PM

A Blank______ organizational design refers to an organization in which the boundaries, including vertical, horizontal, external, and geographic boundaries, are permeable.

boundaryless

Which of the following are factors that managers must consider in selecting an appropriate organizational design?

communications technology horizontal organizational structures, systems, and processes common culture

Which of the following are possible consequences for a company that outsources manufacturing? (

A company may lose control over a supplier. A company can lose critical skills or develop the wrong skills. A company may lose cross-functional skills needed for the manufacture of essential components.

Which of the following are costs associated with developing organizational relationships?

A lack of formal rules may impede decision-making. Businesses may feel "locked in" to relationships. Leadership may rely on social capital rather than initiave.

Three approaches to facilitate the widespread sharing of knowledge and information across the boundaries of an organization are th

barrier-free, modular, and virtual types

Which of the following are challenges or risks that virtual organizations face?

Alliances often fail to meet one or both parties' expectations. Managers may have difficulty building win-win relationships with competitors. Information systems must be designed to interface with partners.

Which of the following is the organizational design in which firms bridge real differences in culture, function, and goals to find common ground that facilitates information sharing and other forms of cooperative behavior?

Barrier-free

Which of the following statements regarding global start-up management's challenges are true?

Communication and coordination with different cultures can be difficult. Global start-ups usually have few resources. Communication and coordination across time zones is problematic.

Which of the following statements about the disadvantages of a matrix organizational structure are true?

Decision making is made more difficult and time consuming due to the diffusion of responsibility. Working relationships are more complicated. The dual reporting structures can result in uncertainty and lead to power struggles over personnel and resources.

Which of the following are disadvantages of a functional organizational structure?

Departments may view themselves as isolated, self-contained "silos." There may be short-term thinking based on what is best for a particular functional area instead of the entire organization. Communication and coordination between functional areas can become impeded.

Strategic planning involves tremendous challenges for virtual organizations, because the plan must address which of the following?

Diminished operational control Combining core competencies The need for a common vision among the partners

Which of the following statements about the advantages of a divisional organizational structure are correct?

Divisional managers can focus their efforts on improving operations in their individual product markets. The development of general management talent is enhanced due to multiple levels of general managers. Corporate officers are able to devote their time to overall strategic issues for the entire firm.

Which of the following statements regarding controls in a bureaucratic organization are correct? (Check all that apply.)

Employees are expected to complete their tasks in a specific manner. Controls depend on employees following a formalized set of rules and regulations.

True or false: A divisional structure unifies strategic and operating control.

False

True or false: A new approach being followed by U.S. companies that seek international markets is to expand internationally only after the full potential for domestic growth has been exhausted.

False

Which of the following are advantages of outsourcing non-core functions for a modular company?

Firms can focus scarce resources on the areas where it holds a competitive advantage. Firms can tap into the knowledge and expertise of its specialized supply-chain partners. Firms can decrease overall costs, stimulate new product development, and avoid idle capacity.

Which of the following are true statements about global start-up businesses?

Geographic boundaries of nation-states are irrelevant. They use inputs from around the world right from the beginning. They sell products and services in multiple countries right from the beginning.

Which of the following is a business organization that from inception seeks to derive significant advantage from the use of resources and the sale of outputs in multiple countries?

Global start-up

Which of the following are challenges to using a barrier-free organizational structure?

High levels of trust are needed. Some managers may find it difficult to transition to a more democratic structure. There may be a lack of strong leadership and common vision.

Companies that wish to start up on a global basis should be aware of which of the following costs?

Higher communication costs Higher transportation costs Higher coordination costs

Which of the following are reasons why a company may want to start up globally?

Human resources are globally dispersed. Foreign financing may be easier to obtain for young companies. Potential customers for many specialized industries are located worldwide.

Successful barrier-free organizations must establish communication flows and mutually beneficial relationships with which of the following?

Internal constituencies, such as employees Competitors External constituencies, such as customers

Which of the following international organizational structures work well when using a multidomestic strategy?

International division Worldwide matrix Geographic-area division

Which of the following statements regarding the advantages of the holding company structure are true?

