Chapter 11: Organizational Design: Structure, Culture, and Control

What is the goal of organizational design? -to enable managers to translate their chosen strategy into a realized one -to eliminate confusion about which job covers particular tasks -to ensure that each employee is placed on a specific level within the firm's hierarchy -to reduce competitive advantage with other firms

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

Which two of the following accurately describe mechanistic organizations? (Check all that apply.) -They have a low level of specialization. -They rely on decentralized decision making. -They have a tall hierarchy. -They are highly specialized.

-They have a tall hierarchy. -They are highly specialized.

Which of the following determines the allocation of resources and the organization and operations of workers? -a firm's organizational structure -a firm's strategic intent -an organizational external opportunities analysis -the specific management team functionality

-a firm's organizational structure

What is important is defined by __________(a); which attitudes and behavior are deemed appropriate are defined by __________(b).

(a) values (b) norms

Steve Jobs defined and shaped Apple's culture, and his influence continued even after he left the company. This is known as ______. -groupthink -matrix structure -formalization -founder imprinting

-founder imprinting

A firm's unwillingness to alter how things are currently done is known as ______. -strategy implementation -inertia -organic specialization -insubordination

-inertia

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 -understand and explain the role of functional units in the organizational structure -guide employee behavior by defining expected results, but leave the means to those results open to individual employees, groups, or SBUs -formalize different pay policies between levels of employees in the national and international markets

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

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 -multidivisional -simple -functional

-matrix

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 -increased demand for hierarchy and supervision

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

The type of structure that is used by experienced firms and consists of distinct, essentially independent strategic business units is the ______ structure. -cross-functional -ambidextrous -blue ocean -multidivisional

-multidivisional

How does an organization's culture influence employee behavior? -Negative culture determines the acceptable level of performance. -Employee behavior is only influenced by negative culture. -Employees are motivated by positive culture because it appeals to their higher ideals. -Weak culture affects the organic component of the organization.

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

True or false: Organizational culture should never change. -True -False

-False

Which of the following statements is true regarding the relationship between strategy formulation and strategy implementation? -Once a promising strategy has been formulated, implementing it is a simple task. -Strategy implementation is at least as important as strategy formulation for success. -Strategy formulation is far more important than strategy implementation. -Neither strategy formulation nor strategy implementation has a significant effect on the success of a firm.

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

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. -Ideas and inventions become the property of the firm funding the venture. -External R&D always produces more interesting ideas than internal R&D. -It is time-consuming and often unsuccessful.

-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. -They offer flexibility so that employees can make immediate changes if the situation calls for them. -They are created by employees and then go up the chain of command. -They are designed to be considered after value-creating activities have been implemented and results evaluated.

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

Which type of structure uses domain expertise to separate employees into specific areas based on their purpose, such as sales and human resources? -an organic structure -a functional structure -an operational structure -a mechanistic structure

-a functional structure

Which of the following structures is a combination of the multidivisional structure and the functional structure? -a simple structure -a universal structure -a waterfall structure -a matrix structure

-a matrix structure

Mechanistic organizations tend to have ___. -fluid environments -decentralized decision making -flat organizational hierarchy -a tall hierarchy that relies on centralized decision making

-a tall hierarchy that relies on centralized decision making

How do founders leave their imprint on their organizations? -by manipulating existing culture -by taking their vision and making it into reality -by entering physical elements into the design -by formulating growth strategies

-by taking their vision and making it into reality

Which of the following are characteristics of simple organizational structures? -high degree of specialization -founders makes all important decisions -low formalization -flat hierarchies

-founders makes all important decisions -low formalization -flat hierarchies

Strategy implementation is essentially __. -how a firm performs its work -the culture of a firm -the firm's attempts to identify its weaknesses -the services and products a firm offers

-how a firm performs its work

Which are examples of strategic control-and-reward systems? (Check all that apply.) -managerial hubris -input controls -output controls -organizational culture -reward point systems for customers

-input controls -output controls -organizational culture

Which of the following are effects that a strong organizational culture can have on employee behavior? -more effective cooperation -increased demand for hierarchy and supervision -behavior aligns more closely with the firm's strategic goals -stronger commitment, engagement, and effort

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

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 -founder imprinting -corporate strategy -internal capital market

-organizational culture

The structure, processes, and procedures of an organization are designed, put into place, reviewed, and reworked through a process known as ______. -organizational design -holacracy -strategy formulation -diversification

-organizational design

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 ______. -competitive advantage -strategic inertia -organizational structure -strategy implementation

-organizational structure

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. -input -sales -price -output

-output

Which of the following types of control defines expected results in order to guide employee behavior? -upstream controls -output controls -input controls -throughput controls

-output controls

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

-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 -matrix -functional -multidivisional

-simple

The functional areas present in a functional structure frequently correspond to which of the following? -employee salary averages -company office locations -stages in the value chain -the customers being served

-stages in the value chain

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. -founder-imprinting -diversified -strategic control-and-reward -strategy-implementation

-strategic control-and-reward

When "______," managers limit themselves to strategies that maintain the status quo. -organization follows innovation -structure follows strategy -action follows implementation -strategy follows structure

-strategy follows structure

The portion of the strategic management process that concerns the organization, coordination, and integration of work processes is __. -formalization design -strategy implementation -ambidextrous organization -holacracy

-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 -strategy research -strategy monitoring -strategy formulation

-strategy implementation

Which of the following are factors that influenced the shift from closed innovation to open innovation? (Check all that apply.) -the reduced availability of global external suppliers -the growth of venture capital -the increasing supply and mobility of skilled workers -the lack of innovative ideas within companies

-the growth of venture capital -the increasing supply and mobility of skilled workers

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

-the multi-divisional structure