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Exam 15: Organizational Structure

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Question 1

Multiple Choice

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When you graph the relationship between performance and span of control, the resulting diagram shows ______.

A) an "arch" shape
B) a "U' shape
C) a straight horizontal line
D) a straight vertical line
E) a diagonal line sloping up to the right

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

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Question 2

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The more people under the control of one manager, the _____.

A) greater the decentralization
B) wider the span of control
C) taller the organizational structure
D) shorter the chain of command
E) greater the work specialization

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

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Question 3

Multiple Choice

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A _____ structure makes perfect sense for a small organization, because employees can come and go with no major ripple effects on the organization.

Which of the following is true about work specialization?

State at least two advantages and disadvantages of work specialization.

A _____ structure is a flat organization with one person as the central decision-making figure.

Scenario: Splash Hair Care Inc.Splash Hair Care Inc.is growing very fast in both sales and number of employees.It manufactures and sells hair products for youth, male, female, elderly, and ethnic populations all over the United States and several other countries.So far the company followed a simple structure.However, with fast-paced growth, it has become a necessity that the company explores other organizational structures.John, a long-time employee at Splash Hair Care, has collected information on how some of their competitors have organized their companies.Streaks Inc.groups their employees by their different areas of expertise such as Marketing, Finance, Human Resources and Operations.Pure Oil, primarily in the United States, groups their activities as northeast division, southeast division, northwest division, southwest division, and central division.Curlz Inc.has organized their employees according to the accounts they serve such as Large Company contracts, Internet Sales, Individual Sales, and Small Salon Direct Sales.Finally, Color Lite International has grouped their business units around popular colors such as Red Division, Silver Division, Rainbow Division, Black and Brown Division, and Shades of Blonde Division.Which of the following describes Color Lite International's organizational structure?

Of the following, which is a characteristic of an organic organization?

Define span of control.Describe the relationship between a span of control and organizational performance.

Decentralized organizational structures tend to concentrate power and authority within a relatively tight group of individuals in the firm.

Scenario: Splash Hair Care Inc.Phenomenally successful, Splash Hair Care Inc.is growing very fast in both sales and number of employees.It manufactures and sells hair products for youth, male, female, elderly, and ethnic populations all over the United States and several other countries.So far the company followed a simple structure.However, with fast-paced growth, it has become a necessity that the company explores other organizational structures.John, a long-time employee at Splash Hair Care, has collected information on how some of their competitors have organized their companies.Streaks Inc.groups their employees by their different areas of expertise such as Marketing, Finance, Human Resources and Operations.Pure Oil, primarily in the United States, groups their activities as northeast division, southeast division, northwest division, southwest division, and central division.Curlz Inc.has organized their employees according to the accounts they serve such as Large Company contracts, Internet Sales, Individual Sales, and Small Salon Direct Sales.Finally, Color Lite International has grouped their business units around popular colors such as Red Division, Silver Division, Rainbow Division, Black and Brown Division, and Shades of Blonde Division.Which of the following describes Pure Oil's organizational structure?

Which of the following statements about a low-cost producer strategy is true?

The degree to which tasks in an organization are divided into separate jobs refers to:

The degree to which a job requires a number of different activities involving a number of different skills and talents is referred to as:

The biggest weakness of a functional structure is that:

Using diagrams, describe the three multi-divisional structures.

Which element of the organizational structure signifies formal authority relationships?

Melissa is describing her company's organizational structure.Which of the following terms and concepts wouldn't she use in her description?

Organizational performance increases as span of control increases, but only up to a certain point.

Which of the following elements of an organizational structure is also referred to as a company's division of labor?