All of the employees who work on the shop floor at Alfredo$$s Sausage are responsible for creating the best quality product possible. This means that they investigate problems and find ways of dealing with them. In addition, the employees are responsible for selecting, training, evaluating, and, if necessary, terminating the employees who work with them. There are very few layers of management. Here is the organizational chart showing the structure for Alfredo$$s Sausage:

$1.$ Alfredo$$s Sausage has a $----?----$ structure.

$2.$ Which of the following characteristics would you expect Alfredo$$s Sausage to have? Check all that apply.

A$.$ Employee specialization leads to increased efficiency.

B$.$ The emphasis in this company is on horizontal communication, which facilitates rapid decision making.

C$.$ This organizational structure is particularly effective when operating in an environment that demands flexibility.

D$.$ Decision making in this company is decentralized, with responsibility pushed to lower levels.

$3.$ The CEO of Alfredo$$s Sausage is considering moving to a functional structure. What would be the best reason to make such a move?

A$.$ To improve communications between various parts of the organization

B$.$ To make expertise available to all parts of the organization

C$.$ To gain more control over how the organization operates and centralize decision making

$4.$ What problem might the CEO expect if the company switches to a functional structure?

A$.$ The new structure will be slower to respond to changes in the environment.

B$.$ Decision making will become more difficult, because employees report to two managers.

C$.$ Employees are less likely to feel that they can specialize in their area of expertise.