MGT Ch 11

Cheetah, a web development firm, wants to implement an organic structure to foster innovation and attract the most talented creative minds. Which of the following features will make it difficult to do so? a) dedication to a cost-leadership business strategy b) flexible job descriptions for employees c) a wide span of control for managers d) decision-making power distributed throughout the organization

A

Firms with a flat structure and a low degree of specialization tend to foster innovation better than firms with a tall structure and high degree of specialization. a) true b) false

A

Which of the following is an advantage offered by a functional structure? a) it allows for a higher degree of specialization and deeper domain expertise. b) it facilitates a lower level of specialization. c) it facilitates a lower division of labor, which is linked to higher productivity. d) it allows for an efficient top-down communication chain and thus relies on a relatively tall structure.

A

Organizational culture can help a firm gain and sustain competitive advantage only if the culture makes a positive contribution to the firm's economic value creation and a) eventually gives way to core rigidity. b) does not demonstrate causal ambiguity. c) obeys the VRIO principles. d) displays an absence of social complexity.

C

To effectively implement a differentiation strategy, managers rely on a functional structure that resembles an organization that is highly a) mechantistic b) formalized c) organic d) specialized

C

The most important yet least visible element of organizational culture is a) laws b) norms c) artifacts d) values

D

Which of the following is a disadvantage of a functional strategy? a) It frequently lacks the tools required to pursue a cost-leadership strategy. b) It does not allow organizations to be flexible or innovative. c) It does not facilitate rich communication between members of the same department. d) It cannot effectively address a higher level of diversification.

D

Which of the following types of groups is most susceptible to groupthink? a) a heterogeneous group b) a decentralized group c) a diverse group d) a cohesive group

D

Which of the following types of organizations best helps match a differentiation strategy to a functional structure? a) mechanistic organization b) ambidextrous organization c) rigid organization d) organic organization

D

Why are controls like budgets and operating procedures that McDonald's implements known as input controls? a) They are independent of an organization's culture. b) They are ad hoc and not codified. c) They are implemented by corporate headquarters. d) They are considered before employees make any decisions.

D