Quiz 21 Basic forms of organizational structure, culture, and strategic control and reward systems

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

A cohesive group

Why should managers use a mechanistic structure to implement a cost-leadership strategy?

A mechanistic structure offers a centralized structure with well-defined lines of authority.

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

Focus on economies of scale

Which of the following is an advantage offered by a functional structure?

It allows for a higher degree of specialization and deeper domain expertise.

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

It allows the firm to constantly upgrade core competencies in R&D, innovation, and marketing.

In which of the following ways does Zappos achieve organizational control?

It ensures that each group member's compensation depends in part on the group's overall productivity.

Which of the following is true of a functional structure?

It relies on a relatively flat organizational structure.

Which of the following best exemplifies the use of input controls?

McDonald's use of standard operating procedures

Which of the following global strategies best matches with a multidivisional structure?

Multidomestic

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?

Once the firm starts growing and attracting more customers she is likely to feel overloaded.

_____ describes the collectively shared values and norms of an organization's members.

Organizational culture

Why are controls like budgets and operating procedures that McDonald's implements known as input controls?

They are considered before employees make any decisions.

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!

introducing results-only-work-environments to tap intrinsic motivations.

While working a night job at a call center, Neville creates an app called FastServe, which can be used to place orders at restaurants, rate the restaurants, and make reservations. Because he receives good responses for his app, he quits his current job to focus his efforts on FastServe. He creates a startup called TYOP and hires three people to help him improve FastServe and maintain the servers that run it. In this scenario, TYOP most likely has a _____ structure.

simple

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

threaten to lay off employees if they do not achieve targets.

Zappos established its unique organizational culture:

through explicitly stated values that are connected to its reward system.