MANA 4322 CH 10

Which of the following is NOT a disadvantage of the barrier-free form of organization?

Additional integration issues result is a slower response to market changes.

Which of the following is an advantage of a divisional type of organizational structure?

An enhanced ability to respond quickly to changes in the external environment.

Which of the following is NOT an advantage of teams?

Because teams interact so closely, coordination and integration becomes unnecessary

All of the following statements about simple organizational structures are true EXCEPT which?

Creativity and individualism are rare

Which of the following is a disadvantage of a functional type of organizational structure?

Differences in functional orientation may impede communication and coordination

A firm's structure typically has almost no effect on its strategy

F

A global startup typically benefits from lower communication, coordination, and transportation costs

F

A major disadvantage of a divisional structure is that when divisions are separated to manage individual product-markets, there is a separation of strategic and operational control.

F

A major disadvantage of the matrix structure is that it duplicates the use of specialized personnel, equipment, and facilities

F

A matrix organization is organized strictly along product lines

F

According to the text, boundaryless organizational structures are most effective when they replace rather than complement traditional organizational structures

F

According to the text, the factor that most distinguishes a "superior" team from a "good" team is talent

F

An advantage of the barrier-free form of organizing is that internal cooperation and shared objectives are not required for it to work

F

Because the modular form of organizing involves outsourcing vital functions, modular firms often forfeit full strategic control

F

Firms must create ambidextrous organizations primarily to help manage operations in multiple countries

F

For firms following a differentiation strategy, behavioral and intangible incentives are not an effective means of motivating employees

F

In a barrier-free organization, differences in skills, authority, and talent disappear

F

In a simple structure where the owner manager makes most of the important decisions, extensive rules and regulations are used to maintain order

F

One major advantage of the holding company form of organization structure is that it minimizes the duplication of functional activities between product lines

F

One of the advantages of boundaryless structures is that they can be implemented without upgrading the skills of workers and managers

F

The strategic business unit (SBU) and holding company structure are variants of the functional form of structure

F

The strategic business unit (SBU) structure is also referred to as the conglomerate structure.

F

To enhance integration and control of related product market activities, the functional structure minimizes centralization

F

Which of the following is an advantage of a functional type of organizational structure?

Pooling of specialists enhances coordination and control

An organization such as ConAgra that has dozens of different divisions with similar products will probably have the greatest success with which form of organization structure?

Strategic business unit structure

A major disadvantage of adopting a divisional structure is the tendency for managers to focus on short-term objectives

T

A simple organizational structure may lead to problems such as unclear boundaries of authority and few career advancement options

T

A small firm with a simple structure often fosters creativity and individualism because of its informal atmosphere

T

A worldwide product division structure is used when global strategies require that each division be responsible for overall efficiency and performance

T

As firms grow, owner managers often need to hire functional specialists to handle the increased information-processing burden

T

For firms following related diversification strategies, reward and evaluation systems should rely primarily on behavioral indicators, since the organization needs to reward and reinforce behaviors that facilitate sharing and collaboration

T

For firms that compete on the basis of cost leadership, incentives tend to be primarily based on explicit financial targets

T

Horizontal organization structures facilitate resource sharing and help create a sense of common purpose

T

It is challenging to become an ambidextrous organization and get the proper balance of "alignment" and "adaptability."

T

Managing virtual structures requires new and difficult-to-acquire managerial skills

T

Modular companies can achieve rapid growth because they don't require large investments in fixed assets

T

One disadvantage of a functional structure is that differences in functional orientation may impede organization coordination and communication

T

One of the risks of outsourcing is a loss of cross-functional skills

T

Operational decision making in a large business places excessive demands on the firm's top management

T

Outsourcing relieves companies of the requirement to maintain skill levels needed to manufacture essential components

T

The matrix structure attempts to combine the advantages of the functional and product-oriented structure

T

The purpose of boundaryless forms of organizing is to facilitate the widespread sharing of knowledge and information across internal and external boundaries of the organization

T

The virtual organization is characterized by participating firms which pursue a collective strategy that enables them to cope with environmental uncertainty through cooperative efforts

T

The virtual type of organization is a network of independent companies linked together to share skills, costs, and access to one another's markets

T

The phrase that best defines a virtual organization is

a continually evolving network of independent companies

A matrix organizational structure is characterized by

all of these

Organizations generally tend to become internally focused when faced with

all of these

What advantages does outsourcing provide an organization?

all of these

Technical Computer Graphics uses small project teams and forms alliances with its teams, customers, and suppliers to accomplish projects. This is an example of

combining forms of boundaryless organizations.

