3830 10-12 practice questions

Different types of boundaries place limits on organizations in order to foster high degrees of interaction with inside influences and varying levels of permeability.

False

Emotional intelligence (EI) is one of the components of a high intelligence quotient (IQ).

False

Exit champions are often reluctant to gather hard data about a venture because it might kill the project.

False

Exit champions, different from product champions, must be willing to energetically stand up for what they believe.

False

Firms that place too strong a priority on either adaptability or alignment can expect short term gains only.

False

First movers in an industry often capture above-average profits, but usually find it difficult to maintain early market share gains.

False

Global start-ups occur after a corporation has exhausted all other possibilities for domestic growth.

False

In an integrity-based approach to ethics management, ethos is concerned with conformity with externally imposed standards.

False

In integrity-based ethics programs, organizational ethics is seen as the responsibility of the employees.

False

In order for a firm to become highly ethical, it needs corporate credos and codes of conduct.

False

Inspiring and motivating people with a mission or purpose is a necessary and sufficient condition for developing a learning organization.

False

Leadership is the process of transforming organizations from what they are to what the leader would have them become. This implies that there will be a lot of satisfaction with the status quo.

False

New venture groups are formed within corporations by individuals or a division and usually have the same mandate as a typical research and development department.

False

One major advantage of the holding company form of organization structure is that it minimizes the duplication of functional activities between product lines.

False

Options exist when the owner of the option has the obligation to engage in certain types of transactions. The most common are stock options.

False

Procter & Gamble used communities of practice and human resource practices to help it achieve effective collaboration and integration across its different business units. This effort resulted in the successful development of the Crest Whitestrips product and is an example of good use of boundary-constrained organizational design.

False

Radical innovations are evolutionary applications of novel ideas within existing paradigms.

False

Real options analysis helps managers make investment decisions involving large irreversible commitments of financial resources.

False

Real options logic is useful when corporations consider stock options as a way to finance entrepreneurial ventures.

False

Referent power refers to manager identification with his or her employees.

False

Research supports that there are many potential benefits of an ethical organization, including that there is a strong and consistent relationship between ethical performance and measures of financial performance.

False

The failure of the Motorola Iridium global satellite telecom project was a result of its exit champion.

False

The strategic business unit (SBU) and holding company structure are variants of the functional form of structure.

False

The strategy and structure of a firm change as the firm increases in size, diversifies into new product markets, and limits its geographic scope.

False

The three broad sets of capabilities into which leadership traits can be organized include technical skills, cognitive abilities, and intellectual abilities.

False

The two broad bases of leader power are organizational and hierarchical.

False

There are two major avenues through which companies can expand or improve their business. One is innovation and the other is strategic renewal.

False

To enhance integration and control of related product market activities, the functional structure minimizes centralization.

False

To successfully empower employees to achieve organizational goals, leaders must perform the tasks of resource allocation and power brokering.

False

When a firm has international operations, choosing the most appropriate structure depends upon the extent of international expansion, the type of strategy, and the degree of market diversity.

False

When evaluating structure and organizational design, managers must consider the appropriateness of the type of organizational structure and they need to assess the mechanisms, processes, and techniques that will be most helpful in enforcing internal and external boundaries.

False

When evaluating the effectiveness of the venturing initiatives of a corporation, an assessment needs to be made of the external competencies of the firm in order to determine if goals such as leveraging existing assets, building new knowledge, and enhancing company capabilities are likely to be met.

False

With a functional organizational structure, firms initially tend to expand the overall scope of their operations by penetrating existing markets, introducing similar products in additional markets, or decreasing the level of vertical integration.

False

Establishing a culture of dissent can be an effective means of questioning the status quo.

True

In the ambidextrous firm, if managers direct their efforts primarily at _______, they are likely to miss out on promising business opportunities. A. alignment B. adaptability C. structure D. opportunities

A. alignment

If a firm outsources some parts of its value chain in order to reduce costs and increase quality and at the same time engages in multiple alliances to penetrate new markets, this is a example of a firm using a ______________ of organizational types. A. combination B. boundaryless consortium C. bounded consortium D. barrier free collection

A. combination

Behavioral barriers to change occur because of conflicts between departments, conflicts arising from power relationships, and refusal to share information.

