Question 1

Organizational structure refers to the formalized patterns of interactions that link company ________, ________, and ________.

Accepted Answer

A)   processes; mechanisms; techniques
B)   tasks; mechanisms; techniques
C)   processes; people; mechanisms
D)   tasks; technologies; peopleE) A) and D)
F) C) and D)

Question 2

As firms expand into foreign markets, they generally follow a pattern of change in structure that parallels the changes in their strategies. Which one of the following is not a major contingency that influences the structure they choose?

Accepted Answer

A)   the type of strategy that is driving the company foreign operations
B)   the research and development budget commitment
C)   product diversity
D)   the extent of the company dependence on foreign salesE) B) and C)
F) All of the above

Question 3

A simple structure is characterized by

Accepted Answer

A)   high specialization and low centralization.
B)   low specialization and high centralization.
C)   low formality and low creativity.
D)   high formality and low centralization.E) A) and D)
F) C) and D)

Question 4

Effective ambidextrous organizations maintain adaptability, which means that

Accepted Answer

A)   managers are focused on growth opportunities.
B)   there is a clear sense of how value is being created in the short-term and how activities are properly integrated and coordinated.
C)   divisional-goals are consistent with overall corporate goals.
D)   managers must remain proactive in expanding and/or modifying their product-market scope to anticipate and satisfy market conditions.E) All of the above
F) None of the above

Question 5

Ambidextrous organizational designs are useful for firms that wish to create modest, incremental innovations at the same time as dramatic, breakthrough innovation. This is done by maintaining adaptability and alignment of values and coordination across organizational activities.

Accepted Answer

A) True 
 B)False

Question 6

According to author, Jeffrey Pfeffer, which of the following is not an advantage of teams?

Accepted Answer

A)   Teams interact so closely and therefore coordination and integration becomes unnecessary.
B)   Teams substitute peer-based control for hierarchical control of work.
C)   Teams often develop more creative solutions because they share.
D)   Teams permit the absorption of administrative tasks previously performed by specialists.E) A) and B)
F) C) and D)

Question 7

Operational decision making in a large business places excessive demands on top management of the firm.

Accepted Answer

A) True 
 B)False

Question 8

Successful organizations create ________ boundaries among the ________ activities as well as between the organization and its external customers, suppliers, and alliance partners.

Accepted Answer

A)   impermeable; external
B)   impermeable; internal
C)   permeable; external
D)   permeable; internalE) A) and D)
F) A) and C)

Question 9

What type of organization is defined as a central hub surrounded by networks of outside suppliers and specialists?

Accepted Answer

A)   matrix organization
B)   virtual organization
C)   modular organization
D)   barrier-free organizationE) All of the above
F) A) and B)

Question 10

A global start-up faces many management challenges including

Accepted Answer

A)   communicationand coordination across time zones.
B)   pressure to perform internally all primary activities of the value chain.
C)   assuring financing from home country only.
D)   hiring only from home country.E) A) and B)
F) None of the above

Question 11

Which of the following is an advantage of a functional type of organizational structure?

Accepted Answer

A)   Decentralized decision-making enhances an organization-wide perspective across functions.
B)   It facilitates the development of general management talent.
C)   Pooling of specialists enhances coordination and control.
D)   It is easy to establish uniform performance standards.E) A) and C)
F) All of the above

Question 12

Complicated working relationships, intense power struggles, and excessive reliance on group processes are disadvantages of which type of organizational structure?

Accepted Answer

A)   divisional
B)   matrix
C)   holding company
D)   functionalE) None of the above
F) All of the above

Question 13

The O'Reilly and Tushman study on ambidextrous organizational designs found that there was little support for the argument that organizational structure, management practices employedandperformance of both the breakthrough initiative and the traditional business are related.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is a disadvantage of a functional type of organizational structure?

Accepted Answer

A)   Differences in functional orientation may impede communication and coordination.
B)   Use of managerial and technical talent is inefficient due to pooling of expertise in functional areas.
C)   Decision making is centralized at the top of the organization.
D)   Managers tend to be overly concerned with long-term strategies that minimize the importance of functional area strengths.E) A) and B)
F) All of the above

Question 15

What is organizational structure and why is it important?

Accepted Answer

Organizational structure refers to the f...