When an organization with a functional structure diversifies into related product-markets, it generally

develops a divisional structure

Which of the following is not a disadvantage of virtual structures?

difficulty in individual and organizational knowledge sharing

Strategic business unit (SBU) and holding company structures result from extensive

diversification

A strategy of related diversification requires most firms to organize around geographical areas or product lines. This type of organizational growth leads to a(n)

divisional structure

A divisional structure

facilitates the development of general managers

At ABC Corporation, work is divided into units that specialize in production, marketing, research and development, and other management tasks. This is an example of a

functional structure

When an organization with a simple structure increases its sales revenue and volume of outputs, it is most likely to develop a

functional structure

Complete the following sentence: "Virtual organizations __________ whereas modular organizations __________."

give up part of their strategic control; retain full strategic control

Functional structures are usually found in organizations where there is

high volume production

In firms with differentiation strategies, the culture should foster __________ levels of interdependence and rewards should be based primarily on __________ measures of output.

high; behavioral

In firms with related diversification strategies, the culture should foster __________ levels of interdependence and rewards should be based primarily on __________ measures of output.

high; behavioral

Tools and techniques used to achieve effective coordination and integration of key activities in an organization include all of the following EXCEPT

horizontal diversification

Which of the following is considered to be an advantage of a matrix structure?

increased responsiveness to the market

Which of the following is NOT a strategic risk of outsourcing?

loss of non-vital functions

A simple structure is characterized by

low specialization and high centralization

In firms with overall low cost strategies, the culture should foster __________ levels of interdependence and rewards should be based primarily on __________ measures of output.

low; financial

In firms with unrelated diversification strategies, the culture should foster __________ levels of interdependence and rewards should be based primarily on __________ measures of output.

low; financial

According to the study by O'Reilly and Tushman, effective ambidextrous structures had all of the following attributes EXCEPT

managerial efforts were highly focused on revenue enhancement

Nike is a company that makes use of the concept of "product expatriates." Product expatriates are

managers of the company sent abroad to work at the plants of its suppliers

Complicated working relationships, intense power struggles, and excessive reliance on group processes are disadvantages of what type of organizational structure?

matrix

Which of the following is not a boundaryless organizational design?

matrix

What type of organization is defined as "a central hub surrounded by networks of outside suppliers and specialists"?

modular

What is the name of the practice that many modular organizations use to grow?

outsourcing

Complete the following sentence: "Strategic business unit (SBU) structures are best suited for corporations pursuing __________, whereas holding company structures are best suited for companies with __________ strategies."

related diversification; unrelated diversification

Important advantages of a holding company structure include

savings in personnel and overhead expenses associated with a small corporate office

The relationship between strategy and structure can be best described as

strategy and structure influence each other.

Generally speaking, discussions of the relationship between strategy and structure strongly imply that

structure follows strategy

All of the following are advantages of a strategic business unit (SBU) type of organizational structure EXCEPT

the corporate office is more removed from the individual divisions.

Organizations are increasingly using teams for many reasons. The difference between a good team and an outstanding team has been found to be

the way team members treat each other

Effective ambidextrous organizations have alignment, which means that

there is a clear sense of how value is being created in the short-term and how activities are properly integrated and coordinated

All of the following are disadvantages of a divisional type of organizational structure EXCEPT

there is separation of strategic and operating control

According to the text, there are elements of team building that influence a team's success. These include all of the following EXCEPT

titles. Titles are important to a team's success

Lockheed Martin uses a coalition of three entities, its own company, academia, and government, to achieve its goals. This is an example of a

virtual organization

If an international firm has a multidomestic strategy and a relatively high level of product diversity, the best choice for its organizational structure is

worldwide matrix

If an international firm has a global strategy and a relatively low level of product diversity, the best choice for its organizational structure is

worldwide product division