Term
The purpose of organizational structure is to provide managers with specific feedback on how well an organization and its members are performing and building competitive advantage.
a. True
b. False |
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Definition
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Term
An important purpose of control systems is to motivate employees to work toward increasing efficiency, quality, innovation, and responsiveness to customers.
a. True
b. False |
|
Definition
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Term
Effective organizational design can simultaneously allow a company to obtain a competitive advantage and achieve above-average profitability.
a. True
b. False |
|
Definition
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Term
A division is a way of grouping functions to allow an organization to better produce and dispose of its goods and services.
a. True
b. False |
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Definition
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Term
Span of control refers to the number of subordinates who report directly to one supervisor.
a. True
b. False |
|
Definition
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Term
Flat structures can lead to information distortion when data are being sent either up or down the hierarchy.
a. True
b. False |
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Definition
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Term
In 1995, Dell Computer changed its organization structure from a market structure to a functional structure and created separate divisions to better serve its different groups of customers.
a. True
b. False |
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Definition
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Term
When companies become too tall and the chain of command too long, strategic managers tend to lose control over the hierarchy and, subsequently, their strategies.
a. True
b. False |
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Definition
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Term
Centralization of authority is advantageous in a time of crisis.
a. True
b. False |
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Definition
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Term
The need for integrating mechanisms is greater when a company's structure is more complex.
a. True
b. False |
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Definition
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Term
Control systems can help managers evaluate how efficiently they are producing goods and services.
a. True
b. False |
|
Definition
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|
Term
Controls at each level should provide the basis on which managers at the levels below design their control systems.
a. True
b. False |
|
Definition
|
|
Term
Information technology is playing an increasing role in strategy implementation at all organizational levels.
a. True
b. False |
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Definition
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|
Term
The reward system affects the type of organizational culture that develops in a company.
a. True
b. False |
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Definition
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Term
Control through culture is so powerful because once values have been internalized, individuals follow them without thinking about them.
a. True
b. False |
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Definition
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Term
Organizational design has little effect on organizational culture.
a. True
b. False |
|
Definition
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Term
Organizational structure contributes to the implementation process by providing the framework of tasks and roles that reduces transaction difficulties and allows employees to think and behave in ways that allow a company to achieve superior performance.
a. True
b. False
|
|
Definition
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Term
Building capabilities in organizational design that allow a company to develop a competitive advantage starts at the functional level.
a. True
b. False |
|
Definition
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|
Term
Effective strategy implementation is very important for cost leaders, but it is of less importance to differentiators.
a. True
b. False |
|
Definition
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Term
For each function, a cost leader adopts output controls that allow it to monitor and evaluate functional performance closely.
a. True
b. False |
|
Definition
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Term
A product structure requires that support activities from a company's value chain be decentralized so that independent specialists in support activities exist within each product group.
a. True
b. False |
|
Definition
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Term
Cypress Semiconductor utilizes a computer-based information system through which the CEO can manage what every employee and team is doing in the decentralized organization.
a. True
b. False |
|
Definition
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|
Term
Union Pacific, one of the largest freight carriers in the United States, experienced costly problems due to the company's centralized organization structure.
a. True
b. False |
|
Definition
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Term
In manufacturing, functional strategy usually centers on improving efficiency and quality.
a. True
b. False |
|
Definition
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Term
Whenever different functions work together, bureaucratic costs inevitably arise.
a. True
b. False |
|
Definition
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Term
Johnson & Johnson is organized into Consumer, Medical, and Pharmaceutical units to serve the needs of its different customer groups. Johnson & Johnson is using a market structure.
a. True
b. False |
|
Definition
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|
Term
One of the main differences between a product team and a team in a matrix structure is that a product team is more permanent than a team in a matrix structure.
a. True
b. False |
|
Definition
|
|
Term
Restructuring always involves flattening the organizational hierarchy and downsizing the work force.
a. True
b. False |
|
Definition
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|
Term
Control systems
a. enable a company to evaluate its performance.
