The purpose of organizational structure is to provide managers with specific feedback on how well an organization and its members are performing and building competitive advantage. T/F
false
An important purpose of control systems is to motivate employees to work toward increasing efficiency, quality,
innovation, and responsiveness to customers T/F
True
A division is a way of grouping functions to allow an organization to better produce and dispose of its goods and
services T/F
True
Span of control refers to the number of subordinates who report directly to one supervisor. T/F
True
The reward system affects motivation, however, the type of organizational culture that develops in a company is primarily affected by the founder's values and not the reward system. T/F
False
. Control through culture is ineffective because employees do not internalize values T/F
False
. Organizational structure contributes to the strategy formulation by providing the framework of tasks and roles that reduces transaction difficulties and allows employees to think and behave in ways that allow a company to achieve superior performance. T
True
Bradley is a new employee in the sales department at a local car dealership. In his first few months on the job, he will be learning the norms and values of the organization. This refers to organizational socialization. T/F
True
Effective organizational design can allow a company to obtain a competitive advantage but it has no impact on profitability. T/F
False
Control systems can help managers evaluate how efficiently they are producing goods and services. T/F
True
Controls at each level should provide the basis on which managers at the levels below design their control systems. T/F
True
Information technology (IT) is playing an increasing role in strategy formulation. However, strategy implementation is not affected by IT in general. T/F
False
Effective strategy implementation is very important for cost leaders, but it is of less importance to differentiators. T/F
False
For each function, a cost leader adopts output controls that allow it to monitor and evaluate functional performance closely. T/F
True
Flat structures can lead to information distortion when data are being sent either up or down the hierarchy. T/F
False
When companies become too tall and the chain of command too long, strategic managers tend to lose control over the hierarchy and, subsequently, their strategies. T/F
True
Research finds that centralization of authority is never advantageous, not even in time of crisis. T/F
False
The need for integrating mechanisms is greater when a company's structure is more complex. T/F
True
A product structure requires that support activities from a company's value chain be decentralized so that independent specialists in support activities exist within each product group. T/F
False
Silica Dustcloud Inc. is a decentralized organization. This means that the organization promotes flexibility and reduces bureaucratic costs because lower-level managers are authorized to make on-the-spot decisions. T/F
True
An organization with a centralized structure has a potential for creating higher bureaucratic costs T/F
True
Flat organizational structures are less flexible and tend to resist change. T/F
False
Silica Dustcloud Inc. plans to change its organization structure from a market structure to a functional structure and create separate divisions. This change will better serve its different groups of customers. T/F
False
Building capabilities in organizational design that allow a company to develop a competitive advantage starts at the functional level. T/F
True
. In manufacturing, functional strategy usually centers on improving efficiency and quality. T/F
True
Fortunately, whenever different functions work together, bureaucratic costs inevitably declines. T/F
False
Ambrosia Inc. is organized into Consumer, Medical, and Pharmaceutical units to serve the needs of its different customer groups. Ambrosia is using a market structure. T/F
True
One of the main differences between a product team and a team in a matrix structure is that a matrix team is more permanent than a team in a product structure T/F
False
Restructuring always involves flattening the organizational hierarchy and downsizing the work force. T/F
True
The purpose of a(n) is to provide managers with incentives for employees as well as feedback on how the company performs.
a. control system b. adaptive culture
c. organizational design
d. span of control
e. hierarchy of authority
a. control system
Organizational structure can be defined as:
a. the means through which a company assigns employees to specific tasks and roles and specifies how these tasks and roles are to be linked together to increase efficiency, quality, innovation, and responsivenes
a. the means through which a company assigns employees to specific tasks and roles and specifies how these tasks and roles are to be linked together to increase efficiency, quality, innovation, and responsiveness to customers.
Organizational culture is:
a. the specific collection of values, norms, beliefs, and attitudes that are shared by people and groups in an organization and that control the way they interact with each other and with stakeholders outside the organization.
b
a. the specific collection of values, norms, beliefs, and attitudes that are shared by people and groups in an organization and that control the way they interact with each other and with stakeholders outside the organization.
