BUS CH 7

A divisional structure by product is most effective when

All of the above

Considerable time and effort should be devoted to assuring objectives are well conceived because they represent the basis for

All of the above

Resistance to change can manifest itself through

All of the above

Which of these is true about strategy implementation

All of the above

What is not a major benefit of having a diverse workforce?

An increase in training costs.

Which approach for managing and resolving conflict involves ignoring the problem in hopes that the conflict will resolve itself?

Avoidance

What are three categories of approaches for managing and resolving conflict?

Avoidance, payoff and diffusion.

What is the best divisional structure when a few major customers are of paramount importance and many different services are provided to these customers?

By customer

How would Hershey's current divisional structure most likely be classified?

By geographic area

The primary benefit sought from restructuring is

Cost reduction

Strategy formulation:

Focuses on effectiveness

What change strategy involves giving orders and enforcing those orders?

Force

A firm uses information technology to break down functional barriers and create a work system based on business processes, products, or outputs rather than on functions or inputs in

Reengineering

What action involves reconfiguring or redesigning work, jobs and processes for the purpose of improving costs, quality, service and speed?

Reengineering

Which term is best defined as a central management activity that allows for strategy execution

Resource allocation

Which term is most often concerned primarily with shareholder well-being rather than employee well-being?

Restructuring

How is life in Mexico in comparison to life in the United States?

Slower

Conflict in an organization is

Sometimes good and sometimes bad.

A concern in matching managers with strategy is that jobs have relatively __________ responsibilities, while people are __________ in their development

Static; dynamic

Which organizational structure has ambiguous roles for senior executives as a major disadvantage?

Strategic business unit (SBU)

Why do changes in company strategy often require changes in the way an organization is structured?

Structure dictates how goals and objectives will be established.

Which of the following is not true about objectives?

They should incorporate policies.

Which of the following issues may not require a management policy?

To increase motivation

Which strategy could be best defined as an effective, multi-method technique of studying and altering a firm's culture?

Traingulation

An effective bonus system should be based on two key factors: annual objectives and long-term objectives

True

An important business activity in Japan is entertaining because it strengthens Wa.

True

Changing a strategy to fit an existing culture is not as effective as changing a firm's culture to fit a new strategy

True

Cornerstones of reengineering are decentralization, reciprocal interdependence and information sharing

True

Exchanging members of conflicting parties so each can gain an appreciation of the other's point of view exemplifies a confrontation approach

True

Four types of resources that can be used to achieve desired objectives are financial, physical, human and technological

True

Ideally, the rational type change strategy is the most desirable

True

In developing an organizational chart, avoid having a particular person reporting to more than one person above them in the chain of command

True

It is always easier to say you are going to do something (strategy formulation) than to actually do it (strategy implementation).

True

Managing as if the earth matters requires an understanding of how international trade, competitiveness and global resources are connected

True

Medium-sized firms tend to be divisionally structured, whereas large firms tend to use an SBU (strategic business unit) or matrix structure

True

Most large companies have abandoned the functional structure in favor of decentralization

True

Not allocating resources according to the priorities indicated by approved objectives is detrimental to the strategic-management process

True

People's anxieties are raised with the thought of change because they fear economic loss, inconvenience, uncertainty and a break in normal social patterns

True

Policies refer to specific guidelines, methods, procedures, rules, forms, and administrative practices established to support and encourage work toward stated goals

True

Reengineering does not usually affect the organizational structure or chart, nor does it imply job loss or employee layoffs

True

Resistance to change can be considered the single greatest threat to successful strategy implementation

True

Restructuring is also called rightsizing

True

Strategy formulation requires coordination among a few individuals, but strategy implementation requires coordination among many

True

The United States leads the world in promoting women and minorities into mid- and top-level managerial positions in business

True

The most complex of all designs is a matrix structure

True

Undesirable conduct such as distorting the record can be a result of overemphasis on achieving objectives

True

Unlike strategy formulation, strategy implementation varies considerably among different types and sizes of organization

True

Unlike strategy formulation, strategy implementation varies considerably among different types and sizes of organizations.

True

When developing an organizational chart, it is not wise to recommend a dual title for just one executive

True

With a divisional structure by customer, an organization can effectively cater to the requirements of clearly defined customer groups

True

_______ is not a major factor that commonly prohibits effective resource allocation.

Underproduction of resources

Which term would most likely be incorporated into written objective statements?

10% increase

Approximately how many people in the United States are now part of two-career families?

60 million

What percentage of companies are reported to have some form of bonus plan?

80 percent

A change strategy that attempts to convince people the change is to their personal advantage is

Rational

Which of these involves comparing a firm against the best firms in the industry on a wide variety of performance-related criteria?

Benchmarking

What is not one of the basic ways a divisional structure can be organized?

By cost

A disagreement between two or more parties on one or more issues is called a(n)

Conflict

Which approach for managing and resolving conflict involves exchanging members of conflicting parties of that each can gain an appreciation of the others point of view

Confrontation

Establishing objectives is a

Decentralized activity

Restructuring is also referred to as:

Delayering

Just in time describes:

Delivering materials just as they are needed.

Which approach for managing and resolving conflict involves playing down differences between conflicting parties while accentuating similarities and common interests

Diffusion

Medium-sized firms are more likely to use which type of structure

Divisional

Which of these is not one of the tests used to determine whether a performance-pay plan will benefit an organization?

Does the plan reduce management layers?

A change strategy that attempts to convince people the change is to their personal advantage is?

Ecological

Which organizational structure is the most simple and inexpensive?

Functional

What type of organizational structure do most small businesses follow?

Functional structure

What pay strategy requires employees or departments to establish performance targets, such as "if actual results exceed objectives then all members get bonuses"

Gains sharing

Desire for __________ is a part of the social fabric in worker-manager relations in Mexico.

Harmony

When developing an organizational chart, you should:

Have division presidents report to a chief operating officer.

What is the stated reason for Boeing's firing of CEO Harry Stonecipher?

Having an extramarital affair with a coworker

Which pay strategy is not a form of incentive compensation?

Hourly wage

Which of the following does not describe most Japanese managers?

Impulsive

Which of these is true about strategy implementation?

It is primarily an operational process.

Formal statements of organizational philosophy, charters, creeds, materials used for recruitment and selection and socialization help an organization

Link culture to strategy.

What is the most complex form of organizational structure?

Matrix

Of the Fortune 500 firms, how many have a woman CEO?

Nine

A divisional structure by geographic area is most appropriate when:

Organizations have similar branch facilities located in widely dispersed areas.

What are guidelines, methods, procedures, rules, forms and administrative practices known as

Policies