One of the Defining Characteristics of a Matrix Organizational Structure

question 38

Multiple Choice

One of the defining characteristics of a matrix organizational structure is that it:

• A)overlays two organizational structures in order to leverage the benefits of both types of structure.
• B)has a narrow span of control and high degree of formalization and centralization.
• C)is the only structure that organizes employees around specific knowledge or other resources.
• D)uses self-directed work teams rather than individuals as the basic building block of organizations.
• E)is an alliance of several organizations for the purpose of creating a product or serving a client.

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Definitions:

Marketing Channel

The paths or routes that products and services take from the time they are produced until they are purchased by consumers, including intermediaries such as distributors and retailers.

Horizontal Price Fixing

Occurs when competitors that produce and sell competing products collude, or work together, to control prices, effectively taking price out of the decision process for consumers.

Experience Curve Effect

Refers to the drop in unit cost as the accumulated volume sold increases; as sales continue to grow, the costs continue to drop, allowing even further reductions in the price.

Unit Cost

The cost incurred to produce, acquire, or sell one unit of a product or service, calculated by dividing total costs by the number of units.