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| 1 | |
The totality of a firm's organization, including formal organization structure, control systems, incentive systems, organizational culture, and people is referred to as: |
| | A) | organization architecture. |
| | B) | corporate culture. |
| | C) | organization structure. |
| | D) | human capital. |
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| 2 | |
Which of the following statements about organizational architecture is most correct? |
| | A) | Organizational architecture refers to the buildings in which the organization is housed. |
| | B) | Organizational architecture is the same regardless of industry or strategy used. |
| | C) | Strategy supports the architecture of the firm. |
| | D) | The various components of organization architecture are not independent of each other. |
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| 3 | |
Organization structure can be thought of in terms of three dimensions: |
| | A) | vertical coordination, horizontal coordination, integrating mechanisms. |
| | B) | vertical integration, horizontal integration, integrating mechanisms. |
| | C) | vertical differentiation, horizontal differentiation, integrating mechanisms. |
| | D) | vertical differentiation, horizontal differentiation, collaboration. |
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| 4 | |
Vesting decision-making authority in lower-level managers or other employees is called: |
| | A) | decentralization. |
| | B) | centralization. |
| | C) | localization. |
| | D) | distributed authority. |
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| 5 | |
Organizations with many layers of management are called: |
| | A) | wide. |
| | B) | multi-layered. |
| | C) | tall. |
| | D) | narrow. |
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| 6 | |
Jonathon owns a small factory that makes wood products for the construction industry. Initially the factory had just one manager and 10 employees. As the factory got more orders, more people were hired including sales people, accountants, and a factory manager. These people allowed Jonathon to focus more on strategic issues facing the business. This is an example of how companies often become: |
| | A) | wide. |
| | B) | tall. |
| | C) | narrow. |
| | D) | flat. |
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| 7 | |
In a __________ structure the structure of the organization follows the obvious division of labor within the firm. |
| | A) | multidivisional |
| | B) | geographic |
| | C) | matrix |
| | D) | functional |
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| 8 | |
Which of the following statements about the functional structure of an enterprise is most accurate? |
| | A) | Within a functional structure the firm is divided into different product divisions. |
| | B) | The profitability of each distinct business is easily discerned when using a functional structure for an enterprise that runs many businesses. |
| | C) | A functional structure can work well for a firm that is active in a single line of business and focuses on a single geographic area. |
| | D) | Poor organizational control may result from using a functional structure in an organization that runs many businesses. |
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| 9 | |
A formal integrating mechanism is used to: |
| | A) | reward managers. |
| | B) | consolidate profitability results across the organization. |
| | C) | help achieve organizational coordination. |
| | D) | do all of the above. |
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| 10 | |
Which organizational structure is designed to maximize integration among subunits? |
| | A) | matrix |
| | B) | functional |
| | C) | geographic |
| | D) | multidivisional |
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