopment teams that specialize in the needs of a particular "ind of product$ C) An organization using a geographic divisional structure emplo!s a transfer pricing p ricing mechanism to transfer its products from one geographic division to the other geographic division$ D) Organizations that use geographic divisional structure operate in rich and d!namic environment$ Ans%er: A age *ef: 16 Difficult!: as! 'O: 6-.
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1) >hich of the follo%ing statements is true regarding a mar"et structure= A) A mar"et structure is a t!pe of a functional structure$ <) A mar"et structure aligns functional s"ills and competences %ith the product needs of different customer groups$ C) Organizations using the mar"et structure have the tallest hierarchies$ D) /he mar"et structure is the most suitale for a compan! that op erates in a continuousl! changing environment and manufactures comple# products$ Ans%er: < age *ef: 16+ Difficult!: 9oderate 'O: 6-. .) A mar"et structure organizes people according acco rding to ;;;;;;;;$ A) the s"ills of the people <) the t!pes of customers the! serve C) the regional mar"ets the! serve D) the functions the! perform Ans%er: < age *ef: 16+ Difficult!: as! 'O: 6-. ) >hich of the follo%ing is an organizational design that groups people and resources in t%o %a!s simultaneousl!: ! function and ! product= A) product team structure <) mar"et structure C) geographic structure D) matri# structure Ans%er: D age *ef: 166 Difficult!: as! 'O: 6- +) >hich of the follo%ing structures is most li"el! to e the flattest= A) mechanistic structure <) matri# structure C) ureaucratic structure D) transactional structure Ans%er: < age *ef: 166 Difficult!: as! 'O: 6-
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2) 7n a ;;;;;;;; structure4 role and authorit! relationships are delieratel! left vague ecause the underl!ing assumption of this structure is that %hen team memers are given more responsiilit! than the! have formal authorit!4 the! are forced to cooperate to get the ?o done$ A) functional <) ureaucratic C) matri# D) product divisional Ans%er: C age *ef: 166 Difficult!: as! 'O: 6- 6) >hich of the follo%ing is a difference et%een the product team and the matri# structures= A) mplo!ees have t%o osses in a product team structure and onl! one oss in a matri# structure$ <) A product team structure uses teams to coordinate activities ut a matri# structure does not use teams$ C) mplo!ees move et%een teams in a matri# structure ut not in a product team structure$ D) A matri# structure has a taller hierarch! than a product team structure$ Ans%er: C age *ef: 16 Difficult!: 9oderate 'O: 6- ) A matri# structure involves ;;;;;;;; vertical control from the formal hierarch! and ;;;;;;;; horizontal control from the use of integrating mechanisms$ A) minimalB minimal <) minimalB ma#imal C) ma#imalB ma#imal D) ma#imalB minimal Ans%er: < age *ef: 16 Difficult!: as! 'O: 6- ,) >hich of the follo%ing is an advantage of a matri# structure= A) increased organizational fle#iilit! <) clearl! defined hierarch! of authorit! C) lac" of role amiguit! and role conflict D) lac" of movement of emplo!ees from team to team Ans%er: A age *ef: 16 Difficult!: 9oderate 'O: 6-
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8) 7n %hich of the follo%ing organizational structures do emplo!ees move et%een teams= A) product team structure <) matri# structure C) functional structure D) ureaucratic structure Ans%er: < age *ef: 16 Difficult!: as! 'O: 6- ,3) >hich of the follo%ing statements is true regarding a matri# structure= A) A matri# matri# structure has a clearl! defined hierarch! of authorit!$ <) An organization organization using a matri# structure can uic"l! u ic"l! respond to changing needs of customers$ C) A matri# structure is characterized ! clearl! defined roles$ D) Organizations %ith matri# structures tend to have the tallest hierarchies$ Ans%er: < age *ef: 16 Difficult!: 9oderate 'O: 6- ,1) 7n a ;;;;;;;; structure4 emplo!ees have t%o superiors$ A) product team <) functional C) product divisional D) matri# Ans%er: D age *ef: 16 Difficult!: as! 'O: 6- ,.) A ;;;;;;;; structure provides for more integration et%een corporate and divisional managers and et%een divisional managers$ A) functional <) ureaucratic C) multidivisional matri# D) transactional Ans%er: C age *ef: 16, Difficult!: as! 'O: 6-
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,) >hich of the follo%ing is a disadvantage of the matri# structure= A) lac" of concern for cost <) possiilit! of a role conflict C) decreased ailit! of the organization to respond uic"l! to changing customer needs D) high level of differentiation et%een functions Ans%er: < age *ef: 16, Difficult!: 9oderate 'O: 6- ,+) A matri# structure is characterized ! ;;;;;;;;$ A) a tall hierarch! <) lo% integration C) fi#ed product teams D) vague authorit! relationships Ans%er: D age *ef: 16, Difficult!: as! 'O: 6- ,2) 'arge comple# organizations that have man! divisions often simultaneousl! ma"e use of man! different structuresB that is4 the! operate %ith a ;;;;;;;; structure$ A) product divisional <) mar"et C) h!rid D) eureaucratic Ans%er: C age *ef: 13 Difficult!: as! 'O: 6- ,6) A ;;;;;;;; structure is a cluster of different organizations %hose actions are coordinated ! contracts and agreements4 rather than ! a formal hierarch! of authorit!$ A) product divisional <) net%or" C) mar"et D) multidivisional Ans%er: < age *ef: 11 Difficult!: as! 'O: 6-+
