GEB4891 Ch11 LearnSmart

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 type of structure is most commonly used by firms that pursue a transnational strategy?

global matrix structure

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

Groups that are highly cohesive and lack diversity are at risk of falling victim to ______.

groupthink

Which of the following is a situation in which individuals follow a leader without challenging or critically evaluating the leader's ideas?

groupthink

Which of the following defines who reports to whom?

hierarchy

Which of the following is typical of mechanistic organizations?

high division of labor

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

The organizational structure at Gore may be described as ______.

informal and decentralized

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

input controls

When corporate headquarters efficiently allocates capital to individual strategic business units, it acts as a(n) _____.

internal capital market

Match the global strategy (on the left) with the appropriate structure (on the right). Instructions

international - functional multidomestic - multidivisional with divisions according to geographic areas; decentralized decisions global standardization - multidivisional with divisions according to products; centralized decision making transnational - global matrix; balance of centralized and decentralized decision making, two layers of hierarchy (geographic and product)

Motivation that is driven by the employee's interest and the meaning of the work itself is called ______ motivation.

intrinsic

When the span of control within an organization is wide, one manager supervises ______.

many employees

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

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

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

When a firm's organizational structure is tall, the span of control is ______.

narrow

The primary way cultural change is enacted in a company is through ______.

new leadership

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

open innovation

Which of the following tends to directly improve employee conformity and performance?

peer control

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

reporting structures are often unclear

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

rigidity

What is the best way for organizations to overcome the lack of collaboration across departments in a functional structure?

set up cross-functional teams

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

Simple structures tend to be used by which group?

small companies with low organizational complexity

Employees learn about their firm's culture through ______.

socialization

Because organizational culture encompasses interactions among employees in all levels of the firm as well as the firm's relationships with its customers and suppliers, it is said to be ______.

socially complex

Select all that apply Which of the following statements are true of the network organizational structure? (Check all that apply.)

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

Select all that apply Which of the following are true of cross-functional teams? (Check all that apply.)

- They work on a specific product or project. - They are meant to facilitate collaboration between departments.

Select all that apply What do managers use the key levers of structure, culture, and control for? (Check all that apply.)

- To motivate employees - To coordinate work

Select all that apply Which of the following are examples of input controls? (Check all that apply.)

- budgets - standard operating procedures

When causal relationships among values, norms, artifacts, and the firm's performance are hard to establish, making it difficult to imitate a firm's culture, the culture is characterized by ______.

- causal ambiguity - social complexity

Select all that apply Which of the following statements about closed innovation are true? (Check all that apply.)

- It is time-consuming. - It is a costly approach.

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

- formal vocabulary - private offices - dress code

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

- greater employee creativity - fast decision making - high levels of employee satisfaction

Select all that apply Which of the following are the four essential aspects of an organizational structure? (Check all that apply.)

- hierarchy - specialization - centralization - formalization

Select all that apply Which of the following are the key elements of organizational culture? (Check all that apply.)

- norms - artifacts - values

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

- responsiveness - decentralized focus

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

- reward systems - strategic control

Select all that apply Which of the following are characteristics of simple organizational structures? (Check all that apply.)

- single leader makes all important decisions - low formalization - flat hierarchies

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

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

Select all that apply Which three key levers can managers use when shaping their organization into a firm with the highest level of competitive advantage? (Check all that apply.)

- structure - culture - control

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

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

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

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

founder imprinting

Because executives make decisions about structure and strategy, ______.

a change in leadership often results in a change in culture

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

a firm's organizational structure

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

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

a higher degree of specialization than smaller companies

Why does management frequently fail at strategy implementation?

Managers cannot make needed adjustments because of their effect on the firm's resource allocation and power distribution.

Firms that pursue ______ strategy tend to use a global matrix structure.

a transnational

How does an organization's culture influence employee behavior?

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

True or false: Organizational culture should never change.

False

Which of the following is a true statement about the building blocks of an organizational structure?

Hierarchy is one of the building blocks of an organizational structure.

Which of the following statements about formalization is true?

It is often necessary to achieve consistent and predictable results.

Which of the following explains how values and norms act as a control mechanism?

They help employees address unpredictable problems.

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

True or false: The functional structure results in difficulty communicating across departments.

True

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

ambidextrous organization

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

The organizational structure at Gore, in which everyone is encouraged to speak to anyone they wish to within the organization, is called a(n) ______ organizational form.

boundaryless

How do founders leave their imprint on their organizations?

by taking their vision and making it into reality

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

centralized decision making

During the 20th century, companies tended to carry out R&D internally, an approach known as ______.

closed innovation

Mechanistic organizations tend to have ______.

codified operating procedures

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

The inability to effectively deal with higher levels of ______, a common result of growth, is a weakness of the functional structure.

diversification

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

exploitation

Which of the following is typical of an organic organization?

flexible division of labor

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

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

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

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

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

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

When a firm's employees have internalized norms and share the firm's core values, the firm is said to have a(n) ______ culture.

strong

In order for firms to achieve superior performance, ______.

structure must follow strategy

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

tall

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 an internal capital market?

to allocate capital more efficiently than would happen in an external capital market

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

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

values

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

values; norms