MGM101 Chapter 9 Review Exam
Questions and 100% Verified Answers
What is organizational structure? - ANSWER The specification of the jobs to be done within a
business and how those jobs relate to one another
What factors influence organizational structure? - ANSWER The organization's purpose, mission,
and strategy
What are organization charts? - ANSWER A physical depiction of the company's structure
showing employee titles and their relationship to one another
What is chain of command? - ANSWER A reporting relationship within the company
What are the first steps of developing the structure of any business? - ANSWER 1. Specialization
2. Departmentalization
3. Establishment of a Decision-Making Hierarchy
What is job specialization? - ANSWER The process of identifying the specific jobs that need to be
done and designating the people who will perform them
What is departmentalization? - ANSWER The process of grouping specialized jobs into logical
units
What is a profit center? - ANSWER A separate unit responsible for its own costs and profits
What is functional departmentalization? - ANSWER Organizing departments according to the
function they perform
What is product departmentalization? - ANSWER Dividing an organization according to the
specific product or service being created
What is customer departmentalization? - ANSWER Setting up departments or divisions that
focus on meeting the needs of specific customers
What is process departmentalization? - ANSWER Dividing the company according to the
production process used
Questions and 100% Verified Answers
What is organizational structure? - ANSWER The specification of the jobs to be done within a
business and how those jobs relate to one another
What factors influence organizational structure? - ANSWER The organization's purpose, mission,
and strategy
What are organization charts? - ANSWER A physical depiction of the company's structure
showing employee titles and their relationship to one another
What is chain of command? - ANSWER A reporting relationship within the company
What are the first steps of developing the structure of any business? - ANSWER 1. Specialization
2. Departmentalization
3. Establishment of a Decision-Making Hierarchy
What is job specialization? - ANSWER The process of identifying the specific jobs that need to be
done and designating the people who will perform them
What is departmentalization? - ANSWER The process of grouping specialized jobs into logical
units
What is a profit center? - ANSWER A separate unit responsible for its own costs and profits
What is functional departmentalization? - ANSWER Organizing departments according to the
function they perform
What is product departmentalization? - ANSWER Dividing an organization according to the
specific product or service being created
What is customer departmentalization? - ANSWER Setting up departments or divisions that
focus on meeting the needs of specific customers
What is process departmentalization? - ANSWER Dividing the company according to the
production process used