Standardization is a form of:
a. output control.
b. fmancial control.
c. organizational inertia. d. organizational culture. e. behavior control.
e. behavior control
Control through organizational culture is so powerful because:
a. it eliminates the need for managers in large companies.
b. it makes employees follow organizational values, after they've internalized them, without thinking about them. c. it results in ma
b. it makes employees follow organizational values. after theyve internalized them, without thinking about them
Control through organizational culture: a. is less expensive than output control. b. reduces mutual adjustment.
c. involves employees internalizing the norms and values of the organization. d. includes setting individual goals.
e. includes obtaining speci
c. involves employees internalizing the norms and values of the organization
Which form of control would you most likely frnd in a voluntary or charity organization?
a. Bureaucratic control through rules and procedures b. Control through norms and values
c. Financial control through accurate frnancial statements d. Output control,
b. control through norms and values
Companies that are innovative and able to deal with environmental change with new strategies and structures probably have:
a. weak cultures.
b. strong functional cultures. c. adaptive cultures.
d. prescriptive cultures.
e. cost-conscious culture.
c. adaptive cultures
The process of deciding how a company should create, use, and combine organizational structure, control systems, and culture to pursue a business model successfully is referred to as:
a. organizational behavior. b. organizational norm.
c. organizational d
c. organizational design
To a large degree, any organization's tasks are a function of its:
a. market area. b. labor supply. c. supervisors. d. strategies.
e. compensation plan.
d. strategies
The degree to which a company specifies how decisions are to be made so that employees' behavior becomes predictable is referred to as:
a. uniformity of output. b. conformity.
c. standardization.
d. maximization of effort. e. behavioral control.
c. standardization
In a successful company, the purpose of a control system is to:
a. provide managers with a set of incentives to motivate employees to work toward company goals.
b. allow the managers to use punishments as a tool to ensure that the employees meet the compa
a. provide managers with a set of incentives to motivate employees to work toward company goals.
In any organization, for-profit or not-for-profit, span of control refers to the:
a. number of managers at the highest levels in the organization. b. CEO and his or her management team.
c. number of subordinates who report directly to one manager.
d. numb
c. number of subordinates who report directly to one manger
The specific collection of values, norms, beliefs, and attitudes shared by people and groups in a company is commonly referred to as:
a. organizational fit.
b. organizational culture.
c. organizational development. d. organizational positioning.
e. organi
b. organizational culture
The term used to describe how people learn an organization's culture and way of behaving in the organization is:
a. organizational structure.
b. organizational development. c. organizational design.
d. organizational behavior.
e.organizational socializati
e. organizational socialization
Organizations strive to control employees' behavior by linking systems to their control systems. a. disciplinary
b. disincentive c. reporting
d. administrative
e. reward
e. reward
At LittleHippo, an online retail company, the work environment is playful. Employees often get their pictures taken wearing silly wigs and masks. This atmosphere is part of the company's:
a. organizational density.
b. organizational structure. c. organiza
c. organizational culture
Natalie and Shay are both employees at Silica Dustcloud Inc. Natalie, the marketing manager, often meets with Shay, the production manager, in order to solve specific mutual problems. Which of the following is this an example of?
a. Organizational culture
c. direct contact
At Silica Dustcloud Inc., rules are published at the cubicle of all employees stating what is expected of them regarding time to arrive, time for lunch, when to take breaks, and when to socialize. Which of the following is this an example of?
a. Output co
c. behavior control
An effective organizational design:
a. always follows a centralized structure.
b. keeps the number of employees to a minimum. c. increases the cost structure.
d. economizes on bureaucratic costs.
e. maintains a tall hierarchical structure.
d. economizes of bureaucratic costs
To reduce costs, cost leaders prefer to use to closely monitor and evaluate functional performance. a. output controls
b. personal controls
c. behavioral controls d. cultural controls
e. input controls
a. output controls
Which of the following strategic control systems do managers use to shape and influence the behavior of employees in face-to-face interactions?
a. Personal control b. Output control
c. Behavior control
d. Input control
e. Process control
a. personal control
Flat organizational structures are characterized by:
a. many levels of management compared to the size of the company. b. slower repose to changes in the competitive environment.
c. a relatively wide span of control.
d. reduced flexibility in decision-mak
c. a relatively wide span of control
When decision-making responsibilities are decentralized, benefits include all of the following except:
a. increased motivation and accountability.
b. lower bureaucratic costs from flattened hierarchy. c. reduced information overload.
d.easier coordination
d. easier coordination of function
Companies choose the number of hierarchical levels they need on the basis of their strategies and the functional tasks necessary to:
a. achieve diseconomies of scale. b. create distinctive competencies. c. enhance employee productivity.
d. enhance cross-d
d. enhance cross-departmental coordination
Essentially, centralization or decentralization are concepts that refer to the:
a. levels where decisions are made in the hierarchy of an organization. b. number of hierarchical levels existing in an organization.
c. tools that allow an organization to mo
a. levels where decisions are made in the hierarchy of an organization. b. number of hierarchical levels existing in an organization.
