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Exam 8: Organization Structure

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Question 41

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An organization with departmentalization that groups units around products,customers or geographic regions is called a

A) divisional organization.
B) centralized organization.
C) matrix organization.
D) functional organization.
E) virtual organization.

F) C) and D)
G) B) and D)

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Question 42

Multiple Choice

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Scenario A. Mike is a new management trainee at Simply Swift, Inc., a firm that manufactures equipment used in wind technology, a complex and ever-changing industry. He has just graduated with his bachelor's degree in management and is anxious to use his education. He has nearly completed the first management rotation for Simply Swift and has some questions about how the organization is managed and how the principles of organization structure are used in the company. He believes there is too little specialization and that the span of control in the company is not optimal. -Mike is looking for a long-term career with this company.Given the information in Scenario A what is the best way he could discover possible career paths with Simply Swift?

A) He should research minimum job qualifications for entry-level jobs.
B) He should review the organization chart.
C) He should ask the director of finance.
D) He should review company financial statements.
E) He should check with an online job placement firm.

F) A) and B)
G) A) and C)

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Question 43

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Mallory manages a branch retail store for Simply Sweet,a retail bakery.She supervises ten people including the bakers and the clerks located in her branch.She reports directly to the owner of Simply Sweet.Simply Sweet would be considered a tall rather than a flat organization.

Corporate governance is the role of the corporation's executive staff and board of directors in ensuring that the firm's activities meet the goals of the firm's stakeholders.

Compare and contrast centralized and decentralized organizations.

Narrow spans of control build ____________ organizations.

A clear advantage of the product form of departmentalization is that task responsibilities are clear.

Delegation is the assignment of authority and responsibility to a subordinate at a lower level.

Sports International (SI) began business by making shoes for athletes.They soon expanded into making shoes for non-athletic purposes.They now manufacture and distribute clothing,sporting equipment and protective sports gear worldwide.They are departmentalized by products sold to serious athletes,products sold to "weekend" athletes and products sold to sports teams.SI has utilized which form of departmentalization?

__________ occurs when interdependent units are required to meet deadlines and objectives that contribute to a common goal.

The operational level of the organization includes

Scenario C. You are representing your company at the independent booksellers' convention. You always enjoy this convention, not only because you see the newest releases but also because you are able to exchange ideas with other people who work in your industry. There are sessions for every type of job within the industry so you are able to meet lots of different types of managers. Along with their name everyone's name badge has his or her title, company name, and headquarters city. Originally you thought all of the other firms would be set up using the same type of organizational structure as your own firm, but after glancing at a few of the nametags it becomes apparent that different companies are using different organizational structures. For example, Phil's title is Vice President for Production. Jerry is the Coordinator for Book Sales and interestingly he reports to both a marketing supervisor and a book department supervisor. Finally Sherry's nametag listed her title as Vice President for Eastern United States. -Sherry's company is set up as a _____________ structure.

The unity-of-command principle states that a person should have multiple managers who lead together,giving subordinates the same unified message.

The number of subordinates who report directly to an executive or supervisor is called the span of control.

Line departments are units that support staff departments.

A matrix organization is a hybrid form of organization in which functional and divisional forms overlap.

The optimal span of control should be wide when which one of the following factors is present?

Which of the following statements about delegation is most true?

The presence of rules and regulations governing how people in the organization interact is called formalization.

Compare and contrast differentiation and integration.How are differentiation and integration related in an effective organization?