Complicated working relationships, intense power struggles, and excessive reliance on group processes are disadvantages of which type of organizational structure?

61.

Complicated working relationships, intense power struggles, and excessive reliance on group processes are disadvantages of which type of organizational structure?    A.  divisional B.  matrix C.  holding company D.  functional The dual-reporting structures in the matrix organizational structure can result in uncertainty and lead to intense power struggles and conflict over the allocation of personnel and other resources. Working relationships become more complicated. This may result in excessive reliance on group processes and teamwork, along with a diffusion of responsibility, which in turn may erode timely decision making.

AACSB: Analytic Blooms: Understand Learning Objective: 10-02 Each of the traditional types of organizational structure: simple; functional; divisional; and matrix. Level of Difficulty: 2 Medium Topic: Traditional Forms of Organizational Structure

62.

Which of the following is considered to be an advantage of a matrix structure?    A.  the layering of matrices B.  increased clarity in reporting relationships C.  increased responsiveness to the market D.  fewer power struggles and reduced conflict Resource sharing and collaboration in the matrix organizational structure enable a firm to use resources more efficiently and to respond more quickly and effectively to changes in the competitive environment.

AACSB: Analytic Blooms: Understand Learning Objective: 10-02 Each of the traditional types of organizational structure: simple; functional; divisional; and matrix. Level of Difficulty: 2 Medium Topic: Traditional Forms of Organizational Structure

63.

Generally speaking, discussions of the relationship between strategy and structure strongly imply that _____________.    A.  strategy follows structure B.  structure follows strategy C.  strategy can effectively be formulated without considering structural elements D.  structure typically has a very small influence on the strategy of a firm Often the relationship between strategy and structure strongly implies that structure follows strategy. The strategy that a firm chooses (e.g., related diversification) dictates such structural elements as the division of tasks, the need for integration of activities, and authority relationships within the organization.

AACSB: Analytic Blooms: Understand Learning Objective: 10-03 The implications of a firm's international operations for organizational structure. Level of Difficulty: 2 Medium Topic: Traditional Forms of Organizational Structure

64.

If an international firm has a multidomestic strategy and a relatively high level of product diversity, the best choice for its organizational structure is ______________ structure.    A.  a worldwide functional B.  a worldwide product division C.  a worldwide matrix D.  an international division Multidomestic strategies are driven by political and cultural imperatives requiring managers within each country to respond to local conditions. As products of the firm and/or market diversity become large, it is likely to benefit from a worldwide matrix structure.

AACSB: Analytic Blooms: Understand Learning Objective: 10-03 The implications of a firm's international operations for organizational structure. Level of Difficulty: 2 Medium Topic: Traditional Forms of Organizational Structure

65.

If an international firm has a global strategy and a relatively low level of product diversity, the best choice for its organizational structure is ______________ structure.    A.  a worldwide functional B.  a worldwide product division C.  a worldwide matrix D.  an international division Global strategies are driven by economic pressures that require managers to view operations in different geographic areas to be managed for overall efficiency. One structure consistent with the efficiency perspective is the worldwide product division structure, which is most appropriate for relatively low levels of product diversity.

AACSB: Analytic Blooms: Understand Learning Objective: 10-03 The implications of a firm's international operations for organizational structure. Level of Difficulty: 2 Medium Topic: Traditional Forms of Organizational Structure

66.

The relationship between strategy and structure can be best described as _____________.    A.  strategy determines structure but structure does not determine strategy B.  structure determines strategy but strategy does not determine structure C.  strategy and structure influence each other D.  a third force determines both strategy and structure Discussions of the relationship between strategy and structure usually strongly imply that structure follows strategy. The strategy that a firm chooses dictates structural elements like the division of tasks, the need for integration of activities, and authority relationships. However, an existing structure can influence strategy formulation. Once the structure of the firm is in place, it is very difficult and expensive to change.

AACSB: Analytic Blooms: Understand Learning Objective: 10-03 The implications of a firm's international operations for organizational structure. Level of Difficulty: 2 Medium Topic: Traditional Forms of Organizational Structure

67.

A global start-up faces many management challenges including _____________.    A.  communication and coordination across time zones B.  pressure to perform internally all primary activities of the value chain C.  assuring financing from home country only D.  hiring only from home country Successful management of a global start-up presents many challenges. Communication and coordination across time zones and cultures are always problematic. Since most global start-ups have far less resources than well-established corporations, one key for success is to internalize few activities and outsource the rest. Managers of such firms must have considerable prior international experience so that they can successfully handle the inevitable communication problems and cultural conflicts. Another key for success is to keep the communication and coordination costs low. The only way to achieve this is by creating less costly administrative mechanisms.

AACSB: Analytic Blooms: Understand Learning Objective: 10-03 The implications of a firm's international operations for organizational structure. Level of Difficulty: 2 Medium Topic: Traditional Forms of Organizational Structure

68.

Which of the following is not a boundaryless organizational design?    A.  virtual B.  modular C.  matrix D.  barrier-free There are three approaches to creating boundaryless organizations. The barrier-free type involves making all organizational boundaries, internal and external, more permeable. The modular and virtual types of organizations focus on the need to create seamless relationships with external organizations such as customers or suppliers.

AACSB: Analytic Blooms: Remember Learning Objective: 10-04 The different types of boundaryless organizations-barrier-free; modular; and virtual-and their relative advantages and disadvantages. Level of Difficulty: 1 Easy Topic: Boundaryless Organizational Designs

69.

According to author, Jeffrey Pfeffer, which of the following is not an advantage of teams?    A.  Teams interact so closely and therefore coordination and integration becomes unnecessary. B.  Teams substitute peer-based control for hierarchical control of work. C.  Teams often develop more creative solutions, because they share. D.  Teams permit the absorption of administrative tasks previously performed by specialists. Jeffrey Pfeffer, author of The Human Equation, suggests that teams have three primary advantages. First, teams substitute peer-based control for hierarchical control of work activities, reducing the time and energy management needs to devote to control. Second, teams frequently develop more creative solutions to problems since they encourage sharing of tacit knowledge. Third, teams permit the removal of layers of hierarchy and absorption of administrative tasks previously performed by specialists.

AACSB: Analytic Blooms: Understand Learning Objective: 10-04 The different types of boundaryless organizations-barrier-free; modular; and virtual-and their relative advantages and disadvantages. Level of Difficulty: 2 Medium Topic: Boundaryless Organizational Designs

70.

Organizations are increasingly using teams for many reasons. The difference between a good team and an outstanding team has been found to be _____________.    A.  the combined technical skills of the members B.  similarities in the way team members solve problems C.  the way team members treat each other D.  similarities in the age and experience of team member The key difference between good teams and truly superior teams was the way members treated each other, the degree to which they believed in one another and created an atmosphere of encouragement rather than competition. Vision, talent, and motivation could carry a team only so far.

AACSB: Analytic Blooms: Understand Learning Objective: 10-04 The different types of boundaryless organizations-barrier-free; modular; and virtual-and their relative advantages and disadvantages. Level of Difficulty: 2 Medium Topic: Boundaryless Organizational Designs