A drawback of the functional structure is:
a. that each worker must report to more than one superior.
b. the difficulty in communicating and coordinating across functions. c. too much decentralization of decision-making authority.
d. its lack of flexibili
b. the difficulty in communicating and coordinating across functions
If a firm fmds that its functional structure is becoming too complex as the firm grows in size, the firm can tum to:
a. a simple structure. b. downsizing.
c. reengmeerrng. d. restructuring.
e. outsourcing.
e. outsourcing
Which of the following advantages does a functional organizational structure offer a company?
a. Diversification of activities leading to greater productivity b. Lesser communication problems
c. Reduction in manufacturing costs and increase in operational
c. reduction in manufacturing costs and increase in operational flexibility
Eva Studio, an audio company, manufactures a wide range of sound systems such as noise-canceling headsets, loudspeakers, and amplifiers. Employees in EvaStudio are grouped such that each group works only on one type of sound system. Which of the following
e. product
Which of the following structures requires centralization of value chain support activities?
a. The product structure
b. The product team structure
c. The matrix structure
d. The functional structure
e. The innovative structure
a. the product structure
Which of the following is not one of the advantages of a geographic structure?
a. Promotion of innovation and product development due to intensive cross-functional integration b. Responsiveness to the needs of regional customers
c. Lower transportation co
a. promotion of innovation and product development due to intensive cross-functional integration
All employees part of a project team within a structure are known as two-boss employees. a. functional
b. geographic c. market
d. matrix
e. product
d. matrix
Matrix structures:
a. have many hierarchical levels.
b. are appropriate for companies with many low-skilled workers.
c. group activities vertically by function and horizontally by product or project. d. are appropriate for a firm pursuing a low-cost strat
c. group activities vertically by function and horizontally by product or project
A matrix structure would be the most appropriate for which of the following firms?
a. A company in which each employee is required to have only one boss b. A company operating in the maturity stage of the industry life cycle
c. A company which is dependen
c. a company which is dependent on rapid mobilization of resources for competitive success
Which of the following does restructuring involve?
a. Eliminating business units
b. Rethinking business processes c. Creating more business units
d. Flattening the organizational hierarchy
e. Broadening the span of control
d. flattening the organizational hierarchy
Which of the following actions would you expect to see in a company that is undergoing a reengineering?
a. Hiring more managers b. Hiring more workers
c. Examining activities from a customer's point of view
d. Investing more in product research and develo
c. examining activities from a customers point of view
Restructuring is:
a. a rethinking and radical redesign of a firm's business processes.
b. a radical readjustment of the organization's staffrng and hierarchy.
c. a philosophy that states that mistakes, defects, and poor-quality materials are not acceptabl
b. a radical readjustment of the organizations staffing and hierarchy
A hospital examines its processes closely and then changes them radically to become more patient-centered. Among the changes are new ways of doing tasks and new groupings of workers. This is an example of:
a. restructuring. b. reengineering.
c. total qual
b. reengineering
The organization structure that organizations most commonly adopt to solve control problems that result from producing many different kinds of products for many different market segments is the:
a. functional structure. b. process structure.
c. matrix str
d. product structure
. A typical matrix organizational structure:
a. groups employees in two ways simultaneously to maximize the rate at which different kinds of products can be developed.
b. breaks up a company's growing product line into a number of smaller, more manageable
a. groups employees in two ways simultaneously to maximize the rate at which different kinds of products can be developed.
When a company engages in restructuring, it may be necessary to:
a. increase its basic business operations.
b. increase the number of organizational levels. c. lay off employees.
d. add to the operating costs.
e. retain the functional processes.
c. lay off employees