Question 1

Employees learn about an organization's culture through the process of

Accepted Answer

A)  socialization. 
B)  exploitation. 
C)  co-opetition. 
D)  acculturation. 
A)  socialization. 
B)  exploitation. 
C)  co-opetition. 
D)  acculturation.

Question 2

Organizational design involves establishing a firm's structure, culture, and control mechanisms.

Accepted Answer

A) True 
 B)False

Question 3

Organizational culture can help a firm gain and sustain competitive advantage only if the culture makes a positive contribution to the firm's economic value creation and

Accepted Answer

A)  eventually gives way to core rigidity. 
B)  obeys the VRIO principles. 
C)  does not demonstrate causal ambiguity. 
D)  displays an absence of social complexity. 
A)  eventually gives way to core rigidity. 
B)  obeys the VRIO principles. 
C)  does not demonstrate causal ambiguity. 
D)  displays an absence of social complexity.

Question 4

How does a strong organizational culture build competitive advantage?

Accepted Answer

Strong organizational cultures that are

Question 5

What are the characteristics of mechanistic organizations? Explain with the help of an example.

Accepted Answer

Students' answers will vary. Mechanistic

Question 6

ValueHealth is a successful drug manufacturer. Because the pharmaceutical industry features a high rate of change and the threat of disruption is high, ValueHealth should

Accepted Answer

A)  be prepared to restructure as the landscape changes. 
B)  stick with the structure that brought it success no matter what happens. 
C)  attempt to implement an unstructured organization. 
D)  switch to whichever structure is most common in the industry. 
A)  be prepared to restructure as the landscape changes. 
B)  stick with the structure that brought it success no matter what happens. 
C)  attempt to implement an unstructured organization. 
D)  switch to whichever structure is most common in the industry.

Question 7

Which of the following statements is true of strategy in an organization?

Accepted Answer

A)  Strategy implementation is considered unsuccessful if it requires changes within an organization. 
B)  To implement a strategy successfully, an organization's structure must be rigid. 
C)  Strategy implementation does not affect resource allocation and power distribution within an organization. 
D)  Organizational structure must follow strategy in order for firms to achieve superior performance. 
A)  Strategy implementation is considered unsuccessful if it requires changes within an organization. 
B)  To implement a strategy successfully, an organization's structure must be rigid. 
C)  Strategy implementation does not affect resource allocation and power distribution within an organization. 
D)  Organizational structure must follow strategy in order for firms to achieve superior performance.

Question 8

A high degree of formalization in an organization is most likely to

Accepted Answer

A)  improve customer service. 
B)  slow down decision making. 
C)  produce inconsistent results. 
D)  increase creativity and innovation. 
A)  improve customer service. 
B)  slow down decision making. 
C)  produce inconsistent results. 
D)  increase creativity and innovation.

Question 9

Which of the following types of organizations best helps match a differentiation strategy to a functional structure?

Accepted Answer

A)  ambidextrous organization 
B)  mechanistic organization 
C)  organic organization 
D)  rigid organization 
A)  ambidextrous organization 
B)  mechanistic organization 
C)  organic organization 
D)  rigid organization

Question 10

The most important yet least visible element of organizational culture is

Accepted Answer

A)  values. 
B)  norms. 
C)  laws. 
D)  artifacts. 
A)  values. 
B)  norms. 
C)  laws. 
D)  artifacts.

Question 11

A firm's ________ determines how the work efforts of individuals and teams are orchestrated and how resources are distributed.

Accepted Answer

A)  norm 
B)  culture 
C)  structure 
D)  control 
A)  norm 
B)  culture 
C)  structure 
D)  control

Question 12

Which of the following is an advantage of using a functional structure when pursuing a cost-leadership strategy?

