Deck 9: Organizational Agility

Question 1

In an organic structure, what are the responsibilities of jobholders usually like?

A)Tightly defined
B)Rarely changing
C)Broad and flexible
D)Highly bureaucratic
E)Traditional and narrow

Answer 1

C
Explanation: An organic structure is one that emphasizes flexibility. Jobholders are more likely to have broader responsibilities that change as the need arises.

Question 2

In organic organizations, communication tends to occur through _____.

A)orders
B)instructions
C)directives
D)advice
E)speeches

Answer 2

D
Explanation: The organic structure can be described as having a number of characteristics, including that of communicating through advice and information rather than orders and instructions.

Question 3

Large organizations are typically _____ than small ones.

A)less organic and more bureaucratic
B)more organic and less bureaucratic
C)more organic and more bureaucratic
D)less organic and more flexible
E)more organic and less flexible

Answer 3

A
Explanation: One of the most important characteristics of an organization, and one of the most important factors influencing its ability to respond effectively to its environment, is its size. Large organizations are typically less organic and more bureaucratic.

Question 4

In a lean manufacturing organization, the emphasis is on cost, efficiency, and hierarchy.

Question 5

To be successful, partners in a strategic alliance must pay the most attention to the _____ partnership.

A)human relationships in the
B)financial aspects of the
C)public relations side of the
D)hierarchical structure of the
E)lines of authority in the

Question 6

Strategies and structures are based on the firm's core capabilities, its strategic alliances, its ability to learn, and its ability to engage all the people in the organization in achieving its objectives.

Question 7

Which of the following statements is true of organic firms?

A)They are faster at responding to changing competitive demands.
B)They are slower at responding to changing competitive demands.
C)They usually remain unaware of changing competitive demands.
D)They refuse to give in to changing competitive demands.
E)They never catch up to changing competitive demands.

Question 8

A strategic alliance can be made with just about any other organization except one's competitors.

Question 9

Reengineering answers the question "If you were the board of directors, how would you like us to operate?"

Question 10

Usually, companies with higher volumes of products tend to offer more varieties.

Question 11

A well-understood, well-developed _____ can enhance a company's responsiveness and competitiveness.

A)hierarchy
B)mechanistic organization
C)board of directors
D)bureaucracy
E)core capability

Question 12

Which of the following statements about types of economies is true?

A)An organization's small size often creates scale economies and economies of scope.
B)An organization's small size often creates scale economies but not economies of scope.
C)An organization's large size often creates scale economies and economies of scope.
D)An organization's large size often creates scale economies but not economies of scope.
E)An organization's large size often creates economies of scope but not scale economies.

Question 13

An organization's size has a large impact on its ability to respond effectively to its environment.

Question 14

In which type of organization are jobs most likely to be specialized?

A)Small
B)Flat
C)Nonbureaucratic
D)Large
E)Medium-sized

Question 15

A value chain is the sequence of activities that flow from raw materials to the delivery of a good or service, with value subtracted at each step.

Question 16

Natasha, the CEO of Ellis and Peters Associates, seeks input from both her top management team and the lower levels of the company before she decides on strategies about the future direction of the company. Judging from this, Ellis and Peters Associates is a(n) _____ organization.

A)mechanistic
B)high-involvement
C)flat
D)just-in-time
E)authoritarian

Question 17

Exploration and _____ are the two ideal areas on which a learning organization should focus.

A)examination
B)excellence
C)expertise
D)expectation
E)exploitation

Question 18

The mechanistic organization emphasizes flexibility and is less rigid than the organic structure.

Question 19

The difficulty of controlling a large company with many product lines and divisions is an example of a diseconomy of scale.

Question 20

It is a challenge for companies to be both big and small to capitalize on the advantages of each.

Question 21

A _____ is the knowledge, expertise, or skill that underlies a company's ability to be a leader in providing a range of specific goods or services.

A)dynamic network
B)continuous process
C)core capability
D)cognitive ability
E)knowledge flow

Question 22

Which type of company is better at providing quality goods and services to targeted market niches?

A)Small
B)Large
C)Bureaucratic
D)Narrow
E)Mechanistic

Question 23

Which of the following is an advantage of a small organization?

A)Scale economies
B)Lower operating costs
C)Greater purchasing power
D)Easier access to capital
E)Greater employee involvement

Question 24

Which of the following words best describes decision making in a small batch organization?

A)centralized
B)regulated
C)organic
D)inflexible
E)hierarchical

Question 25

Which of the following is an important component of time-based competition?

A)Mass customization
B)Concurrent engineering
C)Product stockpiling
D)Bureaucratic structure
E)Reactive design

Question 26

Glen wants to balance the strategic triangle for his company. To do this, he must take into account the competition, the customer, and the _____.

