CLO 2

ORGANIZATIONAL DESIGNS

1. Instead of relying heavily on face-to-face meetings, members of _____ organizations

send e-mail and voice-mail messages, exchange project information over the Internet, and
convene videoconferences among dispersed participants.
A. virtual
B. modular
C. horizontal
D. vertical

2. A company that outsources part of its product has which of the following structures?
a) Hallow
b) Matrix
c) Modular
d) Virtual

3. Mariam owns a large restaurant in Abu Dhabi. She manages the business herself but
outsources the payroll. Her organization has a _________________________ structure.
a) Functional
b) Hollow
c) Modular
d) Divisional

4. An organization that has jobs organized in a way where an employee may report to two
different managers. This type of structure is more likely a _______________ structure.
a) Functional
b) Divisional
c) Matrix
d) SBU

5. Which of the following structures combines functional and divisional chains of command
to form a grid with two command structures?
a) Hollow structure
b) Modular structure
 c) Matrix structure
d) Project structure

6. Which of the following statements best describes a Functional Organization Structure:

A. Activities related to outputs, such as type of product or customer are grouped together
B. People are grouped according to the business functions they perform
C. Parts of the product/service are outsourced
D. Project teams are formed from members of the various departments

7. Which one of the following is not a dimension of an organizational structure?

A. Hierarchy of authority
B. Division of Labor
C. Levels of communication
D. Span of Control

8. Span of control refers to:

a) The number of managerial levels
b) The number of employees at a location
c) The number of employees a manager supervises
d) None of the above

9. _____ refers to the number of people reporting directly to a given manager.

a) Line and staff managers
b) Cognitive complexity
c) Locus of control
d) Span of control

10. A mechanistic organization is one:

A. With flexible networks and individuals who perform a variety of tasks
B. With strict rules and regulations, narrowly defined tasks and top-down
communication
C. With few layers of management
D. Where members are generally linked by technology

11. __________ organizations have Flexible networks of multitalented individuals who

perform a variety of tasks.
A. Mechanistic
 B. Decentralized
C. Organic
D. Matrix

12. An open system is:

a) Self-sufficient entity.
b) Rarely capable of adaptation and growth.
c) Seldom capable of self-correction.
d) Dependent on the environment for survival.

13. The Mercedes car manufacturer outsources part of its car such as car seats. In your
opinion which of the following structure Mercedes has?
A. Matrix
B. Modular
C. Hollow
D. None of the above

14. ………………………………… decision making is when key decisions are made by top
management.
a) Virtual organization
b) Centralized
c) Decentralized
d) Modular

Essay questions:
2. Define functional organizational structure. Explain its advantages and disadvantages.
Draw the functional structure.
3. Define divisional organizational structure. Explain its advantages and disadvantages.
Draw the divisional structure.
4. Define matrix organizational structure. Explain its advantages and disadvantages. Draw
the matrix structure.
5. What are the differences organic structure and mechanistic structure?
6. What are the differences between functional structure and divisional structure?
7. Define hollow structure and modular structure?
8. Explain four dimensions of the organizational structure?