Deck 9: Organizational Agility

Question 1

The more organic a firm is, the slower it will be to respond to changing competitive demands.

Answer 1

False
Explanation: The more organic a firm is, the more responsive it will be to changing competitive demands and market realities. Managers in progressive companies place a premium on being able to act fast.

Question 2

Downsizing is the elimination of jobs through transfers or attrition.

Answer 2

False
Explanation: Downsizing is the planned elimination of positions or jobs. Common approaches to downsizing include eliminating functions, hierarchical levels, or even whole units.

Question 3

Diseconomies of scale are the limitations experienced by small, entrepreneurial organizations.

Answer 3

False
Explanation: Diseconomies of scale are the costs of being too big. "Small is beautiful" has become a favorite phrase of entrepreneurial business managers.

Question 4

The strategies and structures used by the organization can be based on the firm's ability to learn.

Question 5

Exploration and exploitation are the ideal areas on which a learning organization should focus.

Question 6

To be successful, the partners in a strategic alliance must pay attention to the human relationships.

Question 7

Survivor's syndrome occurs when an employee deals with the loss of a pet project or another major work failure.

Question 8

Large companies benefit from scale economies that can help lower operating costs, and they also enjoy greater purchasing power.

Question 9

A mechanistic organization is a type of an organization in which top management ensures that there is consensus about the direction in which the business is heading.

Question 10

In the organic organization, communication occurs through advice and information.

Question 11

Managers who want to strengthen their firms' competitiveness via core competencies need to focus primarily on the organization's HR department.

Question 12

Today's environment requires mechanistic structures to ensure a firm's success.

Question 13

The strategic triangle includes three key players: the organization, the suppliers, and the distributors.

Question 14

Smaller companies can move fast, provide quality goods and services to targeted market niches, and inspire greater involvement from their people.

Question 15

In small organizations, jobs are typically more specialized than in large ones.

Question 16

A strategic alliance can be made with just about any other organization except one's competitors.

Question 17

Rightsizing is a successful effort to achieve an appropriate size at which the company performs most effectively.

Question 18

It is possible to be both big and small as a company to capitalize on the advantages of each.

Question 19

An organization's size has a large impact on its ability to respond to the environment.

Question 20

Large organizations are typically less organic than small ones.

Question 21

Customer relationship management (CRM) helps companies understand and anticipate the needs of current and potential customers.

Question 22

The formal structure of an organization is put in place to

A) Control people, decisions, and actions.
B) Develop a process for investing returns.
C) Increase rates of promotion.
D) Allow for intrapraneurship.
E) Encourage entrepreneurship.

Question 23

People in organic organizations work more as ________ than _________.

A) friends; coworkers
B) teammates; subordinates
C) family; workers
D) employees; servants
E) acquaintances; friends

Question 24

Mass specialization refers to organizations that are trying to produce both high-volume and high-variety products at the same time.

Question 25

U.S. companies first became interested in ISO 9001 because it helps to improve their practices toward the environment.

Question 26

Which of the following statements about the organic structure is true?

A) Jobholders have fewer responsibilities.
B) It is more rigid than a mechanistic structure.
C) It emphasizes conformity.
D) Decision making with this structure is relatively informal.
E) Jobholders rely on rules.

Question 27

A value chain is the sequence of activities that flows from raw materials to the delivery of a good or service, with additional value created at each step.

Question 28

Total quality management is characterized by a strong orientation toward customers, both external and internal.

Question 29

An organizational form that emphasizes flexibility is a(n)

A) Dynamic network.
B) Mechanistic organization.
C) Bureaucratic organization.
D) Continuous improvement organization.
E) Organic structure.

Question 30

Reengineering answers the question "If you were the customer, how would you like us to operate?"

Question 31

Companies meet the increasing demand for mass customization by creating "modules" that perform a certain task or process.

Question 32

ISO 9001 guarantees the elimination of production defects.

