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Organizations may choose only one of the forms of departmentalization.

A) True
B) False

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A small core organization that outsources major business functions is known as a(n) ________ organization.


A) matrix
B) virtual
C) organic
D) bureaucratic
E) mechanistic

F) C) and D)
G) A) and D)

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Lea's company pursues a strategy of cost minimization, but it has not been succeeding.Its structure is quite loose, informal, and decentralized.A better organizational structure for it might be


A) organic.
B) matrix.
C) mechanistic.
D) imitation.
E) simple.

F) A) and B)
G) A) and E)

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SCENARIO 13-4 After extensively researching both traditional and new design options for organizational structures, you have decided that one of the designs developed since the early 1980s is probably the most appropriate for your newly formed organization. Your new organization is looking to network with a variety of independent companies so that you can share skills, costs and access to other markets.The most appropriate structure is probably the


A) matrix organization.
B) virtual organization.
C) team structure.
D) matrix structure.
E) modular organization.

F) A) and C)
G) A) and E)

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An organizational design that combines functional and product departmentalization is known as


A) matrix.
B) organic.
C) mechanistic.
D) hybrid.
E) bureaucratic.

F) A) and B)
G) None of the above

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Identify and describe, using examples, the six key questions managers need to answer in designing the proper organizational structure.

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Suggested answer:
-Work specialization-...

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SCENARIO 13-2 You have divided the jobs done by your department through work specialization and are now trying to decide how to best group them for efficiency and service to the customer.You are considering grouping activities by functions, product, process or customer. You are organizing into West Coast, Prairie/Northern, Ontario, Quebec, and Atlantic regions.This is termed


A) process departmentalization.
B) customer departmentalization.
C) geographic departmentalization.
D) functional departmentalization.
E) technical departmentalization.

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

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University textbook sellers have highly formalized jobs.

A) True
B) False

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One major strength of the simple structure is that it is easy to maintain in any size.

A) True
B) False

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The more scarce, dynamic and complex the environment, the more organic a structure should be.

A) True
B) False

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The less the specialization, the less input the employee has into how his or her work is to be done.

A) True
B) False

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If you have a narrow span of control, you have what type of organization


A) multi-level
B) short
C) tall
D) matrix
E) wide

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

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Which of the following refers to the number of subordinates a manager can efficiently and effectively direct


A) span of control
B) unity of command
C) chain of command
D) organizational chart
E) structure of command

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

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Which of the following is uncharacteristic of a mechanistic structure


A) extensive departmentalization
B) high formalization
C) limited information network
D) flexibility
E) little participation

F) D) and E)
G) All of the above

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Which term refers to how an organization transfers its inputs to outputs


A) technology
B) structure
C) strategy
D) environment
E) innovation

F) A) and B)
G) A) and D)

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The more that lower-level personnel provide input or are actually given the discretion to make decisions, the more ________ there is.


A) centralization
B) decentralization
C) work specialization
D) departmentalization
E) functional specialization

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

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If you wanted to outsource many of the functions that are currently performed within your organization, which organizational structure would make the most sense


A) matrix organization
B) virtual organization
C) team structure
D) organic structure
E) simple organization

F) B) and E)
G) All of the above

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The structure that creates dual lines of authority and combines functional and product departmentalization is the


A) simple structure.
B) bureaucracy.
C) matrix structure.
D) virtual organization.
E) organic structure.

F) B) and E)
G) B) and C)

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Organizations have different structures, but the structure has little bearing on employee attitudes and behaviour.

A) True
B) False

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Bob works for a manufacturer that has separate departments for engineering, accounting, manufacturing, purchasing, and human resources.This is reflective of departmentalization by


A) product.
B) osmosis.
C) function.
D) service.
E) process.

F) All of the above
G) C) and D)

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