11. In a simple structure, the owner manager usually empowers employees to make decisions and perform tasks because the owner cannot be in charge of everything.

True

False

12. Company Bentley had a simple organizational structure in the past. However, it has recently experienced growth in sales volume although the number of product lines remains limited. The company is looking to do restructuring to support this growth. What would be the most suitable new structure for this company?

a. structure

b. divisional structure

c. functional structure

d. product-market structure

13. Company XYZ is currently preparing for international expansion and it is trying to determine the most appropriate organizational structure to accommodate this new expansion. Which of the following is an aspect they should consider in making the decision?

a. their relations with the local government officials

b. their history in each country

c. their strategy for international markets (global, multidomestic, or transnational)

d. the brand recognition in each local market

14. Company Rosa is a large, established company that is looking for an organizational structure that can promote synergy through sharing core competencies between the numerous divisions with similar products. Which organizational structure would be the most appropriate?

a. holding company structure

b. virtual organizational structure

c. functional structure

d. strategic business unit structure

15. Modular companies can achieve "best in class" performance for each activity in the value chain through outsourcing nonvital functions.

True

False

16. Organizational structure provides guidelines for the formalized pattern of interactions. Which of the following is NOT an element that is affected by this pattern/structure?

a. tasks

b. strategies

c. technologies

d. people

17. Which of the following can cause companies to adopt strategic business unit (SBU) or holding company structure?

a. organizational flattening

b. diversification

c. downsizing

d. vertical integration

18. Generally speaking, strategy follows structure.

True

False

19. Which of the following is TRUE about ambidextrous organizations?

a. They prioritize immediate improvement in market performance.

b. They are more focused on the future than the present

c. They often end up losing focus in their innovation.

d. They establish project teams that are structurally independent units.

20. Which of the following is TRUE about a virtual organization?

a. It is a continually evolving network of independent companies.

b. It is a type of modular structure.

c. It is an organization where the organization works without external partners.

d. It is a dot-com company.

21. Which of the following statements about leadership is FALSE?

a. Leaders support the status quo and seek control mechanisms to maintain it.

b. Leadership is the process of transforming organizations from what they are to what the leader would have them become.

c. Leadership is focused on the creation and implementation of a creative vision.

d. Effective implementation of strategy is essential for successful leadership

22. There are three core areas that effective leaders need to be engaged in. Which one of the following is NOT one of those areas?

a. dedication to maintaining the status quo

b. nurturing a culture dedicated to excellence and ethical behavior

c. designing the organization

d. determining a direction

.23. Which of the following is NOT a symptom of a political barrier that a leader may face when trying to bring organizational change?

a. conflicts between departments and divisions

b. conflicts over resources

c. a bureaucratic structure

d. refusal to share information

24. Which type of organizational structure has the disadvantages of complicated working relationships, confusion created due to dual reporting relationships, and intense power struggles?

a. matrix structure

b. functional structure

c. holding company structure

d. simple structure

25. The CEO renews the systems in the company in order to streamline the vertical reporting process as well as the horizontal communication process across departments. This is an example of

a. designing the organization.

b. creating a culture of excellence.

c. setting a direction.

d. building a learning organization.