MBA 705 Minsun Kim Exam 4 Test
Questions Well Answered 2026.
Organizational Structure - Answer refers to the formal means by which work is coordinated in
an organization. The structure exists to provide control and coordination for the organization
Simple structure - Answer a form of organization in which in a new business, each employee
often performs multiple tasks and the owner/manager is involved in all aspects of the business
Vertical Growth - Answer refers to an increase in the length of the organization's hierarchy
(i.e. levels of management)
Span of Control - Answer the number of employees reporting to each manager
Tall organization - Answer compromised of many hierarchical levels and narrow spans of
control-- a tall organization tends to be best suited for a stable environment
Advantage: more effective communication and less difficulty in planning
Flat Organization - Answer has few levels in its hierarchy and a wide span of control from top
to bottom
Advantage: lower administrative costs and increased authority for managers
Centralization - Answer most strategic and operating decisions are made by managers at the
top of the organization structure
Decentralization - Answer most strategic and operating decisions are made by managers at
lower levels of the organization
Horizontal Growth - Answer an increase in the breadth of an organization's structure
Downsizing - Answer occurs when one or more hierarchical levels- typically middle managers
- is eliminated
Four Options for Structural Forms - Answer 1. Functional Structure
2. Product Divisional Structure
3. Geographic Divisional Structure
4. Matrix structure
, (product and geographic divisional structures are also called multidivisional or M-form
structures)
Functional Structure - Answer - each subunit of the organization engages in firm-wide
activities related to a particular function, such as marketing, HR, finance, or production
-common to new organizations
-emphasizes specialization (Groups specialists)
-fosters development of economies of scale
-addresses quality concerns well
-the most centralized structure
Product Divisional Structure - Answer -divides the organization's activities into self-contained
entities, each responsible for producing, distributing, and selling its own products
-focus on products, the "real source" or success for the firm
-pinpointing the responsibility for profits or losses is also easier because each product division
becomes a profit center - a well-defined organizational unit headed by a manager accountable
for its revenues and expenditures
- i.e. Samsung has a TV division, smart phone division, home appliance division
Geographic Divisional Structure - Answer -activities and personnel are grouped by specific
geographic locations
-useful when two or more divisions can be dissected easily along geographical lines
-attractive when there are substantial differences in various geographical regions
-i.e. Board of Directors, with Northern, Eastern and Southern Divisions
Matrix Structure - Answer - a combination of the functional and product divisional structures
-members have "two (or more) bosses", one for the functional area and one more for the
project area(s)
-attractive when the organization faces a high degree of technological change, but it can be
confusing and complex
-the most flexible structure
Assessing Organizational Structure - Answer -functional, product divisional, geographic
divisional, and matrix structures are pure forms. In reality, they are often combined to create an
approach uniquely tailored to the strategic needs of the firm
Questions Well Answered 2026.
Organizational Structure - Answer refers to the formal means by which work is coordinated in
an organization. The structure exists to provide control and coordination for the organization
Simple structure - Answer a form of organization in which in a new business, each employee
often performs multiple tasks and the owner/manager is involved in all aspects of the business
Vertical Growth - Answer refers to an increase in the length of the organization's hierarchy
(i.e. levels of management)
Span of Control - Answer the number of employees reporting to each manager
Tall organization - Answer compromised of many hierarchical levels and narrow spans of
control-- a tall organization tends to be best suited for a stable environment
Advantage: more effective communication and less difficulty in planning
Flat Organization - Answer has few levels in its hierarchy and a wide span of control from top
to bottom
Advantage: lower administrative costs and increased authority for managers
Centralization - Answer most strategic and operating decisions are made by managers at the
top of the organization structure
Decentralization - Answer most strategic and operating decisions are made by managers at
lower levels of the organization
Horizontal Growth - Answer an increase in the breadth of an organization's structure
Downsizing - Answer occurs when one or more hierarchical levels- typically middle managers
- is eliminated
Four Options for Structural Forms - Answer 1. Functional Structure
2. Product Divisional Structure
3. Geographic Divisional Structure
4. Matrix structure
, (product and geographic divisional structures are also called multidivisional or M-form
structures)
Functional Structure - Answer - each subunit of the organization engages in firm-wide
activities related to a particular function, such as marketing, HR, finance, or production
-common to new organizations
-emphasizes specialization (Groups specialists)
-fosters development of economies of scale
-addresses quality concerns well
-the most centralized structure
Product Divisional Structure - Answer -divides the organization's activities into self-contained
entities, each responsible for producing, distributing, and selling its own products
-focus on products, the "real source" or success for the firm
-pinpointing the responsibility for profits or losses is also easier because each product division
becomes a profit center - a well-defined organizational unit headed by a manager accountable
for its revenues and expenditures
- i.e. Samsung has a TV division, smart phone division, home appliance division
Geographic Divisional Structure - Answer -activities and personnel are grouped by specific
geographic locations
-useful when two or more divisions can be dissected easily along geographical lines
-attractive when there are substantial differences in various geographical regions
-i.e. Board of Directors, with Northern, Eastern and Southern Divisions
Matrix Structure - Answer - a combination of the functional and product divisional structures
-members have "two (or more) bosses", one for the functional area and one more for the
project area(s)
-attractive when the organization faces a high degree of technological change, but it can be
confusing and complex
-the most flexible structure
Assessing Organizational Structure - Answer -functional, product divisional, geographic
divisional, and matrix structures are pure forms. In reality, they are often combined to create an
approach uniquely tailored to the strategic needs of the firm
