ch 11

True or false: Firms that are supporting an unrelated-diversification strategy through the use of the M-form structure should decentralize decision making

true

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

Each division operates independently.

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 two of the following accurately describe mechanistic organizations?

They have a tall hierarchy. They are highly specialized.

True or false: Firms that are supporting an unrelated-diversification strategy through the use of the M-form structure should decentralize decision making.

True

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

True

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?

a low degree of specialization a flat organizational structure

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

a matrix structure

How do founders leave their imprint on their organizations?

by taking their vision and making it into reality

True or false: Organizational culture should never change.

false

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

functional

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

organizational design

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

output controls

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

reporting structures are often unclear

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 functional areas present in a functional structure frequently correspond to which of the following?

stages in the value chain

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

Big companies, such as Apple and Comcast, tend to have ______.

a higher degree of specialization than smaller companies

Which of the following is the most important yet least visible element of organizational culture?

values

How does an organization's culture influence employee behavior?

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

Taki works for a start-up company that is highly centralized and its employees are not allowed to wear headphones while working. However, the company offers a flexible work schedule, free childcare, and free yoga classes. These rules and perks describe the company's ______.

organizational culture

Match the global strategy

International- Functional Multidomestic-Multidivesional wiht divisions according to geographic areas; decentralized decisions Global Standardization- multidivisional with divisions according to products; centralized decesion making Transnational- global matrix; balance of centralized and decentralized decesion making, two layers of hierachy (geographic and product)

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.

Which of the following statements are true of the network organizational structure?

It should be supported by uniform, company-wide policies and procedures. It enables firms to access communities of practice.

What are two internal governance mechanisms put in place to align principal and agent incentives?

strategic control reward systems

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.

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

an organic organization

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

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

founder imprinting

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

Which of the following are frequently associated with organic organizations?

greater employee creativity fast decision making high levels of employee satisfaction

Which of the following defines who reports to whom?

hierarchy

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

highly centralized

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

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

multidivisional

Mechanistic organizations tend to have ______.

codified operating procedures

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

open innovation

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

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

ambidextrous organization

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 has mechanistic organizational elements

Which of the following are the key elements of organizational culture?

values artifacts norms

When a company's culture is defined and shaped by the people who start it, it is known as founder ______.

imprinting

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

is difficult to implement

Which of the following enables a firm to connect its centers of excellence independent of where they are located in the world?

A network structure

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

Blank 1: values Blank 2: norms

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

Effective strategy implementation, in general, will help a firm __.

gain and sustain competitive advantage

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

A firm's organizational structure directly determines which of the following aspects of the firm?

the distribution of resources the orchestration of individual and team work efforts

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

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

Which of the following terms describes searching for new knowledge that may enhance a firm's future performance?

Exploration

When supporting a related-diversification strategy with the M-form organizational structure, managers typically ______.

concentrate decision making at the top of the organization

A firm would use input controls if it wanted to ______.

define and direct employee behavior through a set of explicit, codified rules and standard operating procedures

Which of the following are examples of artifacts of an organization's culture?

dress code formal vocabulary private offices

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

exploitation

Which of the following are characteristics of simple organizational structures?

flat hierarchies single leader makes all important decisions low formalization

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

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

organizational design

Graciela's used to be the industry leader in restaurant supplies, but over the years competition grew and the company's market share declined. Graciela's has launched several marketing campaigns and introduced new products and services. However not much else in the company has changed, and it still relies on the same team of managers. Graciela's is experiencing ______.

organizational inertia

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 are effects that a strong organizational culture can have on employee behavior?

stronger commitment, engagement, and effort behavior aligns more closely with the firm's strategic goals more effective cooperation

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

tall

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

rigidity

Ravi works for a small company. The company owner makes all strategic decisions and manages the day-to-day operations. Ravi's company has a _____ structure.

simple

Which of the following is the most observable element of organizational culture?

artifacts