Question 1

Organizational culture can help a firm gain and sustain competitive advantage only if the culture makes a positive contribution to the firm's economic value creation and

Accepted Answer

A)   eventually gives way to core rigidity.
B)   obeys the VRIO principles.
C)   does not demonstrate causal ambiguity.
D)   displays an absence of social complexity.E) B) and C)
F) A) and D)

Question 2

A functional structure is recommended when a firm

Accepted Answer

A)   has a broad focus in terms of its product/service offerings.
B)   has a low level of diversification.
C)   has a low degree of specialization.
D)   diversifies into different product lines and geographies.E) C) and D)
F) A) and D)

Question 3

Employees learn about an organization's culture through the process of

Accepted Answer

A)   socialization.
B)   exploitation.
C)   co-opetition.
D)   acculturation.E) A) and D)
F) A) and C)

Question 4

A high degree of formalization in an organization is most likely to

Accepted Answer

A)   improve customer service.
B)   slow down decision making.
C)   produce inconsistent results.
D)   increase creativity and innovation.E) A) and B)
F) None of the above

Question 5

Which of the following is an advantage of using a functional structure when pursuing a cost-leadership strategy?

Accepted Answer

A)   It allows a cost-leader to upgrade core competencies in manufacturing and logistics.
B)   It enables a cost-leader to build products that are different from its competitors' offerings.
C)   It enables a cost-leader to increase costs above that of its competitors.
D)   It allows a cost-leader to operate in a decentralized organizational structure.E) None of the above
F) B) and D)

Question 6

What are the characteristics of organic organizations?

Accepted Answer

Organic organizations have a low degree ...

Question 7

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

Accepted Answer

A)   be prepared to restructure as the landscape changes.
B)   stick with the structure that brought it success no matter what happens.
C)   attempt to implement an unstructured organization.
D)   switch to whichever structure is most common in the industry.E) A) and C)
F) C) and D)

Question 8

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 by

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 operating procedures to allow more process flexibility.
D)   using output controls only when the goal is to ensure a predictable outcome.E) All of the above
F) C) and D)

Question 9

Which of the following types of organizations best helps match a differentiation strategy to a functional structure?

Accepted Answer

A)   ambidextrous organization
B)   mechanistic organization
C)   organic organization
D)   rigid organizationE) B) and D)
F) All of the above

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

How does a strong organizational culture build competitive advantage?

Accepted Answer

Strong organizational cultures that are ...

Question 12

Mona sets up a business consulting firm in which the employees are motivated because they find their work interesting and creative. She carefully hires workers who fit well with their assigned tasks. Also, she clearly defines the results expected of each worker, but allows the workers to determine the means to these results. Which of the following best describes Mona's business?

Accepted Answer

A)   a firm that relies on high input controls to tap into intrinsic motivation
B)   a firm that relies on high input controls to tap into extrinsic motivation
C)   a firm that relies on high output controls to tap into intrinsic motivation
D)   a firm that relies on high output controls to tap into extrinsic motivationE) C) and D)
F) B) and C)

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

McDonald's operates Hamburger University that trains students to ensure consistent food quality across its outlets throughout the world. This indicates that McDonalds's

Accepted Answer

A)   is organic in nature.
B)   is mechanistic in nature.
C)   has an informal structure.
D)   has a decentralized structure.E) A) and B)
F) A) and D)

Question 15

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

Accepted Answer

A)   norm
B)   culture
C)   structure
D)   controlE) A) and C)
F) A) and D)

Question 16

The most important yet least visible element of organizational culture is

Accepted Answer

A)   values.
B)   norms.
C)   laws.
D)   artifacts.E) A) and D)
F) B) and D)

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

What are the characteristics of mechanistic organizations? Explain with the help of an example.

Accepted Answer

Students' answers will vary. Mechanistic...

Question 19

Describe a global matrix structure. Why do firms use it?

Accepted Answer

A global matrix structure is formed by c...

Question 20

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

Accepted Answer

A)   Strategy implementation is considered unsuccessful if it requires changes within an organization.
B)   To implement a strategy successfully, an organization's structure must be rigid.
C)   Strategy implementation does not affect resource allocation and power distribution within an organization.
D)   Organizational structure must follow strategy in order for firms to achieve superior performance.E) B) and D)
F) A) and B)

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

A high degree of formalization in an organization is most likely to

Correct Answer
verified

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 by

Correct Answer
verified

Describe a global matrix structure. Why do firms use it?

Correct Answer
verified
A global matrix structure is formed by c...
View Answer

A functional structure is recommended when a firm

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

The most important yet least visible element of organizational culture is

Correct Answer
verified

How does a strong organizational culture build competitive advantage?

Correct Answer
verified
Strong organizational cultures that are ...
View Answer

Organizational culture can help a firm gain and sustain competitive advantage only if the culture makes a positive contribution to the firm's economic value creation and

Correct Answer
verified

Employees learn about an organization's culture through the process of

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

What are the characteristics of organic organizations?

Correct Answer
verified
Organic organizations have a low degree ...
View Answer

Which of the following is an advantage of using a functional structure when pursuing a cost-leadership strategy?

Correct Answer
verified

McDonald's operates Hamburger University that trains students to ensure consistent food quality across its outlets throughout the world. This indicates that McDonalds's

Correct Answer
verified

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

Correct Answer
verified

What are the characteristics of mechanistic organizations? Explain with the help of an example.

Correct Answer
verified
Students' answers will vary. Mechanistic...
View Answer

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

Correct Answer
verified

Which of the following types of organizations best helps match a differentiation strategy to a functional structure?

Correct Answer
verified

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

A high degree of formalization in an organization is most likely to

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 by

Correct AnswerverifiedShow Answer

Describe a global matrix structure. Why do firms use it?

Correct AnswerverifiedA global matrix structure is formed by c...View AnswerShow Answer

A functional structure is recommended when a firm

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The most important yet least visible element of organizational culture is

Correct AnswerverifiedShow Answer

How does a strong organizational culture build competitive advantage?

Correct AnswerverifiedStrong organizational cultures that are ...View AnswerShow Answer

Organizational culture can help a firm gain and sustain competitive advantage only if the culture makes a positive contribution to the firm's economic value creation and

Correct AnswerverifiedShow Answer

Employees learn about an organization's culture through the process of

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What are the characteristics of organic organizations?

Correct AnswerverifiedOrganic organizations have a low degree ...View AnswerShow Answer

Which of the following is an advantage of using a functional structure when pursuing a cost-leadership strategy?

Correct AnswerverifiedShow Answer

McDonald's operates Hamburger University that trains students to ensure consistent food quality across its outlets throughout the world. This indicates that McDonalds's

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What are the characteristics of mechanistic organizations? Explain with the help of an example.

Correct AnswerverifiedStudents' answers will vary. Mechanistic...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following types of organizations best helps match a differentiation strategy to a functional structure?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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A global matrix structure is formed by c...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified
Strong organizational cultures that are ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Organic organizations have a low degree ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Students' answers will vary. Mechanistic...
View Answer

Correct Answer
verified

Correct Answer
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