It can save money through lower overhead and fewer personnel. It allows quick response to market opportunities and threats. Division executives benefit from greater autonomy in running daily business operations.

Which of the following are advantages of a virtual organizational design?

It enhances global market access. It brings the best core competencies to the partnership. It enables sharing costs and skills.

Which of the following statements concerning organizational structure are correct?

It identifies hierarchical relationships. It helps ensure that resources are used effectively. It influences the flow of information and the nature of human interactions.

Which of the following statements about a matrix organizational structure are correct?

It is a combination of the functional and divisional structures. Some individuals report to two managers: the project manager and the functional area manager. Some large multinationals rely on the structure to combine product groups and geographical units.

Which of the following statements about a holding company organizational structure are true?

It is the most appropriate structure for firms that use an unrelated diversification corporate strategy. It includes units with a great deal of autonomy. It is often referred to as a conglomerate.

What are potential downsides to using a barrier-free organizational structure?

It lacks strong leadership and common vision. It involves time-consuming democratic processes. It may not be able to overcome political boundaries outside the organization.

Which of the following are disadvantages of a virtual organizational design?

It may lead to loss of operational control. It can make knowing where one company ends and another begins difficult because of their interdependencies. It can require managerial skills that are difficult to acquire.

Which of the following are strategic concerns of outsourcing?

Loss of control over a supplier Loss of critical skills or developing the wrong skills Loss of cross-functional skills

Which of the following statements are keys to success for global start-up firms?

Outsourcing less important activities can save capital. Boundaryless organizational designs are well suited for global start-up companies. Managers should have a great deal of international experience.

Which of the following are advantages of the strategic business unit organizational structure? (Check all that apply.)

Planning and controlling by the corporate office is often more manageable. Each individual strategic business unit has greater authority, which provides more flexibility. Individual business units can react more quickly to the firm's external environment.

Which of the following are actions recommended for building successful teams?

Provide economic support for teams through funding. Promote managerial engagement.

Which of the following statements about the advantages of a matrix organizational structure are true?

Resources are shared, so there is no duplication of resources. It facilitates the use of specialized personnel, equipment, and facilities. Professionals have a broader range of responsibility, which helps them develop their skills and competencies.

What two new, interrelated phenomena are occurring concerning international expansion?

Some firms are "born global." Many firms are expanding internationally relatively early in their history.

Which of the following are benefits of developing lasting business relationships?

Supplier and customer costs are reduced. Monitoring costs are reduced.

Which of the following statements regarding the value of teams for barrier-free organizations are correct?

Teams can help remove layers of hierarchy. Teams often develop more creative solutions to problems because members share tacit knowledge. The amount of time managers spend on controlling employees is reduced.

Which of the following statements about a modular organizational design are correct?

The company becomes a central hub surrounded by networks of outside suppliers and specialists. Managers outsource nonvital functions. Manufacturing and service units may be modular.

Which of the following statements regarding the disadvantages of a holding company structure are true?

The corporate office has less control over divisional executives. It hinders turning around individual business in the company that may run into trouble. Major problems can arise if key executives leave the business.

Which of the following are disadvantages of the strategic business unit organizational structure?

The corporate office may not be aware of key developments that may have a major effect on the overall company. Personnel and overhead expenses tend to be high. Achieving synergies across units is sometimes difficult.

A firm's strategy dictates which of the following aspects?

The division of tasks Authority relationships within the organization The need for integration of activities

Which of the following statements about creating permeable internal boundaries are correct?

The focus must be on leveraging all employees' talents. The level of organization-wide trust must be high. Teams are an important aspect of barrier-free structures.

Which of the following are the three major contingencies that influence the structure of an international company?

The type of strategy driving a company's foreign operations The extent to which a firm is dependent on foreign sales The company's product diversity

Which of the following are advantages of a functional organizational structure?

There is more efficient use of managerial and technical talent. Career paths and professional development are facilitated. A company is able to enhance its coordination and control within each functional area.

Ambidextrous organizational designs are more effective for which of the following reasons?

