Organizational Design: Structure, Culture, And Control

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What Is Strategy
Strategic Leadership: Managing the Strategy Process
External Analysis: Industry Structure, Competitive Forces, and Strategic Groups
Internal Analysis: Resources, Capabilities, and Core Competencies
Competitive Advantage, Firm Performance, and Business Models
Business Strategy: Differentiation, Cost Leadership, and Blue Oceans
Business Strategy: Innovation, Entrepreneurship, and Platforms
Corporate Strategy: Vertical Integration and Diversification
Corporate Strategy: Strategic Alliances, Mergers, and Acquisitions
Global Strategy: Competing Around the World
Organizational Design: Structure, Culture, and Control
Corporate Governance and Business Ethics

All Questions

Question 1

Free

True/False

Organizational design involves establishing a firm's structure, culture, and control mechanisms.

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True

False

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Question 2

Free

True/False

Once a firm finds success in a given organizational structure, it should seek to reinforce and maintain that structure for the life of the firm.

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True

False

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Question 3

Free

True/False

A planned emergence approach to strategic planning is most likely to be found in a highly centralized firm.

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True

False

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Question 4

Free

True/False

Firms with a flat structure and a low degree of specialization tend to foster innovation better than firms with a tall structure and high degree of specialization.

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True

False

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Question 5

Free

True/False

A firm that successfully balances exploitation of current opportunities and exploration of future possibilities is considered ambidextrous.

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True

False

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Question 6

True/False

A primary advantage of the matrix organizational structure is that it simplifies decision making and communication in geographically diverse organizations.

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True

False

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Question 7

True/False

Firms that pursue a closed approach to innovation typically enjoy first-mover advantages.

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True

False

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Question 8

True/False

An open innovation model reduces a firm's absorptive capacity.

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True

False

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Question 9

True/False

A change in company culture is most commonly accompanied by a change in leadership.

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True

False

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Question 10

True/False

Results-only-work-environments (ROWEs) are characterized by their use of extrinsic motivations such as promotions or the threat of layoffs.

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True

False

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Question 11

Multiple Choice

Organizational design is

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the process of creating, implementing, and modifying the structure of an organization.

primarily focused on replacing a firm's competitive advantage with competitive parity.

a process that always functions independently of strategy formulation.

primarily focused on formulating effective strategies, not implementing them.

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Question 12

Multiple Choice

Why does strategy implementation often require changes within an organization?

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Strategy implementation is less important than strategy formulation.

Strategy implementation transforms strategy into actions and business models.

Strategy always follows structure.

Strategy implementation does not affect resource allocation and power distribution within an organization.

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Question 13

Multiple Choice

Which of the following statements is true of strategy in an organization?

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Strategy implementation is considered unsuccessful if it requires changes within an organization.

To implement a strategy successfully, an organization's structure must be rigid.

Strategy implementation does not affect resource allocation and power distribution within an organization.

Organizational structure must follow strategy in order for firms to achieve superior performance.

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Question 14

Multiple Choice

Tina is the inventor of a personal fitness tracking device, and she is in the process of hiring employees after receiving investment funding. When considering how to structure her company, she should

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emulate the structure of the leading firm in the industry.

first establish a strategy and let that be her guide.

choose the structure that will give her the most control.

ask employees what structure they are most comfortable with.

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Question 15

Multiple Choice

What most likely happens when a firm optimizes its organizational structure to its current situation?

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It plants the seed of subsequent failure: the tightly coupled system can break apart when internal or external pressures occur.

It achieves superior performance.

It makes it difficult for managers to make the necessary changes due to its effects on resource allocation and power distribution.

It transforms strategy into actions and business models.

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Question 16

Multiple Choice

________ refers to a firm's resistance to change the status quo that can set the stage for the firm's subsequent failure.

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PESTEL factors

Formalization

Organizational inertia

Centralization

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Question 17

Multiple Choice

InSeason Inc. started a chain of organic supermarkets that had initial success. The managers achieved a mastery of the firm's current environment, thereby filling a need in the market. However, InSeason defined and measured it success by financial metrics, with a focus on short-term performance. As a result, the firm put in place metrics and systems to accommodate and manage increasing firm size due to continued success. As a result of this tightly coupled system, InSeason developed a

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resistance to change.

innovative approach.

significant value gap.

holacratic system.

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Question 18

Multiple Choice

ValueHealth is a successful drug manufacturer. Because the pharmaceutical industry features a high rate of change and the threat of disruption is high, ValueHealth should

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be prepared to restructure as the landscape changes.

stick with the structure that brought it success no matter what happens.

attempt to implement an unstructured organization.

switch to whichever structure is most common in the industry.

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Question 19

Multiple Choice

A firm's ________ determines how the work efforts of individuals and teams are orchestrated and how resources are distributed.

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norm

culture

structure

control

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Question 20

Multiple Choice

Which of the following real-world scenarios best exemplifies formalization?

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Zappos' focus on allowing its customer service employees to use their own approach rather than depend on scripts

McDonald's use of standard operating procedures across the world

W. L. Gore's associates organizing themselves in project-based teams that are led by sponsors, not bosses

Yahoo's decision to fire its CEO after incurring huge losses

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