Question 1

A functional structure is recommended when a firm

Accepted Answer

A)   has a broad focus in terms of its product/service offerings.
B)   has a low level of diversification.
C)   has a low degree of specialization.
D)   diversifies into different product lines and geographies.E) B) and C)
F) B) and D)

Question 2

Organizational culture can be the basis of a firm's competitive advantage if

Accepted Answer

A)   it is valuable, rare, and difficult to imitate.
B)   it is trademarked and copyright protected.
C)   it converts the organization's core competency into its core rigidity.
D)   it changes the organization's inertia into its core rigidity.E) None of the above
F) A) and C)

Question 3

Broadview Company integrated certain important functions of Widget.com with Widget,while keeping other functions independent.To support this integration,the president of Widget shifted compensation incentives for both senior teams to accomplish joint goals rather than to focus solely on each business unit's performance.This scenario best exemplifies a(n)

Accepted Answer

A)   multidivisional structure.
B)   organic organization.
C)   simple structure.
D)   ambidextrous organization.E) A) and C)
F) None of the above

Question 4

Which of the following accurately describes an organic organization?

Accepted Answer

A)   an inflexible organization that fosters slow decision making and high employee motivation
B)   an inflexible organization that fosters fast decision making and high employee motivation
C)   a flexible organization that fosters slow decision making and high employee motivation
D)   a flexible organization that fosters fast decision making and high employee motivationE) B) and D)
F) None of the above

Question 5

Strong organizational cultures that are strategically relevant align employees' behaviors more fully with the organization's

Accepted Answer

A)   hierarchical rigidity.
B)   strategic goals.
C)   hierarchical structure.
D)   strategic flexibility.E) A) and B)
F) B) and C)

Question 6

A high degree of formalization in an organization is most likely to

Accepted Answer

A)   improve customer service.
B)   slow down decision making.
C)   produce inconsistent results.
D)   increase creativity and innovation.E) None of the above
F) A) and C)

Question 7

Why are controls like budgets and operating procedures that McDonald's implements known as input controls?

Accepted Answer

A)   They are independent of an organization's culture.
B)   They are implemented by corporate headquarters.
C)   They are considered before employees make any decisions.
D)   They are ad hoc and not codified.E) A) and D)
F) A) and C)

Question 8

What most likely happens when a firm optimizes its organizational structure to its current situation?

Accepted Answer

A)   It plants the seed of subsequent failure: the tightly coupled system can break apart when internal or external pressures occur.
B)   It achieves superior performance.
C)   It makes it difficult for managers to make the necessary changes due to its effects on resource allocation and power distribution.
D)   It transforms strategy into actions and business models.E) C) and D)
F) A) and B)

Question 9

Cynthia works as a front-line employee for a nationwide retail store.She reports to a floor manager,who reports to a departmental manager,who reports to a regional supervisor,who reports to a vice president,who reports to the CEO.Which of the following best describes this retail store?

Accepted Answer

A)   flat structure
B)   tall structure
C)   centralized structure
D)   decentralize structureE) A) and C)
F) B) and D)

Question 10

Since an organic structure helps a firm build core competencies in areas such as R&D and marketing,this structure is employed by firms that

Accepted Answer

A)   have a tall hierarchical structure.
B)   pursue a differentiation strategy at the business level.
C)   have a high degree of specialization and centralization.
D)   focus on standardizing operating procedures.E) A) and C)
F) A) and D)

Question 11

The key components of organizational design are

Accepted Answer

A)   structure, culture, and control.
B)   structure, efficiency, and control.
C)   innovation, efficiency, and culture.
D)   innovation, culture, and control.E) A) and B)
F) A) and C)

Question 12

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) None of the above
F) B) and C)

Question 13

Which of the following global strategies best matches with a multidivisional structure?

Accepted Answer

A)   international
B)   multidomestic
C)   global-standardization
D)   transnationalE) A) and C)
F) C) and D)

Question 14

Organizational culture can help a firm gain and sustain competitive advantage only if the culture makes a positive contribution to the firm's economic value creation and

Accepted Answer

A)   eventually gives way to core rigidity.
B)   obeys the VRIO principles.
C)   does not demonstrate causal ambiguity.
D)   displays an absence of social complexity.E) A) and B)
F) All of the above

Question 15

Maurice sent in a complaint about a rude salesperson he dealt with at FirstElectronics Inc.He didn't get a response for about three months.Also,when the response finally came,it was just a formal,cursory letter.Based on this scenario,FirstElectronics most likely has an extremely _____ organizational structure.

Accepted Answer

A)   specialized
B)   formalized
C)   centralized
D)   hierarchicalE) B) and D)
F) A) and C)

Question 16

A typical college of business (or school of management) has several areas such as management,marketing,finance,accounting,MIS,and so on.This is an example of a(n) _____ structure.

Accepted Answer

A)   simple
B)   M-form
C)   matrix
D)   functionalE) C) and D)
F) A) and B)

Question 17

Which of the following best exemplifies the use of input controls?

