IM (U1): LAP-EC-103 B

Which of the following describes the functional organizational structure:

• It includes traditional departments, such as sales and marketing

• It is separated by divisions, such as product or process

• It is a combination of two other organizational structures

• It is the newest organizational structure being used

Which of the following is a benefit of using the functional organizational structure:

• It encourages creativity

• It's more flexible than other structures

• It creates narrow perspectives for managers

• It reduces the duplication of certain activities

Which of the following is a common way for a divisional organizational structure to be broken down:

• By manager

• By territory

• By function

• By job type

A manufacturing company is well-suited for a divisional organizational structure broken down by

• job function

• customer type

• product

• process

A banking institution is well-suited for a divisional organizational structure broken down by

• job function

• customer type

• product

• process

Which of the following is an advantage of using the divisional organizational structure:

• It's unpredictable in nature

• It balances conflicting organizational objectives

• It can create better customer experiences

• It can encourage competition

Which of the following is a disadvantage of using the divisional organizational structure:

• Support staff may not have a permanent "home"

• It's less flexible than the functional structure

• Its focus is too specific

• It violates the unity of command principle

Which of the following describes the matrix organizational structure:

• It includes only traditional departments, such as sales and marketing

• It is separated by product lines

• It is a combination of two other organizational structures

• It is the oldest organizational structure being used

Which of the following is a true statement about the matrix organizational structure:

• It lacks flexibility

• It includes only line authority

• It gives managers a wide span of control

• It is useful for most types of organizations

Which of the following is an advantage of the matrix organizational structure:

• It makes good use of organizational resources

• It is inexpensive to implement

• It speeds up decision-making

• It reduces the duplication of certain activities