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

Question

1. If a marketing person reports to both the vice president of marketing and also to the project manager for the Ford Mustang, she works in a network organization. 
2. A functionally organized company can also use cross-functional teams to work on particular problems. 
3. A hollow structure is often called a network structure. 
4. Bombardier builds eight-passenger business jets from 12 separately sourced portions which can be put together in four days. This firm has a modular organizational structure. 

Answer 1

1. FALSE
In a matrix structure, an organization combines functional and divisional chains of command in a grid so that there are two command structures: vertical and horizontal. Thus, a marketing person might report to both the vice president of marketing and to the project manager for the Ford Mustang.
2. TRUE
When managers from different functional divisions are brought together in cross-functional teams to solve particular problems, the barriers between the divisions break down. The focus on narrow divisional interests yields to a common interest in solving the problems that brought them together.
3. TRUE
In the hollow structure, often called the network structure, the organization has a central core of key functions and outsources other functions to vendors who can do them cheaper or faster.
4. TRUE
In a modular structure, a firm assembles product chunks, or modules, provided by outside contractors. Bombardier builds jets from modules made throughout the world and thus has a modular organization structure.