72. 

 

A disadvantage of centralization is that ________. 

 

A) 

 

the extent of standardization is reduced within the organization 

B) 

 

coordination becomes difficult to achieve within the organization 

C) 

 

the top managers have little time for long-term strategic decision-making 

D) 

 

the organization tends to lose its focus on achieving its goals 

 

 

  

73. 

 

An advantage of decentralization is that it ________. 

 

A) 

 

simplifies the coordination process within an organization 

B) 

 

ensures formalization of procedures and policies within an organization 

C) 

 

keeps the organization focused on achieving its goals 

D) 

 

promotes flexibility and responsiveness within an organization 

 

84. 

 

An increase in the horizontal differentiation leads to an increase in the vertical differentiation.  

 

True 

 

False 

 

 

88. 

 

Which of the following statements is true regarding organizational structure? 

 

A) 

 

Most organizations have the same number of managers at all levels in the organization. 

B) 

 

As the number of hierarchical levels increases, the number of communication problems decreases. 

C) 

 

Most organizations have a pyramid-like structure and fewer and fewer managers at each level up in the hierarchy. 

D) 

 

As the number of levels in the hierarchy increases, the relative difference in the authority possessed by managers at each level increases. 

 

96. 

 

Which of the following statements is true according to Weber's principles of bureaucratic structure?  

 

A) 

 

Classroom training should be given to all the employees to improve their theoretical knowledge.  

B) 

 

A role's task responsibility and decision-making authority should be clearly specified. 

C) 

 

In a stable environment, an organization should use a centralized organizational structure with narrow spans of control. 

D) 

 

A 360 degrees appraisal should be conducted for all the employees at least twice a year. 

 

99. 

 

Weber's principles can help a CEO with his or her responsibility for ________. 

 

A) 

 

determining the goals of an organization 

B) 

 

allocating resources to divisions 

C) 

 

selecting the top-management team 

D) 

 

designing the organizational hierarchy 

 

 

107. 

 

A(n) ________ structure has functions grouped together according to the specific demands of products, markets, or customers.  

 

A) 

 

differentiated 

B) 

 

concurrent 

C) 

 

functional  

D) 

 

divisional  

 

108. 

 

A ________ structure is commonly used by food processors, furniture makers, and companies that make personal care products, paper products, or other products that are broadly similar and use the same set of support functions. 

 

A) 

 

multidivisional 

B) 

 

product team 

C) 

 

market 

D) 

 

product division 

 

 

109. 

 

Which of the following structures is most likely to be selected by an organization whose products are very complex technologically or whose characteristics change rapidly to suit changing customer needs? 

 

A) 

 

geographic divisional structure 

B) 

 

functional structure 

C) 

 

multidivisional structure 

D) 

 

product team structure 

 

113. 

 

As compared to other organizational structures, an advantage of a multidivisional structure is that ________. 

 

A) 

 

it is the least expensive to operate 

B) 

 

the communication problems are least likely to occur in a multidivisional structure 

C) 

 

the division of labor increases organizational effectiveness 

D) 

 

the duplication of organizational activities is avoided 

 

 

114.. 

 

Which of the following organizational structures is the most decentralized? 

 

A) 

 

product division structure 

B) 

 

product team structure 

C) 

 

transactional structure 

D) 

 

functional structure 

 

119. 

 

Which of the following statements is true regarding a network organization?  

 

A) 

 

An organization using a network structure experiences high beureaucratic costs. 

B) 

 

The organizations that use network structures have the tallest hierarchies.  

C) 

 

A network structure is characterized by high production costs.  

D) 

 

A network structure allows an organization to act in an organic way.  

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