Organization Structures Final Exam
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Questions and Answers

What is a matrix organization according to Thompson and Strickland?

  • A structure with decentralized decision-making and budget control
  • A structure with one channel of command and one line of budget authority
  • A structure with multiple divisions and product lines
  • A structure with two channels of command, two lines of budget authority, and two sources of performance and reward (correct)

    • What is the product or market organization appropriate for?

  • Large corporations with many product lines in several related industries (correct)
  • Start-up companies with a single product line
  • Nonprofit organizations with diverse service offerings
  • Small corporations with few product lines

    • Which are the two major forms of communication as mentioned in the text?

  • Formal and informal communications
  • Verbal and nonverbal communications (correct)
  • Internal and external communications
  • Oral and written communications

    • What does nonverbal communication involve?

    <p>Conveying message through body language, time, space, touch, clothing, appearance, and aesthetic elements</p> Signup and view all the answers

    What is the purpose of a matrix structure?

    <p>To keep employees in a central pool and allocate them to various projects in the firm</p> Signup and view all the answers

    What are the characteristics of a product or market organization?

    <p>Operating by divisions and appropriate for a large corporation with many product lines</p> Signup and view all the answers

    What does controlling refer to?

    <p>The process of ascertaining whether organizational objectives have been achieved</p> Signup and view all the answers

    What are conceptual skills in the context of leadership?

    <p>The ability to think in abstract terms, to see how parts fit together to form the whole</p> Signup and view all the answers

    What is the importance of controlling in a typical factory?

    <p>To help the company keep its overhead and other costs at expected levels</p> Signup and view all the answers

    What are human skills in the context of leadership?

    <p>Ability of a leader to deal with people inside and outside the organization</p> Signup and view all the answers

    What are the steps in the control process?

    <p>Establishing performance objectives and standards, measuring actual performance, comparing actual performance against objectives, taking corrective action as needed</p> Signup and view all the answers

    What is technical skills in the context of leadership?

    <p>Specialized knowledge needed to perform a job</p> Signup and view all the answers

    What is meant by total demand for a product or service in a given area?

    <p>Demand from potential customers in a given area</p> Signup and view all the answers

    What is strategic control systems used for?

    <p>Determining what activities should be taken to achieve objectives better in the future</p> Signup and view all the answers

    What factors must be used in selecting a target market according to the provided text?

    <p>The ability to satisfy profit objectives of the company</p> Signup and view all the answers

    What is meant by establishing performance objectives and standards in controlling?

    <p>Establishing specific goals and criteria for measuring performance against those goals</p> Signup and view all the answers

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