Org. Theory and Design: Chapter 6 (MC)
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Questions and Answers

What is the primary goal of a functional structure for an organization?

  • To group people with common skills to increase effectiveness (correct)
  • To eliminate the need for supervision and control
  • To create complex task requirements for employees
  • To reduce specialization and productivity

How does a functional structure contribute to employee development and productivity?

  • By enforcing strict hierarchical control
  • By limiting exposure to different skills and expertise
  • By reducing collaboration and teamwork
  • By allowing people to supervise and control each other (correct)

What is the main challenge facing a successful organization with a functional structure as it grows?

  • How to reduce collaboration between different departments
  • How to eliminate all employee supervision
  • How to keep control of increasingly complex activities (correct)
  • How to decrease specialization within each function

What is the foundation of horizontal differentiation in an organization?

<p>Functional structure (D)</p> Signup and view all the answers

How do people in a function who work closely together develop over extended time periods?

<p>Develop norms and values that allow them to become more effective (D)</p> Signup and view all the answers

What is the advantage of grouping people with common skills into separate functions within an organization?

<p>Provides people with the opportunity to learn from one another and become more specialized and productive (B)</p> Signup and view all the answers

What can pose a control problem within a functional structure?

<p>Location problems (A)</p> Signup and view all the answers

What is a possible solution to the problems of a functional structure?

<p>Redesigning the functional structure to increase integration between functions (C)</p> Signup and view all the answers

What does an increase in vertical differentiation involve?

<p>Increasing the number of levels in the hierarchy (B)</p> Signup and view all the answers

What type of structure is characterized by the splitting of the manufacturing function into several different product lines or divisions?

<p>Product division structure (D)</p> Signup and view all the answers

In a product division structure, what is responsible for coordinating with the central support functions like marketing and materials management?

<p>Product division manager (C)</p> Signup and view all the answers

What is a possible choice for an organization whose products are very complex technologically or whose characteristics change rapidly to suit changing customer needs?

<p>Product team structure (C)</p> Signup and view all the answers

What is the goal behind the change to a divisional structure?

<p>To create smaller, more manageable subunits within an organization (B)</p> Signup and view all the answers

What involves overlaying functional grouping of activities with some other kind of subunit grouping?

<p>An increase in horizontal differentiation (B)</p> Signup and view all the answers

What is responsible for overseeing the activities of the divisional managers in a mul divisional structure?

<p>Corporate managers (C)</p> Signup and view all the answers

What is a characteristic of a mul divisional structure compared to a functional and product division structure?

<p>It provides additional differentiation and integration, which facilitate the control of more complex activities. (A)</p> Signup and view all the answers

What can reduce the level of coordination and mutual adjustment among functions in an organizational structure?

<p>Communication problems (C)</p> Signup and view all the answers

What does an increase in horizontal differentiation involve?

<p>Overlaying functional grouping of activities with some other kind of subunit grouping. (C)</p> Signup and view all the answers

What is a primary advantage of a matrix structure?

<p>Promotion of concern for both cost and quality (B)</p> Signup and view all the answers

Why do people working in a matrix structure often complain about high levels of stress and uncertainty?

<p>Due to the lack of a clearly defined hierarchy of authority (D)</p> Signup and view all the answers

What is a characteristic of a mul divisional matrix structure?

<p>High degree of coordination problems due to integration (B)</p> Signup and view all the answers

In a hybrid structure, why might one product division choose to operate with a functional structure?

<p>Due to the nature of the division’s products or the desire to be more responsive to customers’ needs (B)</p> Signup and view all the answers

What is a primary advantage of using a network structure?

<p>Lowering production costs due to reliable functional activity performance (B)</p> Signup and view all the answers

What is a disadvantage of a network structure in certain situations?

<p>The need for considerable trust between different groups to share ideas (C)</p> Signup and view all the answers

Why might it be difficult for an organization using network structures to control a complex value-creation process?

<p>Because managers lack the means to coordinate various network partners effectively (A)</p> Signup and view all the answers

What is a characteristic of a boundaryless organization?

<p>'Boundaryless' nature achieved through formal contracts and agreements (D)</p> Signup and view all the answers

What does e-commerce primarily involve?

<p>Trade that takes place between companies and customers using IT and Internet (C)</p> Signup and view all the answers

What is a primary advantage of the hybrid organiza onal structure?

<p>Using different types of organizational structure simultaneously (C)</p> Signup and view all the answers

Why might an organization choose to use a mul divisional matrix structure?

<p>To allow for more integration between corporate and divisional managers (C)</p> Signup and view all the answers

What is an advantage of using network structures?

<p>The decentralization to ensure smooth meshing of activities (B)</p> Signup and view all the answers

What is the advantage of a mul divisional structure?

<p>Profitable growth (A)</p> Signup and view all the answers

What is one of the disadvantages of a mul divisional structure?

<p>Transfer pricing issues (A)</p> Signup and view all the answers

What is a characteristic of a product team structure?

<p>Decentralized decision making (A)</p> Signup and view all the answers

What is the main advantage of a geographic divisional structure?

<p>Centralized control at one headquarters location (C)</p> Signup and view all the answers

What characterizes a market structure?

<p>Functional skills and competences aligned with product needs (B)</p> Signup and view all the answers

What distinguishes a matrix structure from a product team structure?

<p>Team membership in a matrix structure is not fixed (B)</p> Signup and view all the answers

What is an advantage of a matrix structure over more traditional structures?

<p>Reduced functional barriers and easier integration (C)</p> Signup and view all the answers

What represents a potential disadvantage of a matrix structure?

<p>Problem of subunit orientation (D)</p> Signup and view all the answers

What is one possible challenge of a product team structure?

<p>Increased functional barriers (A)</p> Signup and view all the answers

What can be considered a benefit of a geographic divisional structure?

<p>Decentralized control to regional hierarchies (A)</p> Signup and view all the answers

What distinguishes a market structure from other structures?

<p>Functional skills and competences aligned with customer needs (D)</p> Signup and view all the answers

What is an advantage of a matrix structure?

<p>Reduced functional barriers and easier integration (C)</p> Signup and view all the answers

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