False

Dispersed approaches to corporate entrepreneurship are often found in organizations with a strong spirit of entrepreneurship.

True

Which of the following social skills do many executives find challenging to acquire? A. having empathy for subordinates B. being a good listener C. being a good motivator D. having a large network in place

B. being a good listener

The CEO scraps the company commission-based reward system, because it rewards employees for inappropriate behavior. This is an example of A. setting a direction. B. designing the organization. C. unethical behavior. D. failure to maintain the status quo.

B. designing the organization.

Which component of emotional intelligence (EI) enables a manager to have a deep understanding of the existence and importance of cultural and ethnic differences? A. self-awareness B. empathy C. social skills D. self-regulation

B. empathy

In the compliance-based approach to ethics management, the objective is to A. conform with externally imposed standards. B. prevent criminal misconduct. C. enable responsible conduct. D. reduce discretion, training, controls, audits, and penalties.

B. prevent criminal misconduct.

In the compliance-based approach to ethics management, the methods used include A. education, leadership, accountability, decision processes, auditing, penalties. B. reduced discretion, training, controls, audits, penalties. C. self-governance. D. conformity with externally imposed standards.

B. reduced discretion, training, controls, audits, penalties.

______________ produce fundamental changes that can transform a company or even revolutionize an industry, while ______________ enhance existing practices and often represent evolutionary applications of fundamental breakthroughs. A. Technological breakthroughs; product-market breakthroughs B. New technologies; new paradigms C. Incremental innovations; radical innovations D. Radical innovations; incremental innovations

D. Radical innovations; incremental innovations

Which of the following is not a disadvantage of the barrier-free form of organization? A. Lack of strong leadership can lead to coordination problems. B. Democratic process can be time-consuming and difficult to manage. C. Additional integration issues result in a slower response to market changes. D. If trust among employees is not sufficiently high, organizational performance may suffer.

C. Additional integration issues result in a slower response to market changes.

____________ is rarely self-sustaining in an organization. A. High-integrity B. Integrity C. Individual integrity D. Leader integrity

C. Individual integrity

Which of the following is not a characteristic of a successful learning organization? A. It creates a proactive, creative approach to the unknown. B. It actively solicits the involvement of employees at all levels. C. It regularly engages in activities to reinforce the status quo. D. It enables everyone to use their intelligence and apply their imagination.

C. It regularly engages in activities to reinforce the status quo.

In order to create an environment where employees can achieve their potential as they move the organization towards its goals, the manager role needs to be that of A. resource allocator. B. resource controller. C. a flexible resource. D. an advocator of the status quo.

C. a flexible resource.

Many situations that a firm faces have regular, identifiable patterns. Leaders tend to handle such routines by establishing ______ or ___________ to be followed that can be applied _______________ to each occurrence. A. rules; regulations; individually B. policies; regulations; uniformly C. a policy; a procedure; uniformly D. documents; credos; uniquely

C. a policy; a procedure; uniformly

Leaders as good role models must walk the talk. This means they must be _______ in their words and actions. A. effective B. reliable C. consistent D. trust-worthy

C. consistent

Tools and techniques used to achieve effective coordination and integration of key activities in an organization include all of the following except A. horizontal organization structures. B. horizontal systems and processes. C. horizontal diversification. D. communications and information technologies.

C. horizontal diversification.

Which of the following does not constitute organizational bases of leader power? A. legitimate power B. reward power C. referent power D. coercive power

C. referent power

The ethical compass of an organization, in the integrity-based ethics approach to management, consists of the expected ________ and ____________. A. obligations; rules B. behaviors; penalties C. responsibilities; aspirations D. legalities; penalties

C. responsibilities; aspirations

Effective ambidextrous organizations have alignment, which means that A. employees are rewarded according to both profit and sales growth. B. managers are focused on growth opportunities. C. there is a clear sense of how value is being created in the short-term and how activities are properly integrated and coordinated. D. divisional-level goals are consistent with overall corporate goals.

