QUESTION # 1

Which of the following is the formal arrangement within an organization that defines how activities and tasks are
formally divided and how processes and information would flow within the structure in order to achieve the
goals and objective of an organization?

A. Management structure
B. Administrative structure
C. Super structure
D. Organizational structure
 QUESTION # 2

Which of the following is the purpose of having an organizational structure?

A. Divides work to be done into specific jobs and departments

B. Assigns task and responsibilities associated with individual jobs
C. Coordinates divers organizational tasks
D. All of the above
 QUESTION # 3

Which of the following is purpose of having an organizational structure?

A. Cluster jobs into units

B. Establishes relationship among individuals, groups and departments
C. Establishes formal lines of authority
D. All of the above
 QUESTION # 4

Allocating and deploying resources is one of the purposes of having an organization structure?

A. True
B. False
 QUESTION # 5

Simply stated, an organizational structure describes how a company , division ,team or other organization is
_______ and how all of its various _______ fit together.

A. created, resources
B. built, components
C. wound up, assets
D. None of the above
 QUESTION # 6

Which of the following activities an organizational structure consists of?

A. Task allocation
B. Coordination
C. Supervision
D. All of the above
 QUESTION # 7

An organizational structure consist of activities such as talk allocation, coordination and supervision, which are
directed towards the achievement of _________ in an effective and efficient manner.

A. Professional goals
B. Personal aim
C. Organizational aims
D. Team resources
 QUESTION # 8

Choosing the correct management structure ensures:

A. An organization’s continued growth

B. Content employees
C. Profitable returns of the shareholder
D. All of the above
 QUESTION # 9

Which one of the following is a result of choosing wrong structure?

A. Creating tensions between managers and employees

B. Allowing inefficient work practices to flourish
C. Reducing company profitability
D. All of the above
 QUESTION # 10

In worst case scenario, which of the following is the result of choosing a wrong management structure?

A. Losses
B. Inefficient work forces
C. Wastage od resources
D. Company closure
 QUESTION # 11

Unfortunately, many managers take it for granted that their organization’s management structure is correct ,static
and never requires changing.

A. True
B. False
 QUESTION # 12

Due to which of the following factor there is a need to continually assess the suitability of a company’s
management structure?

A. Change in share holding pattern

B. Chang in senior management
C. Decrease in pace of change
D. Increase in pace of change
 QUESTION # 13

In today’s fast changing business environment, which of the management structure provides flexible and ready
means for growth?

A. Statics management structure

B. Dynamic management structure
C. Bureaucratic management structure
D. Weber management structure
 QUESTION # 14

Organizational structures in all entities is the same.

A. True
B. false
 QUESTION # 15

The organizational structure of an entity should be appropriate for _______.

A. The size of the entity

B. The nature of its operations
C. What it is trying to achieve
D. All of the above
 QUESTION # 16

Most importantly, the organizational structure must enable the entity to develop ________ and implement them
effectively and efficiently.

A. Employees
B. Human resources
C. Plans
D. None of the above
 QUESTION # 17

Is it possible to have mixture of machines of different organizational structures in different parts of a single entity,
particularly a large one?

A. Yes
B. No
 QUESTION # 18

Which of the following is not an approach on the basis of which an organizational structure could be based?

A. Nature of work
B. Age of the employees
C. Outsourcing of non-core activities
D. Virtual network of independent companies
 QUESTION # 19

Which of the following is an approach on the basis of which an organizational structure could be based?

A. Nature od work
B. Traditional departmentalization
C. Contemporary and team based
D. All of the above
 QUESTION # 20

An organizational structure is based upon function, product , process ,customer or geographic are is an example of

A. Nature of work approach

B. Traditional departmentalization approach
C. Contemporary and team based approach
D. Outsourcing of non-core activities approach
 QUESTION # 21

‘Matrix’ and ‘committee’ are examples of contemporary and team based approach of organizational structure.

A. True
B. false
 QUESTION # 22

Contemporary and team-based approach of organizational structure such as ‘Matric’ and ‘committee’ are more
dynamic and assemble employees to respond _______ to dynamic business environments.

A. Slowly
B. Quickly
C. Moderately
D. None of the above
 QUESTION # 23

In outsourcing approach of an organizational structure, is it possible to outsource core activities of the organization
to the specialized vendors?