Accepted Answer

A)  It allows a cost-leader to upgrade core competencies in manufacturing and logistics. 
B)  It enables a cost-leader to build products that are different from its competitors' offerings. 
C)  It enables a cost-leader to increase costs above that of its competitors. 
D)  It allows a cost-leader to operate in a decentralized organizational structure. 
A)  It allows a cost-leader to upgrade core competencies in manufacturing and logistics. 
B)  It enables a cost-leader to build products that are different from its competitors' offerings. 
C)  It enables a cost-leader to increase costs above that of its competitors. 
D)  It allows a cost-leader to operate in a decentralized organizational structure.

Question 13

McDonald's operates Hamburger University that trains students to ensure consistent food quality across its outlets throughout the world. This indicates that McDonalds's

Accepted Answer

A)  is organic in nature. 
B)  is mechanistic in nature. 
C)  has an informal structure. 
D)  has a decentralized structure. 
A)  is organic in nature. 
B)  is mechanistic in nature. 
C)  has an informal structure. 
D)  has a decentralized structure.

Question 14

Output controls can sometimes discourage collaboration among different strategic business units. However, more and more work requires creativity and innovation, especially in highly-developed economies. One way firms are grappling with this issue is by

Accepted Answer

A)  introducing results-only-work-environments to tap intrinsic motivations. 
B)  refining the budgeting process to encourage more department collaboration. 
C)  updating standard operating procedures to allow more process flexibility. 
D)  using output controls only when the goal is to ensure a predictable outcome. 
A)  introducing results-only-work-environments to tap intrinsic motivations. 
B)  refining the budgeting process to encourage more department collaboration. 
C)  updating standard operating procedures to allow more process flexibility. 
D)  using output controls only when the goal is to ensure a predictable outcome.

Question 15

Describe a global matrix structure. Why do firms use it?

Accepted Answer

A global matrix structure is formed by c

Question 16

Mona sets up a business consulting firm in which the employees are motivated because they find their work interesting and creative. She carefully hires workers who fit well with their assigned tasks. Also, she clearly defines the results expected of each worker, but allows the workers to determine the means to these results. Which of the following best describes Mona's business?

Accepted Answer

A)  a firm that relies on high input controls to tap into intrinsic motivation 
B)  a firm that relies on high input controls to tap into extrinsic motivation 
C)  a firm that relies on high output controls to tap into intrinsic motivation 
D)  a firm that relies on high output controls to tap into extrinsic motivation 
A)  a firm that relies on high input controls to tap into intrinsic motivation 
B)  a firm that relies on high input controls to tap into extrinsic motivation 
C)  a firm that relies on high output controls to tap into intrinsic motivation 
D)  a firm that relies on high output controls to tap into extrinsic motivation

Question 17

What are the characteristics of organic organizations?

Accepted Answer

Organic organizations have a low degree

Question 18

A primary advantage of the matrix organizational structure is that it simplifies decision making and communication in geographically diverse organizations.

Accepted Answer

A) True 
 B)False

Question 19

A functional structure is recommended when a firm

Accepted Answer

A)  has a broad focus in terms of its product/service offerings. 
B)  has a low level of diversification. 
C)  has a low degree of specialization. 
D)  diversifies into different product lines and geographies. 
A)  has a broad focus in terms of its product/service offerings. 
B)  has a low level of diversification. 
C)  has a low degree of specialization. 
D)  diversifies into different product lines and geographies.

Question 20

Results-only-work-environments (ROWEs) are characterized by their use of extrinsic motivations such as promotions or the threat of layoffs.

Accepted Answer

A) True 
 B)False

Employees learn about an organization's culture through the process of

Organizational design involves establishing a firm's structure, culture, and control mechanisms.

Organizational culture can help a firm gain and sustain competitive advantage only if the culture makes a positive contribution to the firm's economic value creation and

How does a strong organizational culture build competitive advantage?

What are the characteristics of mechanistic organizations? Explain with the help of an example.

ValueHealth is a successful drug manufacturer. Because the pharmaceutical industry features a high rate of change and the threat of disruption is high, ValueHealth should

Which of the following statements is true of strategy in an organization?

