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Describe the attributes of a simple organizational structure. What are the advantages and disadvantages associated with using the simple organizational form?

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A simple organizational structure is cha...

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The purpose of boundaryless forms of organizing is to facilitate the widespread sharing of knowledge and information across internal and external boundaries of the organization.

A) True
B) False

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According to research by Charles O'Reilly and Michael Tushman, what are the four primary ways that companies structure their breakthrough projects?

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Breakthrough projects might be carried out within existing functional organizational structures. The projects were completely integrated into the regular organizational and management structure. Breakthrough projects might be organized as cross-functional teams. The groups operated within the established organization but outside of the existing management structure. Breakthrough projects might be organized as unsupported teams. Here, they became independent units set up outside the established organization and management hierarchy. Breakthrough projects might be conducted within ambidextrous organizations. Here, the breakthrough efforts were organized within structurally independent units, each having its own processes, structures, and cultures. However, they were integrated into the existing senior management structure.

Discuss the basic idea of the modular organizational structure.

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The modular organization outsources non-...

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Which of the following is not a disadvantage of the barrier-free form of organization?


A) Lack of strong leadership can lead to coordination problems.
B) Democratic process can be time-consuming and difficult to manage.
C) Fewer internal barriers means fewer political issues to deal with.
D) If trust among employees is not sufficiently high, organizational performance may suffer.

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

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A strategy of related diversification requires most firms to organize around geographical areas or product lines. This type of organizational growth leads to a(n)


A) divisional structure.
B) functional structure.
C) matrix structure.
D) international structure.

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

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An ambidextrous organization achieves both adaptability and alignment.

A) True
B) False

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Generally speaking, discussions of the relationship between strategy and structure strongly imply that


A) strategy follows structure.
B) structure follows strategy.
C) strategy can effectively be formulated without considering structural elements.
D) structure typically has a very small influence on a firm's strategy.

E) C) and D)
F) A) and D)

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Important advantages of a holding company structure include


A) savings in personnel and overhead expenses associated with a small corporate office.
B) a high level of awareness at the corporate office of issues faced by individual divisions.
C) a high level of control of division executives by executives at the corporate level.
D) gaining synergistic benefits across businesses.

E) A) and D)
F) B) and C)

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If an international firm has a multidomestic strategy and a relatively high level of product diversity, the best choice for its organizational structure is


A) worldwide functional.
B) worldwide product division.
C) worldwide matrix.
D) international division.

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

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C

Organizations are increasingly using teams for many reasons. The difference between a good team and an outstanding team has been found to be


A) the combined technical skills of the members.
B) similarities in the way team members solve problems.
C) the way team members treat each other.
D) similarities in the age and experience of team members.

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

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C

What type of organization is defined as "a central hub surrounded by networks of outside suppliers and specialists"?


A) Matrix
B) Virtual
C) Modular
D) Barrier-free

E) A) and B)
F) C) and D)

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A simple organizational structure may lead to problems such as unclear boundaries of authority and few career advancement options.

A) True
B) False

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All of the following statements about simple organizational structures are , except


A) small firms with a narrow product-market scope will adopt such a structure.
B) decision making authority is highly centralized.
C) there is little specialization of tasks.
D) creativity and individualism are rare.

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

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To enhance integration and control of related product market activities, the functional structure minimizes centralization.

A) True
B) False

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All of the following are disadvantages of a divisional type of organizational structure, except


A) it can be very expensive compared to a functional organizational structure.
B) there is a strong tendency for divisions to focus on short-term performance.
C) there can be dysfunctional competition among divisions.
D) there is separation of strategic and operating control.

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

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Complicated working relationships, intense power struggles, and excessive reliance on group processes are disadvantages of what type of organizational structure?


A) Divisional
B) Matrix
C) Holding company
D) Functional

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

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The phrase that best defines a virtual organization is


A) a dot.com company.
B) a type of modular structure.
C) an organization that uses information technology to integrate different functions.
D) a continually evolving network of independent companies.

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

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When an organization with a simple structure increases its sales revenue and volume of outputs, it is most likely to develop a


A) divisional structure.
B) functional structure.
C) product-market structure.
D) geographic structure.

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

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Which of the following boundaries exist between the functional areas of an organization?


A) Vertical boundaries
B) Horizontal boundaries
C) External boundaries
D) international boundaries

E) C) and D)
F) A) and B)

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