Question 33

Technology can be viewed as the methods, processes, systems, and skills used to transform resources into products.

Question 34

Large batch technologies occur with a high variety of products and high volumes.

Question 35

Who developed the terms "mechanistic" and "organic" to describe organizations?

A) Max Weber.
B) Frederick Taylor.
C) Burns and Stalker.
D) Taylor and Weber.
E) Abraham Maslow.

Question 36

In a lean manufacturing organization, the emphasis is on quality, speed, and flexibility.

Question 37

In a small batch organization, decision making tends to be centralized.

Question 38

Reengineering is about making minor organizational changes that will provide small, incremental improvements.

Question 39

Some customers demand ISO 9001 certification before they will do business with a company.

Question 40

Just-in-time operations and ISO 9001 are key elements of time-based competition.

Question 41

An organization skilled at creating, acquiring, and transferring knowledge and at modifying its behavior to reflect new knowledge and insights is a

A) Learning organization.
B) High-involvement organization.
C) Mechanistic organization.
D) Network organization.
E) Matrix organization.

Question 42

Learning organizations are good at

A) Problem diagnosis.
B) Coming to consensus based on gut feelings.
C) Containing knowledge.
D) Discouraging new approaches.
E) Shamelessly stealing ideas from other organizations.

Question 43

The particular form and degree of organic structure the organization adopts should depend on its

A) Strategy.
B) Size.
C) Customers.
D) Technology.
E) All of these determine the form and degree of organic structure the organization adopts.

Question 44

Managers who want to strengthen their firms' competitiveness via core competencies need to focus on which of the following issues?

A) Assigning specific tasks to specific workers.
B) Purchasing more capital assets.
C) Writing a strategic plan.
D) Extending capabilities to find new applications and opportunities.
E) Maintaining and growing the stock price.

Question 45

Small organizational size may improve

A) Market share achievements.
B) Manufacturing.
C) Speed.
D) Organizational design.
E) Bureaucracy.

Question 46

"Economies of scope" refers to the idea that

A) Producing large quantities results in lower costs per unit produced.
B) Materials and processes employed in one product can be used to make other related products.
C) Getting products to market ahead of the competition often is a key to success.
D) The producer with the greatest percentage of market share has maximum staying power.
E) The variety of products offered is an indicator that an organization has sustainable economic growth.

Question 47

Which of the following statements about strategic alliances is true?

A) Managers typically do not devote enough time to screening potential partners in financial terms.
B) For the alliance to work, the partners should consider one another's areas of expertise.
C) It is typical that the most successful strategic alliances have the same research interests.
D) Sometimes strategic alliances can slow down the work of two organizations.
E) Manufacturing costs are often increased by using a strategic alliance.

Question 48

The capability, such as knowledge, expertise, or skill, that underlies a company's ability to be a leader in providing a range of specific goods or services is called

A) Synergy.
B) Organizational talent.
C) Core competence.
D) Organizational leadership.
E) Knowledge flow.

Question 49

Which of the following statements best describes management in a high-involvement organization?

A) Top management decides the direction in which the business is heading.
B) The leader defers to the board of directors for all decisions.
C) Task forces and study groups are not generally used because they are seen as a waste of precious time.
D) Benchmarking is avoided.
E) The organizational form is a flat, decentralized structure build around a customer, good, or service.

Question 50

Diseconomies of scale are

A) Environmental forces that inherently have a negative impact on business growth.
B) The realization of lower per-unit costs.
C) The costs associated with an organization being too big.
D) Employing materials/processes in related products or services.
E) An inability to achieve the advantages of larger organizational size.

Question 51

Structurally, a high-involvement organization is

A) Tall and decentralized.
B) Flat and decentralized.
C) Tall and centralized.
D) Flat and centralized.
E) Departmentalized.

Question 52

A(n) __________ is a formal relationship created among independent organizations with the purpose of joint pursuit of mutual goals.

A) partnership
B) organizational alliance
C) network organization
D) cluster organization
E) strategic alliance

Question 53

Which of the following is a way that firms become true learning organizations?

