Business Performance Evaluation in Organizational Divisions Quiz

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What is a characteristic of cross-functional and product-specific teams?

Decentralized decision-making (correct)
High level of centralization
Fixed team membership
Limited flexibility

What is an advantage of matrix structures?

Combining functional efficiency with divisional flexibility (correct)
High role ambiguity
Fixed team membership
Limited coordination processes

What is a disadvantage of employees in matrix structures having two supervisors?

Reduced need for negotiation
Increased stress and uncertainty (correct)
Enhanced role clarity
Improved work-life balance

What is the main characteristic of network organizations?

Coordination by contracts rather than formal hierarchies (D) Signup and view all the answers

In network organizations, what key decision do organizations need to make?

Which capabilities to own/control and which to outsource (C) Signup and view all the answers

What is an outcome of employees complaining about stress and uncertainty in matrix structures?

Possible imbalance between interests due to dominance (A) Signup and view all the answers

What is a potential downside of the Product-Team structure?

Economies of scale and scope may be lost (D) Signup and view all the answers

Why are Regional Organizations suitable in cases where customers buy from specific areas?

To align with regional customer needs (D) Signup and view all the answers

What is a characteristic of Customer-Oriented Organizations?

Focuses on specific customer groups' needs (A) Signup and view all the answers

How does Customer-Centric structure impact performance?

By improving customer satisfaction (C) Signup and view all the answers

What is a key benefit of Profit Center within organizations?

Clear accountability and financial control (B) Signup and view all the answers

How do Divisional vs. Customer-Centric Organizations differ in their focus?

Divisional structures enhance performance by increasing customer satisfaction, while Customer-Centric improves coordination (D) Signup and view all the answers

What is the primary advantage of organizing a business unit as a profit center?

It allows for the evaluation of the financial performance of each division. (D) Signup and view all the answers

Which of the following is a precondition for organizing business units as profit centers?

Compatibility of objectives and independence of profit centers. (D) Signup and view all the answers

How are internal prices determined for exchanging products, services, or information between divisions or departments?

Based on negotiations or service-level agreements (SLAs) between divisions. (B) Signup and view all the answers

What is the concept of an 'Enterprise' in the context of modern organizational forms?

A sustained network of legally independent organizations operating under common leadership. (A) Signup and view all the answers

What is the primary characteristic of a process organization?

Processes are designed to achieve organizational objectives. (D) Signup and view all the answers

Which of the following statements about process organizations is true?

Processes have clearly defined outputs and are market-oriented. (D) Signup and view all the answers