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The matrix structure represents a combination of two or more different structures.

A) True
B) False

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

A) True
B) False

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The chain of command signifies the flow of authority to attain order, control, and predictable performance.

A) True
B) False

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Which of the following structures generally develop from companies with functional structures whose interests and goals become too diverse for that structure to handle?


A) Mechanistic
B) Global
C) Multi-divisional
D) Matrix
E) Organic

F) None of the above
G) A) and D)

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To keep the stress level low and avoid two chains of command issues, Splash Hair Care managers should adopt the matrix structure.

A) True
B) False

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A firm's environment consists of many elements.Which of the following is not an element in a firm's environment?


A) Decentralization
B) Customers
C) Suppliers
D) Distributers
E) Owners

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

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If technologies need to be changed often to suit consumer needs, the decisions should be centralized.

A) True
B) False

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As companies become larger, they tend to use a combination of specialization, formalization, and centralization to control their activities, thereby becoming more mechanistic in nature.

A) True
B) False

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Which of the following statements about companies that adopt a differentiation strategy is true?


A) They believe that people will pay more for a product that is unique in some way.
B) Their focus is on being as efficient as they can be.
C) They rely on selling products at the lowest possible cost.
D) They are more likely to take a mechanistic approach to organizational design.
E) They concentrate on developing large quantities of the same product there by providing cost advantages to their customers.

F) All of the above
G) A) and D)

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Organizations which do not proactively develop designs may be forced to change their structure to become more effective.

A) True
B) False

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A firm has diversified to the point that the products it sells are very different and managing them has become overwhelming.Which of the following structures would help this firm?


A) Client-based
B) Product
C) Geographic
D) Functional
E) Simple

F) None of the above
G) B) and D)

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What affect do stable and dynamic environments have on organizational structure?

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One of the biggest factors in an environ...

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A bureaucratic structure is an organizational form that exhibits many of the facets of the _____ organization.


A) simple
B) global
C) adaptive
D) organic
E) mechanistic

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

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Which of the following statements is true about functional organization structure?


A) Small companies experiencing rapid growth are the only organizations to benefit from a functional structure.
B) One of the main disadvantages of the functional structure is the lack of work specialization.
C) Functional structures are extremely efficient when the organization as a whole has a relatively wide focus.
D) One of the main advantages of the functional structure is that it encourages communication across functions.
E) Functional structures are extremely efficient when the organization has fewer product lines or services.

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

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Which of the following statements about an organization in a dynamic business environment is true?


A) It does not change frequently.
B) It allows organizations to primarily focus on efficiency.
C) It requires organizations to have structures that are more rigid.
D) It requires little change over time.
E) It requires organizations to have structures that are more adaptivE.Stable environments allow organizations to focus on efficiency and require little change over time.In contrast, dynamic environments change on a frequent basis and require organizations to have structures that are more adaptive.

F) A) and E)
G) A) and B)

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As companies grow larger, their organizational charts get simpler.

A) True
B) False

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Which of the following signifies the structure that organic organizations rely on?


A) High levels of formalization
B) A rigid and hierarchical chain of command
C) High degree of work specialization
D) Weak chains of command
E) Centralization of decision making

F) None of the above
G) All of the above

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Employees tend to be more satisfied with jobs that require them to perform a specialized kind of activity.

A) True
B) False

Correct Answer

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At Cool Clothes, Inc., there is a total focus on providing care and satisfaction to each customer.In the major clients' division, each manager is assigned three employees to supervise, whereas in the product assembly division, each manager supervises about 15 employees.The major clients' division managers can be described as having _____ as opposed to _____ for the product assembly division managers.


A) a narrow span of control; a wide span of control
B) tall formalization; flat formalization
C) narrow centralization; tall centralization
D) a wide span of control; a narrow span of control
E) flat formalization; tall formalization

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

Correct Answer

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Product structures group business units around different products that the company produces.

A) True
B) False

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