Answer the following statements true (T) or false (F)

Question

1. One advantage of decentralized organizations is that procedures are uniform and thus easier to control. 
2. The functional structure is the most typical type for small firms. 
3. An organization with different groupings of people based on its products, customers, or geographic regions has a functional structure. 
4. Ford Motor Co. has what is known as a divisional structure because it has different divisions for passenger car dealers, large trucking customers, and farm products customers.

Answer 1

1. FALSE
An advantage of centralization, rather than decentralization, is that procedures are uniform and thus easier to control; all purchasing, for example, may have to be put out to competitive bids.
2. FALSE
The simple structure is the form for small firms, often found in a firm's very early, entrepreneurial stages, when the organization is apt to reflect the desires and personality of the owner or founder. An organization with a simple structure has authority centralized in a single person, a flat hierarchy, few rules, and low work specialization.
3. FALSE
In a divisional structure, people with diverse occupational specialties are put together in formal groups by similar products, customers or clients, or geographic regions.
4. TRUE
In a divisional structure, people with diverse occupational specialties are put together in formal groups by similar products or services, customers or clients (as in the case of Ford), or geographic regions.