A)company itself
B)government
C)board of directors
D)suppliers
E)shareholders

Question 27

A company that receives certification that it meets ISO 9001 standards is a company that

A)has achieved a total quality effort.
B)has begun the process of achieving quality.
C)has attained perfection within its field.
D)has serious quality improvements to make.
E)is able to train other organizations in quality procedures.

Question 28

The planned elimination of positions or jobs is known as _____.

A)rightsizing
B)downsizing
C)expanding
D)offshoring
E)outsourcing

Question 29

A form of organization that seeks to maximize internal efficiency is called

A)a specialized organization.
B)an organic organization.
C)a mechanistic organization.
D)a matrix organization.
E)a decentralized organization.

Question 30

Rey's company produces a high volume of bicycle helmets, yet they come in a high variety of distinctive styles. The company is engaging in _____.

A)individual production
B)flexible production
C)mass production
D)mass customization
E)individual customization

Question 31

The phenomenon in which employees who retain their jobs during a layoff subsequently exhibit a loss of productivity and reduced morale is known as _____.

A)unemployment anxiety
B)survivor's syndrome
C)downsizing disorientation
D)downsizing anxiety
E)employee depression

Question 32

The process of completely overhauling an operation to achieve the greatest possible benefits to the customer and to the organization is known as _____.

A)configuring
B)standardizing
C)innovating
D)reengineering
E)integrating

Question 33

Big companies can typically lower costs per unit of production. In other words, large size allows for _____.

A)large batching
B)value chaining
C)lean manufacturing
D)scale economies
E)economies of scope

Question 34

Which of the following is an advantage of a large organization?

A)Ability to move fast
B)Ability to target market niches
C)Reduction of bureaucracy
D)Easier access to capital
E)Greater employee involvement

Question 35

The _____ structure is an organizational form that emphasizes flexibility.

A)systematic
B)mechanistic
C)bureaucratic
D)scientific
E)organic

Question 36

Total quality management is characterized by a strong orientation toward both external and internal _____.

A)stockholders
B)suppliers
C)customers
D)managers
E)regulators

Question 37

If jobholders rely more heavily on judgment than on rules, the organization most likely has a(n) _____ structure.

A)mechanistic
B)hierarchical
C)matrix
D)organic
E)departmentalized

Question 38

Uma wants to improve her customer service department by using information technologies to create two-way conversations with customers to gain more knowledge of their wants and preferences. Uma wants to institute _____ management.

A)total quality
B)customer relationship
C)mass customization
D)just-in-time
E)computer-integrated

Question 39

The formal structure of an organization is primarily put in place to:

A)control people, decisions, and actions.
B)develop a process for investing returns.
C)increase rates of promotion.
D)allow for intrapreneurship.
E)encourage entrepreneurship.

Question 40

The successful effort to achieve an appropriate size at which a company performs most effectively is known as _____.

A)rightsizing
B)downsizing
C)expanding
D)offshoring
E)outsourcing

Question 41

Which of the following constitutes the strategic triangle of a business unit?

A)Executives, board members, and employees
B)Distributors, corporation, and suppliers
C)Customers, corporation, and competitors
D)Financiers, customers, and employees
E)Financiers, customers, and competitors

Question 42

In a _____ organization, top management ensures that there is consensus about the direction in which the business is heading.

A)learning
B)high-involvement
C)mechanistic
D)network
E)customer-centric

Question 43

McKittridge Consulting pursues activities such as engaging in disciplined thinking, searching constantly for new knowledge, benchmarking, and sharing ideas throughout the organization via information systems. Which type of organization is McKittridge Consulting?

A)Mechanistic organization
B)Learning organization
C)High-involvement organization
D)Monolithic organization
E)Pluralistic organization

Question 44

Which of the following aspects of an organization creates scale economies and economies of scope and leads to advantages like lower operating costs, greater purchasing power, and easier access to capital?

A)Large size
B)High flexibility
C)Mass customization
D)Centralized structure
E)High agility

Question 45

Cancer Survivors Counseling and FlexiSolution Software recently joined forces to produce a nutrition-planning program for use on home computers. The two organizations are working together on the project since neither could have developed it using only their own resources. Both will own the resulting program. This is an example of a ____.

A)network organization
B)strategic alliance
C)cluster organization
D)subordinate collaboration
E)high-involvement organization

Question 46

Which of the following statements is true about strategic alliances?