They are efficient in launching breakthrough products or services. They help to improve the performance of the existing business.

Which of the following statements about the worldwide functional and worldwide product division structures are true?

They devote little attention to local market factors. They are consistent with the efficiency perspective.

Which of the following are the two contradictory challenges faced by today's managers?

They must exploit the value of their existing assets and competencies. They must explore new opportunities and adjust to volatile markets in order to avoid complacency.

Which of the following statements are true about a virtual organization?

Through the sharing of knowledge and expertise, it enables member businesses to do more than they could individually. It allows units from different companies to exploit complementary skills. It is a network of suppliers, customers, and even competitors that share costs and access to one another's markets.

True or false: Barrier-free organizations can create successful relationships with external constituencies, including competitors.

True

A(n) Blank______ organizational design attempts to simultaneously pursue modest, incremental innovations as well as more dramatic breakthrough innovations

ambidextrous

in facilitating the change to a boundaryless organizational structure, managers need to consider which of the following?

applying human resources practices recognizing common shared values utilizing information technology

A Blank______ organizational structure is an organizational form in which products, projects, or product markets are grouped internally.

divisional

Which of the following are characteristics of horizontal organizational structures?

employee job rotation cross-functional teams and interdivisional committees to improve understanding and cooperation among operating units consistency in employee training

Rule-based controls are most appropriate for organizations that have which of the following?

great need for consistency in product and services stable and predictable environments unskilled and interchangeable employees

Which of the following conditions are necessary for a modular organizational structure to be successful?

he company must decide and select the appropriate competencies to keep in-house. The company needs to select reliable, loyal vendors and work closely with them.

Which are important qualities for successful teams?

high-performing employees agility creativity

The Blank______ organizational structure is a variation of the divisional organizational structure in which the divisions have a high degree of autonomy from other divisions and from the corporate headquarters.

holding company

A(n) Blank______ organizational structure groups similar or related business units under common management control and facilitates sharing resources and infrastructures to exploit synergies among operating units to help create a sense of common purpose.

horizontal

Which two of the following structures are organizational forms in which international operations are in separate, autonomous divisions?

international division geographic-area division

Multidomestic strategies are driven by political and cultural imperatives that require each country manager to respond to the Blank______ conditions.

local

In an international division structure

local managers are provided with a high level of autonomy to manage their operations.

In an international division structure, Blank

local managers are provided with a high level of autonomy to manage their operations.

The Blank______ organizational structure is an organizational form in which there are multiple lines of authority and some individuals report to at least two managers.

matrix

A Blank______ organization is an organizational form in which nonvital functions are outsourced, which uses the knowledge and expertise of outside suppliers while retaining strategic control.

modular

Outsourcing non-core functions in order to focus scarce resources for competitive advantage, tap into supply-chain expertise, and decrease overall costs are specific advantages of a Blank______ organization.

modular

Which of the following are types of approaches for making boundaries more permeable?

modular barrier-free virtual

One important characteristic of boundaryless organizational designs is that internal and external boundaries are Blank

more open and permeable

The formalized patterns of interactions that link a firm's tasks, technologies, and people is known as

organizational structure

A Blank______ organizational structure is an organizational form in which products, projects, or product market divisions are grouped into homogeneous units.

strategic business unit

The Blank______ that a firm selects influences the Blank______ that the company uses.

strategy; structure

Managers working for global companies must align their strategies with the organization's Blank

structure

Which of the following statements are true about conditions for a modular organization?

the organization needs to work closely with its suppliers. The organization must be able to trust vendors with trade secrets. The organization should be able to use a small management team for major objectives.

Handling opposing demands in ambidextrous organizational structures is difficult for managers, because

there will always be some degree of conflict

A(n) Blank______ organization is a continually evolving network of independent companies that are linked together to share skills, costs, and access to one another's markets.

virtual

Barrier-free organizational designs have replaced more bureaucratic designs, because

work roles are less defined and more fluid

Firms with relatively low levels of product diversity may opt for which of the following types of organizational structure?

worldwide product division