Question 1

The virtue of shared values is that it

Accepted Answer

A)  replaces the need for formal organizational cultures. 
B)  creates strong functional cultures. 
C)  increases integration and improves coordination among organizational members. 
D)  replaces strategic leadership. 
E)  controls the way employees think and behave.

Question 2

One advantage of the multi-divisional structure over a functional structure is that each distinct product line or business unit is placed in its own self-contained unit or division, with all support functions.

Accepted Answer

A) True 
 B)False

Question 3

Each organizational function needs to develop a distinctive competency in a value creation activity in order to increase

Accepted Answer

A)  efficiency. 
B)  quality. 
C)  customer responsiveness. 
D)  innovation. 
E)  all of the above.

Question 4

_______________ provides the vehicle through which managers can coordinate the activities of a company's various functions, divisions, and business units to take advantage of their skills and competencies.

Accepted Answer

A)  Organizational structure 
B)  Decentralization 
C)  Organizational culture 
D)  Span of control 
E)  Strategic control

Question 5

When decision-making responsibilities are decentralized, benefits include all of the following except

Accepted Answer

A)  increased motivation and accountability. 
B)  lower managerial costs from flattened hierarchy. 
C)  reduced information overload. 
D)  easier coordination of the organizational activities needed to pursue a company's strategies. 
E)  All of these are benefits of decentralization.

Question 6

The most common measures managers and other stakeholders use to monitor and evaluate a company's performance are financial controls.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following structures results in the creation of an office of corporate headquarters staff?

Accepted Answer

A)  Functional 
B)  Multi-divisional 
C)  Geographic 
D)  Matrix 
E)  Product team

Question 8

The profitability of different business divisions is hard to ascertain in the multi-divisional structure.

Accepted Answer

A) True 
 B)False

Question 9

Authority is _________________ when managers at the upper levels of the organizational hierarchy retain the authority to make the most important decisions.

Accepted Answer

A)  decentralized 
B)  centralized 
C)  dispersed 
D)  universally effective 
E)  differentiated

Question 10

The basic building blocks of organizational structure are differentiation and integration.

Accepted Answer

A) True 
 B)False

Question 11

The costs of operating a multi-divisional structure are high compared to the functional structure.

Accepted Answer

A) True 
 B)False

Question 12

In a multi-divisional structure corporate managers can compare the performance of one division against another in terms of its cost structure or the profit it generates.

Accepted Answer

A) True 
 B)False

Question 13

Corporate managers must carefully control interactions with division managers to ensure that both short- and long-term goals are being met.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

The answer of Describe the roles that organizational structure, strategic...

Question 15

Strategic control systems

Accepted Answer

A)  enable a company to evaluate whether it is successfully implementing its strategy. 
B)  help managers determine which generic strategy to pursue. 
C)  are used only at the business level. 
D)  allow firms to control the external environment. 
E)  are most effective for firms pursuing cost leadership.

Question 16

In a firm with a multi-divisional structure, corporate managers oversee the actions of divisional managers.

Accepted Answer

A) True 
 B)False

Question 17

Organizational design means selecting the combination of organizational structure and control systems that lets a company pursue its strategy most effectively.

Accepted Answer

A) True 
 B)False

Question 18

Transfer pricing is used most commonly in a

Accepted Answer

A)  multidivisional structure. 
B)  product team structure. 
C)  functional structure. 
D)  matrix structure. 
E)  geographic structure.

Question 19

Which of the following is not one of the problems in implementing a multidivisional structure?

Accepted Answer

A)  Establishing the divisional-corporate authority relationship 
B)  Distortion of information 
C)  Long-term R&D focus 
D)  Competition for resources 
E)  Transfer pricing

Question 20

The role of organizational structure is to provide managers with specific feedback on how well an organization and its members are performing and building competitive advantage.

Accepted Answer

A) True 
 B)False

Exam 9: Implementing Strategy Through Organizational Design

The virtue of shared values is that it

One advantage of the multi-divisional structure over a functional structure is that each distinct product line or business unit is placed in its own self-contained unit or division, with all support functions.

Each organizational function needs to develop a distinctive competency in a value creation activity in order to increase

_______________ provides the vehicle through which managers can coordinate the activities of a company's various functions, divisions, and business units to take advantage of their skills and competencies.

When decision-making responsibilities are decentralized, benefits include all of the following except

The most common measures managers and other stakeholders use to monitor and evaluate a company's performance are financial controls.

Which of the following structures results in the creation of an office of corporate headquarters staff?

The profitability of different business divisions is hard to ascertain in the multi-divisional structure.

Authority is _________________ when managers at the upper levels of the organizational hierarchy retain the authority to make the most important decisions.

The basic building blocks of organizational structure are differentiation and integration.

The costs of operating a multi-divisional structure are high compared to the functional structure.

In a multi-divisional structure corporate managers can compare the performance of one division against another in terms of its cost structure or the profit it generates.

Corporate managers must carefully control interactions with division managers to ensure that both short- and long-term goals are being met.

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

Strategic control systems

In a firm with a multi-divisional structure, corporate managers oversee the actions of divisional managers.

Organizational design means selecting the combination of organizational structure and control systems that lets a company pursue its strategy most effectively.

Transfer pricing is used most commonly in a

Which of the following is not one of the problems in implementing a multidivisional structure?

The role of organizational structure is to provide managers with specific feedback on how well an organization and its members are performing and building competitive advantage.