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

Question

1. Fine Oil uses an organizational structure that includes both functional divisions (such as marketing and HR) and a divisional chain of command (such as the chemical and petroleum products divisions). For example, Glen, a salesperson for Fine Oil, reports to both the marketing manager and the petroleum products manager as he starts to develop the Shell Oil account. Fine Oil uses a matrix structure.
2. While figuring out how to save money for a bride who is having financial problems, Paula, the catering manager of Oh Happy Day, asked her assistant, "What do you think is the best menu to offer under these particular circumstances? How can we offer the bride and groom's guests a great meal within their budget?" Paula and her assistant are using the contingency approach.
3. Lena works as an order-taker at Fast Burger, a fast-food restaurant. She does not cook food, or even package the final order, but she does input the order and takes payment. Lena reports directly to the shift manager, and she seldom interacts with the general manager. Fast Burger is an example of a mechanistic organization.
4. The marketplace is becoming less homogeneous and moving toward more niche products.

Answer 1

1. TRUE
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.
2. TRUE
The process of fitting the organization to its environment is called contingency design. The manager following the contingency approach simply asks, "What method is the best to use under these particular circumstances?"
3. TRUE
In a mechanistic organization, authority is centralized, tasks and rules are clearly specified, and employees are closely supervised. Mechanistic organizations, then, are bureaucratic, with rigid rules and top-down communication. Fast Burger is a mechanistic organization.
4. TRUE
"Our culture and economy are increasingly shifting away from a focus on a relatively small number of hits (mainstream products and markets) . . . and moving toward a huge number of niches," says Chris Anderson in Wired magazine.