GEB 4891 Chapter 7
A divisional structure by product is most effective when:
all of the above
Considerable time and effort should be devoted to assuring objectives are well conceived because they represent the basis for:
all of the above
Policies:
all of the above
Resistance to change can manifest itself through:
all of the above
Aspects of an existing culture that are antagonistic to a proposed strategy should be:
changed.
A disagreement between two or more parties on one or more issues is called a(n):
conflict.
Formal statements of organizational philosophy, charters, creeds, materials used for recruitment and selection, and socialization help an organization:
link culture to strategy
All of the following are ways and means for altering an organization's culture EXCEPT:
retrenchment
A concern in matching managers with strategy is that jobs have relatively ________ responsibilities, while people are ________ in their personal development.
static; dynamic
Which approach for managing and resolving conflict involves ignoring the problem in hopes that the conflict will resolve itself?
Avoidance
What are the three categories of approaches for managing and resolving conflict?
Avoidance, defusion, and confrontation
With a divisional structure, it is possible that competition between divisions may become so intense that it leads to improved sharing of ideas and resources for the common good of the firm.
FALSE
With the matrix structure it is common for functional resources to be duplicated.
FALSE
What change strategy involves giving orders and enforcing those orders?
Force
Which organizational structure is the most widely used?
Functional
What type of organizational structure promotes specialization of labor and allows rapid decision making?
Functional structure
What pay strategy requires employees or departments to establish performance targets, which, if exceeded, result in bonuses for all members?
Gain sharing
For what reason did Boeing fire CEO Harry Stonecipher?
Having an extramarital affair
Which pay strategy is NOT a form of incentive compensation?
Hourly wage
All of the following statements regarding the recent trend in Japan of switching from seniority-based pay to performance-based approaches are True EXCEPT:
The switch is boosting employee morale.
Which of the following is NOT True about objectives?
They should use terms like "maximize," "minimize," and "as soon as possible."
What term is used to describe specific guidelines, methods, procedures, rules, forms and administrative practices established to support and encourage work toward stated goals?
Policies
What action involves reconfiguring or redesigning work, jobs, and processes for the purpose of improving costs, quality, service, and speed?
Reengineering
Which term is best defined as a central management activity that allows for strategy execution?
Resource allocation
Which term is primarily concerned with shareholder well-being rather than employee well-being?
Restructuring
Which of the following statements is True?
Seniority rather than performance has been the key factor in determining pay in Japan.
Which organizational structure has the disadvantage of ambiguous roles for senior executives?
Strategic business unit
_______ is NOT a major factor that commonly prohibits effective resource allocation.
Under protection of resources
A dual bonus system based on both annual objectives and long-term objectives is becoming common.
TRUE
A force change strategy is plagued by low commitment and high resistance.
TRUE
Annual objectives are key components in the strategic-management process because they dictate how resources will be allocated.
TRUE
Besides reducing worker alienation and stimulating productivity, ESOPs allow firms other benefits, such as substantial tax savings.
TRUE
Changing a strategy to fit an existing culture is not as effective as changing a firm's culture to fit a new strategy.
TRUE
Cornerstones of reengineering are decentralization, reciprocal interdependence and information sharing.
TRUE
Exchanging members of conflicting parties so each can gain an appreciation of the other's point of view exemplifies a confrontation approach.
TRUE
Four types of resources that can be used to achieve desired objectives are financial, physical, human, and technological.
TRUE
In developing an organizational chart, avoid having a particular person reporting to more than one person above them in the chain of command.
TRUE
It is always easier to say you are going to do something (strategy formulation) than to actually do it (strategy implementation).
TRUE
Medium-sized firms tend to be divisionally structured, whereas large firms tend to use an SBU (strategic business unit) or matrix structure.
TRUE
Most large companies have abandoned the functional structure in favor of decentralization.
TRUE
Not allocating resources according to the priorities indicated by approved objectives is detrimental to the strategic-management process.
TRUE
People's anxieties are raised with the thought of change because they fear economic loss, inconvenience, uncertainty and a break in normal social patterns.
TRUE
Policies refer to specific guidelines, methods, procedures, rules, forms, and administrative practices established to support and encourage work toward stated goals.
TRUE
Recruitment, promotion, and mentoring are ways to alter an organization's culture.
TRUE
Reengineering does not usually affect the organizational structure or chart, nor does it imply job loss or employee layoffs.
TRUE
Resistance to change can be considered the single greatest threat to successful strategy implementation.
TRUE
Restructuring is also called rightsizing.
TRUE
Strategists should strive to create a work environment in which change is recognized as necessary and beneficial so that individuals can more easily adapt to change.
TRUE
Strategy formulation requires coordination among a few individuals, but strategy implementation requires coordination among many.
TRUE
The United States leads the world in promoting women and minorities into mid- and top-level managerial positions in business.
TRUE
The most complex of all organizational structures is a matrix structure.
TRUE
Undesirable conduct such as distorting the records can be a result of overemphasis on achieving objectives.