A. Yes
B. No
 QUESTION # 24

In a manufacturing concern, which of the following is a non-core activity that can be outsourced to specialized
vendors, in view of outsourcing approach of organization structure?

A. Accounting
B. IT function
C. Both a and b
D. Manufacturing
 QUESTION # 25

In the current business environment, which of the following is the “new trend” in designing the organizational
structure of an entity?

A. Nature of work approach

B. Traditional departmentalization approach
C. Contemporary and team based approach
D. Virtual network of independent companies linked through IT platforms
 QUESTION # 26

Which of the following is the basic organizational structure that might exist within any entity or part of an entity?

A. An entrepreneurial structure
B. A functional structure
C. A divisional structure
D. All of the above
 QUESTION # 27

Which of the following is the fourth organizational structure that might exist within any entity or part of an entity?

A. Geographic structure
B. A matrix organization
C. Product structure
D. Customer structure
 QUESTION # 28

An entrepreneurial organization is an entity that is managed by ______.

A. Its employees
B. Formal management structure
C. Its entrepreneurial owner
D. Functional management structure
 QUESTION # 29

The main feature of entrepreneurial organization are usually that:

A. The entrepreneur takes all the main decisions and does not delegate decision-making to anyone else
B. They entity is therefore organized around the entrepreneur and there is no formal management structure
C. Operations and processes are likely to be simple, and the entity will probably sell just a small number of product
or services
D. All of the above
 QUESTION # 30

For an entity, an entrepreneurial organizational structure is appropriate in which phase of its life.

A. Early
B. Middle
C. Growing
D. Advanced
 QUESTION # 31

The entrepreneur has a _________ connection with its employees.

A. Intermittent
B. Formal
C. Direct
D. Indirect
 QUESTION # 32

As an organization grows larger an entrepreneurial structure will become_______.

A. Efficient
B. Effective
C. Inefficient
D. Necessary
 QUESTION # 33

As an organization grows larger an entrepreneurial structure will become inefficient and _____ management
structure is needed.

A. Entrepreneurial
B. Formal
C. Flexible
D. Informal
 QUESTION # 34

A functional organization group together people who have comparable skills and perform _____ tasks.

A. Efficient
B. Similar
C. Diverse
D. Non parallel
 QUESTION # 35

Organization that has functional structure group its people by their _____ such as accountants are grouped together,
as are people in finance, marketing and sales, human resources ,production , and research and development.

A. Seniority
B. Interest
C. Business functions
D. None of the above
 QUESTION # 36

Functional form of organization that group its people by business functions is fairly typical for ______ companies.

A. Small size
B. Medium to large-size
C. Small to medium-size
D. Large size
 QUESTION # 37

________ group their people by business functions : accountants are grouped together, as are people in finance,
marketing and sales, human resources, production, and research and development.

A. Entrepreneurial
B. Divisional structure
C. Functional structure organization
D. None of the above
 QUESTION # 38

In functional organization, each unit is headed by an individual with _________ in the unit’s particular function.

A. Team
B. Expertise
C. Management
D. Efficiency
 QUESTION # 39

In functional organization, there are advantage of homogeneity, on the other hand homogeneity has drawbacks as
well.

A. True
B. False
 QUESTION # 40

In functional organizations _____ can hinder communication and decision making between units and even promote
interdepartmental conflict..

A. Diversity
B. Homogeneity
C. Homo sapiens
D. All of he above
 QUESTION # 41

There are number of advantages to the functional approach. The structure is complex to understand; however, it
enables that staff to be specialized in particular areas.

A. True
B. False
 QUESTION # 42

In an organization that has a functional structure, each _____has its own management structure and its own staff.

A. Management
B. Team
C. Function
D. Division
 QUESTION # 43

In an organization that has a functional structure, the ______sits on top of the organizational chart.

A. Manager director
B. Executive director
C. Chief Executive director
D. Board of directors
 QUESTION # 44

Which one of the following is advantage for functional structure?

A. It enables the staff to be specialized in multiple areas

B. In specialize the staff in particular areas
C. In hinder homogeneity
D. All of the above
 QUESTION # 45

It is the advantage of functional organization that is structure is simple to understand and it enables the staff to be
specialized in particular areas.

