MGMT 498 Chap 9

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 are examples of strategic control-and-reward systems? (Check all that apply.)

input controls organizational culture output controls

Big companies, such as Apple and Comcast, tend to have ______.

a higher degree of specialization than smaller companies

Which of the following structures is a combination of the multidivisional structure and the functional structure?

a matrix structure

How does an organization's culture influence employee behavior?

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

Which of the following statements about blue ocean strategy is true?

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

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

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

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

Simple structures tend to be used by which group?

small companies with low organizational complexity

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

stages in the value chain

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.

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.

Which two of the following accurately describe mechanistic organizations? (Check all that apply.)

They are highly specialized. They have a tall hierarchy.

How do founders leave their imprint on their organizations?

by taking their vision and making it into reality

Mechanistic organizations tend to have ______.

codified operating procedures

Thanh works in the engineering and manufacturing division of his company. Other departments include marketing, accounting, human resources, and research and development. Each department reports to the CEO. Thanh's company is organized according to a(n) ______ structure.

functional

Effective strategy implementation, in general, will help a firm __.

gain and sustain competitive advantage

Which of the following are characteristics of simple organizational structures? (Check all that apply.)

low formalization flat hierarchies single leader makes all important decisions

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

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

imprinting

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

open innovation

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

Strategy implementation is essentially __.

how a firm performs its work

The element of organizational structure that separates the tasks of one job from the tasks of another is known as ______.

specialization

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

Each division operates independently.

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

decentralized focus responsiveness

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

Which of the following terms encompasses a firm's member's shared values and norms?

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

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

When "______," managers limit themselves to strategies that maintain the status quo.

strategy follows structure

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

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

the multi-divisional structure

A firm's organizational structure directly determines which of the following aspects of the firm? (Check all that apply.)

the orchestration of individual and team work efforts the distribution of resources

What is the goal of a differentiation strategy?

to create a competitive advantage by offering products or services at a higher perceived value, while keeping costs under control

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

What are two internal governance mechanisms put in place to align principal and agent incentives? (Check all that apply.)

strategic control reward systems