Question 1

Slogans,company parties,rituals,and role models are all aspects of:

Accepted Answer

A) benchmarking. 
B) rational expectations. 
C) empowerment. 
D) enhancing communication. 
A) benchmarking. 
B) rational expectations. 
C) empowerment. 
D) enhancing communication. D

Question 2

The three legs of the organizational stool are reward systems,performance-evaluation systems,and:

Accepted Answer

A) sunk costs. 
B) communication. 
C) decision rights. 
D) market structure. 
A) sunk costs. 
B) communication. 
C) decision rights. 
D) market structure. C

Question 3

Frequent alterations in organizational architecture are likely to:

Accepted Answer

A) boost long-run investment efforts. 
B) affect all the employees of a company positively. 
C) increase the incentives of employees to learn more about their current job assignments. 
D) promote actions that focus on short-run payoffs. 
A) boost long-run investment efforts. 
B) affect all the employees of a company positively. 
C) increase the incentives of employees to learn more about their current job assignments. 
D) promote actions that focus on short-run payoffs. D

Question 4

J.C.Penney found that its headquarters staff did not understand regional fashion trends.Consequently,the company invested in TV communications technology that allowed New York buyers to communicate with local store managers.This communication was meant to:

Accepted Answer

A) effectively use local general knowledge. 
B) encourage knowledge transfer from corporate headquarters to local stores. 
C) encourage risk taking by local stores. 
D) effectively use local specific knowledge. 
A) effectively use local general knowledge. 
B) encourage knowledge transfer from corporate headquarters to local stores. 
C) encourage risk taking by local stores. 
D) effectively use local specific knowledge.

Question 5

Organizational architecture varies from firm to firm.The three important external determinants of a firm's administrative structure are:

Accepted Answer

A) decision rights,rewards,and technology. 
B) government regulation,technology,and decision rights. 
C) government regulation,technology,and markets. 
D) decision rights,rewards,and evaluation systems. 
A) decision rights,rewards,and technology. 
B) government regulation,technology,and decision rights. 
C) government regulation,technology,and markets. 
D) decision rights,rewards,and evaluation systems.

Question 6

The key to understanding changing organizational architecture is that:

Accepted Answer

A) it is costless. 
B) there are only direct costs. 
C) there are only indirect costs. 
D) there are direct and indirect costs. 
A) it is costless. 
B) there are only direct costs. 
C) there are only indirect costs. 
D) there are direct and indirect costs.

Question 7

______ is an important element of corporate culture.

Accepted Answer

A) Establishing dress code and political correctness in the work place 
B) Ensuring proper coordination among employees 
C) Establishing expectations of employees 
D) Establishing female participation in decisions-making process 
A) Establishing dress code and political correctness in the work place 
B) Ensuring proper coordination among employees 
C) Establishing expectations of employees 
D) Establishing female participation in decisions-making process

Question 8

One important lesson to keep in mind during benchmarking is that:

Accepted Answer

A) benchmarking is always a value adding strategy. 
B) different architectures are appropriate for different environments. 
C) differences in organizational structures do not matter. 
D) benchmarking is possible only if all environments for the firms under consideration match. 
A) benchmarking is always a value adding strategy. 
B) different architectures are appropriate for different environments. 
C) differences in organizational structures do not matter. 
D) benchmarking is possible only if all environments for the firms under consideration match.

Question 9

Fred Powell,the CEO of TruLite,is in a quandary.He wants to bring a new lamp to the market that is based on fuel technology.He just does not understand the technology involved,but he has several engineers who have spent a lot of time investigating the issue.Powell needs to:

Accepted Answer

A) decentralize decision making to people with specific knowledge. 
B) hire outside experts to question his engineers about fuel cells. 
C) just make a decision so he can beat the competition in the market. 
D) retire and replace himself with an engineer. 
A) decentralize decision making to people with specific knowledge. 
B) hire outside experts to question his engineers about fuel cells. 
C) just make a decision so he can beat the competition in the market. 
D) retire and replace himself with an engineer.

Question 10

For benchmarking,the architecture of other firms should be viewed as:

Accepted Answer

A) competitive. 
B) complements. 
C) substitutes. 
D) empowerment. 
A) competitive. 
B) complements. 
C) substitutes. 
D) empowerment.

Question 11

Which of the following is not an external determinant of organizational architecture?

Accepted Answer

A) Technology 
B) Markets 
C) Administrative control systems 
D) Government regulations 
A) Technology 
B) Markets 
C) Administrative control systems 
D) Government regulations

Question 12

A significant feature of the price system in a market economy is that the architecture:

Accepted Answer

A) is created spontaneously. 
B) is created by the government. 
C) promotes skewed distribution of wealth. 
D) promotes a system of controls on the employees of an organization. 
A) is created spontaneously. 
B) is created by the government. 
C) promotes skewed distribution of wealth. 
D) promotes a system of controls on the employees of an organization.

