MGT 103 - CHAP 6 EXAM QUESTIONS WITH VERIFIED SOLUTIONS LATEST UPDATE 2026

MGT 103 - CHAP 6 EXAM QUESTIONS WITH VERIFIED SOLUTIONS LATEST UPDATE 2026 The matrix design results from a strategy of _____. an H-form design a multiple command structure related diversification unrelated diversification - Answers a multiple command structure Which of the following is an advantage of the matrix design? Groups take longer to make decisions and may be dominated by one individual. Employees may be uncertain about reporting relationships. Some managers see the matrix design as a form of anarchy. A matrix design functions well when large amounts of information need to be processed. - Answers A matrix design functions well when large amounts of information need to be processed. James is the human resource manager at a large bottle manufacturing company. Ten years ago, when the business moved to its current location, the company structured operations around the different functions performed throughout the company. To enhance the speed and effectiveness of decision-making, James is now restructuring company activities around its three major product lines. James is designing a(n) _____ organizational structure. X-form H-form M-form U-form - Answers M-form When Lawrence opened his accounting firm, he faced a great deal of uncertainty. Over the years, Lawrence developed a specialization in auditing and his business environment stabilized. Lawrence's firm is now the largest of its kind in the state of Nebraska. At what stage in the organizational life cycle is Lawrence's accounting firm? Maturity Youth Midlife Birth - Answers Maturity The functional design, which is based on the functional approach to departmentalization, is also called the _____ design. X-form H-form M-form U-form - Answers U-form The conglomerate design used by an organization made up of a set of unrelated businesses is also called the _____ design. X-form H-form M-form U-form - Answers H-form _____ is a clear and distinct line of authority among the positions in an organization. Departmentalization Authority Delegation Chain of command - Answers Chain of command The divisional design results from a strategy of _____. an H-form design a multiple command structure related diversification unrelated diversification - Answers related diversification What type of design is essentially a holding company that results from unrelated diversification? matrix functional divisional conglomerate - Answers conglomerate Mechanistic and organizational design are both aspects of what basic situational factor? organizational life cycle environment size technology - Answers organizational life cycle James is the human resource manager at a large bottle manufacturing company. Ten years ago, when the business moved to its current location, the company structured operations around the different functions performed throughout the company. To enhance the speed and effectiveness of decision-making, James is now restructuring company activities around its three major product lines. James is undertaking the process of grouping jobs known as _____. delegation centralization departmentalization decentralization - Answers departmentalization Delta Destinations is an international business operating in over 20 countries. It began as a regional hotel chain and then expanded into travel and vacation planning services. Delta Destinations is a highly adaptable organization, with little or no formal structure. The company is able to respond to continually evolving customer expectations by using temporary workers, outsourcing, and leasing facilities when needed. Delta Destinations uses a _____ organization to maximize the company's ability to adapt to its changing environment. functional learning team virtual - Answers virtual The divisional design, which is based on multiple businesses in related areas operating within a larger organizational framework, is also called the _____ design. X-form H-form M-form U-form - Answers M-form What organization design is characterized by units splitting into smaller units if they become too large? functional learning team virtual - Answers team What organization design is characterized by a very small staff and administrative headquarters facility? functional learning team virtual - Answers virtual Span of management is the number of managers in top management. hierarchical layers in a firm. people who report to a particular manager. managers in an organization. - Answers people who report to a particular manager. According to Weber, the bureaucratic form of organization is logical, rational, and efficient personal, rational, and flexible personal, flexible, and efficient logical, personal, and flexible - Answers logical, rational, and efficient When Lawrence opened his accounting firm with his wife Laura, it was just both of them. Over the years, Lawrence gained expertise and a reputation in the area of auditing, while Laura handled administrative tasks for him. Lawrence's firm is now the largest of its kind in the state of Nebraska, but unmanaged growth has led to massive inefficiencies and disorganization. Lawrence has decided he needs a legitimate and formal system of authority at his firm. The type of organizational model Lawrence needs to establish for his firm is a(n) _____. decentralization bureaucracy sequential interdependence delegation - Answers bureaucracy Sandra is the warehouse manager at a bottling company. Employees