Chapter 11: Organizational Design: Structure, Culture, and Control

What is the goal of organizational design? -to enable managers to translate their chosen strategy into a realized one -to eliminate confusion about which job covers particular tasks -to ensure that each employee is placed on a specific level within the firm's hierarchy -to reduce competitive advantage with other firms

-to enable managers to translate their chosen strategy into a realized one

Which of the following structures is a combination of the multidivisional structure and the functional structure? -a simple structure -a universal structure -a waterfall structure -a matrix structure

-a matrix structure

Mechanistic organizations tend to have ___. -fluid environments -decentralized decision making -flat organizational hierarchy -a tall hierarchy that relies on centralized decision making

-a tall hierarchy that relies on centralized decision making

Which of the following has been called the "graveyard of strategy" due to managers' high rate of failure when attempting it? -strategy implementation -strategy research -strategy monitoring -strategy formulation

-strategy implementation

Which two of the following accurately describe mechanistic organizations? (Check all that apply.) -They have a low level of specialization. -They rely on decentralized decision making. -They have a tall hierarchy. -They are highly specialized.

-They have a tall hierarchy. -They are highly specialized.

Which of the following determines the allocation of resources and the organization and operations of workers? -a firm's organizational structure -a firm's strategic intent -an organizational external opportunities analysis -the specific management team functionality

-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? -an organic structure -a functional structure -an operational structure -a mechanistic structure

-a functional structure

What is important is defined by __________(a); which attitudes and behavior are deemed appropriate are defined by __________(b).

(a) values (b) norms

How does an organization's culture influence employee behavior? -Negative culture determines the acceptable level of performance. -Employee behavior is only influenced by negative culture. -Employees are motivated by positive culture because it appeals to their higher ideals. -Weak culture affects the organic component of the organization.

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

True or false: Organizational culture should never change. -True -False

-False

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 ______. -competitive advantage -strategic inertia -organizational structure -strategy implementation

-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. -input -sales -price -output

-output

Which of the following types of control defines expected results in order to guide employee behavior? -upstream controls -output controls -input controls -throughput controls

-output controls

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

-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 -matrix -functional -multidivisional

-simple

The functional areas present in a functional structure frequently correspond to which of the following? -employee salary averages -company office locations -stages in the value chain -the customers being served

-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. -founder-imprinting -diversified -strategic control-and-reward -strategy-implementation

-strategic control-and-reward

When "______," managers limit themselves to strategies that maintain the status quo. -organization follows innovation -structure follows strategy -action follows implementation -strategy follows structure

-strategy follows structure

The portion of the strategic management process that concerns the organization, coordination, and integration of work processes is __. -formalization design -strategy implementation -ambidextrous organization -holacracy

-strategy implementation

Which of the following are factors that influenced the shift from closed innovation to open innovation? (Check all that apply.) -the reduced availability of global external suppliers -the growth of venture capital -the increasing supply and mobility of skilled workers -the lack of innovative ideas within companies

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

Which of the following structures is divided into several distinct business units, each of which has its own profit-and-loss center? -the functional structure -the multi-divisional structure -the formalized structure -the integrated structure

-the multi-divisional structure

Steve Jobs defined and shaped Apple's culture, and his influence continued even after he left the company. This is known as ______. -groupthink -matrix structure -formalization -founder imprinting

-founder imprinting

Strategy implementation is essentially __. -how a firm performs its work -the culture of a firm -the firm's attempts to identify its weaknesses -the services and products a firm offers

-how a firm performs its work

A firm's unwillingness to alter how things are currently done is known as ______. -strategy implementation -inertia -organic specialization -insubordination

-inertia

The structure, processes, and procedures of an organization are designed, put into place, reviewed, and reworked through a process known as ______. -organizational design -holacracy -strategy formulation -diversification

-organizational design

Which of the following statements is true regarding the relationship between strategy formulation and strategy implementation? -Once a promising strategy has been formulated, implementing it is a simple task. -Strategy implementation is at least as important as strategy formulation for success. -Strategy formulation is far more important than strategy implementation. -Neither strategy formulation nor strategy implementation has a significant effect on the success of a firm.

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

Which of the following statements about open innovation is true? -The sharing of ideas and inventions from within the firm and from outside sources can go both ways. -Ideas and inventions become the property of the firm funding the venture. -External R&D always produces more interesting ideas than internal R&D. -It is time-consuming and often unsuccessful.

-The sharing of ideas and inventions from within the firm and from outside sources can go both ways.

Which of the following statements regarding input controls is true? -They are designed to be considered before employees make any business decisions. -They offer flexibility so that employees can make immediate changes if the situation calls for them. -They are created by employees and then go up the chain of command. -They are designed to be considered after value-creating activities have been implemented and results evaluated.

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

How do founders leave their imprint on their organizations? -by manipulating existing culture -by taking their vision and making it into reality -by entering physical elements into the design -by formulating growth strategies

-by taking their vision and making it into reality

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 -understand and explain the role of functional units in the organizational structure -guide employee behavior by defining expected results, but leave the means to those results open to individual employees, groups, or SBUs -formalize different pay policies between levels of employees in the national and international markets

-define and direct employee behavior through a set of explicit, codified rules and standard operating procedures

Which of the following are characteristics of simple organizational structures? -high degree of specialization -founders makes all important decisions -low formalization -flat hierarchies

-founders makes all important decisions -low formalization -flat hierarchies

Which are examples of strategic control-and-reward systems? (Check all that apply.) -managerial hubris -input controls -output controls -organizational culture -reward point systems for customers

-input controls -output controls -organizational culture

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 -multidivisional -simple -functional

-matrix

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 -increased demand for hierarchy and supervision

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

Which of the following are effects that a strong organizational culture can have on employee behavior? -more effective cooperation -increased demand for hierarchy and supervision -behavior aligns more closely with the firm's strategic goals -stronger commitment, engagement, and effort

-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. -cross-functional -ambidextrous -blue ocean -multidivisional

-multidivisional

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 -founder imprinting -corporate strategy -internal capital market

-organizational culture