Question 13

Competitive markets usually promote the efficient use of resources.This is because:

Accepted Answer

A) resource owners bear the wealth effects of their decisions. 
B) managers always have the proper incentives to make decisions. 
C) consumers price makers 
D) markets usually make equitable choices first. 
A) resource owners bear the wealth effects of their decisions. 
B) managers always have the proper incentives to make decisions. 
C) consumers price makers 
D) markets usually make equitable choices first.

Question 14

FedEx employees use the motto "Absolutely,Positively" to express their commitment to their customers.What should be the attitude of someone who studies economics toward this sort of company ritual?

Accepted Answer

Such symbols of corporate culture can pr

Question 15

Benchmarking occurs when a firm:

Accepted Answer

A) compares its performance with its previous performance. 
B) sets up strategic plans for the future based on its current performance. 
C) advises other firms on organization,based on its success. 
D) compares the strategies of other firms in the industry to derive its strategy. 
A) compares its performance with its previous performance. 
B) sets up strategic plans for the future based on its current performance. 
C) advises other firms on organization,based on its success. 
D) compares the strategies of other firms in the industry to derive its strategy.

Question 16

How is the architecture within firms usually designed?

Accepted Answer

Organization design is created by execut

Question 17

W.Edwards Deming,the quality expert,has hinted that incentive pay is actually counterproductive.Economic analysis indicates that enhancing corporate culture and incentive rewards plans are:

Accepted Answer

A) substitutes for each other. 
B) complements for each other. 
C) the sources of all inefficiencies in modern businesses. 
D) convex functions of the technology principle. 
A) substitutes for each other. 
B) complements for each other. 
C) the sources of all inefficiencies in modern businesses. 
D) convex functions of the technology principle.

Question 18

A household-products manufacturing firm was required to examine its organizational architecture in order to survive in the market.The three aspects of its organization that it looked into are

Accepted Answer

A) decision rights,rewards,and technology. 
B) government regulation,technology,and decision rights. 
C) government regulation,technology,and markets. 
D) decision rights,rewards,and evaluation systems. 
A) decision rights,rewards,and technology. 
B) government regulation,technology,and decision rights. 
C) government regulation,technology,and markets. 
D) decision rights,rewards,and evaluation systems.

Question 19

One of the mechanisms to replace poor management is to:

Accepted Answer

A) fire the low-level workers who are inefficient. 
B) fire the union leaders who create an environment of mistrust. 
C) tender offers and mergers. 
D) pay more to the senior management. 
A) fire the low-level workers who are inefficient. 
B) fire the union leaders who create an environment of mistrust. 
C) tender offers and mergers. 
D) pay more to the senior management.

Question 20

Describe the three aspects of organizational architecture of a firm.Which is the most important aspect?

Accepted Answer

The three important aspects are assignme

Exam 11: Organizational Architecture

Slogans,company parties,rituals,and role models are all aspects of:

The three legs of the organizational stool are reward systems,performance-evaluation systems,and:

Frequent alterations in organizational architecture are likely to:

J.C.Penney found that its headquarters staff did not understand regional fashion trends.Consequently,the company invested in TV communications technology that allowed New York buyers to communicate with local store managers.This communication was meant to:

Organizational architecture varies from firm to firm.The three important external determinants of a firm's administrative structure are:

The key to understanding changing organizational architecture is that:

______ is an important element of corporate culture.

One important lesson to keep in mind during benchmarking is that:

Fred Powell,the CEO of TruLite,is in a quandary.He wants to bring a new lamp to the market that is based on fuel technology.He just does not understand the technology involved,but he has several engineers who have spent a lot of time investigating the issue.Powell needs to:

For benchmarking,the architecture of other firms should be viewed as:

Which of the following is not an external determinant of organizational architecture?

A significant feature of the price system in a market economy is that the architecture:

Competitive markets usually promote the efficient use of resources.This is because:

FedEx employees use the motto "Absolutely,Positively" to express their commitment to their customers.What should be the attitude of someone who studies economics toward this sort of company ritual?

Benchmarking occurs when a firm:

How is the architecture within firms usually designed?

W.Edwards Deming,the quality expert,has hinted that incentive pay is actually counterproductive.Economic analysis indicates that enhancing corporate culture and incentive rewards plans are:

A household-products manufacturing firm was required to examine its organizational architecture in order to survive in the market.The three aspects of its organization that it looked into are

One of the mechanisms to replace poor management is to:

Describe the three aspects of organizational architecture of a firm.Which is the most important aspect?

Introduction

Economists View of Behavior

Exchange and Markets

Demand

Production and Cost

Market Structure

Pricing With Market Power

Economics of Strategy: Creating and Capturing Value

Economics of Strategy: Game Theory

Incentive Conflicts and Contracts

Decision Rights: the Level of Empowerment

Decision Rights: Bundling Tasks Into Jobs and Subunits

Attracting and Retaining Qualified Employees

Incentive Compensation

Individual Performance Evaluation

Divisional Performance Evaluation

Corporate Governance

Vertical Integration and Outsourcing

Leadership: Motivating Change Within Organizations

Understanding the Business Environment: the Economics of Regulation

Ethics and Organizational Architecture

Organizational Architecture and the Process of Management Innovation

Filters