Question 1

What are the key elements of organizational structure? Define each element.

Accepted Answer

The key elements are specialization, for...

Question 2

What is most likely to happen if a firm relies too long on a competency without honing, refining, and upgrading as the firm and the environment change?

Accepted Answer

A)   The firm's original core competency can turn from a liability into an asset.
B)   The firm's organizational inertia can turn into its core rigidity.
C)   The firm's competitive parity can turn into its competitive advantage.
D)   The firm's culture can turn from a core competency into a core rigidity.E) None of the above
F) A) and C)

Question 3

________ describes the collectively shared values and norms of an organization's members.

Accepted Answer

A)   Competitive advantage
B)   Organizational structure
C)   Organizational culture
D)   Core competencyE) A) and B)
F) None of the above

Question 4

Spiderweb Inc. is an apparel manufacturer. The management at Spiderweb prefers moderate control over the operations of the different departments such as R&D, design, marketing, and sales. It allocates a budget to each function at the beginning of each quarter. This is an example of implementing control through

Accepted Answer

A)   output controls.
B)   input controls.
C)   multidivisional strategy.
D)   centralization.E) A) and D)
F) A) and C)

Question 5

Firms that pursue a closed approach to innovation typically enjoy first-mover advantages.

Accepted Answer

A) True 
 B)False

Question 6

Burnley and Co., a graphic design firm, has offices in New York, Texas, California, New Mexico, and New Jersey. Each of these offices is headed by a president who reports directly to Emma Burnley, the CEO. The heads of the centralized HR, Finance, and Marketing teams report to Emma Burnley as well. Managers in the various offices also report to the CEO directly. Based on this information, which of the following statements is most likely to be true?

Accepted Answer

A)   Emma Burnley has a wide span of control.
B)   Burnley and Co. has a tall hierarchical structure.
C)   Emma Burnley is underworked.
D)   Burnley and Co. is a mechanistic organization.E) A) and D)
F) B) and D)

Question 7

What is organizational inertia?

Accepted Answer

Organizational inertia refers to a firm'...

Question 8

Which of the following real-world scenarios best exemplifies formalization?

Accepted Answer

A)   Zappos' focus on allowing its customer service employees to use their own approach rather than depend on scripts
B)   McDonald's use of standard operating procedures across the world
C)   W. L. Gore's associates organizing themselves in project-based teams that are led by sponsors, not bosses
D)   Yahoo's decision to fire its CEO after incurring huge lossesE) B) and C)
F) C) and D)

Question 9

Successful ________ requires managers to design and shape structure, culture, and control mechanisms.

Accepted Answer

A)   strategy innovation
B)   strategy formulation
C)   strategy implementation
D)   strategy diversificationE) A) and D)
F) B) and C)

Question 10

To effectively implement a differentiation strategy, managers rely on a functional structure that resembles an organization that is highly

Accepted Answer

A)   formalized.
B)   specialized.
C)   organic.
D)   mechanistic.E) B) and D)
F) A) and B)

Question 11

A change in company culture is most commonly accompanied by a change in leadership.

Accepted Answer

A) True 
 B)False

Question 12

________ refers to the degree to which decision making is concentrated at the top of the organization.

Accepted Answer

A)   Specialization
B)   Formalization
C)   Naturalization
D)   CentralizationE) B) and C)
F) All of the above

Question 13

Which of the following statements best describes groupthink?

Accepted Answer

A)   It is a process by which the founder defines and shapes an organization's culture, which can persist for decades after his or her departure.
B)   It is a situation in which organizations compete with one another for resources, but they also need to cooperate to share competencies.
C)   It is a process whereby employees internalize an organization's values and norms through immersion in its day-to-day operations.
D)   It is a situation in which opinions coalesce around a leader without individuals critically challenging and evaluating that leader's opinions and assumptions.E) A) and B)
F) All of the above

Question 14

Which of the following organizational structures matches best with an international strategy?

Accepted Answer

A)   simple
B)   matrix
C)   multidivisional
D)   functionalE) None of the above
F) All of the above

Question 15

Sunset Foods relies on a highly centralized functional structure to ensure consistency in the quality and taste of its products and to drive down costs via process innovations. However, as a consequence of its highly compartmentalized structure, the firm has found it difficult to transfer information and ideas from one department to the next. With the launch of its new line of breakfast foods coming up, how can Sunset improve its ability to collaborate without sacrificing the benefits of its current structure?

Accepted Answer

A)   by establishing cross-functional teams
B)   by switching to a simple structure
C)   by switching to a competitive M-form structure
D)   by decreasing managers' span of controlE) B) and D)
F) B) and C)

Question 16

GM's insistence on sticking to a bureaucratic culture combined with its M-form structure and its subsequent failure to adapt to changing customer preferences for more fuel-efficient cars, produce higher quality, and create innovative designs best exemplifies

Accepted Answer

A)   decentralization.
B)   founder imprinting.
C)   groupthink.
D)   core rigidity.E) B) and D)
F) None of the above

Question 17

How do results-only-work-environments differ from output controls that depend on extrinsic motivation?

Accepted Answer

These days, more and more work requires ...

