Question 1

A division is a way of grouping functions to allow an organization to better produce and dispose of its goods and
senriCes.

Accepted Answer

A) True 
 B)False  True

Question 2

Identify and discuss the three building blocks of organizational structure.

Accepted Answer

Organizational structure assigns employees to specific value creation tasks and roles and specifies how these tasks and roles are to be linked together in a way that increases efficiency, quality, innovation, and responsiveness to customers D distinctive competencies that build competitive advantage.
The first building block of structure is grouping tasks, functions, and divisions.As companies grow, they may need to revisit structure so that these groupings are done to help create distinctive competencies.
The second building block is allocating authority and responsibility.As companies address authority and responsibility, the day-to-day structure takes shape.Decisions must address the hierarchy of authority, span of control, tall or flat structure, chain of command, and degree of centralization or decentralization.
The fmal building block of structure is integration and integrating mechanisms.The greater the complexity of an organization's structure, the greater is the need for coordination among the people, functions, and divisions to make the organizational structure work efficiently.Tools of integration include direct contact, liaison roles, and teams.

Question 3

Restructuring is:

Accepted Answer

A)  a rethinking and radical redesign of a firm's business processes.
B)  a radical readjustment of the organization's staffrng and hierarchy.
C)  a philosophy that states that mistakes, defects, and poor-quality materials are not acceptable and should be eliminated.
D)  the shift that firms make from a functional to a more complex structure as the finn grows in complexity and SIZe.
E)  employed when a finn needs help in improving its functional strategies. B

Question 4

The process of deciding how a company should create, use, and combine organizational structure, control systems, and culture to pursue a business model successfully is referred to as:

Accepted Answer

A)  organizational behavior.
B)  organizational norm.
C)  organizational design.
D)  organizational ecology.
E)  organizational density.

Question 5

Describe what is meant by the terms restructuring and reengineering, and discuss when and why they would be used.

Accepted Answer

The answer of Describe what is meant by the terms...

Question 6

Fortunately, whenever different functions work together, bureaucratic costs inevitably declines.

Accepted Answer

A) True 
 B)False

Question 7

Control through organizational culture is so powerful because:

Accepted Answer

A)  it eliminates the need for managers in large companies.
B)  it makes employees follow organizational values, after they've internalized them, without thinking about them.
C)  it results in maximum decentralization and the elimination of bureaucracy.
D)  it achieves increased performance through the alignment of organizational goals with external societal expectations.
E)  it achieves external control through motivated coworkers.

Question 8

Eva Studio, an audio company, manufactures a wide range of sound systems such as noise-canceling headsets, loudspeakers, and amplifiers.Employees in EvaStudio are grouped such that each group works only on one type of sound system.Which of the following structures is EvaStudio is most likely to have employed?

Accepted Answer

A)  Matrix
B)  Multidivisional
C)  Geographic
D)  Functional
E)  Product

Question 9

Control through organizational culture:

Accepted Answer

A)  is less expensive than output control.
B)  reduces mutual adjustment.
C)  involves employees internalizing the norms and values of the organization.
D)  includes setting individual goals.
E)  includes obtaining specific feedback to help managers evaluate performance.

Question 10

A typical matrix organizational structure:

Accepted Answer

A)  groups employees in two ways simultaneously to maximize the rate at which different kinds of products can be developed.
B)  breaks up a company's growing product line into a number of smaller, more manageable subunits.
C)  groups people on the basis of their common expertise and experience or because they use the same resources.
D)  is a way of grouping employees into separate customer groups so that each group can focus on satisfying the needs of a particular customer group. 
E)  is a way of grouping employees to best satisfy the needs of customers within different regions.

Question 11

An important purpose of control systems is to motivate employees to work toward increasing efficiency, quality,
innovation, and responsiveness to customers.

Accepted Answer

A) True 
 B)False

Question 12

If a firm fmds that its functional structure is becoming too complex as the firm grows in size, the firm can tum to:

Accepted Answer

A)  a simple structure.
B)  downsizing.
C)  reengmeerrng.
D)  restructuring. 
E)  outsourcing.

Question 13

To a large degree, any organization's tasks are a function of its:

Accepted Answer

A)  market area.
B)  labor supply.
C)  supervisors.
D)  strategies.
E)  compensation plan.

Question 14

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

Accepted Answer

A)  levels where decisions are made in the hierarchy of an organization.
B)  number of hierarchical levels existing in an organization.
C)  tools that allow an organization to monitor and evaluate if its strategies and structure are working as intended.
D)  business models oriented at expanding nationally and managing a wide range of products.
E)  strategies implemented by an organization to create, market and distribute its products.

Question 15

Research finds that centralization of authority is never advantageous, not even in time of crisis.

Accepted Answer

A) True 
 B)False

Question 16

Flat structures can lead to information distortion when data are being sent either up or down the hierarchy.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Silica Dustcloud Inc.is a decentralized organization.This means that the organization promotes flexibility and reduces bureaucratic costs because lower-level managers are authorized to make on-the-spot decisions.

Accepted Answer

A) True 
 B)False

Question 19

The reward system affects motivation, however, the type of organizational culture that develops in a company is primarily affected by the founder's values and not the reward system.

Accepted Answer

A) True 
 B)False

Question 20

Organizations strive to control employees' behavior by linking systems to their control systems.

Accepted Answer

A)  disciplinary
B)  disincentive
C)  reporting
D)  administrative
E)  reward

Exam 12: Implementing Strategy in Companies That Compete in a Single Industry

A division is a way of grouping functions to allow an organization to better produce and dispose of its goods and senriCes.

Identify and discuss the three building blocks of organizational structure.

Restructuring is:

The process of deciding how a company should create, use, and combine organizational structure, control systems, and culture to pursue a business model successfully is referred to as:

Describe what is meant by the terms restructuring and reengineering, and discuss when and why they would be used.

Fortunately, whenever different functions work together, bureaucratic costs inevitably declines.

Control through organizational culture is so powerful because:

Control through organizational culture:

A typical matrix organizational structure:

An important purpose of control systems is to motivate employees to work toward increasing efficiency, quality, innovation, and responsiveness to customers.

If a firm fmds that its functional structure is becoming too complex as the firm grows in size, the firm can tum to:

To a large degree, any organization's tasks are a function of its:

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

Research finds that centralization of authority is never advantageous, not even in time of crisis.

Flat structures can lead to information distortion when data are being sent either up or down the hierarchy.

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

Silica Dustcloud Inc.is a decentralized organization.This means that the organization promotes flexibility and reduces bureaucratic costs because lower-level managers are authorized to make on-the-spot decisions.

The reward system affects motivation, however, the type of organizational culture that develops in a company is primarily affected by the founder's values and not the reward system.

Organizations strive to control employees' behavior by linking systems to their control systems.