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Exam 15: Organizational Structure

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Question 41

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At Light Body Warmer Manufacturing,employees are grouped according to their expertise in an area.All marketing employees are in one department,all finance employees are grouped in another department and similarly,all human resources and manufacturing employees are in their respective departments.Which of the following structures does Light Body Warmer Manufacturing use?

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

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

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Question 42

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Dynamic environments allow organizations to focus on efficiency and require little change over time.

A) True
B) False

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Question 43

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Which of the following describes an organization's objectives and goals and how it tries to capitalize on its assets to make money?

Distinguish between tall and flat organizational structures and state at least two disadvantages of tall organizational structures.

A corporate _____ may call for spinning off some departments into subsidiaries as a means of creating a more effective management model as well as taking advantage of tax breaks that would allow the corporation to divert more revenue to the production process.

When Hyundai Motor Company groups its business units around the different lines of cars such as i10,i20,Zing,Sonata,and Verna,which of the following structures is it creating?

Organizational structure does not influence employee attitudes and behavior.

Decentralized organizational structures tend to concentrate power and authority within a relatively tight group of individuals in the firm.

The matrix structure represents a combination of a client structure and a product structure.

_____ reflects where decisions are formally made in organizations.

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

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?

At Tic-Toc Clock Manufacturing,only the top managers have the authority to make final decisions on just about everything.Tic-Toc Clock manufacturing can be described as having a _____ structure.

Which element of the organizational structure signifies formal authority relationships?

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

Organizational performance increases as span of control increases,but only up to a certain point.

Span of control:

Scenario: Extreme Rug Tom is the project manager of the corporate structure team at Extreme Rugs.Tom's team has been assigned the task to study and evaluate Extreme Rugs' organizational structure.To collect the preliminary information,Tom divided the tasks among the team members to collect information on different elements of Extreme Rugs' structure.Jeremy was asked to collect information on the degree to which tasks are divided into separate jobs.Joy was asked to collect information on formal authority relationships,Alice started looking into how many employees each manager has responsibility for,and Kathy was asked to collect evidence on the degree to which rules and procedures are used to standardize behaviors at Extreme Rugs.Tom decided to collect information and evidence on where exactly decisions are formally made at Extreme Rugs.The team decided to meet with information in two weeks.

Homely Furniture is a custom manufacturer of hand-crafted furniture.The company has 94 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 may be appropriate for Homely Furniture?

Every employee in a traditional organizational structure has one person to whom they report.