Question 1

Hank's Hot Dogs is a nationwide fast-food chain.Decision power resides at the top of the organization.Each job is documented in minute detail.The firm has many levels of supervision,including vice presidents and regional managers.Hank's headquarters provides detailed instructions to each of its franchisees so that they provide comparable quality and service across the board.Based on this scenario,which of the following is an accurate statement about Hank's?

Accepted Answer

A)   Hank's has a low degree of specialization and formalization, a high degree of centralization, and relies on a flat hierarchy.
B)   Hank's has a high degree of specialization and formalization, a low degree of centralization, and relies on a tall hierarchy.
C)   Hank's has a high degree of specialization, formalization, and centralization and relies on a tall hierarchy.
D)   Hank's has a low degree of specialization, formalization, and centralization and relies on a flat hierarchy.E) A) and D)
F) A) and C)

Question 2

Why does a firm use an organic organization combined with a functional structure when implementing a differentiation strategy?

Accepted Answer

A)   It allows the firm to create incentives to foster process innovation in order to drive down cost.
B)   It allows the firm to reduce its cost below that of competitors while offering acceptable value.
C)   It allows the firm to constantly upgrade core competencies in R&D, innovation, and marketing.
D)   It allows the firm to nurture and constantly upgrade necessary core competencies in manufacturing and logistics.E) B) and C)
F) B) and D)

Question 3

What is most likely to happen if a firm relies too long on a competency without honing,refining,and upgrading as the firm and the environment change?

Accepted Answer

A)   The firm's original core competency can turn from a liability into an asset.
B)   The firm's organizational inertia can turn into its core rigidity.
C)   The firm's competitive parity can turn into its competitive advantage.
D)   The firm's culture can turn from a core competency into a core rigidity.E) A) and D)
F) A) and C)

Question 4

Coda Inc.is an apparel manufacturer.The management at Coda prefers moderate control over the operations of the different departments such as R&D,design,marketing,and sales.It allocates a budget to each function at the beginning of each quarter.This is an example of implementing control through

Accepted Answer

A)   output controls.
B)   input controls.
C)   multidivisional strategy.
D)   centralization.E) A) and B)
F) A) and D)

Question 5

Which of the following types of groups is most susceptible to groupthink?

Accepted Answer

A)   a diverse group
B)   a cohesive group
C)   a heterogeneous group
D)   a decentralized groupE) B) and C)
F) All of the above B

Question 6

According to Alfred Chandler in his book Strategy and Structure,implementing a successful strategy depends on having an organizational structure that is _____ enough to accommodate the formulated strategy and future growth and expansion.

Accepted Answer

A)   insightful
B)   strong
C)   complex
D)   flexibleE) B) and C)
F) All of the above

Question 7

Which of the following is true of a functional structure?

Accepted Answer

A)   It offers a lower degree of specialization than a simple structure.
B)   It relies on a relatively flat organizational structure.
C)   It offers decentralized management.
D)   It relies on bottom-up communication rather than top-down communication.E) None of the above
F) All of the above

Question 8

FTZ Inc.is an electronic appliances manufacturer that has many strategic business units (SBUs) ,among which,television and computers share a close relationship.These SBUs have to fight each other for R&D funding because there is a combined amount set aside for these two units.However,they share technological findings with each other and work together to ensure that their combined output is better that of the other SBUs.Such a relationship between SBUs in a business is referred to as

Accepted Answer

A)   competition.
B)   co-opetition.
C)   exploitation.
D)   exploration.E) B) and D)
F) B) and C)

Question 9

How does W.L.Gore exemplify founder imprinting?

Accepted Answer

A)   Gore consistently ranks among the top 25 of Fortune's "100 Best Companies to Work For" list.
B)   W. L. Gore & Associates is organized in a formal and centralized manner.
C)   The compensation of Gore associates is decided through a peer review system.
D)   The four core values articulated by Bill Gore guide the company and its associates to this day.E) A) and B)
F) None of the above

Question 10

What was one of the reasons for Jerry Yang's failure at Yahoo?

Accepted Answer

A)   Jerry made many necessary changes to the company's organizational structure.
B)   Jerry established a successful organizational structure and culture, but could not assert control.
C)   Jerry's preference for obtaining consensus among his managers led to bickering and infighting.
D)   Jerry focused most strategic changes on improving user experience and increasing advertising revenues.E) All of the above
F) B) and C)

Question 11

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.E) B) and C)
F) None of the above

Question 12

A firm that uses a structure that is organized along different business functions such as HR,R&D,Sales,and Marketing and also along different geographical areas such as different countries of the world is most likely using a _____ structure.

Accepted Answer

A)   global matrix
B)   multidivisional
C)   functional
D)   simpleE) B) and C)
F) A) and D)

Question 13

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.E) B) and C)
F) C) and D)

Question 14

A company that is using extrinsic motivation as an output control mechanism will most likely

Accepted Answer

A)   organize training sessions for employees.
B)   cut budgets during recessions.
C)   implement a peer review system.
D)   threaten to lay off employees if they do not achieve targets.E) None of the above
F) A) and B)

Question 15

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.E) A) and B)
F) B) and C)

Question 16

_____ refers to a firm's resistance to change the status quo that can set the stage for the firm's subsequent failure.

Accepted Answer

A)   PESTEL factors
B)   Formalization
C)   Organizational inertia
D)   CentralizationE) B) and C)
F) A) and B) C

Question 17

Why does Zappos offer its new recruits $2,000 to quit at the end of the first week of their job?

