Wk 3 - Practice: Ch. 11, Organizational Design: Structure, Culture

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

Strategy implementation is essentially __.

how a firm performs its work

When a company's culture is defined and shaped by the people who start it, it is known as founder ______.

imprinting

A firm's unwillingness to alter how things are currently done is known as ______.

inertia

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

input controls

Which of the following statements about formalization is true?

it is often necessary to achieve consistent and predictable results

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

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

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

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

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

Which of the following types of control defines expected results in order to guide employee behavior?

output controls

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

responsiveness decentralized focus

What are two internal governance mechanisms put in place to align principal and agent incentives?

reward systems strategic control

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

rigidity

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

Leslie, Juan, and Felicia all work for the same company. Leslie pays the bills and invoices customers, Juan makes sure the company's computers and phones work, and Felicia interacts with customers and sellers of the firm's products. This is an example of ______.

specialization

Which of the following are factors that influenced the shift from closed innovation to open innovation?

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

Which of the following are characteristics of simple organizational structures?

founders makes all important decisions flat hierarchies low formalization

Which of the following statements is true regarding the relationship between strategy formulation and strategy implementation?

Strategy implementation is at least as important as strategy formulation for success.

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

founder imprinting

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

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

Open Innovation

What is important is defined by_________which attitudes and behavior are deemed appropriate are defined by____?

Blank 1: values Blank 2: norms

Which of the following is true of an M-form?

Each division operates independently.

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 statements about blue ocean strategy is true?

It requires reconciling the trade-offs between differentiation and low cost.

Which of the following statements regarding input controls is true?

They are designed to be considered before employees make any business decisions.

Which two of the following accurately describe mechanistic organizations?

They have a tall hierarchy. They are highly specialized

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

ambidextrous organization

Which of the following terms describes searching for new knowledge that may enhance a firm's future performance?

exploration

The organizational structure element that deals with the degree to which employees are guided by specific, codified rules and processes is known as ______.

formalization

Taki works for a start-up company that is highly centralized and its employees are not allowed to wear headphones while working. However, the company offers a flexible work schedule, free childcare, and free yoga classes. These rules and perks describe the company's ______.

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

The functional areas present in a functional structure frequently correspond to which of the following?

stages in the value chain

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

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

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