Exam 9: Executing Strategy Through Organizational Design

McDonald's experienced a situation where the French division of the company ran a surprising advertisement in a magazine that included a quote from a nutritionist that asserted children should not eat at a McDonald's more than once per week. McDonald's executives in Chicago were concerned about the message sent to their customers, and they made it clear that they strongly disagreed with the nutritionist. What kind of organization structure empowers divisions to act quickly, but can lead to actions that do not fit with the company's overall strategy?

Horizontal linkages refer to unofficial relationships such as personal friendships, rivalries, and politics.

The dress codes that are enforced within many organizations are an example of _____ control.

Identify the key advantages and disadvantages of a matrix structure.

_____ control focuses on measurable results within an organization.

A multidivisional structure can be costly because, when a company has seven divisions like GE that each require special skills and knowledge, it can reduce a company's profit margin. In GE's case, departments devoted to important aspects of public relations, business development, legal, global research, human resources, and finance are maintained centrally to provide services to all seven divisions. This creates ________ and saves money.

One of the main reasons for changing an organization's structure is improving:

_____ control relies on shared traditions, expectations, values, and norms to lead people to work toward the good of their organization.

Horizontal linkages are relationships between equals in an organization.

Creating a structure that effectively coordinates a firm's activities increases the firm's likelihood of being successful.

Claire is the owner and chef at Vanilla and Sugar, a cafe that also offers a range of baked products. Claire employs two people who help her with various tasks at the cafe. At Vanilla and Sugar, tasks tend to be distributed among the two employees in an informal manner rather than each person developing a narrow area of specialization. Vanilla and Sugar is most likely to have a _____ structure.

Management by objectives is more effective than clan control in guiding employee behavior.

A big advantage of a _____ structure is that it allows a firm to act quickly.

Division of labor can improve coordination between different tasks and the people who perform them.

_____ show the lines of responsibility through which a supervisor delegates authority to subordinates, oversees their activities, evaluates their performance, and guides them toward improvement when necessary.

Informal linkages do not appear in organizational charts.

Vertical linkages are of great importance when close coordination is needed across different segments of an organization.

Differentiate between a sole proprietorship and a corporation.

What kind of challenge does division of labor create? How do organizations meet this challenge?

Which of the following management fads involves a formal group of employees meeting regularly to brainstorm solutions to organizational problems?