Question 1

Which of the following is a disadvantage of a functional strategy?

Accepted Answer

A)   It frequently lacks the tools required to pursue a cost-leadership strategy.
B)   It does not facilitate rich communication between members of the same department.
C)   It cannot effectively address a higher level of diversification.
D)   It does not allow organizations to be flexible or innovative.E) A) and B)
F) None of the above

Question 2

Veronica 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 Veronica'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 motivationE) A) and B)
F) All of the above

Question 3

Why is it difficult to imitate the organizational culture of firms like Southwest Airlines and Zappos?

Accepted Answer

A)   Their culture reflects complex relationships with their employees, customers, and suppliers.
B)   They produce products that cannot be copied easily because of their complex designs.
C)   The employees in the organization themselves are unaware of the factors contributing to their organizational culture.
D)   It is not commercially viable for other companies to implement the same culture.E) A) and B)
F) B) and C)

Question 4

Walmart is an example of a(n) _____ organization.

Accepted Answer

A)   organic
B)   mechanistic
C)   decentralized
D)   informalE) All of the above
F) None of the above

Question 5

StickOn Inc.is an adhesive manufacturer.After a slight dip in production numbers,it forms a team to find a quick solution to this problem,at least for the shorter term.This scenario best exemplifies

Accepted Answer

A)   exploration.
B)   exploitation.
C)   co-opetition.
D)   competition.E) C) and D)
F) All of the above

Question 6

_____ refers to the degree to which decision making is concentrated at the top of the organization.

Accepted Answer

A)   Specialization
B)   Formalization
C)   Naturalization
D)   CentralizationE) None of the above
F) A) and D)

Question 7

McDonald's uses detailed standard operating procedures throughout the world to ensure product quality.This implies that McDonald's has a high degree of

Accepted Answer

A)   formalization.
B)   specialization.
C)   decentralization.
D)   hierarchy.E) A) and B)
F) A) and C)

Question 8

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)   controlE) B) and C)
F) None of the above

Question 9

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.E) B) and D)
F) A) and D)

Question 10

A(n) _____ organization always attempts to balance and harness different activities in trade-off situations.

Accepted Answer

A)   centralized
B)   ambidextrous
C)   mechanistic
D)   formalizedE) A) and C)
F) None of the above

Question 11

Plow Inc.is a greeting card manufacturing company.Plow's market dominance exists primarily because of the innovative designs of its greeting cards when compared to those of its competitors.In this scenario,Plow Inc.'s managers must ideally rely on a functional structure that resembles a(n) _____ organization.

Accepted Answer

A)   simple
B)   organic
C)   mechanistic
D)   integratedE) B) and D)
F) B) and C)

Question 12

Larry's Auto Repair is a small business in which the founder,Larry,makes most of the important strategic decisions as well as runs the day-to-day operations.He has three mechanics and a financial secretary working for him.Based on this scenario,Larry's Auto Repair has a(n) _____ structure.

Accepted Answer

A)   ambidextrous
B)   organic
C)   functional
D)   simpleE) B) and C)
F) A) and B)

Question 13

Which of the following terms or phrases best characterizes Zappos' organizational structure?

Accepted Answer

A)   centralized
B)   mechanistic
C)   extremely tall
D)   extremely flatE) B) and C)
F) None of the above

Question 14

To maintain its core competency of providing a superior customer experience in the face of explosive growth,Zappos split the organization into 10 standalone units.Which of the following does this scenario best illustrate?

Accepted Answer

A)   how an organization accommodates strategy implementation through a flexible organizational structure
B)   how strategy implementation has an effect on resource allocation and power distribution
C)   how an organization demonstrates organizational inertia, and therefore sets the stage for the firm's subsequent failure
D)   how an organization optimizes its organizational structure to the current situationE) C) and D)
F) A) and D)

Question 15

Zappos established its unique organizational culture

Accepted Answer

A)   through explicitly stated values that are connected to its reward system.
B)   through input control systems that mandated adherence to organizational values.
C)   by closely monitoring employees calls with customers.
D)   by giving employees gift cards to shop at Zappos and Amazon.E) All of the above
F) None of the above

Question 16

Why should managers using the M-form organizational structure to support a related-diversification strategy ideally concentrate decision making at the top of the organization?

Accepted Answer

A)   It allows a high level of integration.
B)   It helps contain the core competencies within a strategic business unit (SBU) .
C)   It leads to competition between SBUs.
D)   It helps evaluate each SBU as a stand-alone profit-and-loss center.E) A) and D)
F) B) and C)

Question 17

Monica's Cosmetics Inc.has a functional structure that is flexible enough to allow it to leverage its brand name across different products.By doing this,Monica's is reaping ____ from its core competencies.

Accepted Answer

A)   economies of scale
B)   economies of scope
C)   diversification
D)   centralizationE) A) and D)
F) All of the above

Question 18

Which of the following features helps match a cost-leadership strategy to a functional structure?