A. True
B. False
 QUESTION # 46

Large companies often find it unruly to operate as one large unit under a functional organizational structure. Sheer
size makes it difficult for managers to oversee operation and serve customers. To rectify this problem, most large
companies are structured as ____.

A. Divisional organization
B. Entrepreneurial organization
C. Functional organization
D. None of the above
 QUESTION # 47

For small companies, it is difficult to operate as one unit under a functional organizational structure because of its
nature and size of the business.

A. True
B. false
 QUESTION # 48

In a divisional organizational, the divisions are similar in many respect to stand alone companies.

A. True
B. False
 QUESTION # 49

Each division of divisional organization contains ________ headed by functional expertise.

A. Divisional units
B. Divisional department
C. Functional units
D. None of the above
 QUESTION # 50

Each division functions relatively autonomously because it contains most of the ______expertise needed to meet its
objective

A. Team-based
B. Functional
C. Task-oriented
D. None of the above
 QUESTION # 51

In divisional organization despite each division functional expertise, this is a challenge to find the most
appropriate way of structuring operation to achieve overall company goals . Therefore, divisions can be formed
according to __________.

A. Expertise, professional
B. Goals, objective and strategies
C. Products, customers processes or geography
D. None of the above
 QUESTION # 52

Product division means that a company is structed according to its ______.

A. Product lines
B. Production lines
C. Process type
D. Customer type
 QUESTION # 53

In _______ each division has its own research and development group, its own manufacturing operations, and its own
marketing team.

A. Process division
B. Geographic division
C. Customer division
D. Product division
 QUESTION # 54

Which of the following statement is correct with respect to product division?

A. In this a company is structed according to its production lines

B. This allows the individuals in the division to focus all their efforts on the products produced by their division
C. The above both statements belong to process division
D. None of the above
 QUESTION # 55

In a divisional organization, _______enables the companies to better serve their various categories of customers.

A. Demographic division
B. Customer division
C. Customer care division
D. Product division
 QUESTION # 56

James and Johnsons are operating companies and are grouped into three business segment : consumer business
(personal-care and hygiene products sold to the general public), pharmaceuticals (prescription drugs sold to
pharmacies), and professional business(medical devices and diagnostic product used by physicians, optometrists,
hospitals, laboratories, and clinic). This is an example of ________.

A. Product division
B. Customer division
C. Process division
D. Geographical division
 QUESTION # 57

If goods move through several steps during production, a company might opt for a _______ structure.

A. Goods division
B. Production division
C. Process division
D. Product division
 QUESTION # 58

Bowater Thunder Bay is a leading company in Canada. It harvest trees and processes wood into newsprint and pulp.
This is the example of __________.

A. Process division
B. Operational division
C. Product division
D. Al of the above
 QUESTION # 59

__________ enables companies that operate in several location to be responsive to customers at a local level

A. Customer division
B. Customer care
C. Geographical division
D. All of the above
 QUESTION # 60

Geographical divisional organization is organized according to the ______ of the world in which it operates

A. Regions
B. sectors
C. Environment
D. None of the above
 QUESTION # 61

Each division of geographical based organization reports its performance ______ in their annual reports.

A. Collectively
B. Separately
C. Simultaneously
D. Wholly
 QUESTION # 62

Which of the following statement belongs to Divisional Organization?

A. It usually enhances the ability to respond to changes in a firm’s environment

B. Corporate services are duplicated, which results in higher cost
C. Both A and B
D. None of the above
 QUESTION # 63

It is the disadvantages of divisional organization that it result in higher cost as services like accounting and human
resourced are separate for each division. Is it true?

A. True
B. False
 QUESTION # 64

Unilever is a large company, having ______ organizational structure as the organization is divided into component
based on their product focus.

A. Product type divisional

B. Process type divisional
C. Customer type divisional
D. Geographical type division
 QUESTION # 65

Unilever produces personal care, foods, home care and refreshment products in its organization. This is the example
of _______.

A. Process division
B. Customer division
C. Geographical division
D. Product type division
 QUESTION # 66

“Any organization that employs a multiple command system that includes not only a multiple command structure but
also related support mechanisms and as associated organizational culture and behavior pattern” . This is a definition
of _____ as per Davis and Lawrence 1977.