Accepted Answer

A)   It is confident that employees will be impressed with the company's creativity and will stay on for a longer term.
B)   It does not believe that a firm's culture can flow from its values when they are linked to the company's reward system.
C)   It believes that individuals who choose to stay on will fit in with the Zappos culture.
D)   It is certain that a firm's culture flows only from founder imprinting.E) A) and B)
F) A) and C) C

Question 18

Opal,a recent fashion design school graduate,has received praise for her clothing designs from her peers and friends on social networking sites; this has inspired her to set up a store where she can design and sell apparel.After experiencing some success with sales,she recruits two employees to handle customers at the store.However,she handles other day-to-day affairs herself,while continuing to design clothes.Which of the following is likely to be a pitfall of this organizational structure established by Opal?

Accepted Answer

A)   Once the firm starts growing and attracting more customers she is likely to feel overloaded.
B)   Hiring more employees will result in loss of intellectual property.
C)   People are highly unlikely to buy clothes from a store run by a fashion design student.
D)   The online admiration of her designs will not translate into sales.E) B) and C)
F) A) and D)

Question 19

Which of the following statements is true of organizational culture?

Accepted Answer

A)   Changes in culture are too frequent to have any impact on strategic implementation.
B)   It is better for founder CEOs to create a relevant culture, structure, and strategy in the early stages.
C)   It is always better to focus on output control and performance than on organizational culture.
D)   According to research, more than 50 percent of firms change culture successfully.E) A) and B)
F) A) and C)

Question 20

Which of the following statements best describes groupthink?

Accepted Answer

A)   It is a process by which the founder defines and shapes an organization's culture, which can persist for decades after his or her departure.
B)   It is a situation in which organizations compete with one another for resources, but they also need to cooperate to share competencies.
C)   It is a process whereby employees internalize an organization's values and norms through immersion in its day-to-day operations.
D)   It is a situation in which opinions coalesce around a leader without individuals critically challenging and evaluating that leader's opinions and assumptions.E) A) and D)
F) C) and D)

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

Correct Answer
verified

Why does a firm use an organic organization combined with a functional structure when implementing a differentiation strategy?

Correct Answer
verified

What is most likely to happen if a firm relies too long on a competency without honing,refining,and upgrading as the firm and the environment change?

Correct Answer
verified

Coda Inc.is an apparel manufacturer.The management at Coda prefers moderate control over the operations of the different departments such as R&D,design,marketing,and sales.It allocates a budget to each function at the beginning of each quarter.This is an example of implementing control through

Correct Answer
verified

Which of the following types of groups is most susceptible to groupthink?

Correct Answer
verified
B

According to Alfred Chandler in his book Strategy and Structure,implementing a successful strategy depends on having an organizational structure that is _____ enough to accommodate the formulated strategy and future growth and expansion.

Correct Answer
verified

Which of the following is true of a functional structure?

Correct Answer
verified

Correct Answer
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How does W.L.Gore exemplify founder imprinting?

Correct Answer
verified

What was one of the reasons for Jerry Yang's failure at Yahoo?

Correct Answer
verified

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

Correct Answer
verified

A firm that uses a structure that is organized along different business functions such as HR,R&D,Sales,and Marketing and also along different geographical areas such as different countries of the world is most likely using a _____ structure.

Correct Answer
verified

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

Correct Answer
verified

A company that is using extrinsic motivation as an output control mechanism will most likely

Correct Answer
verified

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

Correct Answer
verified

_____ refers to a firm's resistance to change the status quo that can set the stage for the firm's subsequent failure.

Correct Answer
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C

Why does Zappos offer its new recruits $2,000 to quit at the end of the first week of their job?

Correct Answer
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C

Correct Answer
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Which of the following statements is true of organizational culture?

Correct Answer
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Which of the following statements best describes groupthink?

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

Correct AnswerverifiedShow Answer

Why does a firm use an organic organization combined with a functional structure when implementing a differentiation strategy?

Correct AnswerverifiedShow Answer

What is most likely to happen if a firm relies too long on a competency without honing,refining,and upgrading as the firm and the environment change?

Correct AnswerverifiedShow Answer

Coda Inc.is an apparel manufacturer.The management at Coda prefers moderate control over the operations of the different departments such as R&D,design,marketing,and sales.It allocates a budget to each function at the beginning of each quarter.This is an example of implementing control through

Correct AnswerverifiedShow Answer

Which of the following types of groups is most susceptible to groupthink?

Correct AnswerverifiedB

According to Alfred Chandler in his book Strategy and Structure,implementing a successful strategy depends on having an organizational structure that is _____ enough to accommodate the formulated strategy and future growth and expansion.

Correct AnswerverifiedShow Answer

Which of the following is true of a functional structure?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

How does W.L.Gore exemplify founder imprinting?

Correct AnswerverifiedShow Answer

What was one of the reasons for Jerry Yang's failure at Yahoo?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A firm that uses a structure that is organized along different business functions such as HR,R&D,Sales,and Marketing and also along different geographical areas such as different countries of the world is most likely using a _____ structure.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A company that is using extrinsic motivation as an output control mechanism will most likely

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

_____ refers to a firm's resistance to change the status quo that can set the stage for the firm's subsequent failure.

Correct AnswerverifiedC

Why does Zappos offer its new recruits $2,000 to quit at the end of the first week of their job?

Correct AnswerverifiedC

Correct AnswerverifiedShow Answer

Which of the following statements is true of organizational culture?

Correct AnswerverifiedShow Answer

Which of the following statements best describes groupthink?

Correct AnswerverifiedShow Answer

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B

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C

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C

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