A)Managers typically do not devote enough time to screen potential partners, for a strategic alliance, in financial terms.
B)For the alliance to work, the partners should consider one another's areas of expertise.
C)The most successful strategic alliances have the same research interests.
D)Strategic alliances often slow down the work of two organizations.
E)Manufacturing costs are often increased by using a strategic alliance.

Question 47

Which of the following statements is true of a high-involvement organization?

A)Lower-level employees are not accountable for a good or service delivery.
B)The leader defers to the board of directors for all decisions.
C)Task forces and study groups are not generally used because they are seen as a waste of time and resource.
D)Employee involvement tends to be inadequate when the environment changes rapidly.
E)The organizational form is a flat, decentralized structure built around a customer, good, or service.

Question 48

Structurally, a high-involvement organization is usually ____.

A)task-oriented and bureaucratic
B)flat and decentralized
C)hierarchical and centralized
D)customer-centric and centralized
E)highly departmentalized

Question 49

Because Mega Corp. is very large, it has the ability to use the same process to manufacture multiple related products. This type of efficiency is referred to as an economy of ____.

A)scale
B)production
C)agility
D)scope
E)size

Question 50

Missy's company just went through the process of downsizing. Missy retained her job, but now she has a much heavier workload. Since the layoffs, Missy has been worried about her future and more reluctant to take risks on the job. Missy is showing the symptoms of ____.

A)unemployment anxiety
B)survivor's syndrome
C)downsizing disorientation
D)downsizing anxiety
E)employee depression

Question 51

Survivor's syndrome refers to the

A)loss of productivity and morale in employees who remain after downsizing.
B)guilt on the part of management for going ahead with the downsizing.
C)slump in market share after a new company enters the market.
D)lack of motivation in the people who got laid off to find new jobs.
E)distress experienced by employees who have been laid off.

Question 52

What is a strategic alliance?

A)An organization skilled at creating, acquiring, and transferring knowledge and at modifying its behavior to reflect new knowledge and insights
B)An organization in which top management ensures that there is consensus about the direction in which the business is heading
C)A small grassroots effort whose goal is to create a sustainable organization that helps solve important social problems
D)A way of managing in which everyone is committed to continuous improvement of his or her part of the organization
E)A formal relationship created among independent organizations with the purpose of joint pursuit of mutual goals

Question 53

Economies of scope refers to the idea that

A)producing large quantities results in lower costs per unit produced.
B)materials and processes employed in one product can be used to make other related products.
C)getting products to market ahead of the competition is, often, a key to success.
D)the producer with the greatest percentage of market share has maximum staying power.
E)the variety of products offered is an indicator that an organization has sustainable economic growth.

Question 54

Iris Paint, a manufacturer of designer indoor paint, is in the process of eliminating some positions in its organization. Its management has carefully analyzed all of the jobs and strategically determined which to keep, with an eye toward protecting its most talented people. Which of the following refers to what Iris is doing in this scenario?

A)Standardizing
B)Centralizing
C)Downsizing
D)Benchmarking
E)Globalizing

Question 55

An organization that is skilled at creating, acquiring, and transferring knowledge and at modifying its behavior to reflect new knowledge and insights is known as a ____ organization.

A)learning
B)high-involvement
C)mechanistic
D)network
E)matrix

Question 56

Downsizing in organizations refers to the

A)planned elimination of organizational positions.
B)decrease in product volume and variety.
C)transition from corporate equity to corporate debt.
D)sale of less efficient operating units.
E)decrease in the use of organizational resources.

Question 57

Which of the following is an effective practice in downsizing?

A)Laying off excessive people so that new people can be hired when needed
B)Making slow, small, and frequent layoffs to maintain productivity
C)Engaging in excessive hiring so that downsizing doesn't affect productivity
D)Giving special attention and help to those who have lost their jobs
E)Implementing voluntary early retirement

Question 58

Managers who want to strengthen their firms' competitiveness via core capabilities need to focus on

A)assigning only specific tasks to specific workers.
B)purchasing more capital assets.
C)hiring more people anticipating economic downturns.
D)extending capabilities to find new applications and opportunities.
E)maintaining and growing the stock price.

Question 59

The top management team at Gargantuan Industries has decided that it needs to close one of its divisions and eliminate a level of middle management at the surviving divisions. What process is Gargantuan going to implement?

A)Reengineering
B)Domain selection
C)Downsizing
D)Buffering
E)Benchmarking

Question 60

Diseconomies of scale refers to the

A)environmental forces that inherently have a negative impact on business growth.
B)realization of lower per-unit costs.
C)costs associated with an organization being too big.
D)use of materials or processes in related products or services.
E)fluctuations in the economy.

Question 61

According to Dr. Kenichi Ohmae, customers, corporation, and competitors make up the ____.