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. |
|
Definition
| a. enable a company to evaluate its performance. |
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Term
Within a firm, a function is made up of workers who
a. perform the same types of tasks or hold similar positions.
b. are paid the same amount of compensation.
c. work at the same hierarchical level (for example, all middle managers).
d. have the same background and education.
e. have the same job title (for example, all are vice presidents). |
|
Definition
| a. perform the same types of tasks or hold similar positions. |
|
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Term
Flat organizational structures are characterized by
a. few levels of management and a relatively narrow span of control.
b. few levels of management and a relatively wide span of control.
c. many levels of management and a relatively narrow span of control.
d. many levels of management and a relatively wide span of control.
e. none of these choices. |
|
Definition
| b. few levels of management and a relatively wide span of control. |
|
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Term
When decision-making responsibilities are decentralized, benefits include all of the following except
a. increased motivation and accountability.
b. lower bureaucratic costs from flattened hierarchy.
c. reduced information overload.
d. easier coordination.
e. all of these choices are benefits of decentralization. |
|
Definition
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Term
Which of the following integrating mechanisms consists of one manager from each relevant function or division assigned to a team that meets to solve a specific mutual problem?
a. Direct contact
b. Liaison roles
c. Teams
d. Integrating roles
e. The matrix structure |
|
Definition
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Term
Which of the following is not one of the company levels where strategic control systems measure performance?
a. Board of directors
b. Corporate
c. Divisional
d. Functional
e. Individual |
|
Definition
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Term
Using output controls at the individual level is least appropriate when the work force consists primarily of
a. salespeople.
b. production workers.
c. research and development scientists.
d. tax accountants.
e. data-entry clerks. |
|
Definition
| c. research and development scientists. |
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|
Term
Standardization is a form of
a. output control.
b. financial control.
c. organizational inertia.
d. organizational culture.
e. behavior control. |
|
Definition
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|
Term
The organizational structure and organizational culture of a company can have
a. little effect on overall company performance.
b. a direct bearing on a company's profits.
c. a tangential effect on employee morale.
d. no impact on employee morale.
e. none of these choices. |
|
Definition
| b. a direct bearing on a company's profits. |
|
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Term
Standardization is employed to squeeze out costs in manufacturing. Standardization may be achieved through standardization of
a. inputs.
b. work processes.
c. outputs.
d. work processes and outputs.
e. inputs, work processes, and outputs. |
|
Definition
| e. inputs, work processes, and outputs. |
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|
Term
Information technology (IT) would be least helpful to managers who are addressing issues of
a. behavior control.
b. output control.
c. integration.
d. organizational culture.
e. standardization. |
|
Definition
| d. organizational culture. |
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|
Term
Control through organizational culture is so powerful because
a. it reduces the costs of organizational control in a large company.
b. self-control develops through the establishment of an internal system of organizational values.
c. it results in maximum decentralization and the elimination of bureaucracy.
d. it achieves increased performance through the alignment of organizational goals with societal expectations.
e. it achieves external control through motivated coworkers.
|
|
Definition
| b. self-control develops through the establishment of an internal system of organizational values. |
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Term
Control through organizational culture
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. reduces mutual adjustment and includes setting individual goals. |
|
Definition
| c. involves employees internalizing the norms and values of the organization. |
|
|
Term
Which form of control would you be most likely to find in a voluntary or charity organization?
a. Bureaucratic control through rules and procedures
b. Control through norms and values
c. Financial control through accurate financial statements
d. Output control
e. Incentive systems |
|
Definition
| b. Control through norms and values |
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|
Term
Companies that are innovative and able to deal with environmental change with new strategies and structures probably have
a. weak cultures.
b. strong functional cultures.
c. adaptive cultures.
d. prescriptive cultures.
e. matrix structures. |
|
Definition
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|
Term
As new, small firms grow and mature, which structure are they likely to choose?
a. Simple
b. Geographic
c. Functional
d. Matrix
e. Product |
|
Definition
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Term
Which characteristic is shared by all three of the product, market, and geographic structures?
a. All three utilize permanent organizational groups.
b. All three are based on the use of cross-functional teams.
c. All three require that support functions be decentralized.
d. All three organize workers into permanent groups, are based on the use of cross-functional teams, and require that support functions be centralized.
e. There is no common characteristic for all three structures. |
|
Definition
| a. All three utilize permanent organizational groups. |
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Term
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
a. organizational structuring.
