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Exam 15: Organizational Structure

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Question 61

Multiple Choice

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Jeff and Matthew, father and son, opened a large boutique named Modus in Chicago. Being the owners of the business, they decide all of the important matters. All the rest of the decisions like product, finance, marketing, and personnel are carried out by the department heads, who have to act according to Jeff's and Matthew's instructions and orders. Which of the following is True about Modus?

A) The degree of formalization is very low in the organization.
B) It has a centralized system of decision making.
C) It has a very tall organizational structure.
D) It has a matrix organizational structure.
E) It has a narrow span of control.

F) A) and B)
G) C) and D)

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Question 62

Multiple Choice

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When looking at Wonder Guard Industries' organizational structure, Janice spots a heading for work specialization, which is also commonly referred to as

A) formalization.
B) centralization.
C) span of control.
D) division of labor.
E) chain of command.

F) B) and E)
G) B) and D)

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Question 63

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Differentiate between functional and multi-divisional structures. Create a diagram of each.

Davanna is describing her company's organizational structure. Which of the following terms would she use in her description?

Organic organizations are typified by a structure that relies on

One element of a firm's environment is

To keep the stress level low and avoid multiple chains of command issues, managers should adopt the matrix structure.

Lasting Skin Care Inc. is growing very fast in both sales and number of employees. It manufactures and sells skin products for youth, male, female, elderly, and ethnic populations all over the United States and several other countries. So far, the company has followed a simple structure. However, with fast-paced growth, it has become a necessity that the company explore other organizational structures. Larry, a long-time employee at Lasting Skin Care, has collected information on how some of its competitors have organized their companies. Tracks Inc. groups its employees by their different areas of expertise such as Marketing, Finance, Human Resources, and Operations. Fine Base, which is primarily in the United States, groups its activities as Northeast Division, Southeast Division, Northwest Division, Southwest Division, and Central Division. Prints Inc. has organized its employees according to the accounts they serve, such as Large Company Contracts, Internet Sales, Individual Sales, and Small Salon Direct Sales. Finally, Make safe International has grouped its business units around different types of makeup, including the Lipstick and Lip Gloss Division, the Eye shadow Division, the Foundation Division, the Mascara Division, and the Bronzer and Blush Division. Which of the following describes Fine Base's organizational structure?

Organizational design is the process of

Which of the following is a bureaucratic organizational form in which employees are grouped into divisions around products, geographic regions, or clients?

Brad is a plant manager for Future Bulbs, a manufacturer of LED lights. He is a bit dismayed by the production levels he is getting from the employees. Lenny, a manager from another plant, tells Brad he should implement work specialization because it boosted productivity in his plant. State at least two advantages and disadvantages Brad may experience if he implements work specialization.

The relationship between performance and span of control is graphed as a(n)

The more people under the control of one manager, the

Which element of the organizational structure signifies formal authority relationships?

A company's chain of control determines how many employees report to each manager.

Hard Facts publishing has decided to restructure their organization. During the restructuring, they will probably see

The most basic bureaucratic structure is the ________ structure.