Chapter 8

This activity contains 23 questions

Functional Structures are based on :

A) The primary activities of an organisation such as production,

finance and marketing.
B) Business Units
C) Geographic divisions
D) Product divisions

Multidivisional Structures are based on 'units', which are

organised by product or service, or by geographical areas
or processes. Which of the following could be classified as
a disadvantage of this type of structure?
A) Divestment or addition of units
B) General management development
C) Additional cost of the centre, duplication at divisional level,
additional costs of the centre and fragmentation/non-cooperation
D) Concentration on business area

A 'Holding Company' structure can be defined as:

A) One which is holding control over product or market divisions

B) One which is an investment company consisting of shareholdings
in separate businesses
C) One which is holding control based on portfolio management
principles
D) One that is managed by a group of managers who are
shareholders.

For matrix structures to operate effectively they should:

A) Provide for collaboration between senior managers across the

matrix
B) Have mechanisms for dealing with deadlock situations
C) Ensure matching of individuals with separate divisions to provide
a degree of ownership
D) All of these

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Project-based structures are a special form of the

following structure:
A) Multi-divisional
B) Functional
C) Matrix
D) Team-based

Examples of network organisations are:

A) A one-stop-shop
B) A teleworking organisation and federations of experts
C) A service network
D) All of these

A transnational structure seeks to:

A) Manage international business in an efficient way.

B) Ensure local responsiveness
C) Coordinate global business
D) Combine the local responsiveness with global coordination

There are six types of control processes

A) Direct supervision, planning processes, cultural processes, self-

control, performance targeting and internal markets
B) Direct supervision, staff appraisal, reward and recognition
programmes, cultural processes, self-control and performance
targeting
C) Statistical process control, quality control, quality assurance,
benchmarking, measurement against targets and business process
mapping
D) Direct supervision, planning processes, cultural processes, self-
control, benchmarking and internal markets

Control through direct supervision is common in:

A) Periods of stability
B) Innovative organisations
C) All organisations in a period of change
D) Small organisations

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Balanced scorecards are a means of control through:

A) Performance targets
B) Portfolio management
C) Qualitative measures
D) Quantitative measures

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Market processes as control processes involve:

A) A formalised system of contracting for resources

B) A system for the allocation of resources
C) Using real market forces in the allocation of resources
D) Outsourcing of activities

Social/cultural processes are concerned with the:

A) Standardisation of outputs
B) Standardisation of norms
C) Standardisation of processes
D) Standardisation of skills and behaviours

Self-control achieves knowledge integration and co-

ordination through:
A) Individuals behaving properly
B) The direct supervision of individuals
C) Individuals interacting without supervision
D) Individuals deciding strategy

The emphasis of performance targeting is on:

A) Direct control of inputs

B) Indirect control of inputs
C) Direct control of outputs
D) Indirect control of outputs

The main reasons for devolution of decision making are……

A) to increase responsiveness to the changing needs of different

customer segments
B) To place decision making authority close to the action in fast-
moving markets rather than force decisions up through slow and
remote hierarchies
C) Where knowledge diffused throughout the organisation and top
managers are too remote from the sharp-end to understand the
company's resources and opportunities
D) All of these

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A 'strategic planning' style has key features of:

A) Allowing divisions/departments to manage their own affairs with

minimal involvement from the centre
B) Some involvement in managing divisions/departments but also
allows for some devolved strategic decision making
C) Providing centralised services but allowing the
divisions/departments to contribute strategically to the plan
D) Not allowing the divisions/departments to contribute
strategically, preferring to see them as 'agencies' to carry out the
strategic plan

Adopting a 'Financial Control' approach from the corporate

centre involves:
A) Complete devolution of strategic issues but retention of major
financial controls
B) Providing financial devolution but retaining strategic planning
principles
C) Retaining financial control and strategic planning principles
D) Complete devolution of both financial and strategic issues

The 'Strategic Control' approach is characterised by:

A) Agreement between the centre and divisions within central

guidelines
B) Retention of strategic and financial controls in a top-down
approach
C) Complete devolution of strategic and financial controls
D) Complete devolution of strategic controls but retention of
financial controls.

Examples of methods by which organisations relate

externally include:
A) Outsourcing, strategic alliances, subsidiaries and networks
B) Outsourcing, subsidiaries, networks and production facilities
C) Outsourcing, subsidiaries, networks and virtual organisations
D) Outsourcing, networks, virtual organisations and strategic
alliances

Mintzberg's six pure configurational stereotypes are:

A) Simple, transnational, functional, multidivisional, holding

company and matrix
B) Team based, transnational, functional, multidivisional, holding
company and matrix
C) Simple, machine bureaucracy, professional bureaucracy,
divisionalised, adhocracy and missionary
D) Machine bureaucracy, professional bureaucracy, divisionalised,
adhocracy, matrix and missionary

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The configuration described as a 'professional

bureaucracy' can be characterised as……..
A) Operating in a simple or static environment where the
organisation is large and represented by a high degree of
regulation being technocratic in nature
B) Operating in a simple or static environment where middle line
management are in control in a large organisation with clearly
divisible tasks
C) Complex and static with simple systems driven by a high degree
of standardisation controlled by professionals
D) Complex and dynamic representing innovation and change
through organic processes with a high degree of interaction
between management and the operating core.

Transnational corporations are characterised by:

A) Low global co-ordination and high local independence and

responsiveness
B) Low global co-ordination and low local independence and
responsiveness
C) High global coordination and low local independence and
responsiveness
D) High global co-ordination and high local independence and
responsiveness

Transnational corporations are required to simultaneously

achieve local responsiveness and global coordination. For
this to work, global managers need to:
A) Cross national and functional boundaries whilst also being
sensitive to local needs
B) Ensure global innovation and learning
C) Spot talent and foster innovation
D) All of these

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