A. Divisional organization
B. Functional organization
C. Matrix organization
D. None of the above
 QUESTION # 67

A ________ organizational structure doesn’t follow the traditional, hierarchal model.

A. Functional
B. Divisional
C. Matrix
D. None of the above
 QUESTION # 68

Which of the following statement is not correct for matrix structure?

A. All employees have dual reporting relationship

B. It places emphasis on ‘getting the job done’ rather than each manger defending his or her own position
C. All of the above
D. None of the above
 QUESTION # 69

The matrix organization is also called the ______ approach of organizational structure.

A. Traditional management
B. Functional management
C. Project management
D. None of the above
 QUESTION # 70

Each employee in matrix organization has ____ direct supervisors.

A. 3
B. 5
C. 4
D. 2
 QUESTION # 71

In matrix organization each employee has two direct supervisors: the HR manager and project manager.

A. True
B. False
 QUESTION # 72

Matrix organization and project organization structures were both first used in two ______and _____industries, where
companies were required to carry out major for customers such as building a quantity of aircraft for a government
customer.

A. Defense, aerospace
B. Manufacturing ,construction
C. Automotive, aerospace
D. None of the above
 QUESTION # 73

To solve the problems of which of the following, matrix structure was introduced?

A. Project management
B. Traditional functional structure
C. Traditional departmentalization
D. Centralization
 QUESTION # 74

In ___________ the traditional vertical command structure has an overlay of horizontal authority or influence.

A. Functional organization
B. Divisional organization
C. Matrix organization
D. All of the above
 QUESTION # 75

There is no difference between matrix and project organization. Both come to an end when the project ends.

A. True
B. False
 QUESTION # 76

Matrix structure

A. Defends the position of manager

B. Encourages communication
C. Discourages project management
D. All of the above
 QUESTION # 77

XYZ Company has a division of coffee and related products, another division for baked goods and another division for
merchandise mugs. This means the company focuses on product development. This is the example of __________ .

A. Customer division
B. Product and process division
C. Product-based division
D. Process-based division
 QUESTION # 78

____________ does not have head office and operational premises.

A. Traditional company
B. Virtual company
C. Construction company
D. All of the above
 QUESTION # 79

____________ might not have any employees or assets

A. Matrix organization
B. Divisional organization
C. Traditional organization
D. Virtual organization
 QUESTION # 80

Which of the following is the mean of operating virtual organization?

A. Manual systems
B. Specialized employees
C. Conventional Communication networks
D. IT systems and communication network
 QUESTION # 81

Which of the following statement is true for virtual organization?

A. It might not have any employees or assets

B. It is operated by means of specialized business partners for outsourcing key operations
C. All of the above
D. Both a and b are true for geographical division
 QUESTION # 82

Which of the following element is considered in building an organizational structure?

A. Departmentalization
B. Chain of command
C. Work specialization
D. All of the above
 QUESTION # 83

Which one of the following is one of the element that is very basic and applicable to every type of organization?

A. Chain of command
B. Work specialization
C. Departmentalization
D. All of the above
 QUESTION # 84

Chain of command refers to an unbroken line of authority that extends from _________ and clarifies who reports to
whom.

A. Side to side
B. Top to bottom
C. Bottom to top
D. All of the above
 QUESTION # 85

CEO --- VP ------- Director ----------- Sr. Manager --------- Manager. This line of authority is the example of _______ .

A. Short chain of command.

B. Horizontal line of authority
C. Long chain of command
D. None of the above
 QUESTION # 86

The organization in which chain of command is long the manager of such organization is responsible to report to
_________ .

A. Director
B. Senior manager
C. Vice president
D. None of the above
 QUESTION # 87

Span of control refers to the number of subordinates a superior can effectively manage. The higher the ratio of
subordinates to superiors the narrower the span of control.

A. True
B. False
 QUESTION # 88

On which of the following span of control depends?

A. Manager financial strength

B. Manager personal conduct
C. Manager capabilities
D. All of the above
 QUESTION # 89

On which of the following span of control does not depend?

A. Manager age group

B. Level of cohesiveness within the team
C. Nature of manager's workload
D. None of above
 QUESTION # 90

The company that has many layers of management from the top down to supervisor level, it has ______ span of
control and ________ shape of organization structure.

