Implementing Strategy Through Organization

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Question 1
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Organization architecture is the interaction of structure, controls & incentives, people, processes, and culture within the organization.

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Question 2
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Organizational structure is at the core of an organizations architecture.

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Question 3
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The purpose of organizational structure is to provide managers with specific feedback on how well an organization and its members are performing.

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Question 4
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An important purpose of control systems is to motivate employees to work toward increasing efficiency, quality, innovation, and responsiveness to customers.

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A division is a way of grouping functions to allow an organization to better produce and dispose of its goods and services.

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Question 6
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Span of control refers to the number of subordinates who report directly to one supervisor.

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Question 7
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Different divisions in a firm with a multidivisional structure are not given authority to adopt their own organizational structures.

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Question 8
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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.

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Question 9
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Control through culture is ineffective because employees do not internalize values.

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Question 10
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Organizational structure contributes to strategy formulation by providing the framework of tasks and roles that reduce transaction difficulties and allows employees to think and behave in ways that enable a company to achieve superior performance.

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Question 11
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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.

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Question 12
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In a firm with a multidivisional structure, corporate managers oversee the actions of divisional managers.

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Question 13
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The organizational hierarchy is flatter in a multidivisional structure than in a product or functional structure.

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Question 14
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In a related multidivisional structure, the concept of corporate culture is meaningless.

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Question 15
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In a multidivisional structure, corporate managers can compare the performance of one division to another in terms of its cost structure or the profit it generates.

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Question 16
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Competition for resources is one of the drawbacks of the multidivisional structure.

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Question 17
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In the multidivisional structure, each division typically contains only a partial set of value chain activities.

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Question 18
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Effective organizational design can allow a company to obtain a competitive advantage, but it has no impact on profitability.

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Question 19
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Control systems can help managers evaluate how efficiently a company is producing goods and providing services.

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Question 20
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Control systems at higher levels of management should provide the basis for lower-level managers to design their control systems.

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