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Many layoff survivors experience a great deal of guilt and remorse following a layoff.

A) True
B) False

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The first step in adapting to the environment is


A) actually restructuring.
B) recognizing the need to change.
C) evaluating the external environment.
D) evaluating the internal environment.
E) exploring the competitor's structures.

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

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When Jolly Fingers Gloves, Inc., groups its business units according to where they do business-such as the North American division, the South American division, the Australian division, and the African division-it is creating which of the following organizational structures?


A) client-based
B) geographic
C) functional
D) product
E) simple

F) None of the above
G) C) and E)

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One of the biggest environmental factors affecting organizational structure is whether the


A) competitor's structure matches industry needs.
B) external culture clashes with intrinsic values.
C) suppliers' cultures match the company's.
D) outside environment is stable or dynamic.
E) internal environment is stable or dynamic.

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

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Which of the following is associated with decentralization in decision making?


A) moderate spans of control
B) tall spans of control
C) wide spans of control
D) narrow spans of control
E) flat spans of control

F) None of the above
G) D) and E)

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Henry Ford was a strong believer in work specialization.

A) True
B) False

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At Blue Wall Technology, employees are grouped according to their functional expertise as well as the different vital product lines that they are working on. Thus, the company has simultaneously created a combination of a functional and a product structure. This is an example of a ________ structure.


A) conglomerate
B) geographic
C) simple
D) global
E) matrix

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

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Restructuring an organization has a positive impact on task performance because restructuring helps employees view their jobs in new and exciting ways.

A) True
B) False

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Which of the following examples illustrates a functional structure?


A) Linda's Pet Grooming has eight employees that all report to Linda.
B) Rio Riffic has a hydraulics division, a PVC division, and a fixtures division.
C) AB Aeronautics has a private division, a commercial division, and a government division.
D) BG Limited has a Pacific Northwest division, a Midwest division, and a Northeast Division.
E) Handy Homes has a financial department, a production department, and a sales department.

F) None of the above
G) All of the above

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Shane is the project manager of the organizational development team at Solid Hardwoods. Shane's team has been assigned the task of studying and evaluating Solid Hardwoods' organizational structure. Shane divided the tasks among the team members to collect preliminary information on different elements of Solid Hardwoods' structure. Meg was asked to collect information on the degree to which tasks are divided into separate jobs. Andrea was asked to collect information on formal authority relationships. Francine started looking into how many employees each manager has responsibility for, and Carol was asked to collect evidence on the degree to which rules and procedures are used to standardize behaviors at Solid Hardwoods. Shane decided to personally collect information and evidence on where exactly decisions are formally made at Solid Hardwoods. The team decided to meet with information in two weeks. Meg was given the job of collecting information on which of the following elements of the organizational structure?


A) work specialization
B) chain of command
C) span of control
D) formalization
E) centralization

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

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Differentiate between mechanistic and organic structures.

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Mechanistic organizations are efficient,...

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Which of the following statements is True about functional organization structure?


A) Small companies experiencing rapid growth are the only organizations to benefit from a functional structure.
B) One of the main disadvantages of the functional structure is the lack of work specialization.
C) Functional structures are extremely efficient when the organization as a whole has a relatively wide focus.
D) One of the main advantages of the functional structure is that it encourages communication across functions.
E) Functional structures are extremely efficient when the organization has fewer product lines or services.

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

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Matrix structures try to take advantage of two types of structure at the same time.

A) True
B) False

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Matrix structures


A) are generally used by small organizations in which the manager, president, and owner are all the same person.
B) place the functions required to serve a business under a manager who is in charge of a specific location.
C) organize their businesses around serving customers that all act in a similar way.
D) group business units around different products that the company produces.
E) try to take advantage of two types of structures at the same time.

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

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What is the primary reason for simple structures being perhaps the most common form of organizational design?


A) There are more small organizations than large ones.
B) Employees can come and go with no major ripple effects on the organization.
C) Changes in specialization lead to less confusion about how exactly employees are supposed to do their jobs.
D) Employees feel less emotionally attached to the firm.
E) Approval for decisions need not be authorized at every step of the hierarchy.

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

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Many restructuring efforts are designed to remove one or more organizational layers to reduce costs.

A) True
B) False

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Which of the following is an example of a company flattening its structure?


A) Marco's Windows fires 300 production workers and hires 50 managers.
B) Doug's Excavating opens branches in the South and the Midwest.
C) Kimmi's Design adds an assistant manager position.
D) Jay's Auto eliminates four layers of management.
E) Billy's Produce hires two new salesmen.

F) D) and E)
G) A) and D)

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As organizations become larger, they tend to become more ________ in nature.


A) simple
B) cultural
C) mechanistic
D) organic
E) flat

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

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Michelle's Universal Boat Fins makes one product, a type of boat fin designed to fit on any pontoon boat, over and over again. The fins never change, because the unique design fits all boats. Given the nature of its business, Michelle's should


A) look for ways to vary its manufacturing procedures.
B) give each employee a specific task to perform.
C) allow employees to make their own decisions.
D) have a low mechanistic structure.
E) adopt an organic structure.

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

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Lasting Skin Care Inc. is growing very fast in both sales and number of employees. It manufactures and sells skin products for youth, male, female, elderly, and ethnic populations all over the United States and several other countries. So far, the company has followed a simple structure. However, with fast-paced growth, it has become a necessity that the company explore other organizational structures. Larry, a long-time employee at Lasting Skin Care, has collected information on how some of its competitors have organized their companies. Tracks Inc. groups its employees by their different areas of expertise such as Marketing, Finance, Human Resources, and Operations. Fine Base, which is primarily in the United States, groups its activities as Northeast Division, Southeast Division, Northwest Division, Southwest Division, and Central Division. Prints Inc. has organized its employees according to the accounts they serve, such as Large Company Contracts, Internet Sales, Individual Sales, and Small Salon Direct Sales. Finally, Make safe International has grouped its business units around different types of makeup, including the Lipstick and Lip Gloss Division, the Eye shadow Division, the Foundation Division, the Mascara Division, and the Bronzer and Blush Division. Which of the following describes Tracks' organizational structure?


A) client-based
B) geographic
C) functional
D) product
E) matrix

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

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