CH 11

Elvira is the CEO of All Things Inc. which employs a matrix structure which is the combination of the ________ and ________ structure. A) functional; M-form B) simple; functional C) M-form; simple D) network; functional

A

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

Susan works for a firm that has high degrees of formalization in their organizational structure. She understands that one of the main drawbacks of working in a firm with such high levels of formalization can often result in which of the following? A) a slower decision-making process B) increased organizational inertia C) less co-opetition D) increased vertical integration

A

Vanessa just graduated from law school and wants to open her own law firm. Vanessa should probably adopt a(n) ______ structure for the firm. A) simple B) functional C) M-form D) matrix

A

A high degree of formalization in an organization is most likely to A) improve customer service. B) slow down decision making. C) produce inconsistent results. D) increase creativity and innovation.

B

Jerry is one of the SBU managers for a firm that has been in business for over 50 years. The external environment in which they have operated has changed significantly in the past decade, but this firm is still operating under a "business as usual" mantra. Jerry can't seem to convince the upper level executives to reorganize the firm's structure and formal reporting relationships. This firm is probably experiencing A) a failed strategy. B) organizational inertia. C) a change in leadership. D) increased morale due to their organizational culture.

B

McDonald's operates Hamburger University that trains students to ensure consistent food quality across its outlets throughout the world. This indicates that McDonalds's A) is organic in nature. B) is mechanistic in nature. C) has an informal structure. D) has a decentralized structure.

B

The University of Central Florida has a typical College of Business which houses several specific mini-departments such as management, marketing, finance, accounting, economics, and real estate. This College of Business best resembles a(n) ________ structure. A) simple B) functional C) multidivisional D) holarchy

B

A firm's ________ determines how the work efforts of individuals and teams are orchestrated and how resources are distributed. A) norms B) culture C) structure D) control

C

Sean is having hard time replicating his competitors' strong organizational culture because of ________ and ________, which stem from the VRIO framework. A) tangible; intangible budgets B) organizational socialization; input controls C) causal ambiguity; social complexity D) historical conditions; external opportunities

C

Li runs a firm that has diversified into different product lines and geographies. She should probably use a(n) _______ organizational structure. A) functional B) simple C) network D) M-form

D

Organizational design is A) the process of creating, implementing, and modifying the structure of an organization. B) primarily focused on replacing a firm's competitive advantage with competitive parity. C) a process that always functions independently of strategy formulation. D) primarily focused on formulating effective strategies, not implementing them.

A

Jared works as a front-line employee for a nationwide retail store. He reports to a floor manager, who reports to a departmental manager, who reports to a regional supervisor, who reports to a vice president, who reports to the CEO. Which of the following best describes this retail store? A) flat structure B) tall structure C) centralized structure D) decentralize structure

B

Which of the following real-world scenarios best exemplifies formalization? A) Zappos' focus on allowing its customer service employees to use their own approach rather than depend on scripts B) McDonald's use of standard operating procedures across the world C) W. L. Gore's associates organizing themselves in project-based teams that are led by sponsors, not bosses D) Yahoo's decision to fire its CEO after incurring huge losses

B

Which of the following is an advantage offered by a functional structure? A) It allows for an efficient top-down communication chain and thus relies on a relatively tall structure. B) It facilitates a lower division of labor, which is linked to higher productivity. C) It allows for a higher degree of specialization and deeper domain expertise. D) It facilitates a lower level of specialization.

C

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

C

Why does a functional structure rely on a flat organizational structure? A) The work in the organization is centrally coordinated by the CEO. B) It allows for a higher degree of specialization and domain expertise. C) It allows for efficient bottom-up and top-down communication. D) It allows for the implementation of a differentiation strategy.

C

________ refers to a firm's resistance to change the status quo that can set the stage for the firm's subsequent failure. A) PESTEL factors B) Formalization C) Organizational inertia D) Centralization

C

________ refers to the degree to which decision making is concentrated at the top of the organization. A) Specialization B) Formalization C) Naturalization D) Centralization

D

E Corp is a pharmaceutical company that has many breakthroughs in medicine to its credit. Unlike many other pharmaceutical companies, E Corp has a relaxed work environment where employees are free to discuss projects with each other. Employees are encouraged to choose the projects that interest them; communication between team members and their supervisors is open and easy. Because of the company's work culture, its employees feel motivated to work harder and display more entrepreneurial behaviors. In this scenario, E Corp Inc. is most likely an organization that is A) formalized. B) mechanistic. C) centralized. D) organic.

D