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

What distinguishes a matrix design structure?

<p>Each employee has two bosses (A)</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 (C)</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 (C)</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 (D)</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 (C)</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 (C)</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 (A)</p> Signup and view all the answers

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

<p>Market structure (C)</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 (A)</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 (D)</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 (D)</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 (D)</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 (B)</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 (A)</p> Signup and view all the answers

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