SB Chapter 11

Which of the following determines the allocation of resources and the organization and operations of workers?

A firm's organizational structure

Which two of the following accurately describe organic organizations? (Check all that apply.)

A flat organizational structure A low degree of specialization

Which type of structure uses domain expertise to separate employees into specific areas based on their purpose, such as sales and human resources?

A functional structure

Which of the following structures is a combination of the multidivisional structure and the functional structure?

A matrix structure

Mechanistic organizations tend to have ___.

A tall hierarchy that relies on centralized decision making

Which type of organization has a flat organizational structure and employs decentralized decision making?

An organic organization

Corporate culture is expressed through ______, which are elements such as vocabulary and the type of clothing worn by employees.

Artifacts

Teju, like his colleagues, wears jeans and t-shirts to work, and he has a standing desk in an open floor plan. When he and his team reach a project milestone, they celebrate by going to a local karaoke bar. These are all examples of the firm's ______.

Artifacts

How do founders leave their imprint on their organizations?

By taking their vision and making it into reality

The extent to which the ability to make decisions rests with the people at the top of a firm is referred to as ______.

Centralization

Which of the following tends to result in delayed response time and lower customer satisfaction?

Centralized decision making

Which of the following is true of an M-form?

Each division operates independently

How does an organization's culture influence employee behavior?

Employees are motivated by positive culture because it appeals to their higher ideals

Companies pursuing business-level strategies like cost leadership, differentiation, and integration should organize using a _____ structure.

Functional

Firms that follow a single-business or dominant-business strategy at the corporate level generally employ a ______ structure.

Functional

Thanh works in the engineering and manufacturing division of his company. Other departments include marketing, accounting, human resources, and research and development. Each department reports to the CEO. Thanh's company is organized according to a(n) ______ structure.

Functional

When a firm covers a limited geographic area and is narrowly focused in terms of product/service offerings, a ______ structure is recommended.

Functional

Which of the following statements about formalization is true?

It is often necessary to achieve consistent and predictable results

Which of the following statements about blue ocean strategy is true?

It requires reconciling the trade-offs between differentiation and low cost

A firm that is organized according to SBUs but also is decentralized in that different geographic locations are fully functional is likely organized in the ______ structure.

Matrix

Disadvantages of the ______ structure include organizational complexity, increased administrative costs, slow decision making, and difficulty in implementation.

Matrix

The type of structure that is used by experienced firms and consists of distinct, essentially independent strategic business units is the ______ structure.

Multidivisional

Which of the following structures is divided into several distinct business units, each of which has its own profit-and-loss center?

The multi-divisional structure

Which of the following statements about open innovation is true?

The sharing of ideas and inventions from within the firm and from outside sources can go both ways.

Which of the following statements regarding input controls is true?

They are designed to be considered before employees make any business decisions

What is the goal of a differentiation strategy?

To create a competitive advantage by offering products or services at a higher perceived value, while keeping costs under control

What is the goal of organizational design?

To enable managers to translate their chosen strategy into a realized one

True or false: Firms that pursue either related or unrelated diversification generally employ a multidivisional structure.

True

What must a firm that pursues a cost-leadership strategy do in order to nurture and constantly upgrade core competencies in manufacturing and logistics?

Use a functional structure that had mechanistic organizational elements

What is important is defined by ___; which attitudes and behavior are deemed appropriate are defined by ___

Values Norms

When firms tie employee compensation and rewards to predetermined goals, such as a specific sales target, but do not specify the means to those results, they are using ______ controls.

output

Which of the following terms encompasses a firm's member's shared values and norms?

Organizational culture

One of the disadvantages of a matrix structure is that ______.

Reporting structures are often unclear

Which of the following are benefits of a functional structure that also apply to the matrix structure? (Check all that apply.)

Responsiveness Decentralized focus

A firm's unwillingness to alter how things are currently done is known as ______.

Inertia

Which of the following use codified policies and procedures to define and direct employee behavior?

Input controls

A characteristic of a matrix organizational structure is that it ______.

