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QUESTION 31 The simplest integrating mechanism is to establish direct contact be

ID: 463850 • Letter: Q

Question

QUESTION 31

The simplest integrating mechanism is to establish direct contact between people in different subunits.

True

False

1 points   

QUESTION 32

A divisional structure is a design that groups people into separate functions or departments because they share common skills and expertise because they make use of the same resources.

True

False

1 points   

QUESTION 33

Functional structure is the foundation of horizontal differentiation.

True

False

1 points   

QUESTION 34

Functional structure provides people with the opportunity to learn from one another and become more specialized and productive.

True

False

1 points   

QUESTION 35

As an organization with a functional structure grows, the cost of each function's contribution to the development of each product becomes increasingly simple to measure.

True

False

Explanation / Answer

31. Ans.: False.

The simplest integrating mechanism is the “hierarchy of authority”, where a chain of command is established. Direct contact or face to face interaction is also an integrating mechanism, where people from different subunits can contact whenever needed.   

32. Ans.: False

In a divisional structure, functions are grouped together based on the demands of specific products, customers or markets.

33. Ans.: True

Functional structure does form the foundation of horizontal differentiation, as horizontal differentiation of activities occurs when the organization is divided into functional departments within the organization.

34. Ans.: True

Functional structure forms, when people with similar skills set and interests are grouped together to perform unified tasks. Hence they get the opportunity to learn from the others in their functional group, and hence increase their specialization and improve their productivity.

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