Strat Ch. 12- Quiz questions

Which division is very flexible and efficient, but clumsy and bureaucratic? This structure could lead to perpetual power struggles. a. Decentralization structure b. Matrix structure c. Multidivisional structure d. Functional structure

b

A CEO decides that his company needs to become leaner and faster. He decides that there are too many managers and that the company has become top heavy. The CEO lays off 50 employees and forms a new structure that will give them much more flexibility. What process has the CEO just executed? a. Delayering b. Layering c. Centralizing d. Creating a tall hierarchy

a

Which of these terms describe a company's personality and its character within, such as labeling a company as casual, serious, fun, or boring? a. Organizational culture b. Employee benefits c. Organizational controls d. Standards

a

George was just hired as a manager of a marketing company. His role will be to manage the day-to-day activities of his subordinates, which is a team of 21 people. He is finding it difficult to keep up with all of his associates because of the quantity of information he receives and the approvals he has to give to keep work moving. He is constantly responding to emails, critiquing work, and in meetings. He feels overwhelmed in this atmosphere. What would you recommend for George? a. Increase span of control b. Suggest a decentralization c. Suggest a centralization d. Let a number of subordinates go

b

Greg is a plant worker for a plastics manufacturer and uncovers a quality concern. He sees that a machine needs to be replaced because it is consistently distorting the product. He is responsible for the maintenance of the machines, and this recurring issue in this old machine has become a burden. He sees a need for a replacement and tells the plant manager. Greg, a week later, receives a call from the COO suggesting that he travel to the main office to discuss his new manufacturing line proposal, vastly different from what Greg suggested a week earlier to his manager. Most likely, what type of hierarchy is Greg's company? a. Dynamic hierarchy b. Tall hierarchy c. Flat hierarchy d. Pillar hierarchy

b

Kyle is on the board of directors of a manufacturing company. The company has been growing over the last few years due to the introduction of new products. Recently the pace of innovation has slowed. In the past, the most successful innovations came from suggestions from shop floor employees. The company has also seen some quality control issues. Local quality managers have uncovered the source and made appropriate corrections, but they were slowed by waiting or approvals from corporate headquarters. What should Kyle suggest to the rest of the board to resolve future similar issues? a. Centralization b. Promote the plant managers c. Decentralization d. Hire staff to fill in these lapses

c

Michael is a manager for a high-tech company. He is analyzing the results of his teams and the stats startled him. The performance numbers are not where they were projected, even though quality and speed were up to par. What could describe the performance concerns Michael is having? a. Lack of incentives b. External environment factors c. Performance ambiguity d. Lack of controls

c

What are integrating mechanisms? a. The creation of teams from different functional areas. b. Social rules and guidelines that prescribe the appropriate behavior in particular situations. c. Coordinating the activities of different functions and divisions within an organization in order to achieve strategic objectives. d. A process of open communication so that all departments are aware of business activities.

c

A company consists of a corporate office and operating divisions, each operating division represents a separate business or profit center in which the top corporate officer delegates responsibilities for day-to-day operations and business-unit strategy to division managers. What type of structure does this company have? a. Multidivisional structure b. Functional structure c. Simple structure d. Matrix structure

a

Danielle is the CEO of her company, and she has been given goals by her board. The goals list specific results for the company to attain. The board wants a 10% increase in revenue and a 6% increase in profit. Danielle knows that if she tells her subordinates the goals, they will not have an organized way to achieve them. What is the logical next step for Danielle? a. To determine sub-goals to give employees and divisions b. To hire more managers to monitor their work to ensure they will hit goals c. To focus on achieving only one goal at a time d. To fight against the board as these numbers are unreasonable

a

Julie feels energized coming to work and loves the work that she is doing. She is comfortable enough with her fellow workers to ask for help, and they are more than happy to oblige. The team even has dinners together every Thursday after work. What aspect of her new company is Julie happy with? a. Organizational culture b. Incentives c. Employee benefits d. Organizational structure

a

Which organizational structure has been deemed "the best"? a. None b. Matrix c. Multidivisional d. Functional

a

YUM, one of the world's largest restaurant companies, has a variety of brands. Their brands are KFC, Pizza Hut, and Taco Bell. Each one operates independently and is responsible for its own performance. They have separate CEOs who are responsible for managing their supply chain, marketing, and R&D. Knowing this, how does YUM organize its structure? a. Decentralized with autonomous sub-unit b. Strong centralization c. Organizational controls d. Matrix structure

a

In theory, if a company is able to align its strategy and structure, it will see the results of: a. declining performance. b. improving performance. c. improving flexibility. d. declining stability.

