Chapter 7 - Organizational Structure Quiz

Which of the following is correct with respect to organizational structure?

• Once an organizational structure is in place, it tends not to change much until the next major change is made.

• Because of the busy environment that defines most organizations, structure can sometimes develop without much planning.

• The organization's purpose, mission, and strategy are not particularly important factors in the structure an organization adopts; rather, the most important factor is executive preferences.

• An organization's structure is largely the result of rational planning, and the preferences of managers do not generally influence the decision of which structure to adopt.

• All of these are correct.

The chain of command illustrates ________, while the organization chart illustrates ________. Discuss the elements that influence a firm's organizational structure.

• job specialization; the company's structure

• reporting relationships; job specialization

• centralization; decentralization

• functional departmentalization; job specialization

• reporting relationships; the company's structure

Susie's Pets and Supplies, a retail shop that sells pets and many related products needed by those pets, has recently reorganized. One area of the store is exclusively for dogs, another exclusively for cats, another exclusively for tropical fish, and so on. The shop is departmentalized by

• process

• function

• geography

• customer

• product

The type of departmentalization where all the engineers are in an engineering department, all the customer service reps are in a customer service department, and all the accountants are in an accounting department is called _______ departmentalization.

• customer

• process

• product

• functional

• geographic

Which of the following is an advantage of customer departmentalization?

• Employees will make more money and have more job security.

• Top managers can easily see how the production process is working.

• Greater expertise can be developed when specialists of one function work together.

• Top managers can determine when resources need to be changed because of increasing demand in a geographic area.

• The business benefits from efficiencies and customers get better service.

What is the primary benefit of functional departmentalization?

• It allows for a more flexible organizational structure.

• It enhances communication across different departments.

• It enables specialization and efficiency within departments.

• It reduces the need for middle management.

• It encourages innovation and creativity.

In a decentralized organization, decision-making authority is

• concentrated at the top levels of management.

• spread throughout various levels of the organization.

• limited to the board of directors.

• restricted to the finance department.

• centralized in the human resources department.

What is a key advantage of a flat organizational structure?

• It allows for more levels of management.

• It enhances communication and decision-making speed.

• It requires more resources for management.

• It centralizes decision-making authority.

• It increases the complexity of reporting relationships.

Which of the following best describes a bureaucratic organizational structure?

• Flexible and adaptable to change.

• Characterized by a high degree of formalization and standardization.

• Decentralized with minimal rules and regulations.

• Focused on team-based decision-making.

• Encourages innovation and creativity.

In a project-based organization, how are resources typically allocated?

• Resources are permanently assigned to specific departments.

• Resources are allocated based on project needs and timelines.

• Resources are centralized in the finance department.

• Resources are distributed equally among all departments.

• Resources are only allocated to top management projects.