A) Their people must engage in good assumptions.
B) They search constantly for quick fixes to current problems.
C) They carefully review both successes and failures.
D) They isolate an innovation in its department until it has proven to be successful.
E) Top management directs how to solve each major problem.

Question 54

A type of organization in which top management ensures that there is consensus about the direction in which the business is heading is a

A) Learning organization.
B) High-involvement organization.
C) Mechanistic organization.
D) Network organization.
E) Matrix organization.

Question 55

________ can offer advantages like lower operating costs, greater purchasing power, and easier access to capital.

A) Large size
B) High flexibility
C) Mass customization
D) Functional organizations
E) High agility

Question 56

Which of the following is an important advantage for companies trying to take on large foreign rivals in huge global markets?

A) Low turnover of employees.
B) Economies of scope.
C) Low levels of bureaucracy.
D) A standardized labor force.
E) A centralized set of processes.

Question 57

Which of the following is a characteristic of very large organizations?

A) They tend to be more organic.
B) Levels are added to keep spans of control from becoming too small.
C) Jobs are more specialized.
D) Rules, procedures, and paperwork are unnecessary.
E) The organization is easy to control because of the organizational structure used.

Question 58

Greater complexity, increased bureaucracy, and specialized jobs are characteristic of

A) Fast-changing organizations.
B) Static organizations.
C) Midsized organizations.
D) Very large organizations.
E) Small, entrepreneurial organizations.

Question 59

Slim Center Counseling and Apex Software recently joined forces to produce a meal planning program for use on home computers. The two organizations are working together on the project since neither one could have developed it with only their own resources. Both will own the resulting program. This effort is an example of a

A) Network organization.
B) Strategic alliance.
C) Cluster organization.
D) Classical conglomerate.
E) High-involvement organization.

Question 60

The ability to utilize processes or materials for multiple related products and thereby gain efficiencies is referred to as economies of

A) Scale.
B) Production.
C) Strategy.
D) Scope.
E) Size.

Question 61

In the realm of customer relations, __________ includes continually changing in order to connect with customers, even without waiting for customers to make the first move.

A) cooperative intimacy
B) continuous improvement
C) value chain analysis
D) customer exchange
E) total quality management

Question 62

An integrative approach to management that supports the attainment of customer satisfaction through a wide variety of tools and techniques that result in high-quality goods and services is called

A) Just-in time control (JIT).
B) Customer relationship management.
C) Total quality management.
D) Time-based competition.
E) ISO 9001.

Question 63

The strategic triangle includes which key players?

A) Executives, board members, and employees.
B) Distributors, corporation, and suppliers.
C) Customers, corporation, and competitors.
D) Financiers, customers, and employees.
E) Financiers, customers, and competitors.
Dr) Kenichi Ohmae points out that any business unit must take into account three key players: the company itself, the competition, and the customer. These components form what Ohmae refers to as the strategic triangle, as shown in Figure 9.2.

Question 64

Which of the following is an effective practice in downsizing?

A) Hire people that can cope with the new situation.
B) Make slow, small, frequent layoffs.
C) Expect higher productivity from retained employees.
D) Communicate constantly with people about the process.
E) Implement voluntary early retirement.

Question 65

Loss of productivity and morale among employees who remain after a downsizing is known as

A) Remainder syndrome.
B) Survivor's syndrome.
C) Downsizing syndrome.
D) Demoralization guilt.
E) Employee guilt.

Question 66

Which of the following is a support activity in the generic value chain?

A) Research and development.
B) Operations.
C) Outbound logistics.
D) Procurement.
E) Marketing and sales.
A value chain is the sequence of activities that flows from raw materials to the delivery of a good or service, with additional value created at each step. A generic value chain is illustrated in Figure 9.3. Procurement is one of the support activities.