b

Larry, the operations officer of a manufacturing plant, has been given a goal to increase profits. His goal is to produce more units to drive down costs, and lower the price to market. Larry told his team that if they produce 5,000 more units in Q4 that they will be given bonuses. Larry's team produced 7,000 more units in Q4, but sales did not increase in alignment with production, leading to excess inventory and lower profitability of 2%. The team's focus on production and reducing the cost per unit caused them to ignore sales forecasts and over produce products. What was the underlying cause of missing this goal? a. Organizational culture b. Misaligned output controls c. Bureaucratic control d. External factors

b

Ross is the newly appointed CEO of an automobile manufacturer. While analyzing the business, he recognizes a competitive advantage his company could have if the organizational structure could change very quickly. What is a challenge a new CEO will have to overcome for this change to happen? a. Legal regulations b. Organizational inertia c. The Board of Directors d. Structural stability

b

What is the totality of a firm's organizational arrangements, including its formal organizational structure, control systems, incentive systems, organizational culture, organization processes, and human capital? a. Organizational formation b. Organization architecture c. Business plan d. Organizational hierarchy

b

Which of these is a major benefit of nurturing a knowledge network in your organization? a. Work will become much more efficient in the day-to-day b. The sharing of knowledge so that employees with different skills will be able to aid each other easily c. Company costs will go down due to more knowledgeable employees d. Employees will now become experts in their fields

b

A property management company hit their corporate goals for the year by increasing profits by 5%, two points higher than their 3% goal. Management is very pleased with the results of the company and decides to celebrate with an extravagant meal for all managers. The following year, the company set the same goal, 3%, but fell very short. When digging into the reasoning, they find out that the associates were not as productive or motivated as the year before. What should the company do to ensure they hit their goals for the years to come? a. Continue training to improve their employees' skills b. Threats of lay-offs if goals are not hit c. Positive reinforcement for hitting goals d. Promote the best associates to managers

c

GM, one of the world's largest automobile companies, has a variety of brands. Their brands include Chevrolet, Buick, Cadillac and GMC, all of which are responsible for their own performance. They have separate CEOs for specific brands and are responsible for managing their supply chain, marketing, and R&D. Which is most likely GM's structural form? a. Matrix structure b. Centralization structure c. Multidivisional structure d. Functional structure

c

What is the loss of efficiency that arises from deliberate information distortions for personal gain within an organization? a. Opportunity cost b. Conspiracy c. Influence cost d. Concealment cost

c

Which is an example of a company where a low integration control system would work best? a. A high-tech firm that needs to adapt quickly to meet customer demands b. A chemical company looking to diversify their existing product line with products that are similar c. A construction subcontractor looking to diversify their service lines with services that are unrelated d. An apparel company whose strategy is differentiation

c

Davis is the CEO of a consumer packaged-goods company. The company has been successful in spurring innovation for the product line. However, company sales have not exceeded expectations. His employees are slowest in sales after they have reached their goal, which usually falls in the fourth quarter. Instead of pushing ahead, they seem to wait for the goals to reset. What device could Davis utilize to motivate his sales people? a. Controls b. Termination c. Standards d. Incentives

d

Henry is a new hire to a technology company. He is assigned to a group that is in product development. He has meetings weekly with R&D, marketing, and production. Henry was told this group structure is a proto-type and may or may not be permanent. What current integrating mechanism structure is Henry's new company? a. Direct contact b. Liaison roles c. Matrix structure d. Teams

d

Nordstrom developed a program that helped triple their profits. How was that possible? a. Through poorer quality products, which were cheaper to produce but the same price to the customer b. By increasing their marketing to express why their products are better c. By dropping their prices, which increased demand d. Through better, real-time communication and monitoring in their inventory management system

d

What is a functional structure? a. An organizational structure that has proven to be successful and work correctly for all businesses. b. A structure that has the owner as a manager who also handles all day-to-day activities. c. A group of industry experts and experts in other industries that will help guide the business. d. A chief executive officer and a limited corporate staff, with functional line managers in dominant organizational areas such as production, accounting, marketing, R&D, engineering, and human resources.

d

What is the regulation of behavior of individuals and units within an enterprise by setting up an internal market for some valuable resources such as capital? a. Organizational culture b. Incentives c. Integrating mechanisms d. Market controls

d

Which of the following is not a concern within tall hierarchies? a. Information credibility b. Managers' salaries c. Organizational inertia d. Simplicity

d

Which of these is not an argument for centralization? a. Facilitating coordination b. Decisions consistent with organizational objectives c. Avoiding duplication of activities d. Permitting greater flexibility

d

Which of these is not an example of bureaucratic control? a. A child's allowance b. Minute limitations on cell phone plans c. Speed limits d. Employer "checking in" on employees

d