MGT 4394 Chapter 10,11 Final Exam
and All Correct Answers 2026
Updated.
organizational decisions should support and align with an organization's _____________ to
ensure ethical as well as strategic outcomes - Answer mission, vision and values
Process of splitting up a task into a series of smaller tasks, each of which is performed by a
specialist. In ancient Greece, historian Xenophon wrote about the division of labor in shoe
making: one person - Answer Division of labor
diagram that depicts a firm's structure. - Answer Organizational chart
Unofficial relationships such as friendships that do not appear in organizational charts. - Answer
Informal linkage
Two department heads that build a relationship for better collaboration between their
departments, a mentor relationship, or an experienced staff member taking a new employee
"under their wing" to help them get off to a good start at the company is an example of -
Answer Example of informal linkages
Tie supervisors and subordinates together. These linkages show the lines of responsibility
through which a supervisor delegates authority to subordinates, oversees their activities,
evaluates their performance, and guides them toward improvement - Answer Vertical
linkages
Formal relationships between equals in an organization. They often take the form of committees
and task forces. - Answer Horizontal Linkages
Employees may receive conflicting guidance about how to do their jobs if they work in a
situation where multiple bosses are present. This problem can be avoided by following the unity
of command principle, which states that each person should only report directly to one
supervisor. - Answer Unity of command
An arrangement of individuals based on rank - Answer hierarchy of authority
employees are divided into departments that each handle activities related to a functional area
of the business, such as marketing, production, human resources, information technology, and
customer service. - Answer Functional structure
, Employees are divided into departments based on product areas and/or geographic regions.
General Electric, for example, had six product divisions: Energy, Capital, Home & Business
Solutions, Healthcare, Aviation, and Transportation - Answer Multidivisional structure
hybrid between functional and divisional structures. Complex organizations or firms that engage
in projects of limited duration may use a matrix structure where employees can be put on
different teams to maximize creativity and idea flow - Answer Matrix structure
Flat, with decentralized decision making and the use of many cross-functional teams. This
structure works well in knowledge industries such as IT, where responsiveness to changing
environmental and competitive forces must be quick. - Answer Boundaryless structure
Grocery stockers often work at night to make sure shelves stay full during the day, Bakers wake
up early to give shoppers their daily bread. are examples of - Answer example of functional
structure
The advantages of a functional structure is - Answer Create highly skilled specialists, grouping
everyone that serves a particular function into one department tends to keep costs low and to
create efficiency
all the people in a particular department share the same background training, they tend to get
along with one another. In other words, conflicts within departments are more rare.
The disadvantages of functional structures ate - Answer executing strategic changes can be
very slow when compared with other structures
The advantages of a multi-divisional structure - Answer allows a firm to act quickly
An example of a multi-divisional structured company is - Answer General Electric
The disadvantages of multi-divisional structure is - Answer More costly to operate than
functional structures
Employees could take actions that do not fit with the company's overall strategy
The advantages of a matrix structure is - Answer maximizing the organization's flexibility
enhancing communication across functional lines
and All Correct Answers 2026
Updated.
organizational decisions should support and align with an organization's _____________ to
ensure ethical as well as strategic outcomes - Answer mission, vision and values
Process of splitting up a task into a series of smaller tasks, each of which is performed by a
specialist. In ancient Greece, historian Xenophon wrote about the division of labor in shoe
making: one person - Answer Division of labor
diagram that depicts a firm's structure. - Answer Organizational chart
Unofficial relationships such as friendships that do not appear in organizational charts. - Answer
Informal linkage
Two department heads that build a relationship for better collaboration between their
departments, a mentor relationship, or an experienced staff member taking a new employee
"under their wing" to help them get off to a good start at the company is an example of -
Answer Example of informal linkages
Tie supervisors and subordinates together. These linkages show the lines of responsibility
through which a supervisor delegates authority to subordinates, oversees their activities,
evaluates their performance, and guides them toward improvement - Answer Vertical
linkages
Formal relationships between equals in an organization. They often take the form of committees
and task forces. - Answer Horizontal Linkages
Employees may receive conflicting guidance about how to do their jobs if they work in a
situation where multiple bosses are present. This problem can be avoided by following the unity
of command principle, which states that each person should only report directly to one
supervisor. - Answer Unity of command
An arrangement of individuals based on rank - Answer hierarchy of authority
employees are divided into departments that each handle activities related to a functional area
of the business, such as marketing, production, human resources, information technology, and
customer service. - Answer Functional structure
, Employees are divided into departments based on product areas and/or geographic regions.
General Electric, for example, had six product divisions: Energy, Capital, Home & Business
Solutions, Healthcare, Aviation, and Transportation - Answer Multidivisional structure
hybrid between functional and divisional structures. Complex organizations or firms that engage
in projects of limited duration may use a matrix structure where employees can be put on
different teams to maximize creativity and idea flow - Answer Matrix structure
Flat, with decentralized decision making and the use of many cross-functional teams. This
structure works well in knowledge industries such as IT, where responsiveness to changing
environmental and competitive forces must be quick. - Answer Boundaryless structure
Grocery stockers often work at night to make sure shelves stay full during the day, Bakers wake
up early to give shoppers their daily bread. are examples of - Answer example of functional
structure
The advantages of a functional structure is - Answer Create highly skilled specialists, grouping
everyone that serves a particular function into one department tends to keep costs low and to
create efficiency
all the people in a particular department share the same background training, they tend to get
along with one another. In other words, conflicts within departments are more rare.
The disadvantages of functional structures ate - Answer executing strategic changes can be
very slow when compared with other structures
The advantages of a multi-divisional structure - Answer allows a firm to act quickly
An example of a multi-divisional structured company is - Answer General Electric
The disadvantages of multi-divisional structure is - Answer More costly to operate than
functional structures
Employees could take actions that do not fit with the company's overall strategy
The advantages of a matrix structure is - Answer maximizing the organization's flexibility
enhancing communication across functional lines