A)profit gateway
B)structure foundation
C)strategic triangle
D)control cycle
E)profit pyramid

Question 62

One of the most important contributors to total quality management has been the introduction of statistical tools to analyze the causes of product defects in an approach called ____.

A)six sigma quality
B)concurrent engineering
C)value chain management
D)computer-integrated manufacturing
E)kanban

Question 63

The principal idea of reengineering is to

A)fully utilize available technology to increase efficiency.
B)get more market share.
C)revolutionize key organizational systems and processes.
D)provide more customized products.
E)innovate more than the competitors.

Question 64

Total quality management is a way of managing in which everyone is committed to the _____ of his or her part of the operation.

A)fulfillment
B)accountability
C)concurrent engineering
D)continuous improvement
E)ethical standards

Question 65

Rick is the marketing head of a firm. He usually strives for long-term improvement rather than short-term profit, regardless of the economic environment. In the context of Deming's 14 points of quality, this is an example of

A)creating constancy of purpose.
B)adopting a new philosophy.
C)improving constantly and forever the system of production and service.
D)taking action to accomplish the transformation.
E)offering training and retraining.

Question 66

Which of the following is one of W. Edwards Deming's 14 points of quality?

A)Strive for short-term improvement rather than long-term profit.
B)Ensure compliance by punishing those who deviate from the process.
C)Eliminate slogans and buzzwords.
D)Implement or reinforce the use of numerical quotas.
E)Mass inspection is the best way to ensure quality.

Question 67

Which of the following is a primary activity in the generic value chain?

A)Firm infrastructure
B)Human resource management
C)Technology development
D)Inbound logistics
E)Procurement

Question 68

A multifaceted process focusing on creating two-way exchanges with customers to foster intimate knowledge of their needs, wants, and buying patterns is called _____ management.

A)customer relationship
B)total quality
C)human resources
D)customer analytics
E)buyer-behavior

Question 69

Which of the following is a support activity in the generic value chain?

A)Research and development
B)Operations
C)Outbound logistics
D)Technology development
E)Marketing and sales

Question 70

Which of the following is one of the criteria for receiving the Malcolm Baldrige National Quality Award?

A)Use of JIT
B)Extensive training for workers
C)Technological innovation
D)Customer and market focus
E)ISO 9001 certification

Question 71

A small office with only a single accountant and a receptionist/secretary is an example of a _____ shop.

A)job
B)large batch
C)continuous process
D)mass customization
E)specialty

Question 72

_____ is an integrative approach to management that supports the attainment of customer satisfaction through a wide variety of tools and techniques that result in goods and services of high standards.

A)Total quality management
B)Customer relationship management
C)Value-added manufacturing
D)Mass customization
E)Computer-integrated manufacturing

Question 73

A company that asks itself "If you were the customer, how would you like us to operate?" and then takes action to transform itself is best described as using the notion of ____.

A)strategic maneuvering
B)lean manufacturing
C)operations management
D)reengineering
E)total quality management

Question 74

In the realm of customer relations, _____ includes continually changing in order to connect with customers, even without waiting for customers to make the first move.

A)continuous integration
B)continuous improvement
C)value chain analysis
D)customer exchange
E)total quality management

Question 75

According to Deming's 14 points of quality, which of the following has to be eliminated, as they are contrary to the idea of continuous improvement?

A)Numerical quotas
B)Retraining programs
C)Value chains
D)Strategic alliances
E)Just-in-time operations

Question 76

Executives at a pharmaceuticals company have been working with a consultant to implement ISO 9001. They have established the company's vision and goals, and they have been working hard to provide inspiration to their employees and establish trust. Which of the following principles is the company addressing here?

A)Involvement of people
B)Strategic quality planning
C)Mutually beneficial supplier relationships
D)Process approach to management
E)Leadership

Question 77

When an organization's definition of customer expands to include internal customers, the word customer is best defined as the ____.

A)purchaser of the end product
B)user of the end product
C)consumer with whom a relationship is maintained
D)next process
E)person interested in the product

Question 78

A series of quality standards developed by a committee working under the International Organization for Standardization to improve total quality in all businesses for the benefit of both producers and consumers is known as ____.

A)total quality management
B)just-in-time control
C)ISO 9001
D)computer-integrated manufacturing
E)customer-based integration

Question 79

In Japanese operations strategy, kaizen refers to ____.

A)zero defects
B)total quality management
C)value chain
D)continuous improvement
E)rightsizing

Question 80

The sequence of activities that flow from raw materials to the delivery of a good or service, with additional value created at each step, is known as ____.

A)competitive analysis
B)the value chain
C)customer analysis
D)total quality management
E)the strategic triangle