Exam 12: Implementing Strategy Through Organization

Which of the following advantages does a functional organizational structure offer a company?

Essentially, centralization or decentralization are concepts that refer to the:

Bradley is a new employee in the sales department at a local car dealership. In his first few months on the job, he will be learning the norms and values of the organization. This refers to organizational socialization.

Natalie and Shay are both employees at RightTool, Inc., the marketing manager, often meets with Shay, the production manager, in order to solve specific mutual problems. This is an example of:

The purpose of a(n) _____ is to provide managers with incentives for motivating employees as well as feedback on how the company performs.

Which form of control would you most likely find in a voluntary or charity organization?

Which of the following does delayering involve?

For each function, a cost leader adopts output controls that allow it to monitor and evaluate functional performance closely.

If a firm's leaders are using a functional structure but feel it is becoming too complex as the company grows in size, the leaders can turn to:

Silica Dustcloud Inc. plans to change its organization structure from a market structure to a functional structure and create separate divisions. This change will better serve its different groups of customers.

Control systems at higher levels of management should provide the basis for lower-level managers to design their control systems.

In a multidivisional structure, corporate managers can compare the performance of one division to another in terms of its cost structure or the profit it generates.

Span of control refers to the number of subordinates who report directly to one supervisor.

Control through organizational culture:

Describe the roles that organizational structure, strategic control systems, and organizational culture play in strategy implementation.

The totality of a firm's organizational arrangements including its formal organizational structure, control systems, incentive systems, organizational culture, organization processes, and human capital is referred to as:

Explain the benefits of the multidivisional structure for managing a firm that competes in several industries.

Competition for resources is one of the drawbacks of the multidivisional structure.

Organizational structure contributes to strategy formulation by providing the framework of tasks and roles that reduce transaction difficulties and allows employees to think and behave in ways that enable a company to achieve superior performance.

What would be the result if a company were to successfully align its organizational structure with its business-level strategy?