Deck 7: Organizational Design

Question 1

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

A) decentralized
B) multinational
C) centralized
D) bureaucratic

Answer 1

A

Question 2

_____ is defined as the pattern of organizational roles,relationships,and procedures that enable coordinated action among employees.

A) Organizational structure
B) Value chain
C) Synergy
D) Organizational culture

Answer 2

A

Question 3

Which of the following terms refers to a structure where both divisional and functional managers have equal authority in the organization?

A) Functional structure
B) Divisional structure
C) Matrix structure
D) Network structure

Answer 3

C

Question 4

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

A) It is not suited to competitive situations where coordinated action is needed for innovation.
B) This structure does not allow for much accountability.
C) It is not suited to business environments marked by high degrees of uncertainty.
D) Core functions are duplicated,preventing the development of economies of scale.

Question 5

Which of the following statements about the divisional structure is true?

A) Coordination among functions in a divisional structure is less fluid than it is in a functional structure.
B) It allows for greater accountability because each division is a separate self-contained entity.
C) The general manager of a functional form has a broader purpose than the general manager in the divisional form.
D) Employees tend to identify more with their function than with their division.

Question 6

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

A) Clearly defined roles and responsibilities
B) Self-regulating characteristics of employees
C) Close personal surveillance of superiors over subordinates
D) Extreme job specialization

Question 7

Which of the following statements is true of division of labor?

A) Horizontal specialization refers to how much an employee creates,executes,and administers activities in a certain area of the firm.
B) The repetitive nature of specialized jobs lends itself to quick and efficient training of new resources.
C) Extreme job specialization tend to increase the level of job satisfaction among workers.
D) Vertical specialization refers to the breadth of activities that are performed in a certain job.

Question 8

Which of the following statements is true of the bureaucratic approach?

A) Bureaucracies can withstand a diverse workforce and high turnover.
B) Bureaucracies are not suitable for large,complex organizations.
C) Bureaucracies are often considered the most inefficient methods of control.
D) Bureaucracies are more suited to creative and innovative environments.

Question 9

The factor that distinguishes functional organizational structure from divisional is that:

A) a functional structure is organized around the outputs a firm produces.
B) a functional structure is best suited to deal with environmental change.
C) a functional structure groups diverse functions into separate divisions.
D) a functional structure is organized in terms of main activities performed.

Question 10

In a _____ structure,"knowledge workers" are organized to work as individual contributors or to be a part of a work cluster that provides a certain expertise for the organization.

A) functional
B) divisional
C) matrix
D) network

Question 11

Which of the following is a weakness of the matrix structure?

A) In matrix structure,the divisional managers have more authority than the functional managers,which causes an imbalance of power.
B) A manager cannot use a matrix structure when resources need to be shared and optimized across divisions and within functions.
C) When a firm's internal interrelationships are complex,it is not possible for managers to adopt a matrix structure.
D) It often creates confusing and inefficient scenarios for managers working in a functional group as well as across divisions.

Question 12

In a functional structure:

A) a firm groups diverse functions into separate divisions.
B) a firm is organized in terms of the main activities that need to be performed.
C) a firm gives equal authority to both divisional and functional managers.
D) a firm categorizes its employees based on their performance and commitment.

Question 13

Which of the following firms is most likely to benefit from the clan approach?

A) A firm with highly uncertain working conditions
B) A firm with work activities that can be easily measured
C) A firm which lacks diverse working styles
D) A firm operating in a price-competitive industry

Question 14

Fine Gadgets,a gadgets manufacturing company,has an organizational structure where the employees have to strictly follow rules and regulations stated by the management.Moreover,only the top management is allowed to make key decisions regarding organizational activities.Fine Gadgets is an example of a _____ organization.

A) decentralized
B) global
C) diversified
D) centralized

Question 15

The process by which firms impact the nature of their overarching industrial environment and alter their organization in response to evolving contextual factors is called _____.