A. Tall, narrow
B. Tall, flat
C. Narrow, tall
D. Wide, flat
 QUESTION # 91

In tall-narrow span of control the span of controls is narrow and the shape of the organization structure is tall.

A. True
B. False
 QUESTION # 92

In wide-flat span of control each manager has a large number of subordinates reporting to him. Hence, the shape of
organization structure is wide and the span of control is flat.

A. True
B. False
 QUESTION # 93

In decentralization, the authority to take major decisions is delegated to the management of units at lower level as it is
considered that they have much better knowledge than senior managers.

A. True
B. False
 QUESTION # 94

Matrix structure organization follows _________ in decision making.

A. Centralization
B. Decentralization
C. Both a and b
D. None of the above
 QUESTION # 95

_________ of the entity also influence the extent to which decision making, planning and control are centralized or
decentralized?

A. Chain of command
B. Span of control
C. Size and complexity
D. All of the above
 QUESTION # 96

Which of the following is the advantage of centralization?

A. In a large and complex organization, many decisions have to be made by junior managers probably too many for
senior management at head office
B. Giving authority to managers at divisional level and below helps to motivate the management team
C. In a crisis, it is easier to make important decisions centrally
D. All of the above
 QUESTION # 97

Which of the following statement refers to decentralization?

A. Tactical and operational decisions are probably better when taken by local management, particularly in large
organization
B. Operational decisions when taken by upper level managers are better
C. Tactical and operational decisions are probably better when taken by local management, particularly in small
organization
D. All strategic decisions are taken by upper level managers as they have much better knowledge than senior
manager
 QUESTION # 98

Which of the following is not the advantage of decentralization?

A. Tactical and operational decisions are probably better when taken by local management
B. Giving authority to managers at divisional level and below helps to motivate employees
C. Particularly in small organization, tactical decisions are probably better when taken by junior managers
D. None of the above
 QUESTION # 99

Mechanistic organization is characterized as ____________ .

A. Flat organizational structure

B. Centralized organizational structure
C. Functional organization
D. Tall organizational structure
 QUESTION # 100

Organic organization is characterized as ___________ .

A. Flat organizational structure

B. Decentralized organizational structure
C. Narrow organizational structure
D. Tall organizational structure
 QUESTION # 101

Tall (mechanistic) organization has ________ work specialization.

A. High degree
B. Low degree
C. Long
D. None of above
 QUESTION # 102

Flat (organic) organization has ________ Between work specialization.

A. High degree
B. Between high and low
C. Low degree
D. Wide
 QUESTION # 103

Work specialization in flat organization is of high degree.

A. True
B. False
 QUESTION # 104

Tall organization has ____________ departmentalization.

A. Dynamic
B. Rigid
C. Flexible
D. Contemporary
 QUESTION # 105

Organic organization has ____________ departmentalization.

A. Fragile
B. Static
C. Wide
D. Loose
 QUESTION # 106

Management has many levels in ___________.

A. Tall organization
B. Entrepreneurial organization
C. Matrix organization
D. Geographical organization
 QUESTION # 107

Management has few levels in _________ .

A. Mechanic organization
B. Narrow organization
C. Functional organization
D. Flat organization
 QUESTION # 108

In tall organization span of control is _______________ .

A. Wide
B. Flat
C. Long
D. Narrow
 QUESTION # 109

In organic organizational structure span of control is ___________ .

A. Flat
B. Wide
C. Tall
D. Narrow
 QUESTION # 110

Mechanic organizational structure follows __________ decision making.

A. Decentralized
B. Centralized
C. Strategic
D. All of the above
 QUESTION # 111

Organic organization structure follows ________ decision making.

A. Tactical
B. Centralized
C. Decentralized
D. None of above
 QUESTION # 112

Chain of command is ________ in flat organization structure

A. Long
B. Wide
C. Narrow
D. Short
 QUESTION # 113

In tall organization there is more traditional departmentalization and decision making is centralized.

A. True
B. False
 QUESTION # 114

Armed forces structure is the example of _________ .

A. Tall organization
B. Organic organization
C. Narrow organization
D. Matrix organization
 QUESTION # 115

Which of the following is not the example of Flat organization?

A. Amazon
B. Nike
C. Armed forces
D. Universities
 QUESTION # 116

Walmart and Samsung are the example of Tall organization.

