Exam 9: Implementing Strategy Through Organizational Design

The primary role of organizational structure is to coordinate employees activities to effectively implement strategy and to motivate employees to achieve superior efficiency.

As a company grows and diversifies the number of levels in its hierarchy decreases.

Which of the following is not a type of organizational control system?

Vertical integration refers to the number of subordinates a manager directly manages.

In a multidivisional structure

Strategic control systems are the formal target-setting, measurement, and feedback systems that enable strategic managers to evaluate whether a company is implementing its strategy successfully.

A complex form of integrating mechanisms is needed when a company's structure is complex.

Organizational control is the process by which managers monitor the ongoing activities of an organization and its members to evaluate whether activities are being performed efficiently and effectively.

In a multidivisional structure, which form of control is used to compare the relative performances of different divisions?

Standardization is employed to squeeze out costs in manufacturing. Standardization may be achieved through standardization of

Standardization is a form of

The "minimum chain of command" principle states that firms should use the __________ levels of hierarchy that are necessary, and often result in organizational structures that are __________.

Control through organizational culture is so powerful because

Which of the following is not a problem in firms with a tall organizational structure?

The multi-divisional structure allows each division to adopt the structure that best suits its needs.

Tall structures lead to information distortion when data are being sent either up or down the hierarchy.

Strategy is implemented through organizational design.

The degree of horizontal differentiation in the product structure is higher than in the functional structure.

As new, small firms grow and mature, which structure are they likely to choose?

The principle of minimum chain of command states that an organization should choose a hierarchy with the minimum number of levels of authority necessary to achieve its strategy.