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,) 9oving of a value creation activit! that %as done inside the organization to the outside4 %here it is done ! another compan! is "no%n as ;;;;;;;;$ A) mechanizing <) outsourcing C) net%or"ing D) decentralizing Ans%er: < age *ef: 11 Difficult!: as! 'O: 6-+ ,,) i"e5s product design and research function are located in Oregon and all the other production functions are outsourced to companies around the %orld$ i"e uses a ;;;;;;;; structure$ A) geographic divisional <) net%or" C) functional D) product team Ans%er: < age *ef: 11 Difficult!: as! 'O: 6-+ ,8) >hich of the follo%ing statements is true regarding a net%or" organization= A) A net%or" structure is characterized ! high production costs$ <) /he organizations that use net%or" structures have the tallest hierarchies$ C) An organization organization using a net%or" structure e#periences h igh eureaucratic costs$ D) A net%or" structure allo%s an organization to act in an organic %a!$ Ans%er: D age *ef: 1. Difficult!: 9oderate 'O: 6-+ 83) >hich of the follo%ing is a t!pical characteristic of a oundar!less organization= A) presence of tall organizational hierarch! <) use of electronic means to connect people C) use of a functional structure D) lac" of organizational fle#iilit! Ans%er: < age *ef: 1. Difficult!: 9oderate 'O: 6-+
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81) >hat are the advantages of a functional structure= Ans%er: A functional functional structure is a design that groups people into separate functions or departments ecause the! share common s"ills and e#pertise ecause the! ma"e use of the same resources$ /he advantages of a functional structure are: 1$ 7t provides people %ith the opportunit! to learn from one another and ecome more specialized and productive$ .$ eople %ho are grouped together ! common s"ills can supervise one another and control one another5s ehavior eh avior$$ $ eople in a function %ho %or" closel! %ith one another over e#tended time periods develop norms and values that allo% them to ecome more effective at %hat the! do$ age *ef: 1+84123 Difficult!: as! 'O: 6-1 8.) Descrie the various control prolems that emerge in a functional structure$ Ans%er: /he various control prolems that emerge in a functional functional structure are: 1$ As more organizational functions develop4 each %ith its o%n hierarch!4 the! ecome increasingl! distant from one another$ another$ /he! develop different suunit orientations that cause communication prolems$ .$ As organizations organizations gro% and the numer n umer and comple#it! of their functions and products increases4 the information needed to measure the contriution of an! one function or product to overall profitailit! is often difficult to otain$ $ As a compan! gro%s4 it ma! need to set u p shop and estalish manufacturing or sales facilities in different geographic regions to serve customers etter$ eographic spread can pose a control prolem %ithin a functional structure %hen centralized control from one geographic location prevents this from happening$ +$ As the range and ualit! of an organization5s products increases4 more and more customers are attracted to the organization and the! have hav e different "inds of needs$ Servicing the needs of ne% "inds of customer groups and tailoring products to suit them are relativel! difficult in a functional structure$ 2$ As an organization ecomes more comple#4 top managers ma! e forced to spend so much time finding solutions to ever!da! coordination prolems that the! have no time to address the longer-term strategic prolems facing the compan!$ age *ef: 121 Difficult!: 9oderate 'O: 6-1
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8) >hat are the different t!pes of divisional structures= Ans%er: A divisional divisional structure groups functions according to the specific demands of products4 mar"ets4 or customers$ /he different t!pes of divisional structures are: 1$ roduct structure: 7f an organization is facing a control p rolem due to the numer and comple#it! of products4 the organization divides its activities ! product and uses a product structure$ .$ eographic structure: 7f the control prolem is due to the numer of locations in %hich the organization produces and sells its products4 the organization divides its activities ! region and uses a geographic structure$ $ 9ar"et structure: 7f the control prolem is due to the need to service a large numer of different customer groups4 the organization divides its activities ! customer group and uses a mar"et structure$ age *ef: 12+ Difficult!: as! 'O: 6-1 8+) >hat are the three different t!pes of product structures= Ans%er: A product product structure is a divisional structure in %hich products (goods or services) are grouped into separate divisions4 according to their similarities or differences4 to increase control$ /he three different t!pes of product structures are: 1$ roduct division structure: An organization organization %hose products are roadl! similar and aimed at the same mar"et %ill choose to centralize suppo rt services and use a product division structure$ .$ 9ultidivisional structure: An organization %hose products are ver! different and that operates in several different mar"ets or industries %ill choo se a multidivisional structure$ $ roduct team structure: An organization %hose products are ver! comple# technologicall! or %hose characteristics change rapidl! to suit changing cu stomer needs %ill choose a product team structure$ age *ef: 12+ Difficult!: as! 'O: 6-1
