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WorksheetsMASD 760 Chapter 10 Review
Total questions: 94
Worksheet time: 22hrs 29mins
Corporate restructuring seeks to improve efficiency and performance through such actions as realigning divisions in the firm, reducing the amount of cash under the discretion of senior executives, and acquiring or divesting business units.
True
False
A flat organization is composed of many hierarchical levels and narrow spans of control.
True
False
A tall organization is composed of many hierarchical levels and narrow spans of control.
True
False
Horizontal structures have fewer managerial levels than vertical structures.
True
False
In general, a functional structure tends to be most appropriate for differentiated businesses.
True
False
In general, a functional structure tends to be most appropriate for defenders and low-cost businesses.
True
False
Corporate restructuring can be voluntary or involuntary.
True
False
Progressive firms restructure voluntarily when it becomes clear that a change is necessary, ideally before performance declines are substantial.
True
False
Firms that do manage for value may eventually be forced by outsiders to restructure involuntarily, a process that is usually more costly.
True-They Do
False-They Do Not
Progressive firms restructure only when firm performance declines.
True
False
Progressive firms restructure when it becomes clear that a change is necessary—ideally before performance declines
True
False
The formal means by which work is coordinated in an organization is called the __________.
A. organizational structure
B. organizational culture
C. organizational dynamic
D. none of the above
The organizational structure is the formal means by which work is coordinated in an organization.
True
False
An increase in the breadth of an organization’s structure is known as __________.
A. centralization
B. decentralization
C. horizontal growth
D. vertical growth
Horizontal growth refers to an increase in the breadth of an organization’s structure
True
False
Which of the following structures tends to be the most centralized?
A. functional structure
B. product divisional
C. geographic divisional structure
D. matrix structure
The Product Divisional structure is usually the most centralized whereas the matrix structure is usually the most decentralized.
True
False-Functional Structure
False- Geographic Divisional Structure
The notion of a profit center is consistent with which form of organizational structure?
A. functional structure
B. product divisional
C. geographic divisional structure
D. matrix structure
Within the product divisional structure, each product division becomes a profit center, a well-defined organizational unit headed by a manager accountable for its revenues and expenditures.
True
False-Functional Structure
False- Geographic Divisional Structure
Which form of organizational structure is actually a combination of two other forms?
A. functional structure
B. product divisional
C. geographic divisional structure
D. matrix structure
The matrix structure is a combination of the functional and product divisional structures.
True
False-Functional Structure
False- Geographic Divisional Structure
Which of the following structures tends to be the most decentralized?
A. functional structure
B. product divisional
C. geographic divisional structure
D. matrix structure
The functional structure is usually the most centralized whereas the matrix structure is usually the most decentralized.
True
False
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The project manager in P&G's version of the Matrix Structure.
Brand Manager
Centralization
Corporate Restructuring
Decentralization
An organizational decision-making model with most strategic and operating decisions made by managers at the top of the organization structure (Corporate HQ).
Brand Manager
Centralization
Corporate Restructuring
Decentralization
A Change in the organization's structure to improve efficiency and firm performance, including such activities as realigning divisions in the firm, reducing the amount of cash under the discretion of senior executives, and acquiring or divesting business units.
Brand Manager
Centralization
Corporate Restructuring
Decentralization
An organizational decision-making model approach with the most strategic and operating decisions made by managers at the business unit level.
Brand Manager
Centralization
Corporate Restructuring
Decentralization
A means of organizational restructuring that eliminates part or all of the one or more hierarchical levels from the organization and pushes decision-making downward in the organization.
Downsizing
Flat Organization
Profit Center
Tall Organization
An organization characterized by relatively few hierarchical levels and a wide span of control
Downsizing
Flat Organization
Profit Center
Tall Organization
A well-defined organizational unit headed by a manager accountable for its revenues and expenditures.
Downsizing
Flat Organization
Profit Center
Tall Organization
An organization characterized by many hierarchical levels and a narrow span of control.