A. True
B. False
 QUESTION # 117

Google, Amazon and Nike are the examples of_________ .

A. Flat organization
B. Mechanic organization
C. Functional organization
D. None of the above
 QUESTION # 118

In building an organizational structure the size of the organization and stability of its _________ play a key role.

A. Internal environment
B. External environment
C. Both a and b
D. None of the above
 QUESTION # 119

Restricted view of organizational goals is represented by deploying a ________ .

A. Vertical structure
B. Divisional Structure
C. Horizontal Structure
D. Functional Structure
 QUESTION # 120

Managers not having control over many activities is a drawback of __________ .

A. Matrix Structure
B. Network Structure
C. Vertical Structure
D. Horizontal Structure
 QUESTION # 121

Specialized task division takes place at __________ .

A. Computed structure
B. Vertical structure
C. Complex structure
D. Horizontal structure
 QUESTION # 122

Taxation can be both advantage and disadvantage of sole proprietorship.

A. True
B. False
 QUESTION # 123

An organization designed for efficiency, emphasizes on __________ .

A. Centralization
B. Horizontal communication
C. Decentralization
D. Vertical communication
 QUESTION # 124

To achieve vertical linkages, the first vertical device is __________ .

A. Management information system

B. Plans
C. Rules
D. Hierarchical Referral
 QUESTION # 125

When an organization have matrix structure, it needs to have ____________ .

A. Technical expertise
B. Product innovation
C. Effectiveness
D. Both A and B
 QUESTION # 126

A device named task force is an effective horizontal linkage for _________ .

A. Temporary issues
B. Permanent issues
Complex issues
C. Simpler issues
 QUESTION # 127

An organization that emphasizes vertical communication and control, is designed for ________ .

A. Efficiency
B. Learning
C. Adaptation
D. Innovation
 QUESTION # 128

A contemporary learning organization designed for adaptation, emphasizes on __________ .

A. Horizontal communication
B. Vertical communication
C. Centralization
D. Decentralization
 QUESTION # 129

The disadvantage of putting great effort to maintain power balance, is offered by ____________ .

A. Divisional Structure
B. Matrix Structure
C. Virtual Structure
D. Functional Structure
 QUESTION # 130

Activities are grouped by common function from bottom to the top of the organization, in __________ .

A. Divisional Structure
B. Functional Structure
C. Horizontal Structure
D. Vertical Structure
 QUESTION # 131

Divisional organizational structure makes integration _________ .

A. Easy
B. Difficult
C. Possible
D. Impossible
 QUESTION # 132

Organization structure designates relationships of __________ .

A. Formal reporting
B. Informal reporting
C. Authority
D. Dynamism
 QUESTION # 133

The structure that makes complex decisions and frequent changes in unstable environment is called _________ .

A. Divisional Structure
B. Functional Structure
C. Matrix Structure
D. Virtual Structure
 QUESTION # 134

Organizations that peruse a cost minimization strategy are more likely to choose ________ structure.

A. Functional
B. Mechanistic
C. Departmentalized
D. Organic
 QUESTION # 135

A _________ organization uses flat, cross- hierarchal and cross-functional team, has low formalization, possesses a
comprehensive information network, and involves high participation in decision making.

A. Mechanistic
B. Strategy
C. Organic
D. Routine
 QUESTION # 136

The __________ model has extensive departmentalization, high formalization, a limited information network and
little participation by low level members in decision making

A. Mechanistic
B. Strategy
C. Organic
D. Routine
 QUESTION # 137

A _________ relies primarily on outsourcing

A. Team structure
B. Boundary less organization
C. Virtual organization
D. Strategic alliance
 QUESTION # 138

Which of the following is an advantage of matrix organization?

A. Clear organizational structure

B. Coordination of complex and interdependent activities
C. Elimination of power struggles
D. All of the above
 QUESTION # 139

The __________ combines two forms departmentalization; functional and product.

A. Simple structure
B. Virtual organization
C. Bureaucracy
D. Matrix structure
 QUESTION # 140

Most small business is organized as _________ .