b. corporate systems design.
c. organizational design.
d. departmentalization.
e. structural landscaping. |
|
Definition
| c. organizational design. |
|
|
Term
As a general principle, a company should always choose the hierarchal organization structure that has the
a. most levels of authority.
b. fewest levels of authority.
c. greatest number of people.
d. least number of people.
e. none of these choices. |
|
Definition
| b. fewest levels of authority. |
|
|
Term
A stereo manufacturer sells only leading-edge stereos to the upscale segment. Which of the following structures is the most appropriate for this firm?
a. Matrix
b. Multidivisional
c. Geographic
d. Functional
e. Simple |
|
Definition
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Term
A drawback of the functional structure is
a. that each worker must report to more than one superior.
b. the difficulty in communicating and coordinating across functions.
c. too much decentralization of decision-making authority.
d. its lack of flexibility.
e. the need to downsize before implementing this structure.
|
|
Definition
| b. the difficulty in communicating and coordinating across functions. |
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Term
If a firm finds that its functional structure is becoming too awkward as the firm grows in size and complexity, the firm can turn to
a. a simple structure.
b. downsizing.
c. reengineering.
d. restructuring.
e. outsourcing. |
|
Definition
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|
Term
A cost-leadership strategy would be most effective with
a. output controls.
b. personal controls.
c. behavioral controls.
d. cultural controls.
e. no controls. |
|
Definition
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|
Term
Which of the following structures requires centralization of value chain support activities?
a. The product structure
b. The product team structure
c. The matrix structure
d. The product and product team structures
e. The matrix and product team structures
|
|
Definition
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|
Term
Which of the following is not one of the advantages of a geographic structure?
a. Cost inefficiencies from issues of scope
b. Responsiveness to the needs of regional customers
c. Lower transportation costs
d. More coordination and control than a functional structure
e. Centralization of key activities and functions that allow leveraging skills across regions
|
|
Definition
| a. Cost inefficiencies from issues of scope |
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|
Term
Which of the following structures is the flattest?
a. Functional
b. Geographic
c. Market
d. Matrix
e. Product |
|
Definition
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Term
Matrix structures
a. have many hierarchical levels.
b. are appropriate for companies with many low-skilled workers.
c. group activities vertically by function and horizontally by product or project.
d. are appropriate for a firm pursuing a low-cost strategy.
e. have many hierarchical levels and two forms of horizontal differentiation. |
|
Definition
| c. group activities vertically by function and horizontally by product or project. |
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|
Term
A matrix structure would be the most appropriate for which of the following firms?
a. A large multinational company with a distinctive competence in marketing
b. A company operating in the maturity stage of the industry life cycle
c. A medium-sized technological firm with an objective of fast product development time
d. A company with a high level of vertical differentiation
e. A company pursuing a cost-leadership strategy |
|
Definition
| c. A medium-sized technological firm with an objective of fast product development time |
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|
Term
To a large degree, any organization's tasks are a function of its
a. market area.
b. labor supply.
c. supervisors.
d. strategy.
e. compensation plan. |
|
Definition
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Term
Essentially, centralization or decentralization are concepts that refer to the
a. levels where decisions are made in an organization.
b. number of hierarchical levels existing in an organization.
c. numbers of managers in an organization.
d. number of employees in an organization.
e. none of these choices. |
|
Definition
| a. levels where decisions are made in an organization. |
|
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Term
The degree to which a company specifies how decisions are to be made so that employees' behavior becomes predictable is referred to as
a. uniformity of output.
b. conformity of behavior.
c. standardization.
d. maximization of effort.
e. behavioral control. |
|
Definition
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|
Term
The most appropriate structure for a company pursuing low-cost and differentiation strategies simultaneously is
a. functional.
b. geographic.
c. matrix.
d. product team.
e. simple. |
|
Definition
|
|
Term
Which of the following is required by a restructuring?
a. Eliminating business units
b. Rethinking business processes
c. Creating more business units
d. Flattening the organizational hierarchy
e. Broadening the span of control |
|
Definition
| d. Flattening the organizational hierarchy |
|
|
Term
Which of the following actions would you expect to see in a company that is undergoing a reengineering?