Is difficult to implement

Which of the following terms describes applying current knowledge to enhance firm performance in the short term?

Exploitation

True or false: Organizational culture should never change.

False

Which of the following are examples of artifacts of an organization's culture? (Check all that apply.)

Formal vocabulary Private offices Dress code

Which of the following are characteristics of simple organizational structures?

Flat hierarchies Low formalization Founders makes all important decisions

Steve Jobs defined and shaped Apple's culture, and his influence continued even after he left the company. This is known as ______.

Founder imprinting

The Foamy Mug, a chain of coffee shops, ensures consistent quality and service in each of its cafés by using policy and procedure manuals that explicitly describe employee tasks. The Foamy Mug is characterized by a high degree of ______.

Formalization

The organizational structure element that deals with the degree to which employees are guided by specific, codified rules and processes is known as ______.

Formalization

Which type of organization attempts to balance and harness different activities in trade-off situations?

Ambidextrous organization

Samira works for a company with a strict top-down structure. Her daily tasks must conform carefully to written guidelines and rules, and she has very specific job responsibilities. Samira works for a(n) ______.

Mechanistic organization

Which of the following are effects that a strong organizational culture can have on employee behavior?

More effective cooperation Behavior aligns more closely with the firm's strategic goals Stronger commitment, engagement, and effort

A firm using a(n) ______ strategy is likely to have a multidivisional structure with the multiple divisions representing different geographic areas and decentralized decision making.

Multidomestic

The framework for R&D that involves permeable firm boundaries and allows for sharing of ideas and inventions is known as ______.

Open innovation

The structure, processes, and procedures of an organization are designed, put into place, reviewed, and reworked through a process known as ______.

Organization design

Leslie, Juan, and Felicia all work for the same company. Leslie pays the bills and invoices customers, Juan makes sure the company's computers and phones work, and Felicia interacts with customers and sellers of the firm's products. This is an example of ______.

Specialization

The element of organizational structure that separates the tasks of one job from the tasks of another is known as ______.

Specialization

A system that allows managers to specify goals, measure progress, and provide performance feedback by ensuring that the incentives of shareholders and employees are aligned is called a ______ system.

Strategic control-and-reward

When "______," managers limit themselves to strategies that maintain the status quo.

Strategy follows structure

The portion of the strategic management process that concerns the organization, coordination, and integration of work processes is __.

Strategy implementation

Which of the following has been called the "graveyard of strategy" due to managers' high rate of failure when attempting it?

Strategy implementation

Which of the following statements is true regarding the relationship between strategy formulation and strategy implementation?

Strategy implementation is at least as important as strategy formulation for success

If there are several levels of management between the lowest employee and the CEO, the firm has a ______ structure.

Tall

A firm using a(n) ______ strategy is likely to have a multidivisional structure with the multiple divisions representing different products and centralized decision making.

Global standardization

Which of the following are frequently associated with organic organizations? (Check all that apply.)

Greater employee creativity High levels of employee satisfaction Fast decision making

The organizational element that determines the organization's formal, position-based reporting lines is known as ______.

Hierarchy

A top-down strategic plan generally takes place in which type of organization?

Highly centralized

Strategy implementation is essentially __.

How a firm performs its work

Which are examples of strategic control-and-reward systems? (Check all that apply.)

Organizational culture Output controls Input controls

Hiroshi is considering a job offer from a large pharmaceutical company. At his interview he asks who his boss would be and how jobs and teams are assigned. Hiroshi is asking about the company's ______.

Organizational structure

What are two internal governance mechanisms put in place to align principal and agent incentives? (Check all that apply.)

Reward systems Strategic control

If a company fails to change its culture as the firm and environment change, the company's culture can turn into a core ______.

Rigidity

Simple structures tend to be used by which group?

Small companies with low organizational complexity

Which of the following are factors that influenced the shift from closed innovation to open innovation? (Check all that apply.)

The growth of venture capital The increasing supply and mobility of skilled workers

Which of the following types of control defines expected results in order to guide employee behavior?

Output controls