Question 67

Will, a manager at Chesterton Chevrolet, strives for long-term improvement rather than short-term profit. He has done this for years regardless of the economic environment. This is an example of which of Deming's 14 points of quality?

A) Create constancy of purpose.
B) Adopt the new philosophy.
C) Improve constantly and forever the system of production and service.
D) Take action to accomplish the transformation.
E) Institute training and retraining.

Question 68

A multifaceted process focusing on creating two-way exchanges with customers to foster intimate knowledge of their needs, wants, and buying patterns is called

A) Customer relationship management.
B) Total quality management.
C) Human resources management.
D) Customer exchange.
E) Customer intimacy.

Question 69

Employees who retain their jobs after downsizing often experience heavier workloads and loss of organizational commitment and become risk-averse, which are symptomatic of

A) Unemployment anxiety.
B) Survivor's syndrome.
C) Downsizing disorientation.
D) Downsizing anxiety.
E) Employee depression.

Question 70

The planned elimination of positions or jobs is called

A) Reengineering.
B) Self-direction.
C) Downsizing.
D) Span of control.
E) Economies of scale.

Question 71

Downsizing is

A) The planned elimination of organizational positions.
B) Efforts to achieve maximum corporate effectiveness.
C) Transition from corporate equity to corporate debt.
D) The sale of less efficient operating units.
E) Reducing waste in the corporation.

Question 72

Total quality management is a way of managing in which everyone is committed to the ________ of his or her part of the operation.

A) simplifying
B) accountability
C) concurrent engineering
D) continuous improvement
E) ethical standards

Question 73

Which of the following is a primary activity in the generic value chain?

A) Firm infrastructure.
B) Human resource management.
C) Technology development.
D) Service.
E) Procurement.
A value chain is the sequence of activities that flows from raw materials to the delivery of a good or service, with additional value created at each step. A generic value chain is illustrated in Figure 9.3. Service is one of the primary activities.

Question 74

According to Dr. Kenichi Ohmae, customers, corporation, and competitors make up the

A) Profit gateway.
B) Structure foundation.
C) Strategic triangle.
D) Control cycle.
E) Profit pyramid.
Dr) Kenichi Ohmae points out that any business unit must take into account three key players: the company itself, the competition, and the customer. These components form what Ohmae refers to as the strategic triangle, as shown in Figure 9.2.

Question 75

"Kaizen" means

A) Zero defects.
B) Total quality management.
C) Value chain.
D) Continuous improvement.
E) Customer satisfaction.

Question 76

The sequence of activities that flows from raw materials to the delivery of a product or service, with additional value created at each step, is called

A) Competitive analysis.
B) The value chain.
C) Customer analysis.
D) Total quality management.
E) ISO 9000.
A value chain is the sequence of activities that flows from raw materials to the delivery of a good or service, with additional value created at each step. A generic value chain is illustrated in Figure 9.3. Each step in the chain adds value to the product or service.

Question 77

Phoenix Paint, a manufacturer of designer indoor paint, is in the process of eliminating some positions in its organization. Management has carefully analyzed all of the jobs and strategically determined which to keep, with an eye toward protecting its most talented people. Phoenix is beginning to

A) Develop a CRM system.
B) Complete its retirement plan.
C) Downsize.
D) Implement ISO 9001.
E) Determine the corporate vision.

Question 78

When downsizing is done appropriately to create a more agile, flexible, and responsive firm, it is known as

A) Undersizing.
B) Streamlining.
C) Realigning.
D) Minimizing.
E) Rightsizing.

Question 79

If an organization wishes to focus on responding to customer needs, it should include all types of customers, internal and external. It is most helpful to consider the customer as

A) The purchaser of the end product.
B) The user of the end product.
C) The consumer with which a relationship is maintained.
D) Wherever the work goes next.
E) Anyone interested in the product.

Question 80

Deming suggested that an organization should eliminate ________ since they are contrary to the idea of continuous improvement.

A) numerical quotas
B) training programs
C) leaders
D) inspections
E) specified work methods