are on a four-week schedule during which each employee spends one week loading trucks, unloading trucks, verifying invoices, and pulling inventory from storage. Sandra is using the job _____ approach to job design. centralization rotation enrichment specialization - Answers rotation A bureaucracy is a model of organizational design based on units operating with little interaction. the output of one unit becoming the input for another. a legitimate and formal system of authority. activities flowing both ways between units. - Answers a legitimate and formal system of authority. What type of organization uses rules, specialized jobs, and centralized authority to structure activities in predictable ways? situational mechanistic continuous-process organic - Answers mechanistic When Lawrence opened his accounting firm with his wife Laura, it was just both of them. Over the years, Lawrence gained expertise and a reputation in the area of auditing, while Laura handled administrative tasks for him. Lawrence's firm is now the largest of its kind in the state of Nebraska, but unmanaged growth has led to massive inefficiencies and disorganization. Lawrence has decided he needs a legitimate and formal system of authority at his firm. Which of the following is an advantage of adopting a bureaucratic organizational approach? Close social ties between managers and their subordinates Advancement based on length of employment Prevention of favoritism Flexibility to make rule changes - Answers Prevention of favoritism AgriCorp takes corn and transforms it into corn syrup, corn oil, and ethanol. This company uses _____ technology. continuous-process mass-production small-batch unit - Answers continuous-process When Lawrence opened his accounting firm with his wife Laura, it was just both of them. Over the years, Lawrence gained expertise and a reputation in the area of auditing, while Laura handled administrative tasks for him. Lawrence's firm is now the largest of its kind in the state of Nebraska, but unmanaged growth has led to massive inefficiencies and disorganization. Lawrence plans to institute a legitimate and formal system of authority to address these issues. With the new organizational design, which of the following steps is the best way for Lawrence to improve the efficiency of his firm? He should promote flexibility in guidelines. He should seek one best way of doing things. He should encourage social interactions between managers and subordinates. He should encourage autonomous practices. - Answers He should seek one best way of doing things. What organization design is characterized by a temporary workforce with people entering and leaving as needed? functional learning team virtual - Answers virtual Delta Destinations is an international business operating in over 20 countries. It began as a regional hotel chain and then expanded into travel and vacation planning services. Delta Destinations' functional employees are continually transforming the way they work within their departments to respond to evolving customer expectations. The company evaluates employees on their demonstrated ability for continuously improved performance. Delta Destinations uses a _____ organization to maximize the company's ability to adapt to its changing environment. functional learning team virtual - Answers learning Sandra is the warehouse manager at a bottling company. She tries to assign her employees new and challenging tasks as often as practical to enhance their opportunities for growth and enhancement. Sandra is using the job _____ approach to job design. centralization rotation enrichment specialization - Answers enrichment _____ is the process of systematically retaining power and authority in the hands of higher-level management. Pooled interdependence Centralization Coordination Decentralization - Answers Centralization Job _____ is an alternative to job specialization that increases the total number of tasks workers perform without increasing worker control over the job in an attempt to reduce the level of job dissatisfaction. characteristics enlargement rotation enrichment - Answers enlargement Which of the following is a characteristic of organic organizations? Specialized jobs Stable environments Centralized authority High fluidity - Answers High fluidity Because speed is of the essence at Acme Manufacturing, the plant manager wants to use a job design approach that allows workers to become very proficient at each task, that reduces transfer time between tasks, and that makes it easy for someone else to step in when a worker is absent or resigns. Job _____ would provide these benefits to Acme. enlargement rotation enrichment specialization - Answers specialization According to the five basic characteristics of an ideal bureaucracy, why should the organization develop a consistent set of rules? to protect employees from arbitrary dismissal to maintain an appropriate social distance between managers and subordinates to ensure that each position is filled by an expert to ensure that task performance is uniform - Answers to ensure that task performance is uniform The second stage of the organizational life cycle is: followed immediately by the stage of maturity. characterized by the growth of a firm's resources. a period of gradual growth evolving into stability. a period of stability, eventually evolving into decline. - Answers characterized by the growth of a firm's resources. Organic organizations are