Downsizing
Flat Organization
Profit Center
Tall Organization
A form of organizational structure whereby each subunit of the organization engages in firm-wide activities related to a particular function, such as: marketing, HR, finance, and production.
Functional Structure
Geographic Divisional Structure
Product Division Structure
Matrix Structure
Multidivisional Structure
A form of organizational structure in which jobs and activities are grouped by location.
Functional Structure
Geographic Divisional Structure
Product Division Structure
Matrix Structure
Multidivisional Structure
A form of organizational structure whereby the organizations activities are divided into self-contained entities, each responsible for producing, distributing, and selling its own products.
Functional Structure
Geographic Divisional Structure
Product Division Structure
Matrix Structure
Multidivisional Structure
A form of organizational structure that combines functional and product divisional structures.
Functional Structure
Geographic Divisional Structure
Product Division Structure
Matrix Structure
Multidivisional Structure
A structural form with two or more divisions based on products or geography; also called m-form.
Functional Structure
Geographic Divisional Structure
Product Division Structure
Matrix Structure
Multidivisional Structure
An increase in the length of the firm's hierarchical chain of command.
Simple Structure
Organizational Structure
Horizontal Structure
Horizontal Growth
Vertical Growth
An increase in the breadth of an organization's structure.
Simple Structure
Organizational Structure
Horizontal Structure
Horizontal Growth
Vertical Growth
An organizational structure with fewer hierarchies designed to improve efficiency by reducing layers of bureaucracy.
Simple Structure
Organizational Structure
Horizontal Structure
Horizontal Growth
Vertical Growth
The formal means by which work is coordinated in an organization/firm.
Simple Structure
Organizational Structure
Horizontal Structure
Horizontal Growth
Vertical Growth
An organizational form whereby each employee often performs multiple tasks, and the owner/manager is involved in all aspects of the business.
Simple Structure
Organizational Structure
Horizontal Structure
Horizontal Growth
Vertical Growth
As a firm grows, top managers must evaluate current structure and change it as the company evolves.
True
False
Most strategic and operating decisions are made at the top because managers at higher levels are presumed to have greater experience and expertise.
True
False
Decentralization enables firms to take advantage of the intellectual capital that an organization develops across managerial ranks.
True
False
Which is not a factor when deciding to decentralize?
The organizations size.
Are the businesses related or unrelated
Dynamic environments require fast decision making
All of the above are factors.
Tall=Centralized
Flat= Decentralized
True
False
Tall=Decentralized
Flat= Centralized
True
False
Which is true about Tall Organizations?
Coordinate and communicate more effectively
Plan and execute easily due to employees being centrally directed.
Relatively stable and predictable.
All of the above are characteristics.
Which is false about Flat Organizations?
Administrative costs are lower
Gives managers more authority at various levels.
Greater Freedom decreases innovation
All of the above are characteristics.
Flatter Organizations work better in dynamic environments, while taller organizations operate better in more stable environments.
True
False
Taller Organizations work better in dynamic environments, while flatter organizations operate better in more stable environments.
True
False
Outsourcing/offshoring leads to a flat structure by allowing firms to focus on key strategy concerns back at home.
True
False
Downsizing is commonly associated with horizontal structure.
True
False
How can downsizing backfire in the long-term?
Cuts can apply equally to all departments; lose efficient and inefficient workers
Drastic loss in critical experience
Dysfunctional consequences such as leftover employees be less loyal and leaving.
All of the above.
Which of the following is not an advantage of a functional structure?
It can improve specialization and productivity by grouping people together who perform similar tasks.
Increases job satisfaction and lowers turnover due to people working closely together.
Helps foster an economies of scale by centralizing the functional activities.
Pinpointing the responsibility for profit losses can be difficult.
Which of the following is not an disadvantage of a functional structure?
It can improve specialization and productivity by grouping people together who perform similar tasks.
Prone to interdepartmental conflict due to narrow perspectives.