C. there is a clear sense of how value is being created in the short-term and how activities are properly integrated and coordinated.

Which of the following is not a guideline an organization can use to promote the challenging of the status quo? A. establishing a culture of dissent B. forcefully creating a sense of urgency C. fostering a culture that encourages risk taking D. creating a results-based reward system

D. creating a results-based reward system

Which of the following does not explain why organizations are prone to inertia and slow to change? A. personal time constraints B. political barriers C. vested interests in the status quo D. entry barriers

D. entry barriers

Which one of the following is not a primary types of organizational structures used to manage the international operations of a company? A. international division B. worldwide matrix C. geographic-area division D. home country product division

D. home country product division

What advantages does outsourcing not provide an organization? A. accessing best in class goods and services B. enabling rapid expansion with relatively low capital investment C. focusing scarce resources on core competencies D. improved buyer positioning

D. improved buyer positioning

Which of the following is not a strategic risk of outsourcing? A. loss of critical skills B. loss of cross-functional skills C. loss of control over a supplier D. loss of non-vital functions

D. loss of non-vital functions

Which of the following are used to evaluate whether a manager is acting in an ethical manner? A. bonuses and penalties B. job descriptions C. assessment and penalties D. reward and evaluation systems

D. reward and evaluation systems

Innovations that extend sales in an existing market, usually by enabling new products or services to be sold at higher margins are known as _____________ innovations. A. radical B. disruptive C. technology D. sustaining

D. sustaining

Unethical business practices typically involve the _______ cooperation of others and reflect the values, attitudes, and behavior patterns that define the operating culture of the organization. A. select B. complete C. explicit D. tacit

D. tacit

`Which of the following is not a primary factor that a large firm with international operations should consider when choosing the appropriate structure for its organization? A. the extent of international expansion B. the type of strategy (global, multidomestic, or transnational) C. the degree of product diversity D. the degree of market diversity

D. the degree of market diversity

A compliance-based approach to ethics management combines a concern for law with an emphasis on managerial responsibility for ethical behavior.

False

A key function of the leaders in a learning organization is to generate an organization-wide commitment to the status quo.

False

A major disadvantage of a divisional structure is that when divisions are separated to manage individual product markets, there is a separation of strategic and operational control.

False

A real estate option grants the holder the obligation to buy or sell a piece of property at an established price sometime in the future.

False

According to Peter Drucker, successful entrepreneurs typically are risk takers.

False

According to the Gresham law of planning, operational decisions do not drive out the time necessary for strategic thinking and reflection.

False

Although many organizations encourage creativity and risk taking, few successful companies tolerate failure.

False

An advantage of the barrier-free form of organizing is that internal cooperation and shared objectives are not required for it to work.

False

Because the modular form of organizing involves outsourcing vital functions, modular firms often forfeit full strategic control.

False

Escalation of commitment is the tendency for managers to irrationally stick with an investment, even one that is broken down into a sequential series of decisions, when investment criteria are not being met.

True

A disruptive innovation appeals to less demanding customers who are seeking more convenient, less expensive solutions.

True

A firm that chooses to move into unrelated product areas, by acquiring existing businesses, is likely to find that the strategy requires relatively little integration across businesses and sharing of resources and therefore is would consider a using holding company structure.

True

A major disadvantage of the functional organizational structure is that it often leads to silos in which departments view themselves as isolated, self-contained units with little need for interaction and coordination with other departments.

True

A strategic vision provides a clear future direction for the firm, a framework for its mission and goals, and enhanced employee communication, participation, and commitment.

True

Corporate codes of conduct provide norms and expectations to impede employees from committing unethical acts.

True

For innovation projects, people from inside the company may have greater social capital and know the organizational culture, but this may inhibit them from thinking creatively.

True

Horizontal organization structures facilitate resource sharing and help to create a sense of common purpose.

True

Hypercompetition suggests that sustainable competitive advantages are no longer possible because all of the dimensions of competition are compressed in time and heightened in complexity.

