Man3025 Exam 2

What are Porter's four competitive strategies?

1. cost-leadership 2. differentiation 3. cost-focus 4. focused-differentiation

A clan culture has what three characteristics?

A family-type organization Strives to encourage cohesion through consensus and job satisfaction Encourages collaboration among employees

What is the most accurate description of person-organization fit?

A match between an individual's personality and values and those of the organization

A system of shared beliefs and values that develops within an organization and guides the behavior of its members is called organizational ______.

Culture

_____ is the process of assigning managerial authority and responsibility to managers and employees lower in the hierarchy.

Delegation

_____ is the tendency of the parts of an organization to disperse and fragment.

Differentiation

Place the steps in the strategic-management process in the correct order, with the first step listed at the top

Establish the mission Assess the current reality formulate corporate, business, and functional strategies Execute Strategies maintain strategic control

_____ is the process that helps align the last two phases of the strategic-management process: strategic implementation and strategic control.

Execution

True or false: It is common practice today for most small business owners to engage in strategic planning.

False

Formed to make money by offering products or services

For-profit organization

_____ embed preferred culture by describing organizational philosophy, mission, vision, and values.

Formal statements

_____ management refers to the activities related to planning for, attracting, developing and retaining an effective workforce.

Human resource

Match the dimensions of the competing values framework (CVF) with their descriptions. Horizontal Vertical

Inward.outward Flexibility/stability

According to Bryan Barry, which of these are things a manager can do to keep a strategic plan on track? (select all that apply)

Keep it simple Stay focused Engage people Keep moving

What is the BEST example of a mutual-benefit organization?

Labor union

Managers taking a contingency approach to organizational design should consider which three things in determining the optimal structure for the organization?

Link between strategy, structure and culture Differentiation vs. integration environment Mechanistic vs. organic environment

Voluntary collective formed to advance members' interests

Mutual-benefit organization

Formed to offer services to clients rather than make money

Nonprofit organization

In which step of the strategic-management process does an organization establish the mission and vision statements?

Step One

What occurs as a result of the horizontal organizational design?

Teams are used to improve collaboration and work

Many employers are wary of giving references for which of the following reasons?

They fear that negative reviews may result in former employees suing the company. They fear that if they give a positive reference for someone who doesn't work out in a new job, they may be sued by that person's new employer.

Strategic human resource planning is focused on which two initiatives?

Understanding current employee needs Predicting future employee needs

What strategy do employers use to eliminate the risk of bias in job interviews?

Use a committee of three or more people to design, conduct, and evaluate the interview.

Identify the three types of structures categorized as organizational designs with open boundaries. Check all that apply.

Virtual Modular Hollow

What are the two types of information that organization charts reveal about organizational structure?

Who reports to whom Who specializes in what work

Which of the following can leaders pay attention to, measure, and control in order to change the organization's culture? (select all that apply)

activities processes outcomes

According to Barnard's definition, which of the following examples represent organizations? (select all that apply)

activity of 2 or more people crew of two people coordinating their activities on a commercial tuna fishing boat the BumbleBee or StarKist tuna companies with their thousands of employees

The second step of the strategic management process involves

assessing the current reality

Which of these would be considered observable artifacts in an organization? (select all that apply)

awards decorations rituals

Which of the following represent competitive forces used in Porter's model for industry analysis?

bargaining power of suppliers rivalry among competitors threats of new entrants threat of substitute products or services bargaining power of buyers

Companies pursuing a cost-leadership strategy keep costs/prices _____ those of competitors and target a _____ market.

below; wide

A(n) _____ organization is a fluid, highly adaptive organization whose members are linked by information technology and collaborate on common tasks.

boundaryless

What two things does the BCG matrix evaluate?

business growth rates market share

Rites and rituals, which are activities and _____ used to celebrate important organizational events or achievements, can be leveraged in the process of culture change.

ceremonies

A _____ culture has an internal focus and values flexibility rather than stability and control.

clan

Research shows that employees have more positive work attitudes in organizations with a(n) _____ culture.

clan

Which of the following represent learning-related tools that can be leveraged to change an organization's culture?

coaching training role modeling

In the elements of organizations, ________ unifies employees or members and gives everyone an understanding of the organization's reason for being.

common purpose

The three elements of include wages and salaries, incentives, and benefits.

compensation

The process of fitting the organization to its environment is referred to as the _______ approach to organizational structure.

contingency

Strategic _____ involves monitoring the execution of strategy and taking corrective action when necessary.

control

In the common elements of organizations, common purpose is realized through _______, which enables the work of individuals to combine in an organization-wide endeavor.

coordinated effort

The president, chief financial officer, and chief operating officer of Jensen Mfg. meet annually to discuss the direction of the company including what products they will continue to offer and what new products they will introduce. Which level of strategic management does this represent?

corporate-level

Organizational design is concerned with which two activities?

creating structures of accountability and responsibility creating a structural design that will help an organization execute its strategies

The more subunits into which an organization breaks down, the more highly _____ it is.

differentiated

Which of the following represent traditional organizational designs? (select all that apply)

divisional simple matrix functional

According to the competing values framework (CVF), organizational _____ varies along two dimensions

effectiveness

Formal statements can help to change an organization's culture by

embedding the culture in various organizational materials such as the mission, vision, and values statements.

