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Juan is a top manager at I.F.L., a matrix organization. He oversees both the product and functional chains of command, and is responsible for maintaining a power balance between the two sides of the matrix. Juan is a _____.


A) political leader
B) functional leader
C) divisional leader
D) matrix leader
E) top leader

F) A) and C)
G) A) and B)

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_____ is also referred to as work specialization.


A) Division of labor
B) Unity of command
C) Scalar chain
D) Esprit de corps
E) Virtual network approach

F) A) and B)
G) A) and C)

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Organizations such as Amazon.com, Google, Facebook, and Priceline.com are examples of firms that are based on:


A) digital technology.
B) tangible output.
C) direct contact with customers.
D) mechanistic technology.
E) products rather than services.

F) A) and C)
G) C) and D)

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The modular approach is similar to virtual networking.

A) True
B) False

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List the advantages of the virtual network structure.

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Global competitivene...

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The _____ structure means that the firm subcontracts many of its major functions to separate companies and coordinates their activities from a small headquarters organization.

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The horizontal structure provides traditional control within functional departments, and the vertical structure provides coordination across departments.

A) True
B) False

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Which is an advantage of the divisional structure?


A) Concern for customers' needs is high.
B) There is little duplication of services across divisions.
C) There is good coordination across divisions.
D) Top management retains tight control of the organization.
E) There is no competition for corporate resources.

F) B) and C)
G) B) and D)

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The _____ is the number of employees reporting to a supervisor.

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The functional, _____, and _____ are traditional approaches that rely on the chain of command to define departmental groupings and reporting relationships along the hierarchy.


A) divisional, teams
B) divisional, matrix
C) matrix, teams
D) matrix, networks
E) teams, networks

F) A) and E)
G) B) and D)

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The acceptance theory of authority argues that managers have authority because employees do not have a choice in choosing to accept their commands.

A) True
B) False

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An alternative for assigning divisional responsibility is to group company activities by _____.

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