True

Leaders may find it difficult to implement their vision and strategies because they have inadequate or inappropriate budgeting and control systems.

True

Strategic renewal and the pursuit of new venture opportunities are the two primary aims of corporate entrepreneurship.

True

Successful leaders are driven by a deeply embedded desire to achieve for the sake of achievement.

True

Three major contingencies that influence the chosen structure of a company are: the type of strategy that drives its foreign operations, its product diversity, and the extent to which the company is dependent on foreign sales.

True

Which of the following is a disadvantage of a functional type of organizational structure? A. Differences in functional orientation may impede communication and coordination. B. Use of managerial and technical talent is inefficient due to pooling of expertise in functional areas. C. Decision making is centralized at the top of the organization. D. Managers tend to be overly concerned with long-term strategies that minimize the importance of functional area strengths.

a. differences in functional orientation may impede communication and coordination

Strategic business unit (SBU) and holding company structures result from extensive A. diversification. B. vertical integration. C. international expansion. D. organizational flattening.

a. diversification

According to author, Jeffrey Pfeffer, which of the following is not an advantage of teams? A. Teams interact so closely and therefore coordination and integration becomes unnecessary. B. Teams substitute peer-based control for hierarchical control of work. C. Teams often develop more creative solutions, because they share. D. Teams permit the absorption of administrative tasks previously performed by specialists.

a. teams interact so closely and therefore coordination and integration becomes unnecessary

In an ambidextrous firm, if too much focus is placed on _______ the firm with suffer low profitability in the short run. A. alignment B. adaptability C. structure D. opportunities

b. adaptability

When an organization with a functional structure diversifies into related product-markets, it generally A. maintains its functional structure. B. develops a divisional structure. C. develops a matrix structure. D. develops a worldwide product-division structure.

b. develops a divisional structure

Complicated working relationships, intense power struggles, and excessive reliance on group processes are disadvantages of which type of organizational structure? A. divisional B. matrix C. holding company D. functional

b. matrix

Generally speaking, discussions of the relationship between strategy and structure strongly imply that A. strategy follows structure. B. structure follows strategy. C. strategy can effectively be formulated without considering structural elements. D. structure typically has a very small influence on the strategy of a firm.

b. structure follows strategy

As firms expand into foreign markets, they generally follow a pattern of change in structure that parallels the changes in their strategies. Which one of the following is not a major contingency that influences the structure they choose? A. the type of strategy that is driving the company foreign operations B. the research and development budget commitment C. product diversity D. the extent of the company dependence on foreign sales

b. the research and development budget commitment

If an international firm has a global strategy and a relatively low level of product diversity, the best choice for its organizational structure is a(n) ______________ structure. A. worldwide functional B. worldwide product division C. worldwide matrix D. international division

b. worldwide product division

Which of the following is not a boundaryless organizational design? A. virtual B. modular C. matrix D. barrier-free

c. matrix

What type of organization is defined as a central hub surrounded by networks of outside suppliers and specialists? A. matrix organization B. virtual organization C. modular organization D. barrier-free organization

c. modular organization

As illustrated in the opening case for Chapter 10, Boeing lost a lot of control and therefore incurred high operating costs for its build out of the 787 Dreamliner, because it ____________ design and manufacturing. A. on-shored B. internalized C. outsourced D. internationalized

c. outsourced

Structures help to ensure that ____________ are used effectively in accomplishing the mission of the organization. A. strategies B. relationships C. resources D. boundaries

c. resources

The relationship between strategy and structure can be best described as A. strategy determines structure but structure does not determine strategy. B. structure determines strategy but strategy does not determine structure. C. strategy and structure influence each other. D. a third force determines both strategy and structure.

c. strategy and structure influence each other

Organizational structure refers to the formalized patterns of interactions that link company ___________, ___________, and _____________. A. processes; mechanisms; techniques B. tasks; mechanisms; techniques C. processes; people; mechanisms D. tasks; technologies; people

d. tasks, technologies, people