MAN 6635 Exam 1 UPDATED
QUESTIONS AND CORRECT ANSWERS
Organizational Structure - CORRECT ANSWER How jobs and tasks are divided and
coordinated between individuals and groups within the company, an outcome of design
Organizational Design - CORRECT ANSWER a process or style used by management to
arrange the components of structure
Functional Structure - CORRECT ANSWER functional departmentalization and high
centralization.
•very efficient
•tend to be inflexible and insensitive to subtle
differences across products, regions, or clients •most appropriate in stable, predictable environments
President --- VP Finance, VP Marketing, VP R&D
Divisional Structure - CORRECT ANSWER workflow departmentalization and low levels of
centralization.
•not very efficient
•tend to be more flexible and innovative
•tend to be sensitive to subtle differences across
products, regions, or clients
Product Structure
President -- VP Electronics (Finance, Marketing R&D) , VP Home furnishings (Finance, Marketing
R&D), VP Automotive (Finance, Marketing R&D)
Client Based Structure
President -- VP Direct Sales (Finance, Marketing R&D) , VP Internet Sales (Finance, Marketing
R&D), VP Large Vendor Contracts (Finance, Marketing R&D)
, Geographic Structure
Assume our company, HRM Suppliers, sells 2 distinct product lines, bombs and baby formula. What
type of structural configuration would be most appropriate, a divisional or functional structure? Why?
- CORRECT ANSWER Functional Structure
What is organizational design impacted by? - CORRECT ANSWER Business Environment
•Consists of customers, competitors, suppliers, distributors, and other factors external to the firm
•Global Presence
Company Strategy
•Low-Cost vs. Product Differentiation
Company Size
•As companies become larger, they need to rely on some combination of specialization,
formalization, and centralization to control activities
Multinational Enterprise Organizational Design Challenges - CORRECT ANSWER Integration;
local responsiveness problem...coordinating and balancing the opposing forces of integrating their
foreign operation
International Organizational Structure - CORRECT ANSWER •Weak pressures for local
responsiveness and weak
pressures for worldwide integration
•Foreign subsidiaries dependent on headquarters for resources and limited direction, but still have
major freedom to adapt to local conditions
Multi-domestic Organizational Structure - CORRECT ANSWER concentrates efforts on
location
•Strong pressures for local responsiveness and weak pressures for worldwide
integration
•Subsidiaries in multiple countries operate independently within each country, independently of
operations in other countries, and often fairly independently of parent company headquarters
QUESTIONS AND CORRECT ANSWERS
Organizational Structure - CORRECT ANSWER How jobs and tasks are divided and
coordinated between individuals and groups within the company, an outcome of design
Organizational Design - CORRECT ANSWER a process or style used by management to
arrange the components of structure
Functional Structure - CORRECT ANSWER functional departmentalization and high
centralization.
•very efficient
•tend to be inflexible and insensitive to subtle
differences across products, regions, or clients •most appropriate in stable, predictable environments
President --- VP Finance, VP Marketing, VP R&D
Divisional Structure - CORRECT ANSWER workflow departmentalization and low levels of
centralization.
•not very efficient
•tend to be more flexible and innovative
•tend to be sensitive to subtle differences across
products, regions, or clients
Product Structure
President -- VP Electronics (Finance, Marketing R&D) , VP Home furnishings (Finance, Marketing
R&D), VP Automotive (Finance, Marketing R&D)
Client Based Structure
President -- VP Direct Sales (Finance, Marketing R&D) , VP Internet Sales (Finance, Marketing
R&D), VP Large Vendor Contracts (Finance, Marketing R&D)
, Geographic Structure
Assume our company, HRM Suppliers, sells 2 distinct product lines, bombs and baby formula. What
type of structural configuration would be most appropriate, a divisional or functional structure? Why?
- CORRECT ANSWER Functional Structure
What is organizational design impacted by? - CORRECT ANSWER Business Environment
•Consists of customers, competitors, suppliers, distributors, and other factors external to the firm
•Global Presence
Company Strategy
•Low-Cost vs. Product Differentiation
Company Size
•As companies become larger, they need to rely on some combination of specialization,
formalization, and centralization to control activities
Multinational Enterprise Organizational Design Challenges - CORRECT ANSWER Integration;
local responsiveness problem...coordinating and balancing the opposing forces of integrating their
foreign operation
International Organizational Structure - CORRECT ANSWER •Weak pressures for local
responsiveness and weak
pressures for worldwide integration
•Foreign subsidiaries dependent on headquarters for resources and limited direction, but still have
major freedom to adapt to local conditions
Multi-domestic Organizational Structure - CORRECT ANSWER concentrates efforts on
location
•Strong pressures for local responsiveness and weak pressures for worldwide
integration
•Subsidiaries in multiple countries operate independently within each country, independently of
operations in other countries, and often fairly independently of parent company headquarters