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82) >hat are the advantages of a multidivisional structure= Ans%er: /he advantages of a multidivisional structure structure are: 1$ 7ncreased organizational effectiveness: A division division of laor generall! gen erall! increases organizational effectiveness$ 7n a multidivisional structure there is a clear division of laor et%een corporate and divisional managers$ .$ 7ncreased control: Corporate managers monitor the performance of divisional managers$ /he e#tra control provided ! the corporate office encourages the stronger pursuit of internal organizational efficienc! ! divisional managers$ $ rofitale gro%th: >hen each division is its o%n profit centerEthat is4 %hen its individual profitailit! can e clearl! evaluatedEcorporate headuarters can identif! the divisions in %hich an investment of capital %ill !ield the highest returns$ /hus corporate e#ecu tives can ma"e etter capital resource allocation decisions to promote corporate gro%th$ +$ 7nternal laor mar"et: /he most ale divisional managers are p romoted to ecome corporate managers$ /hus divisional managers have an incentive to perform %ell ecause superior performance results in promotion to high office$ office$ age *ef: 163 Difficult!: as! 'O: 6-. 86) Descrie the characteristics of a product team structure$ Ans%er: A product product team structure is a cross et%een the product division structure4 in %hich the support functions are centralized4 and the multidivisional structure4 in %hich each division has its o%n support functions$ 7n a product team structure4 specialists from the support functions are comined into product development teams that specialize in the needs ne eds of a particular "ind of product$ /he product teams focus on the needs of one o ne product (or client) or a fe% related products4 and the! o%e their allegiance not to their functions ut to the product team the! ?oin$ A product team structure is more decentralized than a functional structure or a product d ivision structure4 and specialists in the various product teams are permitted to ma"e on-the-spot decisions4 particularl! important in service organizations$ age *ef: 161416. Difficult!: 9oderate 'O: 6-.
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8) Differentiate et%een matri# structure and product team structure$ Ans%er: hat are the disadvantages of a matri# structure= Ans%er: /he disadvantages of a matri# structure structure are: 1$ A matri# matri# lac"s the advantages ad vantages of ureaucratic structure$ >ith >ith a flat hierarch! h ierarch! and fe% rules and SOs4 the matri# lac"s a control c ontrol structure that allo%s emplo!ees to develop stale e#pectations of each other$ As a result4 a matri# structure can produce role amiguit! and role conflict$ .$ /he lac" of a clearl! defined de fined hierarch! of authorit! can lead to conflict et%een functions and product teams over the use of resources$ $ eople %ho %or" in a matri# often complain aout high levels of stress and uncertaint!$ uncertaint!$ Over time4 people in a matri# structure are li"el! to e#perience a vacuum of authorit! and responsiilit! and move to create their o%n informal organization to provide them %ith some sense of structure and stailit!$ stailit!$ age *ef: 16416, Difficult!: 9oderate 'O: 6- 88) Descrie the advantages of a net%or" structure$ Ans%er: A net%or" net%or" structure is a cluster of different different organizations %hose actions are coordinated ! contracts and agreements4 rather than ! a formal hierarch! of authorit!$ authorit!$ /he advantages of a net%or" structure are: 1$ /o /o the degree that an organization can find a net%or" partner that can perform a specific functional activit! relial!4 relial!4 and at a lo%er cost4 production costs are reduced$ .$ /o /o the degree that an organization contracts %ith other organizations to perform specific valuecreation activities4 it avoids the high ureaucratic costs of operating a comple# organizational structure$ $ A net%or" net%or" structure allo%s an organization to act in an organic %a!$ +$ 7f the net%or" partners of an organization fail to perform up to the desired standards4 the! can e replaced %ith ne% partners$ age *ef: 114 1. Difficult!: 9oderate 'O: 6-+
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133) Descrie the characteristics of a oundar!less organization$ Ans%er: A oundar!less oundar!less organization is composed of people %ho are lin"ed ! computers4 fa#es4 CAD s!stems4 and video teleconferencing4 and the! ma! rarel! or ever see one another face to face$ eople come and go as their services are needed4 much as in a matri# structure4 ut the! are not formal memers of an organization$ /he! are independent functional e#perts %ho form an alliance %ith an organization4 fulfill their contractual oligations4 and then move on to the ne#t pro?ect$ age *ef: 1. Difficult!: as! 'O: 6-+
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