Organizations wishing to change their culture may alter their physical layout and design in order to: (select all that apply)

encourage employee productivity send a strong message about the culture

According to the BCG matrix, a company will do better in a _____ market in which it has a high market share.

fast-growing

An organization that wants to eliminate layers in favor of creating a culture where employees have more power should consider adopting a _____ organizational structure.

flattened

Which two of Porter's competitive strategies are appropriate when addressing a narrow market? Choose all that apply.

focused-differentiation cost-focus

Corporate-level strategy: (select all that apply)

focuses on the organization as a whole answers questions such as "what business are we in?" and "what products and services shall we offer?" involves senior executives in planning

A _____ is a vision or projection of the future that is made following a SWOT analysis.

forecast

A business that wants to reach more customers and hires more employees to get this done is focusing on a _____ strategy.

growth

If an organization wishes to become more controlling and authoritative toward its employees, it should consider adopting a(n) _____ structure.

hierarchical

Porter's five competitive forces form a model for _____ analysis.

industry

Organizational culture: (select all that apply)

is passed on to new employees through socialization and mentoring is the social glue that binds members of the organization together significantly affects work outcomes at all levels of the organization represents beliefs and values shared among workers helps employees understand why the organization does what it does

Coordinated effort, one of the four common elements of organizations proposed by Schein,

is represented by the coordination of individual efforts coming together into an organization-wide effort.

An organization's _____ can pay attention to, measure, and control a number of activities, processes,or outcomes in order to foster a certain culture.

leaders

To be successful, strategic planning requires a company to have a _____ orientation.

long-term

What are three characteristics of an organization with a simple structure?

low work specialization authority in a single person a flat hierarchy

More positive organizational outcomes are associated with _____ cultures.

market

Top-down structure and rigid rules are characteristics of a(n) _____ organization.

mechanistic

Which of the following are outcomes associated with various types of organizational culture? (select all that apply)

more positive organizational outcomes in market cultures higher customer satisfaction in clan and market cultures higher market share in clan and market cultures higher financial performance in market and hierarchy cultures more positive work attitudes in clan cultures

In organizational culture, a story is a(n)

narrative based on true events which is repeated in order to emphasize a particular value.

Symbols in organizational culture represent

objects or actions that convey an organization's most important values to others.

The readily apparent symbols and manifestations of an organization's culture are called its _____.

observable artifacts

A hospital is an example of a nonprofit organization because it is formed to _____.

offer services to clients

The three types of organizational design are:

open boundaries horizontal traditional

Environmental factors that an organization may exploit for competitive advantage are called organizational ______.

opportunities

A(n) _____ is a system of consciously coordinated activities or forces of two or more people.

organization

What four characteristics are being addressed in a VRIO analysis?

organization value imitability rarity

A box-and-lines illustration showing the formal lines of authority and the organization's work specializations is called a(n) ______ chart.

organizational

Of the three core processes of business identified by Bossidy and Charan, which do they believe is the most important?

people

What are the three core processes of business identified by Bossidy and Charan?

people strategy operations

The extent to which your personality and values match the climate and culture in an organization is referred to as _____.

person-organization fit

Some businesses have created open-area workspaces where employees sit at desks that are side-by-side and no walls are between them. This is to foster collaboration among the staff. What aspect of culture change does this represent?

physical design

Strategic positioning attempts to achieve sustainable competitive advantage by:

preserving what is distinctive about a company

The process of locating and attracting qualified applicants either outside or inside an organization for jobs open in the organization is called _____.

recruiting

Individuals who are asked to provide assessments of former employees are known as _____.

references

objects or actions that convey an organization's most important values to others.

represents beliefs and values shared among workers is passed on to new employees through socialization and mentoring helps employees understand why the organization does what it does is the social glue that binds members of the organization together significantly affects work outcomes at all levels of the organization

The obligation you have to perform the tasks assigned to you in the organization is known as your _____.

responsibility

If an organization wishes to change its culture, managers can alter the types of _____ and status symbols they give out and to whom they give them.

rewards

Organizations can use _____, activities that celebrate important events or achievements for the organization, to change the organization's culture.

rites and rituals

An organization that has authority centralized in a single person, as well as a flat hierarchy, few rules, and low work specialization, is using a _____.

simple structure

Some of the strongest ways to embed organizational culture include which two of the following?

status symbols rewards

A _____ is a narrative about the company's history that is repeated by an organization's members in order to emphasize a particular value.

story

Developing a systematic, comprehensive strategy for understanding current employee needs and predicting future employee needs is referred to as ____ human resource planning.

strategic

Michael Porter defined _____ as an attempt to achieve sustainable competitive advantage by preserving what is distinct about a company.

strategic positioning

The skills and capabilities that give an organization special competencies and competitive advantages in executing strategies in pursuit of its mission are called organizational ______.

strengths

When other companies cannot duplicate the value provided by a competitor, then the competitor has established a(n) _____ competitive advantage.

sustainable

In terms of organizational culture, a _______ is an artifact, act, quality, or event that conveys an organization's most important values to others.

symbol

An organization comprised of many levels with narrow spans of managerial control is described as _____.

tall

Which of the following statements regarding the horizontal design are true? (select all that apply)

this design is also called a team-based design workgroups are used to improve collaboration internal boundaries are broken down

In terms of a SWOT analysis, organizational _______ are environmental factors that hinder an organization from achieving a competitive advantage.

threats

One method of changing organizational culture is to provide structured _____ as an in-depth introduction to organizational values.

training

Common purpose, one of the four common elements of organizations proposed by Schein,

unifies members and helps everyone understand the organization's reason for being.

When would a company use a VRIO analysis?

when deciding whether or not a new product might work in the marketplace

Flat organizations generally have few levels with _______ spans of control, with one manager overseeing many employees.

wide