What is a functional structure? a. An organizational structure that has proven to be successful and work correctly for all businesses b. A group of industry experts and experts in other industries that will help guide the business c. A structure that has the owner as a manager who also handles all day-to-day activities d. A chief executive officer and a limited corporate staff, with functional line managers in dominant organizational areas such as production, accounting, marketing, R&D, engineering, and human resources GM, one of the world's largest automobile companies, has a variety of brands. Its brands include Chevrolet, Buick, Cadillac, and GMC, each of which is responsible for its own performance. GM has separate CEOs for specific brands who are responsible for managing their supply chains, marketing, and R&D. Which is most likely GM's structural form? C a. Centralization structure b. Functional structure c. Matrix structure d. Multidivisional structure Danielle is the CEO of her company, and she has been given goals by her board. The goals list specific results for the company to attain. The board wants a 10% increase in revenue and a 6% increase in profit. Danielle knows that if she tells her subordinates the goals, they will not have an organized way to achieve them. What is the logical next step for Danielle? a. To determine sub goals to give employees and divisions b. To hire more managers to monitor the employees' work to ensure they will hit goals c. To focus on achieving only one goal at a time d. To fight against the board, as these numbers are unreasonable A CEO decides that his company needs to become leaner and faster. He decides that there are too many managers and that the company has become top heavy. The CEO lays off 50 employees and forms a new structure that will give the remaining workers much more flexibility. What process has the CEO just executed? a. Layering b. Delayering c. Centralizing d. Creating a tall hierarchy Which of these is not an example of bureaucratic control? a. Employers "checking in" on employees O b. A child's allowance c. Speed limits O d. Minute limitations on cell phone plans Julie feels energized coming to work and loves the work that she is doing. She is comfortable enough with her fellow workers to ask for help, and they are more than happy to oblige. The team even has dinners together every Thursday after work. What aspect of her new company is Julie happy with? C a. Organizational culture b. Incentives c. Organizational structure d. Employee benefits Larry, the operations officer of a manufacturing plant, has been given a goal to increase profits. His goal is to produce more units to drive down costs and lower the price to market. Larry told his team members that if they produced 5,000 more units in Q4, they would be given bonuses. Larry's team produced 7,000 more units in Q4, but sales did not increase in alignment with production, leading to excess inventory and lower profitability of 2%. The team's focus on production and reducing the cost per unit caused them to ignore sales forecasts and over-produce products. What was the underlying cause of Larry missing his goal? a. External factors b. Organizational culture c. Misaligned output controls d. Bureaucratic control Which of these is not an argument for centralization? a. Permitting greater flexibility b. Avoiding duplication of activities c. Facilitating coordination d. Decisions consistent with organizational objectives