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

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In an organic organization,


A) employees know exactly whom they report to.
B) employees are not encouraged to make decisions without their manager's consent.
C) there are very clear lines of authority from the employee to the president of the company.
D) employees are encouraged to develop knowledge and expertise outside of their specialization.
E) information is passed through vertical communication between an employee and his or her supervisor.

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

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Which of the following is True about work specialization?


A) It creates problems in larger firms where little flexibility is required.
B) It makes training new employees easier when replacements are needed.
C) It encourages employees to upgrade their skills in multiple disciplines.
D) It improves the flexible nature of workers.
E) It ensures that each worker performs different tasks every day.

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

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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 Make safe International's organizational structure?


A) matrix
B) product
C) functional
D) geographic
E) client-based

F) C) and E)
G) A) and E)

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Eileen is the leader of a small compost facility that caters to organic farmers. She has to decide how many employees each supervisor will oversee, and how closely they will watch over them. This is an example of Eileen shaping her company's


A) supply chain.
B) profit margin.
C) cultural values.
D) mission statement.
E) organizational structure.

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

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According to research, restructuring has ________ effect on task performance.


A) a strong positive
B) a small negative
C) no
D) a strong negative
E) a moderate positive

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

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Organic organizations are efficient, rigid, predictable, and standardized organizations that thrive in stable environments.

A) True
B) False

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Which of the following shows every job in the organization and the formal reporting relationships between those jobs?


A) the chain of command
B) an organizational chart
C) a structural map
D) the scalar chain
E) a Gantt chart

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

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The chain of command helps the organization to attain order, control, and predictable performance.

A) True
B) False

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Stately Crafters is a custom manufacturer of hand-crafted furniture. The company has 101 locations throughout the country and relies on decentralized decision making to meet the needs of the dynamic environment and customer needs. Which of the following approaches to organizational design is likely to be appropriate for Stately Crafters?


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

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

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Dana is the CEO of a large technology company. She has some very talented employees, but the company keeps falling behind its competitors. When Dana observes what is going on, she finds some cases where managers are micromanaging good employees, while other managers cannot address all the needs of their employees. Dana needs to address how her talent is


A) recruited.
B) identified.
C) organized.
D) disciplined.
E) compensated.

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

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Which of the following is the main reason behind many organizations flattening their organizations?


A) It improves employee morale.
B) It provides more rewards for fewer employees.
C) It is used to reduce costs and show investors that the company is profitable.
D) It creates a government subsidy qualification.
E) It increases employee performance.

F) All of the above
G) B) and C)

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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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False

Organizational structure can have a significant impact on an organization's financial performance.

A) True
B) False

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Although not much is known about the effect of restructuring on affective commitment, restructuring generally results in ________ level of affective commitment on the part of employees.


A) no significant
B) a large positive
C) a moderate positive
D) a small negative
E) a moderate negative

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

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In a traditional organizational structure, every employee has one person to whom they report.

A) True
B) False

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Define span of control. Describe the relationship between a span of control and organizational performance.

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A manager's span of control represents h...

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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.

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

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River Flow Incorporated has seen its core business of developing water sanitation devices undergo some major changes in recent years due to environmental regulations and the discovery of new technologies. River Flow's leaders realize that the company must undergo an extensive restructuring to survive. What steps can River Flow's leaders take to reduce the negative effects of restructuring efforts on employees? Explain.

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Student answers will vary but should demonstrate understanding of how companies can minimize the negative effects of restructuring. A sample answer follows. The negative effects of restructuring are higher stress and uncertainty. Managing layoff survivors is one step. The best ways to help layoff survivors adjust are to do things that give them a stronger sense of control. Allowing survivors to have a voice in how to move forward or help set the plans about how to accomplish future goals is another way by which managers can help employees feel more in control. Frequent communication and participation in decision making should be practiced, especially when the company is hiring and firing at the same time. The leaders at River Flow need to make sure they carefully manage and support employees who survive layoffs. They can give the employees a voice in how to move forward, and keep communication open.

If decision making is pushed down to lower-level employees, and these employees feel empowered to make decisions on their own, an organization has a ________ structure.


A) flat
B) decentralized
C) wide
D) narrow
E) centralized

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

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B

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