Question 1

The matrix structure attempts to combine the advantages of the functional and product-oriented structure.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is not a strategic risk of outsourcing?

Accepted Answer

A)   loss of critical skills
B)   loss of cross-functional skills
C)   loss of control over a supplier
D)   loss of non-vital functionsE) C) and D)
F) All of the above

Question 3

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

Accepted Answer

A)   Differences in functional orientation may impede communication and coordination.
B)   Use of managerial and technical talent is inefficient due to pooling of expertise in functional areas.
C)   Decision making is centralized at the top of the organization.
D)   Managers tend to be overly concerned with long-term strategies that minimize the importance of functional area strengths.E) A) and B)
F) A) and C)

Question 4

Outsourcing relieves companies of the requirement to maintain skill levels needed to manufacture essential components.

Accepted Answer

A) True 
 B)False

Question 5

Organizations are increasingly using teams for many reasons.The difference between a good team and an outstanding team has been found to be

Accepted Answer

A)   the combined technical skills of the members.
B)   similarities in the way team members solve problems.
C)   the way team members treat each other.
D)   similarities in the age and experience of team member.E) C) and D)
F) A) and C)

Question 6

A major disadvantage of the functional organizational structure is that it often leads to silos in which departments view themselves as isolated,self-contained units with little need for interaction and coordination with other departments.

Accepted Answer

A) True 
 B)False

Question 7

An organization such as ConAgra that has dozens of different divisions with similar products will probably have the greatest success with which form of organization structure?

Accepted Answer

A)   functional structure
B)   matrix structure
C)   strategic business unit structure
D)   holding company structureE) B) and C)
F) A) and D)

Question 8

Organizations generally tend to become internally focused when faced with ______________ and _____________.

Accepted Answer

A)   resource scarcity; declining performance
B)   internal pressures; improving performance
C)   resource abundance; declining performance
D)   external pressures; resource abundanceE) A) and D)
F) None of the above

Question 9

Which of the following is an advantage of a functional type of organizational structure?

Accepted Answer

A)   Decentralized decision-making enhances an organization-wide perspective across functions.
B)   It facilitates the development of general management talent.
C)   Pooling of specialists enhances coordination and control.
D)   It is easy to establish uniform performance standards.E) A) and B)
F) B) and C)

Question 10

Successful organizations create ______ boundaries among the _____ activities as well as between the organization and its external customers,suppliers,and alliance partners.

Accepted Answer

A)   impermeable; external
B)   impermeable; internal
C)   permeable; external
D)   permeable; internalE) A) and B)
F) B) and D)

Question 11

Organizations that make it to the growth stage design strategies to

Accepted Answer

A)   reduce the tendency to increase operational scope.
B)   leave exiting product-market domains.
C)   increase the overall scope of operations.
D)   reduce the commitment to new product-market domains.E) B) and C)
F) A) and D)

Question 12

The simple organizational structure involves highly decentralized decision making.

Accepted Answer

A) True 
 B)False

Question 13

A matrix organization is organized strictly along product lines.

Accepted Answer

A) True 
 B)False

Question 14

When evaluating structure and organizational design,managers must consider the appropriateness of the type of organizational structure and they need to assess the mechanisms,processes,and techniques that will be most helpful in enforcing internal and external boundaries.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is not a disadvantage of a divisional type of organizational structure?

Accepted Answer

A)   It can be very expensive compared to a functional organizational structure.
B)   There is a strong tendency for divisions to focus on short-term performance.
C)   There can be dysfunctional competition among divisions.
D)   There is separation of strategic and operating control.E) A) and D)
F) A) and C)

Question 16

Operational decision making in a large business places excessive demands on top management of the firm.

Accepted Answer

A) True 
 B)False

Question 17

One of the factors that explained the effectiveness of ambidextrous organizational designs in the O'Reilly and Tushman study was that the structure enabled cross-fertilization while avoiding cross contamination in terms of sharing resources.

Accepted Answer

A) True 
 B)False

Question 18

A small firm with a simple structure often fosters creativity and individualism because of its informal atmosphere.

Accepted Answer

A) True 
 B)False

Question 19

If an international firm has a global strategy and a relatively low level of product diversity,the best choice for its organizational structure is a(n) ______________ structure.

Accepted Answer

A)   worldwide functional
B)   worldwide product division
C)   worldwide matrix
D)   international divisionE) A) and D)
F) B) and C)

Question 20

Which of the following is not a disadvantage of virtual structures?

Accepted Answer

A)   difficulty in individual and organizational knowledge sharing
B)   potential loss of operational control among partners
C)   loss of strategic control over emerging technology
D)   difficulty in determining where one company ends and another begins due to close interdependenciesE) C) and D)
F) B) and C)

Exam 10: Creating Effective Organizational Designs

Organizations that make it to the growth stage design strategies to

Correct AnswerverifiedShow Answer

Organizations are increasingly using teams for many reasons.The difference between a good team and an outstanding team has been found to be

Correct AnswerverifiedShow Answer

Which of the following is not a strategic risk of outsourcing?

Correct AnswerverifiedShow Answer

When evaluating structure and organizational design,managers must consider the appropriateness of the type of organizational structure and they need to assess the mechanisms,processes,and techniques that will be most helpful in enforcing internal and external boundaries.

Correct AnswerverifiedShow Answer

A major disadvantage of the functional organizational structure is that it often leads to silos in which departments view themselves as isolated,self-contained units with little need for interaction and coordination with other departments.

Correct AnswerverifiedShow Answer

The matrix structure attempts to combine the advantages of the functional and product-oriented structure.

Correct AnswerverifiedShow Answer

Which of the following is an advantage of a functional type of organizational structure?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Successful organizations create ______ boundaries among the _____ activities as well as between the organization and its external customers,suppliers,and alliance partners.

Correct AnswerverifiedShow Answer

Which of the following is not a disadvantage of virtual structures?

Correct AnswerverifiedShow Answer

Operational decision making in a large business places excessive demands on top management of the firm.

Correct AnswerverifiedShow Answer

A matrix organization is organized strictly along product lines.

Correct AnswerverifiedShow Answer

A small firm with a simple structure often fosters creativity and individualism because of its informal atmosphere.

Correct AnswerverifiedShow Answer

Organizations generally tend to become internally focused when faced with ______________ and _____________.

Correct AnswerverifiedShow Answer

The simple organizational structure involves highly decentralized decision making.

Correct AnswerverifiedShow Answer

If an international firm has a global strategy and a relatively low level of product diversity,the best choice for its organizational structure is a(n) ______________ structure.

Correct AnswerverifiedShow Answer

Which of the following is not a disadvantage of a divisional type of organizational structure?

Correct AnswerverifiedShow Answer

Outsourcing relieves companies of the requirement to maintain skill levels needed to manufacture essential components.

Correct AnswerverifiedShow Answer

One of the factors that explained the effectiveness of ambidextrous organizational designs in the O'Reilly and Tushman study was that the structure enabled cross-fertilization while avoiding cross contamination in terms of sharing resources.

Correct AnswerverifiedShow Answer

An organization such as ConAgra that has dozens of different divisions with similar products will probably have the greatest success with which form of organization structure?

Correct AnswerverifiedShow Answer

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Successful organizations create __ boundaries among the _ activities as well as between the organization and its external customers,suppliers,and alliance partners.

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Organizations generally tend to become internally focused when faced with __ and _.

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