a. Hiring more managers
b. Hiring more workers
c. Examining activities from a customer's point of view
d. Investing more in product research and development (R&D)
e. Centralizing decision-making authority |
|
Definition
| c. Examining activities from a customer's point of view |
|
|
Term
Restructuring is
a. a rethinking and redesign of a firm's business processes.
b. a radical readjustment of the organization's staffing 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 firm grows in complexity and size.
e. employed when a firm needs help in improving its functional strategies. |
|
Definition
| b. a radical readjustment of the organization's staffing and hierarchy. |
|
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Term
A hospital examines its processes closely and then changes them radically to become more patient-centered. Among the changes are new ways of doing tasks and new groupings of workers. This is an example of
a. restructuring.
b. reengineering.
c. total quality management (TQM).
d. benchmarking.
e. downsizing. |
|
Definition
|
|
Term
In a successful company, the purpose of a control system is to
a. provide managers with a set of incentives to motivate employees to work toward company goals.
b. provide managers with specific feedback on how well the organization and its members are performing.
c. provide managers with information that can be used to criticize employee performance objectively.
d. A and B.
e. B and C. |
|
Definition
|
|
Term
In any organization, for-profit or not-for-profit, span of control refers to the
a. number of managers at the highest levels in the organization.
b. the CEO and his or her management team.
c. the number of subordinates who report directly to one manager.
d. the number of supervisors in a specific segment of a manufacturing activity.
e. none of these choices. |
|
Definition
| c. the number of subordinates who report directly to one manager. |
|
|
Term
The basic building blocks of competitive advantage include control and which of the following factors?
a. Efficiency
b. Quality
c. Innovation
d. Responsiveness to customers
e. All of these choices
|
|
Definition
|
|
Term
The specific collection of values, norms, beliefs, and attitudes shared by people and groups in a company is commonly referred to as
a. organizational fit.
b. organizational culture.
c. organizational development.
d. organizational positioning.
e. all of these choices. |
|
Definition
| b. organizational culture. |
|
|
Term
The term used to describe how people learn an organization's culture and way of behaving in the organization is
a. organizational structure.
b. organizational development.
c. organizational design.
d. organizational behavior.
e. organizational socialization. |
|
Definition
| e. organizational socialization. |
|
|
Term
An organization that has an adaptive culture is an organization that is
a. innovative.
b. resistant to major changes.
c. supportive of managers who take the initiative and make changes on their own.
d. A and C.
e. B and C. |
|
Definition
|
|
Term
Strategic control systems utilized to ensure long-run profitability include
a. personal control.
b. output control.
c. behavior control.
d. all of these choices.
e. none of these choices. |
|
Definition
|
|
Term
A functional organizational structure offers a company which of the following advantages?
a. Specialization of activities leading to greater productivity
b. More efficient production activities
c. Greater control of activities by managers
d. All of these choices
e. None of these choices |
|
Definition
|
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Term
Organizations strive to control employees' behavior by linking ____ systems to their control systems.
a. computer
b. disincentive
c. reporting
d. administrative
e. reward |
|
Definition
|
|
Term
The organization structure that organizations most commonly adopt to solve control problems that result from producing many different kinds of products for many different market segments is the
a. functional structure.
b. process structure.
c. matrix structure.
d. product structure.
e. differentiated structure. |
|
Definition
|
|
Term
As a company begins producing or selling in many different regional areas, it may encounter problems associated with
a. location factors.
b. employee selection factors.
c. production factors.
d. research and development (R&D) factors.
e. engineering factors. |
|
Definition
|
|
Term
Effective organizational design may increase a company's profitability because it
a. improves the way people and groups work together.
b. leads to the creation of greater value for customers.
c. reduces bureaucratic costs.
d. solves measurement and communication problems.
e. all of these choices. |
|
Definition
|
|
Term
A typical matrix organizational structure is
a. flat and decentralized.
b. flat and centralized.
c. tall and decentralized.
d. tall and centralized.
e. none of these choices. |
|
Definition
| a. flat and decentralized. |
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|
Term
When a company engages in restructuring, it may be necessary to
a. increase the size of the work force.
b. increase the number of organizational levels.
c. lay off employees.
d. add to the operating costs.
e. none of these choices. |
|
Definition
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