Question 16

The two vital ongoing activities necessary for creating boundaryless organizations that managers today must concern themselves with are

Accepted Answer

A)   financial returns and marketplace value.
B)   market share and shareholder value.
C)   type of structure, mechanisms, processes, and techniques for enhancing permeability.
D)   product marketability and capital structure.E) A) and B)
F) A) and C)

Question 17

Explain why firms that achieve both adaptability and alignment are considered ambidextrous organizations.

Accepted Answer

The concept of ambidexterity incorporate...

Question 18

If an international firm has a multidomestic strategy and a relatively high level of product diversity, the best choice for its organizational structure is a(n)  ________ structure.

Accepted Answer

A)   worldwide functional
B)   worldwide product division
C)   worldwide matrix
D)   international divisionE) B) and D)
F) B) and C)

Question 19

Managers trained in rigid hierarchies do not find it difficult to transition to participative style required for effective teamwork.

Accepted Answer

A) True 
 B)False

Question 20

Discuss the three major contingencies that influence the chosen organizational structure as a firm expands into foreign markets.

Accepted Answer

In the global marketplace, managers must...

Exam 10: Creating Effective Organizational Designs

What is organizational structure and why is it important?

Correct AnswerverifiedOrganizational structure refers to the f...View AnswerShow Answer

According to author, Jeffrey Pfeffer, which of the following is not an advantage of teams?

Correct AnswerverifiedShow Answer

Operational decision making in a large business places excessive demands on top management of the firm.

Correct AnswerverifiedShow Answer

Which of the following is a disadvantage of a functional type of organizational structure?

Correct AnswerverifiedShow Answer

Complicated working relationships, intense power struggles, and excessive reliance on group processes are disadvantages of which type of organizational structure?

Correct AnswerverifiedShow Answer

Which of the following is an advantage of a functional type of organizational structure?

Correct AnswerverifiedShow Answer

As firms expand into foreign markets, they generally follow a pattern of change in structure that parallels the changes in their strategies. Which one of the following is not a major contingency that influences the structure they choose?

Correct AnswerverifiedShow Answer

Discuss the three major contingencies that influence the chosen organizational structure as a firm expands into foreign markets.

Correct AnswerverifiedIn the global marketplace, managers must...View AnswerShow Answer

Explain why firms that achieve both adaptability and alignment are considered ambidextrous organizations.

Correct AnswerverifiedThe concept of ambidexterity incorporate...View AnswerShow Answer

If an international firm has a multidomestic strategy and a relatively high level of product diversity, the best choice for its organizational structure is a(n) ________ structure.

Correct AnswerverifiedShow Answer

What type of organization is defined as a central hub surrounded by networks of outside suppliers and specialists?

Correct AnswerverifiedShow Answer

Ambidextrous organizational designs are useful for firms that wish to create modest, incremental innovations at the same time as dramatic, breakthrough innovation. This is done by maintaining adaptability and alignment of values and coordination across organizational activities.

Correct AnswerverifiedShow Answer

Managers trained in rigid hierarchies do not find it difficult to transition to participative style required for effective teamwork.

Correct AnswerverifiedShow Answer

Successful organizations create ________ boundaries among the ________ activities as well as between the organization and its external customers, suppliers, and alliance partners.

Correct AnswerverifiedShow Answer

The O'Reilly and Tushman study on ambidextrous organizational designs found that there was little support for the argument that organizational structure, management practices employedandperformance of both the breakthrough initiative and the traditional business are related.

Correct AnswerverifiedShow Answer

Organizational structure refers to the formalized patterns of interactions that link company ________, ________, and ________.

Correct AnswerverifiedShow Answer

A simple structure is characterized by

Correct AnswerverifiedShow Answer

A global start-up faces many management challenges including

Correct AnswerverifiedShow Answer

The two vital ongoing activities necessary for creating boundaryless organizations that managers today must concern themselves with are

Correct AnswerverifiedShow Answer

Effective ambidextrous organizations maintain adaptability, which means that

Correct AnswerverifiedShow Answer

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Organizational structure refers to the f...
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In the global marketplace, managers must...
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The concept of ambidexterity incorporate...
View Answer

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Correct Answer
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Successful organizations create boundaries among the activities as well as between the organization and its external customers, suppliers, and alliance partners.

Correct Answer
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Organizational structure refers to the formalized patterns of interactions that link company , , and .

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