Types of Divisional Structures Quiz
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Questions and Answers

What is a key advantage of a product structure?

  • Allows division managers to become experts in their area (correct)
  • Removes need for specialization in one product area
  • Requires direct supervision of division by corporate managers
  • Limits the use of resources by divisional management

    • In a geographic structure, divisions are typically broken down by what?

  • Geographic location (correct)
  • Product area
  • Customer types
  • Market share

    • What is a key feature of a market structure?

  • Groups divisions by function and product
  • Allows managers to be unresponsive to customer needs
  • Requires direct supervision of customers by managers
  • Groups divisions according to the kinds of customers they serve (correct)

    • What characterizes a global geographic structure?

    <p>Managers locate different divisions in each world region where the organization operates</p> Signup and view all the answers

    What distinguishes a matrix design structure?

    <p>Each employee has two bosses</p> Signup and view all the answers

    Why does a product structure allow functional managers to specialize in one product area?

    <p>To focus on expertise in specific product areas</p> Signup and view all the answers

    What is a characteristic of a functional structure?

    <p>Makes it easy for managers to monitor and evaluate workers</p> Signup and view all the answers

    Which of the following is a disadvantage of a functional structure?

    <p>Leads to a preoccupation with own department and losing sight of organizational goals</p> Signup and view all the answers

    What is the key responsibility of divisional managers in a product structure?

    <p>Devising an appropriate business-level strategy for their specific product division</p> Signup and view all the answers

    In a divisional structure, what does a product structure entail?

    <p>Placing each distinct product line in its own self-contained division</p> Signup and view all the answers

    What does GlaxoSmithKline do to focus on particular clusters of diseases?

    <p>Groups research into 8 product divisions</p> Signup and view all the answers

    In which type of divisional structure are functions organized based on specific customer needs?

    <p>Market structure</p> Signup and view all the answers

    What is the process by which managers create a specific type of organizational structure and culture?

    <p>Organizational design</p> Signup and view all the answers

    Which term refers to the formal system of task and reporting relationships in an organization?

    <p>Organizational structure</p> Signup and view all the answers

    What is the process by which managers decide how to divide tasks into specific jobs?

    <p>Job design</p> Signup and view all the answers

    Which factor affects the way an organization's structure works?

    <p>How to group tasks into individual jobs</p> Signup and view all the answers

    In designing organizational structure, what is the process by which managers allocate authority and coordinate functions and divisions?

    <p>Market structure</p> Signup and view all the answers

    Which term refers to the way managers create a specific type of organizational structure for efficient operation?

    <p>Organizational design</p> Signup and view all the answers

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