A) business process reengineering
B) vertical specialization
C) mutual adaptation
D) horizontal specialization

Question 16

Thomas,the head of the marketing department in an organization,has structured his department in such a way that the roles and responsibilities of his workers are loosely defined.Moreover,he does not exert too much control over his workers and encourages two-way communication.His workers tend to be highly satisfied with their jobs when compared to those in the finance department,headed by John who exerts more control.From this scenario it can be inferred that Thomas has adopted a _____ mechanism for coordinating.

A) bureaucratic
B) authoritative
C) centralized
D) behavioristic

Question 17

Which of the following statements is true of organizational strategy in terms of structure and design?

A) An organization's execution is not as significant as it's strategy to enable long-term success.
B) Competitors often easily imitate another firm's unique organizational configuration that drives excellent implementation and performance.
C) Companies implement their strategies by analyzing the organizational culture,human capital,and measurement.
D) It is not possible for competitors to steal or adopt another company's strategic perspective.

Question 18

Which of the following statements is an advantage of a network structure?

A) It is quite inexpensive for virtual teams to use communication technology.
B) It enables a firm adapt to a change in the marketplace.
C) Virtual teams often require very less coordination.
D) It promotes greater accountability than divisional structure.

Question 19

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

A) Once a firm reaches maturity,the emphasis on coordination generally increases.
B) The nature of leadership should remain stable as the firm keeps evolving.
C) As a firm matures,it tends to emphasize division of labor.
D) Start-up firms are characterized by more job specialization.

Question 20

Which of the following firms is most likely to benefit from a bureaucratic approach?

A) A firm with constantly changing,dynamic markets
B) A start-up firm with less complexity
C) A firm involving creativity and innovation
D) A firm with high turnover and a diverse workforce

Question 21

A key component of a new manager's job is to understand the informal structure of the organization.

Question 22

Vertical specialization refers to the breadth of activities that are performed in a certain job.

Question 23

Changes in work practices or informal structures tend to result in greater efficiency.

Question 24

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 activities that involve helping and training employees improve their skills needed to better serve their customers.Identify the customer-centric activity used by the management.

A) Capability development
B) Coordination
C) Cooperation
D) Connection

Question 25

Describe the clan approach.

Question 26

The key advantage of the matrix structure is that it creates clear and efficient scenarios for managers working in a functional group as well as across divisions.

Question 27

Connection involves developing relationships with parties outside a firm to increase the value of the firm's offerings.

Question 28

Define organizational structure and briefly describe its types.

Question 29

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

Question 30

Competitors can easily imitate a firm's unique organizational configuration that drives excellent implementation and performance.

Question 31

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

Question 32

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

A) helping employees at a firm develop the right skills needed to better serve customers.
B) creating structural mechanisms at the firm that allow workers to organize their activities to focus more exclusively on creating value for customers.
C) developing relationship with parties outside the firm to increase the value of the firm's offerings.
D) using informal methods such as incentives to encourage people in the organization to come together in the spirit of serving customers.

Question 33

Behaviorists are those who support a more open organizational structure where roles and responsibilities are loosely defined.

Question 34

Of the four activities that make a firm customer-centric,connection involves:

A) helping employees at the firm develop the right skills needed to better serve customers.
B) creating structural mechanisms at the firm that allow workers to organize their activities to focus more exclusively on creating value for customers.
C) developing relationships with parties outside the firm to increase the value of the firm's offerings.
D) using informal methods such as culture and incentives to encourage people in the organization to come together in the spirit of serving customers.

Question 35

Outline the four customer-centric activities of an organization.

Question 36

Which of the following terms refers to a functional unit that operates according to its own rules and guidelines and does not openly share information with other units?

A) Artifact
B) Silo
C) Claim value
D) Synergy

Question 37

Along the horizontal dimension of decision rights,a manager must decide whether decisions are made in a centralized or decentralized manner.

Question 38

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

Question 39

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

A) using informal methods such as culture and incentives to encourage people in the organization to come together in the spirit of serving customers.
B) developing relationship with parties outside a firm to increase the value of the firm's offerings.
C) helping employees at a firm develop the right skills needed to better serve customers.
D) creating structural mechanisms at a firm that allow workers to organize their activities to focus more exclusively on creating value for customers.

Question 40

What is division of labor? Explain horizontal and vertical specialization.