Accepted Answer

A)   McDonald's use of standard operating procedures
B)   GM's use of the multidivisional strategy
C)   Zappos' use of monitoring-free customer service calls
D)   Southwest Airline's use of employee friendlinessE) B) and D)
F) B) and C)

Question 18

Nick just graduated from law school and wants to start his own law firm.It is best for Nick to use a _____ organizational structure.

Accepted Answer

A)   functional
B)   simple
C)   mechanistic
D)   matrixE) A) and B)
F) All of the above

Question 19

The relationship between strategy and structure that directly impacts a firm's performance is

Accepted Answer

A)   dynamic.
B)   independent.
C)   static.
D)   unpredictable.E) All of the above
F) C) and D)

Question 20

Which of the following provides an example of a common drawback of a functional strategy?

Accepted Answer

A)   Bert had a difficult time communicating efficiently with the manager of another department.
B)   Marietta was surprised about the inflexibility of her firm when it rejected her marketing plan.
C)   Juan's manager dismissed his idea because it was too innovative.
D)   Mary did not accept the position with the firm because it has an ineffective cost-leadership strategy.E) A) and B)
F) A) and C)

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

Strong organizational cultures that are strategically relevant align employees' behaviors more fully with the organization's

Correct Answer
verified

The key components of organizational design are

Correct Answer
verified

A functional structure is recommended when a firm

Correct Answer
verified

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

Correct Answer
verified

Nick just graduated from law school and wants to start his own law firm.It is best for Nick to use a _____ organizational structure.

Correct Answer
verified

A typical college of business (or school of management) has several areas such as management,marketing,finance,accounting,MIS,and so on.This is an example of a(n) _____ structure.

Correct Answer
verified

Which of the following accurately describes an organic organization?

Correct Answer
verified

What most likely happens when a firm optimizes its organizational structure to its current situation?

Correct Answer
verified

Why are controls like budgets and operating procedures that McDonald's implements known as input controls?

Correct Answer
verified

Organizational culture can be the basis of a firm's competitive advantage if

Correct Answer
verified

Which of the following provides an example of a common drawback of a functional strategy?

Correct Answer
verified

Since an organic structure helps a firm build core competencies in areas such as R&D and marketing,this structure is employed by firms that

Correct Answer
verified

Organizational culture can help a firm gain and sustain competitive advantage only if the culture makes a positive contribution to the firm's economic value creation and

Correct Answer
verified

Correct Answer
verified

A high degree of formalization in an organization is most likely to

Correct Answer
verified

Which of the following best exemplifies the use of input controls?

Correct Answer
verified

Which of the following global strategies best matches with a multidivisional structure?

Correct Answer
verified

Cynthia works as a front-line employee for a nationwide retail store.She reports to a floor manager,who reports to a departmental manager,who reports to a regional supervisor,who reports to a vice president,who reports to the CEO.Which of the following best describes this retail store?

Correct Answer
verified

The relationship between strategy and structure that directly impacts a firm's performance is

Correct Answer
verified

Correct Answer
verified

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

Strong organizational cultures that are strategically relevant align employees' behaviors more fully with the organization's

Correct AnswerverifiedShow Answer

The key components of organizational design are

Correct AnswerverifiedShow Answer

A functional structure is recommended when a firm

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Nick just graduated from law school and wants to start his own law firm.It is best for Nick to use a _____ organizational structure.

Correct AnswerverifiedShow Answer

A typical college of business (or school of management) has several areas such as management,marketing,finance,accounting,MIS,and so on.This is an example of a(n) _____ structure.

Correct AnswerverifiedShow Answer

Which of the following accurately describes an organic organization?

Correct AnswerverifiedShow Answer

What most likely happens when a firm optimizes its organizational structure to its current situation?

Correct AnswerverifiedShow Answer

Why are controls like budgets and operating procedures that McDonald's implements known as input controls?

Correct AnswerverifiedShow Answer

Organizational culture can be the basis of a firm's competitive advantage if

Correct AnswerverifiedShow Answer

Which of the following provides an example of a common drawback of a functional strategy?

Correct AnswerverifiedShow Answer

Since an organic structure helps a firm build core competencies in areas such as R&D and marketing,this structure is employed by firms that

Correct AnswerverifiedShow Answer

Organizational culture can help a firm gain and sustain competitive advantage only if the culture makes a positive contribution to the firm's economic value creation and

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A high degree of formalization in an organization is most likely to

Correct AnswerverifiedShow Answer

Which of the following best exemplifies the use of input controls?

Correct AnswerverifiedShow Answer

Which of the following global strategies best matches with a multidivisional structure?

Correct AnswerverifiedShow Answer

Cynthia works as a front-line employee for a nationwide retail store.She reports to a floor manager,who reports to a departmental manager,who reports to a regional supervisor,who reports to a vice president,who reports to the CEO.Which of the following best describes this retail store?

Correct AnswerverifiedShow Answer

The relationship between strategy and structure that directly impacts a firm's performance is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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