Question 1

When a firm pursues differentiation strategy,it usually employs a(n) ______ structure.

Accepted Answer

A)   Mechanistic
B)   Organic
C)   Competitive
D)   CentralizedE) All of the above
F) A) and D)

Question 2

The more _____ a firm,the more the structure will have to be designed to accommodate coordination.

Accepted Answer

A)   Focused
B)   Diversified
C)   Basic
D)   ConcentratedE) A) and D)
F) All of the above

Question 3

Organizational culture is difficult to imitate because of ________.

Accepted Answer

A)   Causal ambiguity and social complexity
B)   Core competence and competitive advantage
C)   Socialization and internalization
D)   None of theseE) All of the above
F) C) and D)

Question 4

What are the three key levers a firm needs to design its organization for competitive advantage?

Accepted Answer

A)   Core competence, labor, quality product
B)   Structure, technology, and well-defined policy
C)   Structure, culture, and control
D)   Structure, strategy, and strategic alliancesE) None of the above
F) B) and D)

Question 5

What are the characteristics of organic organizations? What are the examples?

Accepted Answer

Organic organization has a low degree of...

Question 6

Usually,employees learn about an organization's culture through _____.

Accepted Answer

A)   Values
B)   Norms
C)   Socialization
D)   Founder imprintingE) B) and D)
F) A) and B)

Question 7

Usually when a firm's strategic business-level focus is cost leadership,it uses organic structure.

Accepted Answer

A) True 
 B)False

Question 8

Zappos's core competency is ________.

Accepted Answer

A)   Product quality
B)   Distribution
C)   Just in time production
D)   Customer serviceE) A) and C)
F) A) and B)

Question 9

If a firm emphasizes performance and outcomes,it usually focuses more on output controls.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following statements is TRUE?

Accepted Answer

A)   Organizational culture cannot change because it represents the company's core values.
B)   Organizational culture can become a liability if it is not comprehended thoroughly by employees.
C)   Organizational culture is a set of codified rules that guide employees' behavior.
D)   Organizational culture usually comes from other organizations.E) All of the above
F) A) and D)

Question 11

What are the characteristics of mechanistic organizations? Please use an example to explain.

Accepted Answer

Mechanistic organizations are characteri...

Question 12

Specialization increases productivity without any side effects.

Accepted Answer

A) True 
 B)False

Question 13

Organizational inertia often prompts top management to initiate structural change when organizational performance levels drop.

Accepted Answer

A) True 
 B)False

Question 14

When a firm diversifies into different product lines and geographies,a(n) _______ structure is preferred.

Accepted Answer

A)   Simple
B)   M-form
C)   Functional
D)   NetworkE) All of the above
F) C) and D)

Question 15

The benefits of a simple structure include all of the following EXCEPT ________.

Accepted Answer

A)   Ease of coordination within the organization
B)   The lack of need for sophisticated information systems
C)   Active involvement by the owner-manager
D)   Specialists that can develop deep expertiseE) A) and B)
F) A) and C)

Question 16

Output controls can sometimes discourage collaboration among different strategic business units.However more and more work requires creativity and innovation,especially in highly developed economies.One way firms are grappling with this issue is:

Accepted Answer

A)   introducing results-only-work-environments to tap intrinsic motivations
B)   refining the budgeting process to encourage more department collaboration
C)   updating standard operation procedures to allow more process flexibility
D)   None of these.E) A) and C)
F) B) and C)

Question 17

Describe the three major types of organizational structure and their appropriate use

Accepted Answer

Firms typically have a simple structure ...

Question 18

When using a matrix structure,a firm tends to pursue a(n) ________ global strategy.

Accepted Answer

A)   International
B)   Standardized
C)   Transnational
D)   LocalizationE) All of the above
F) B) and D)

Question 19

In order to implement a cost-leadership strategy,a firm may choose a ________ structure.

Accepted Answer

A)   Simple and organic
B)   Functional and organic
C)   Functional and mechanistic
D)   Simple and M-formE) B) and D)
F) None of the above

Question 20

Companies and business units using the differentiation strategy should emphasize extrinsic strategic controls.

Accepted Answer

A) True 
 B)False

Exam 11: Organizational Design: Structure, Culture, and Control

What are the three key levers a firm needs to design its organization for competitive advantage?

Correct AnswerverifiedShow Answer

Specialization increases productivity without any side effects.

Correct AnswerverifiedShow Answer

The benefits of a simple structure include all of the following EXCEPT ________.

Correct AnswerverifiedShow Answer

Organizational culture is difficult to imitate because of ________.

Correct AnswerverifiedShow Answer

What are the characteristics of organic organizations? What are the examples?

Correct AnswerverifiedOrganic organization has a low degree of...View AnswerShow Answer

When a firm diversifies into different product lines and geographies,a(n) _______ structure is preferred.

Correct AnswerverifiedShow Answer

Which of the following statements is TRUE?

Correct AnswerverifiedShow Answer

Organizational inertia often prompts top management to initiate structural change when organizational performance levels drop.

Correct AnswerverifiedShow Answer

What are the characteristics of mechanistic organizations? Please use an example to explain.

Correct AnswerverifiedMechanistic organizations are characteri...View AnswerShow Answer

Usually,employees learn about an organization's culture through _____.

Correct AnswerverifiedShow Answer

Output controls can sometimes discourage collaboration among different strategic business units.However more and more work requires creativity and innovation,especially in highly developed economies.One way firms are grappling with this issue is:

Correct AnswerverifiedShow Answer

The more _____ a firm,the more the structure will have to be designed to accommodate coordination.

Correct AnswerverifiedShow Answer

Companies and business units using the differentiation strategy should emphasize extrinsic strategic controls.

Correct AnswerverifiedShow Answer

In order to implement a cost-leadership strategy,a firm may choose a ________ structure.

Correct AnswerverifiedShow Answer

When using a matrix structure,a firm tends to pursue a(n) ________ global strategy.

Correct AnswerverifiedShow Answer

If a firm emphasizes performance and outcomes,it usually focuses more on output controls.

Correct AnswerverifiedShow Answer

Usually when a firm's strategic business-level focus is cost leadership,it uses organic structure.

Correct AnswerverifiedShow Answer

Zappos's core competency is ________.

Correct AnswerverifiedShow Answer

Describe the three major types of organizational structure and their appropriate use

Correct AnswerverifiedFirms typically have a simple structure ...View AnswerShow Answer

When a firm pursues differentiation strategy,it usually employs a(n) ______ structure.

Correct AnswerverifiedShow Answer

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Organic organization has a low degree of...
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Mechanistic organizations are characteri...
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Firms typically have a simple structure ...
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