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Exam 8: Organizational Design

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Question 41

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Mannatech Inc. is a network organization that rather than relying on outsourcing, relies on internally developed units to provide services to a core organizational unit. This type of network structure is called a/an

A) horizontal network.
B) internal network.
C) central network.
D) stable network.
E) dynamic network.

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

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Question 42

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Which of the following is not a characteristic of product divisional structure?

A) enhanced coordination
B) development of functionally specialized managers
C) better assessment of manager performance and responsibility
D) duplication of resources
E) managers who may lack expertise to operate in wide geographic regions

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

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Question 43

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A company decided to define its work groups on the basis of two dimensions simultaneously. This employment of a dual chain of command to achieve various objectives is a distinguishing characteristic of which type of organizational structure?

Colonial Penn has many insurance products, each of which is targeted to a specific demographic group, such as farmers, medical professionals, self-employed individuals, retirees, and people in high-risk jobs such as police officers, firefighters, and military personnel. Based on this information, which of the following organizational structures is the most appropriate?

Organization environments that experience little change are called

A disadvantage of the network structure is flexibility.

Product divisional structures are considered most appropriate for organizations with relatively homogenous product lines.

Dan Richard has just purchased a chain of fast-food restaurants. He is currently trying to decide whether organizational decision-making should be centralized or decentralized. This decision concerns which element of organizational design?

Match each term with the correct statement below. -a structure in which the activities of an organization are grouped according to the geographic markets served

Organizational design is a plan for arranging and coordinating the activities of an organization for the purpose of fulfilling its mission and achieving its goals.

Assume that you are the president of a student organization on campus. You structure the tasks of the organization into groups called Programs, Finance, Membership, and Public Relations. This represents what form of organizational structure?

Most universities could be considered highly bureaucratic because they make extensive use of rules and procedures to coordinate the activities of their colleges and departments.

The Fairchild Engineering Company has a structure that groups the tasks of the organization according to customer segments. This is an example of a

Reciprocal interdependence occurs when information, resources, and tasks must be passed back and forth between work groups.

The most commonly used organizational structure is the functional structure.

A stable network structure relies to some degree on outsourcing to add flexibility to their product delivery system.

A disadvantage of the matrix structure is that it requires extraordinary coordination between work groups.

When work groups are highly interdependent, they must either be coordinated very well with some mechanism, or they could be coordinated with centralized decision-making.

Duplication of resources is a major disadvantage of the functional structure.

A contemporary organizational structure founded on a set of alliances with other organizations that serve a wide variety of functions is referred to as a