TRUE
Unlike strategy formulation, strategy implementation varies considerably among different types and sizes of organizations.
TRUE
When attachments to a culture are severed in an organization's attempt to change direction, employees and managers often experience deep feelings of grief.
TRUE
When developing an organizational chart, it is not wise to recommend a dual title for just one executive.
TRUE
When the rational type change strategy is successful, strategy implementation can be relatively easy.
TRUE
With a divisional structure by customer, an organization can effectively cater to the requirements of clearly defined customer groups.
TRUE
Medium-sized firms tend to use which type of structure?
Divisional
Which phrase would most likely be incorporated into written objective statements?
10% increase
Approximately how many people in the United States are now part of two-career families?
60 million
The advantage of the educative change strategy is that implementation is quick and relatively easy.
FALSE
The focus of restructuring is changing the way work is actually carried out.
FALSE
Which of the following is a management issue central to strategy implementation?
All of the above
Why do changes in company strategy often require changes in the way an organization is structured?
All of the above
Which of these involves comparing a firm against the best firms in the industry on a wide variety of performance-related criteria?
Benchmarking
What is NOT one of the basic ways a divisional structure can be organized?
By cost
What is the best divisional structure when a few major customers are of paramount importance and many different services are provided to these customers?
By customer
How would Hershey's current divisional structure most likely be classified?
By geographic area
Which approach for managing and resolving conflict involves exchanging members of conflicting parties so that each can gain an appreciation of the other's point of view?
Confrontation
Which approach for managing and resolving conflict involves playing down differences between conflicting parties, while accentuating similarities and common interests?
Defusion
Which of these is NOT one of the tests used to determine whether a performance-pay plan will benefit an organization?
Does the plan reduce management layers?
The rational change strategy is one that presents information to convince people of the need for change.
FALSE
The work/family issue is strictly a women's issue.
FALSE
Well-run organizations are able to completely avoid conflict.
FALSE
When developing an organizational chart, the title president should be reserved for the top executive of the firm.
FALSE
In 2012, how many Fortune 500 have women CEOs ?
Eighteen
A bottom-up flow of communication is essential for developing top-down support.
FALSE
A functional structure can be effective at eliminating short-term and narrow thinking.
FALSE
A rational change strategy means giving orders and enforcing those orders.
FALSE
Avoidance, defusion, and confrontation are the classifications for the various types of conflict that can arise in organizations.
FALSE
Because activities are organized according to the way work is actually performed, a divisional structure by process is similar to the matrix structure.
FALSE
ESOPs work well even in firms with fluctuating payrolls and profits.
FALSE
Effective strategy formulation can usually guarantee successful strategy implementation.
FALSE
Holding a meeting at which conflicting parties present their views and work through their differences is part of the defusion technique of managing conflict.
FALSE
Horizontal consistency is more important than vertical consistency in developing annual objectives.
FALSE
In terms of number of employees, restructuring usually involves increasing the size of the firm.
FALSE
In the context of conflict management and resolution, ignoring the problem in the hopes that the conflict will resolve itself is classified as a defusion technique.
FALSE
JIT significantly increases the costs of implementing strategies.
FALSE
On average, CEOs at Japanese companies are paid more than CEOs at American or European companies.
FALSE
Organizational change today should be viewed as a project or event rather than as a continuous project.
FALSE
Production processes typically constitute less than 50 percent of a firm's total assets.
FALSE
Six Sigma is generally equally successful in retail firms and manufacturing firms.
FALSE
Strategies clarify what can and cannot be done in pursuit of an organization's objectives.
FALSE
Strategists should strive to preserve, emphasize, and build upon aspects of an existing culture that are antagonistic to a proposed strategy.
FALSE
Strategy formulation is the managing of forces during the action, whereas strategy implementation is the positioning of forces before the action.
FALSE
Tasks and activities are grouped together by business function in a divisional organizational structure.
FALSE
Which of these is True about strategy implementation?
It is primarily an operational process.
Which company estimates wellness programs have cumulatively saved the company $250 million on health care costs in the past decade?
Johnson & Johnson
What is the most complex form of organizational structure?
Matrix
Which of the following is in keeping with the current view of organizational change?
Organizational change is a continuous process.
The primary benefit sought from restructuring is:
cost reduction.
Establishing objectives is a:
decentralized activity.
Restructuring is also referred to as
delayering.
Just-in-time describes:
delivering materials just as they are needed.
When developing an organizational chart, you should:
have division presidents report to a chief operating officer.
Changing a strategy to fit an existing culture:
is usually less effective than changing a firm's culture to fit a new strategy
Conflict in an organization is:
not always bad.
A divisional structure by geographic area is most appropriate when:
organizations have similar branch facilities located in widely dispersed areas.
A change strategy that attempts to convince people that the change is to their personal advantage is:
rational.
A firm uses information technology to break down functional barriers and create a work system based on business processes, products, or outputs rather than on functions or inputs in:
reengineering.
Strategy formulation:
requires coordination among a few individuals.