A high degree of formalization in an organization is most likely to

Which of the following types of organizations best helps match a differentiation strategy to a functional structure?

The most important yet least visible element of organizational culture is

A firm's ________ determines how the work efforts of individuals and teams are orchestrated and how resources are distributed.

Which of the following is an advantage of using a functional structure when pursuing a cost-leadership strategy?

McDonald's operates Hamburger University that trains students to ensure consistent food quality across its outlets throughout the world. This indicates that McDonalds's

Output controls can sometimes discourage collaboration among different strategic business units. However, more and more work requires creativity and innovation, especially in highly-developed economies. One way firms are grappling with this issue is by

Describe a global matrix structure. Why do firms use it?

What are the characteristics of organic organizations?

A primary advantage of the matrix organizational structure is that it simplifies decision making and communication in geographically diverse organizations.

A functional structure is recommended when a firm

Results-only-work-environments (ROWEs) are characterized by their use of extrinsic motivations such as promotions or the threat of layoffs.

What Is Strategy

Strategic Leadership: Managing the Strategy Process

External Analysis: Industry Structure, Competitive Forces, and Strategic Groups

Internal Analysis: Resources, Capabilities, and Core Competencies

Competitive Advantage, Firm Performance, and Business Models

Business Strategy: Differentiation, Cost Leadership, and Blue Oceans

Business Strategy: Innovation, Entrepreneurship, and Platforms

Corporate Strategy: Vertical Integration and Diversification

Corporate Strategy: Strategic Alliances, Mergers, and Acquisitions

Global Strategy: Competing Around the World

Corporate Governance and Business Ethics

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Exam 11: Organizational Design: Structure, Culture, and Control

Employees learn about an organization's culture through the process of

Organizational design involves establishing a firm's structure, culture, and control mechanisms.

Organizational culture can help a firm gain and sustain competitive advantage only if the culture makes a positive contribution to the firm's economic value creation and

How does a strong organizational culture build competitive advantage?

What are the characteristics of mechanistic organizations? Explain with the help of an example.

ValueHealth is a successful drug manufacturer. Because the pharmaceutical industry features a high rate of change and the threat of disruption is high, ValueHealth should

Which of the following statements is true of strategy in an organization?

A high degree of formalization in an organization is most likely to

Which of the following types of organizations best helps match a differentiation strategy to a functional structure?

The most important yet least visible element of organizational culture is

A firm's ________ determines how the work efforts of individuals and teams are orchestrated and how resources are distributed.

Which of the following is an advantage of using a functional structure when pursuing a cost-leadership strategy?

McDonald's operates Hamburger University that trains students to ensure consistent food quality across its outlets throughout the world. This indicates that McDonalds's

Output controls can sometimes discourage collaboration among different strategic business units. However, more and more work requires creativity and innovation, especially in highly-developed economies. One way firms are grappling with this issue is by

Describe a global matrix structure. Why do firms use it?

What are the characteristics of organic organizations?

A primary advantage of the matrix organizational structure is that it simplifies decision making and communication in geographically diverse organizations.

A functional structure is recommended when a firm

Results-only-work-environments (ROWEs) are characterized by their use of extrinsic motivations such as promotions or the threat of layoffs.

What Is Strategy

Strategic Leadership: Managing the Strategy Process

External Analysis: Industry Structure, Competitive Forces, and Strategic Groups

Internal Analysis: Resources, Capabilities, and Core Competencies

Competitive Advantage, Firm Performance, and Business Models

Business Strategy: Differentiation, Cost Leadership, and Blue Oceans

Business Strategy: Innovation, Entrepreneurship, and Platforms

Corporate Strategy: Vertical Integration and Diversification

Corporate Strategy: Strategic Alliances, Mergers, and Acquisitions

Global Strategy: Competing Around the World

Corporate Governance and Business Ethics

Filters