A. Simple structures
B. Matrix structures
C. Virtual organization
D. Bureaucracies
 QUESTION # 141

___________ is the degree to which decision making is concentrated at a single point in the organization.

A. Chain of command
B. Centralization
C. Formalization
D. Departmentalization
 QUESTION # 142

Which of the following is not true of "Function Organizations"?

A. Function organization are fairly effective in unstable environment, where they are part of heterogeneous, global
market
B. There is an inherent ease of control and review in function organizations
C. There is low level of duplication of work and internal competition
D. It is slow to adapt to market needs
 QUESTION # 143

Strategic Business Units are found in which of the following?

A. Function Organizations
B. Matrix Organizations
C. Machine Bureaucracies
D. Divisionalised organizations
E. Adhocracies
 QUESTION # 144

The division of roles and responsibility is of prime importance in ___________ Organization. Who should do what
and under what conditions? Who has the authority in a particular case? Could conflicts arise from a particular
situation? Power struggles and unnecessary conflicts of interest can loom where there is a lack of clarity Fill in the
blank with the right word from below.

A. Machine Bureaucracy
B. Matrix
C. Function
D. Professional Bureaucracy
E. Simple Structure
 QUESTION # 145

Multiple reporting relationships is a characteristic of which of these structure of organizations?

A. Function
B. Division
C. Matrix
D. None of the above
E. All of the above
 QUESTION # 146

Matrix organization suffers from which of the following disadvantages?

A. Navel Gazing
B. Power Struggle
C. Ambiguous responsibilities
D. All of the above
 QUESTION # 147

Division organizations are structured around a particular product, geographical area or customer group. Which one is
an advantage of division organizations?

A. They help build specialization in the employees

B. It discourages internal competition and reduces duplication of work
C. Divisions can work as companies within companies and therefore provide advantage of smaller companies to
bigger companies
D. It helps in realizing economies of scale
E. It reduces internal pricing problems
 QUESTION # 148

In hospitals, the following type of departmentation is common _____________ .

A. By function
B. By committee
C. By geographical region
D. All of the above
 QUESTION # 149

What is the term for organizational development through a formally designed organizational structure?

A. Organic
B. Mechanistic
C. Formal
D. Structured
 QUESTION # 150

What is not an advantage of a hierarchical structure?

A. Clear chain of command

B. Quick response to change
C. Discipline and stability
D. Small span of control
 QUESTION # 151

What is a virtual organization?

A. organization that uses information and communications technologies(ICT's) to coordinate activities without
physical boundaries between different functions.
B. An organization that uses internet technologies to sell products to customers
C. An organization that manages the supply chain using digital technologies
D. An organization that coordinates the workforce via video conferencing
 QUESTION # 152

What is not a purpose of an organizational structure?

A. To coordinate people and resources

B. To organize lines of communication
C. To formalize authority
D. To limit workers' rights
 QUESTION # 153

Terminology that defines the degree to which activities within an organization are subdivided is known to be
___________ .

A. Departmentalization
B. Deveining
C. Formalization
D. Work Specialization
 QUESTION # 154

Small span leaves vertical communications _____________ .

A. Biased
B. Unresolved
C. Complex
D. Unanswered
 QUESTION # 155

The formalization technique followed in a organic approach is said to be _______ .

A. Low
B. High
C. Condition dependent
D. No specialization
 QUESTION # 156

Supervision of employees is greatly enhanced through enabling small span, but is _______ .

A. Time consuming
B. Resource consuming
C. Expensive
D. Complex
 QUESTION # 157

A hybrid that is often used is to combine the functional structure with the __________

A. Vertical structure
B. Horizontal structure
C. Divisional structure
D. Virtual structure
 QUESTION # 158

Dynamic capabilities are an organization's capacity to have an effective __________ .

A. Competitive advantage
B. Configuration
C. Rareness
D. Critical value
 QUESTION # 159

At the closure phase of entrepreneurial stage, the organization needs to provide ____________ .

A. Delegation
B. Control system
C. Leadership
D. Development of teamwork
 QUESTION # 160

____________ is a formal arrangement of activities that bring efficiency and effectiveness for the achievement of
business/organizational goals.

A. Organization
B. Organizational structure
C. Organizational Management
D. None of the above
 QUESTION # 161

Matrix management violates the management principle of ___________ .

A. Cost Efficient
B. Effective Performance
C. Performance measures
D. Unity of Command