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Exam 10: Creating Effective Organizational Designs

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Question 1

Multiple Choice

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Virtual organizations ______________ whereas modular organizations _____________.

A) are usually permanent; are usually temporary
B) accept interdependent destinies; pursue collective strategies
C) pursue collective strategies; forfeit strategic control
D) give up part of their strategic control; retain full strategic control

E) A) and B)
F) A) and C)

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Question 2

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A major disadvantage of a divisional structure is that when divisions are separated to manage individual product markets, there is a separation of strategic and operational control.

A) True
B) False

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Question 3

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According to author Jeffrey Pfeffer, the advantages of teams are that employees control themselves, develop more creative solutions to problems, and permit the absorption of administrative tasks previously performed by specialists.

A new, simple-structure firm concentrates efforts only on increasing efficiency without regard to its actual products.

When a firm has international operations, choosing the most appropriate structure depends upon the extent of international expansion, the type of strategy, and the degree of market diversity.

In successful ambidextrous organizations, according to the O'Reilly and Tushman study, the traditional and new units were shielded from each other so that they each focused attention and energy on its own operations, products, and customers.

What advantages does outsourcing not provide an organization?

Successful organizations create ______ boundaries among the _____ activities as well as between the organization and its external customers, suppliers, and alliance partners.

Organizations that make it to the growth stage design strategies to

If a firm outsources some parts of its value chain in order to reduce costs and increase quality and at the same time engages in multiple alliances to penetrate new markets, this is a example of a firm using a ______________ of organizational types.

With a functional organizational structure, firms initially tend to expand the overall scope of their operations by penetrating existing markets, introducing similar products in additional markets, or decreasing the level of vertical integration.

Logitech International is an example of a company that began as a global start-up, with headquarters in both California and Switzerland and operations in both countries.

Jack Welch, former CEO of GE, believes that all internal and external organizational boundaries should vanish completely.

In a barrier-free organization, differences in skills, authority, and talent disappear.

To enhance integration and control of related product market activities, the functional structure minimizes centralization.

Tools and techniques used to achieve effective coordination and integration of key activities in an organization include all of the following except

A virtual organization may be most appropriate for firms

Organizational structure refers to the formalized patterns of interactions that link company ___________, ___________, and _____________.

A global start-up faces many management challenges including

A simple structure is characterized by