Accepted Answer

A)   decentralization
B)   process and product innovations
C)   flexibility and mutual adjustment
D)   focus on economies of scaleE) B) and C)
F) A) and D)

Question 19

Which of the following is an unintended side effect of a high degree of specialization in an organization?

Accepted Answer

A)   decreased trade-off between breadth and depth of knowledge
B)   decreased opportunities for the division of labor
C)   reduced employee satisfaction due to repetition of tasks
D)   reduced productivityE) C) and D)
F) None of the above

Question 20

_____ define appropriate employee attitudes and behaviors.

Accepted Answer

A)   Values
B)   Artifacts
C)   Appraisals
D)   NormsE) B) and C)
F) B) and D)

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

Which of the following terms or phrases best characterizes Zappos' organizational structure?

Correct Answer
verified

McDonald's uses detailed standard operating procedures throughout the world to ensure product quality.This implies that McDonald's has a high degree of

Correct Answer
verified

Monica's Cosmetics Inc.has a functional structure that is flexible enough to allow it to leverage its brand name across different products.By doing this,Monica's is reaping ____ from its core competencies.

Correct Answer
verified

Zappos established its unique organizational culture

Correct Answer
verified

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

Correct Answer
verified

Why should managers using the M-form organizational structure to support a related-diversification strategy ideally concentrate decision making at the top of the organization?

Correct Answer
verified

Larry's Auto Repair is a small business in which the founder,Larry,makes most of the important strategic decisions as well as runs the day-to-day operations.He has three mechanics and a financial secretary working for him.Based on this scenario,Larry's Auto Repair has a(n) _____ structure.

Correct Answer
verified

Which of the following is an unintended side effect of a high degree of specialization in an organization?

Correct Answer
verified

StickOn Inc.is an adhesive manufacturer.After a slight dip in production numbers,it forms a team to find a quick solution to this problem,at least for the shorter term.This scenario best exemplifies

Correct Answer
verified

Which of the following is a disadvantage of a functional strategy?

Correct Answer
verified

_____ define appropriate employee attitudes and behaviors.

Correct Answer
verified

Correct Answer
verified

To maintain its core competency of providing a superior customer experience in the face of explosive growth,Zappos split the organization into 10 standalone units.Which of the following does this scenario best illustrate?

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Which of the following features helps match a cost-leadership strategy to a functional structure?

Correct Answer
verified

Why is it difficult to imitate the organizational culture of firms like Southwest Airlines and Zappos?

Correct Answer
verified

A(n) _____ organization always attempts to balance and harness different activities in trade-off situations.

Correct Answer
verified

Walmart is an example of a(n) _____ organization.

Correct Answer
verified

_____ refers to the degree to which decision making is concentrated at the top of the organization.

Correct Answer
verified

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

Which of the following terms or phrases best characterizes Zappos' organizational structure?

Correct AnswerverifiedShow Answer

McDonald's uses detailed standard operating procedures throughout the world to ensure product quality.This implies that McDonald's has a high degree of

Correct AnswerverifiedShow Answer

Monica's Cosmetics Inc.has a functional structure that is flexible enough to allow it to leverage its brand name across different products.By doing this,Monica's is reaping ____ from its core competencies.

Correct AnswerverifiedShow Answer

Zappos established its unique organizational culture

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Why should managers using the M-form organizational structure to support a related-diversification strategy ideally concentrate decision making at the top of the organization?

Correct AnswerverifiedShow Answer

Larry's Auto Repair is a small business in which the founder,Larry,makes most of the important strategic decisions as well as runs the day-to-day operations.He has three mechanics and a financial secretary working for him.Based on this scenario,Larry's Auto Repair has a(n) _____ structure.

Correct AnswerverifiedShow Answer

Which of the following is an unintended side effect of a high degree of specialization in an organization?

Correct AnswerverifiedShow Answer

StickOn Inc.is an adhesive manufacturer.After a slight dip in production numbers,it forms a team to find a quick solution to this problem,at least for the shorter term.This scenario best exemplifies

Correct AnswerverifiedShow Answer

Which of the following is a disadvantage of a functional strategy?

Correct AnswerverifiedShow Answer

_____ define appropriate employee attitudes and behaviors.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

To maintain its core competency of providing a superior customer experience in the face of explosive growth,Zappos split the organization into 10 standalone units.Which of the following does this scenario best illustrate?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following features helps match a cost-leadership strategy to a functional structure?

Correct AnswerverifiedShow Answer

Why is it difficult to imitate the organizational culture of firms like Southwest Airlines and Zappos?

Correct AnswerverifiedShow Answer

A(n) _____ organization always attempts to balance and harness different activities in trade-off situations.

Correct AnswerverifiedShow Answer

Walmart is an example of a(n) _____ organization.

Correct AnswerverifiedShow Answer

_____ refers to the degree to which decision making is concentrated at the top of the organization.

Correct AnswerverifiedShow Answer

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