Communication and coordination across functional areas is difficult.
Pinpointing the responsibility for profit losses can be difficult.
It is most appropriate for defenders and low-cost businesses to have a functional structure.
True
False
It is most appropriate for analyzers and differentiated businesses to have a functional structure.
True
False
Which of the following is not an advantage of Product Divisional Structure?
Clear focus on each product and greater orientation on customer service
Easier to pinpoint reason for profits or losses due to Profit Centers.
Ideal for training and developing managers because they essentially run their own businesses.
Multiple departments perform the same function
Which of the following is not a disadvantage of Product Divisional Structure?
Clear focus on each product and greater orientation on customer service
Product managers emphasize their own products and compete for resources instead of working together.
Top management finds it harder to ensure consistency among various departments.
Multiple departments perform the same function
It is most appropriate for prospectors and differentiated businesses to have a product divisional structure.
True
False
What are the key advantages for Geographical Divisional Structure?
A. Products and services may be tailored more effectively to the legal, social, technical, and climatic differences of specific regions.
B. Producing or distributing products in different locations may give the organization a competitive advantage
C. More functional personnel required because each region is its own department.
D. Both A and B.
What are the key disadvantages for Geographical Divisional Structure?
A. Products and services may be tailored more effectively to the legal, social, technical, and climatic differences of specific regions.
B. Area managers will emphasize their own territories over the success of the entire organization.
C. More functional personnel required because each region is its own department.
D. Both B and C.
Disadvantages for Product and Geographic Divisional Structures are relative similar.
True
False
It is most appropriate for prospectors and differentiated businesses to have a product and geographical divisional structure.
True
False
What are the key advantages for Matrix Structure?
A. Enjoy advantages from Functional and Product Divisional Structures.
B. It is more flexible because employees can be transferred among projects
C. Permits lower-level functional employees to become heavily involved in projects and gain experience.
D. Top management is free from day-to-day activities.
All of the above.
What are the key disadvantages for Matrix Structure?
A.Matrix personnel spend considerable time in meetings, ultimately growing bureaucracy.
B. A lot of conflict between personnel and budget decisions among project managers due to the resource allocation.
C. Reporting to 2 mangers simultaneously violates basic premise of management and creates confusion and conflict.
All of the above
Which of the following are factors used to give a firm a structure?
A.The level of corporate involvement in business functions
B. The compatibility of existing structure with the corporate and business strategies.
C. Both A and B
D. None of the above.
Which of the following are factors used to give a firm a structure?
A. The extent to which the structure does not allow the appropriate group activities.
B. The lack of hierarchical levels in the organization.
C. Both A and B
D. None of the above.
Which of the following are factors used to give a firm a structure?
A. The extent to which the structure promotes effective coordination across groups.
B. The extent to which the structure allows for appropriate centralization or decentralization authority.
C. Both A and B
D. None of the above.
Firms seeking the benefits of centralization often select functional structure.
True
False
Centralization is inefficient when a firm tightly controls the activities of diverse array of business units.
True
False
Corporate restructure refers to a change in the organization's structure designed to improve performance. It is done through:
Realigning divisions
Reducing amount of cash under each division's executive's discretion.
Acquiring or divesting business units.
All of the above.
Voluntary restructuring has to be concerned with hostile takeovers.
True
False
Involuntary restructuring has to be concerned with hostile takeovers.
True
False
Which is a characteristic of functional structure?
Common to new organizations
Emphasizes specialization
Fosters development of economies of scale
All of the above
Geographical Structure is useful when two or more divisions can be dissected easily along geographical lines.
True
False
Geographical Structure is attractive when there are substantial differences in various geographical regions.
True
False
Matrix Structures are attractive when the organization faces a high degree of technological change, but can be confusing and complex
True
False
Functional, product divisional, geographic divisional, and matrix structures are pure forms. In reality, they are often combined to create an approach uniquely tailored to the strategic needs of the firm.
True
False
