Exam 7: Organizational Design

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 Moonbow, Inc., has a highly formalized structure with extensive rules, procedures, policies, and instructions. Positions are arranged hierarchically with top management dictating the direction and activity of the organization while lower-level managers and employees follow orders. The fundamental mechanism of monitoring involves close personal surveillance of subordinates by superiors. Moonbow, Inc., has adopted a _____ approach to organizational control.

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B

 Outline the five customer-centric activities of an organization.

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In recent years, many leading companies have successfully shifted their focus to a more customer-centric organizational design by incorporating five specific activities: coordination, cooperation, capability development, clout, and connection. Coordination involves creating structural mechanisms and processes at a firm that allow employees across silos to coordinate their activities to focus on creating value for the customer. Building greater cooperation involves shaping an organization's culture and aligning incentives to encourage employees across silos to come together in the spirit of serving customers. Capability development involves helping employees at a firm develop the right skills needed to better serve customers. Clout encompasses providing greater power to customer-facing units in the organization such that they can influence decisions that directly impact customers. Connection involves developing relationships with external partners to increase the value of the firm's offerings.

 Of the five activities that make a firm customer-centric, coordination involves

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D

 In a functional structure, a firm

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 Which of the following statements is true of the organizational design and the life cycle of a firm?

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 Explain the concepts of division of labor and scope of position.

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 Discuss organizational design and the life-cycle of a firm.

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 A _____ structure is an organizational structure where key decisions are made at all levels of the firm, not only at the top.

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 The Nickells Advertising Agency assigns a team of individuals to work on a client's advertising campaign. When the project is completed, each of the team members will be assigned to new teams pulled together for new campaigns. The Nickells Advertising Agency has a _____ structure.

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 Star Hydraulics is organized into self-supervising teams that are responsible for a set of tasks. In the teams, each member is cross-trained to be able to perform multiple tasks, and individual goals and values completely overlap with the organization's values. Workers collaborate on projects and must negotiate proper team behavior, using the organization's mission and values as a guide. Star Hydraulics has adopted a _____ approach to organizational control.

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 Describe the clan approach.

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 The process of mutual adaptation is most critically important in which of the following industries?

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 As firms expand and grow in complexity, they are likely to reorganize into a functional structure.

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 The Tidwell Company has a production department, a marketing department, a sales department, and an accounting department. The sales department is headed by the VP of sales and manages the department in a hierarchical manner. Employees are evaluated on achieving departmental goals. The Tidwell Company has a _____ structure.

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 The factor that distinguishes functional organizational structure from divisional is that

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 One of the most important benefits of the functional structure is the efficiency it creates.

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 Which of the following is a disadvantage of a divisional structure?

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 Of the five activities that make a firm customer-centric, cooperation involves

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 Which of the following is a key advantage of the clan approach?

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 The management of an organization is in the process of reorganizing the firm's activities with a more customer-centric focus. They are mainly focused on helping employees build the skills needed to better serve customers. Identify the customer-centric activity used by the management.

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