Question 18

Avalanche operates as a strategic business unit (SBU)  under Snowfall Inc., a home-furnishings manufacturer. From this information, it may be reasonable to infer that

Accepted Answer

A)   Avalanche does not have its own profit and loss responsibility.
B)   Avalanche is dependent on the other SBUs in Snowfall Inc.
C)   Avalanche has a matrix organizational structure.
D)   Avalanche is led by its own CEO (or equivalent general manager) .E) C) and D)
F) B) and D)

Question 19

ABX Inc. is an electronic appliances manufacturer that has many strategic business units (SBUs) , among which, television and computers share a close relationship. These SBUs have to fight each other for R&D funding because there is a combined amount set aside for these two units. However, they share technological findings with each other and work together to ensure that their combined output is better that of the other SBUs. Such a relationship between SBUs in a business is referred to as

Accepted Answer

A)   competition.
B)   co-opetition.
C)   exploitation.
D)   exploration.E) All of the above
F) A) and B)

Question 20

Which of the following is a disadvantage of a functional strategy?

Accepted Answer

A)   It frequently lacks the tools required to pursue a cost-leadership strategy.
B)   It does not facilitate rich communication between members of the same department.
C)   It cannot effectively address a higher level of diversification.
D)   It does not allow organizations to be flexible or innovative.E) None of the above
F) All of the above

Exam 11: Organizational Design: Structure, Culture, and Control

How do results-only-work-environments differ from output controls that depend on extrinsic motivation?

Correct Answer
verified
These days, more and more work requires ...
View Answer

Successful ________ requires managers to design and shape structure, culture, and control mechanisms.

Correct Answer
verified

________ refers to the degree to which decision making is concentrated at the top of the organization.

Correct Answer
verified

________ describes the collectively shared values and norms of an organization's members.

Correct Answer
verified

What is most likely to happen if a firm relies too long on a competency without honing, refining, and upgrading as the firm and the environment change?

Correct Answer
verified

Which of the following organizational structures matches best with an international strategy?

Correct Answer
verified

Which of the following is a disadvantage of a functional strategy?

Correct Answer
verified

Firms that pursue a closed approach to innovation typically enjoy first-mover advantages.

Correct Answer
verified

Avalanche operates as a strategic business unit (SBU) under Snowfall Inc., a home-furnishings manufacturer. From this information, it may be reasonable to infer that

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

A change in company culture is most commonly accompanied by a change in leadership.

Correct Answer
verified

What is organizational inertia?

Correct Answer
verified
Organizational inertia refers to a firm'...
View Answer

GM's insistence on sticking to a bureaucratic culture combined with its M-form structure and its subsequent failure to adapt to changing customer preferences for more fuel-efficient cars, produce higher quality, and create innovative designs best exemplifies

Correct Answer
verified

Which of the following statements best describes groupthink?

Correct Answer
verified

Which of the following real-world scenarios best exemplifies formalization?

Correct Answer
verified

Correct Answer
verified

To effectively implement a differentiation strategy, managers rely on a functional structure that resembles an organization that is highly

Correct Answer
verified

What are the key elements of organizational structure? Define each element.

Correct Answer
verified
The key elements are specialization, for...
View Answer

Correct Answer
verified

Exam 11: Organizational Design: Structure, Culture, and Control

How do results-only-work-environments differ from output controls that depend on extrinsic motivation?

Correct AnswerverifiedThese days, more and more work requires ...View AnswerShow Answer

Successful ________ requires managers to design and shape structure, culture, and control mechanisms.

Correct AnswerverifiedShow Answer

________ refers to the degree to which decision making is concentrated at the top of the organization.

Correct AnswerverifiedShow Answer

________ describes the collectively shared values and norms of an organization's members.

Correct AnswerverifiedShow Answer

What is most likely to happen if a firm relies too long on a competency without honing, refining, and upgrading as the firm and the environment change?

Correct AnswerverifiedShow Answer

Which of the following organizational structures matches best with an international strategy?

Correct AnswerverifiedShow Answer

Which of the following is a disadvantage of a functional strategy?

Correct AnswerverifiedShow Answer

Firms that pursue a closed approach to innovation typically enjoy first-mover advantages.

Correct AnswerverifiedShow Answer

Avalanche operates as a strategic business unit (SBU) under Snowfall Inc., a home-furnishings manufacturer. From this information, it may be reasonable to infer that

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A change in company culture is most commonly accompanied by a change in leadership.

Correct AnswerverifiedShow Answer

What is organizational inertia?

Correct AnswerverifiedOrganizational inertia refers to a firm'...View AnswerShow Answer

GM's insistence on sticking to a bureaucratic culture combined with its M-form structure and its subsequent failure to adapt to changing customer preferences for more fuel-efficient cars, produce higher quality, and create innovative designs best exemplifies

Correct AnswerverifiedShow Answer

Which of the following statements best describes groupthink?

Correct AnswerverifiedShow Answer

Which of the following real-world scenarios best exemplifies formalization?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

To effectively implement a differentiation strategy, managers rely on a functional structure that resembles an organization that is highly

Correct AnswerverifiedShow Answer

What are the key elements of organizational structure? Define each element.

Correct AnswerverifiedThe key elements are specialization, for...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
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These days, more and more work requires ...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
Organizational inertia refers to a firm'...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified
The key elements are specialization, for...
View Answer

Correct Answer
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