You have learned about the traditional and new design options for organizational structures. You have decided that one of the designs developed during the last decade or two is probably the most appropriate for your newly formed organization.

57) You have recently started your business with a small capital investment. Your business needs a very high degree of flexibility so that you can quickly respond to environmental changes and you are also interested in minimizing costs. Which of the following types of organizations is best suitable for your business?

A) a highly centralized organization

B) a virtual organization

C) a formalized organization

D) a bureaucracy

E) a hierarchical organization

58) You decide to eliminate horizontal, vertical, and external barriers within your organization. You want to operate as a ________ organization.

A) matrix

B) formalized

C) team structure

D) boundaryless

E) centralized

59) Which of the following is a method that companies can use to break down cultural barriers in the global market?

A) increase the degree of formalization

B) use only organic structures

C) increase the degree of centralization

D) limit global expansion

E) form strategic alliances

60) ________ is a systematic effort to make an organization leaner by selling off business units, closing locations, or reducing staff.

A) Removing boundaries

B) Departmentalizing

C) Decentralizing

D) Downsizing

E) Formalizing

61) A(n) ________ model is generally synonymous with the bureaucracy in that it has highly standardized processes for work, high formalization, and more managerial hierarchy.

A) mechanistic

B) organic

C) network

D) boundaryless

E) pyramidal

62) A(n) ________ model is a structure that is flat, uses cross-hierarchical and cross-functional teams, has low formalization, possesses a comprehensive information network, and relies on participative decision making.

A) mechanistic

B) organic

C) boundaryless

D) network

E) pyramidal

63) Which of the following is typically a characteristic of an organic model of organization?

A) narrow spans of control

B) centralization

C) free flow of information

D) high formalization

E) inflexibility

64) Which of the following is typically a characteristic of the mechanistic model of organization?

A) low formalization

B) rigid departmentalization

C) decentralized management

D) wide spans of control

E) low specialization

65) A(n) ________ strategy emphasizes the introduction of major new products and services.

A) innovation

B) cost-minimization

C) imitation

D) organic

E) mechanistic

66) Organizations following a(n) ________ strategy try to both minimize risk and maximize opportunity for profit, moving into new products or new markets only after innovators have proven their viability.

A) innovation

B) cost-cutting

C) imitation

D) organic

E) mechanistic