Chapter 7 - ORGANIZING THE BUSINESS ENTERPRISE

How does the need to specialize increase as a firm grows?

• The need to specialize decreases as a firm grows.

• The need to specialize remains constant as a firm grows.

• The need to specialize increases as a firm grows.

• The need to specialize is unrelated to the growth of a firm.

What type of company might opt to use product departmentalization?

• A company with a diverse range of products

• A company with a single product line

• A company focused on regional markets

• A company with a flat organizational structure

What type of company might opt to use customer departmentalization?

• A company with diverse product lines

• A company with a single product line

• A company focused on cost leadership

• A company with a hierarchical structure

In a decentralized organization, for what is the CEO accountable?

• Day-to-day operations

• Strategic direction and overall performance

• Individual employee performance

• Technical support and maintenance

How would this change the day-to-day work of a typical front-line employee? Does this concept appeal to you?

What is a key characteristic of a learning organization?

• Rigid hierarchy

• Continuous improvement

• Centralized decision-making

• Fixed processes

In a centralized organization, who typically makes the key decisions?

• Middle management

• Frontline employees

• Top executives

• External consultants

What is a potential disadvantage of a highly centralized organization?

• Faster decision-making

• Increased flexibility

• Slower response to local issues

• Enhanced employee autonomy

Which type of organizational structure is most likely to encourage innovation?

• Hierarchical structure

• Flat structure

• Matrix structure

• Divisional structure

What is a common feature of a matrix organization?

• Single chain of command

• Multiple reporting lines

• Strict departmental boundaries

• Centralized decision-making