Deck 9: Organizational Agility

Question 1

In an organic structure,jobholders tend to have broader responsibilities that change as the need arises.

Answer 1

True
Explanation: An organic structure is one that emphasizes flexibility.Jobholders are more likely to have broader responsibilities that change as the need arises.

Question 2

Large companies benefit from scale economies that can help lower the costs of operations,and they also tend to enjoy greater purchasing power.

Answer 2

True
Explanation: Large size creates scale economies-that is,lower costs per unit of production.Size can offer advantages like lower operating costs,greater purchasing power,and easier access to capital.

Question 3

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

Answer 3

True
Explanation: One of the most important characteristics of an organization,and one of the most important factors influencing its ability to respond effectively to its environment,is its size.

Question 4

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

Question 5

Downsizing is the elimination of jobs through transfers or attrition.

Question 6

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

Question 7

In organic organizations,communication tends to occur through advice and information rather than through orders and instructions.

Question 8

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

Question 9

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

Question 10

Managers who want to strengthen their firms' competitiveness via core capabilities need to focus primarily on the functioning of the organizations' HR departments.

Question 11

Large organizations are typically less organic than small ones.

Question 12

It is a challenge for companies to be both big and small to capitalize on the advantages of each.

Question 13

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

Question 14

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 15

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

Question 16

An organization's large size often creates scale economies and economies of scope.

Question 17

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

Question 18

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

Question 19

The mechanistic organization emphasizes flexibility and is less rigid than the organic structure.

Question 20

Strategies and structures are based on the firm's core capabilities,its strategic alliances,its ability to learn,and its ability to engage all the people in the organization in achieving its objectives.

Question 21

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

Question 22

A mechanistic organization is best described as:

A) a form of organization that uses the principle of specialization based on function or role.
B) an organization that emphasizes flexibility.
C) a form of organization that seeks to maximize internal efficiency.
D) an organization with fewer levels of intervening management between staff and managers.
E) an organization skilled at creating,acquiring,and transferring knowledge,and at modifying its behavior to reflect new knowledgE.

Question 23

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

Question 24

Mass specialization refers to the process of producing both high-volume and high-variety products at the same time.

Question 25

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

Question 26

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

Question 27

Certification is not the end of the quality effort but a beginning step.

Question 28

Just-in-time operations and logistics are key organizational elements of time-based competition.

Question 29

The formal structure of an organization is primarily 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 intrapreneurship.
E) encourage entrepreneurship.

Question 30

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

A) Jobholders have fewer,fixed responsibilities.
B) It is more rigid than a mechanistic structure.
C) It is characterized by a lack of flexibility.
D) Jobholders rely more heavily on judgment than on rules.
E) It values obedience to authority more than commitment to the organization's goals.

Question 31

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

Question 32

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

Question 33

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

Question 34

The _____ structure is an organizational form that emphasizes flexibility.

A) systematic
B) mechanistic
C) bureaucratic
D) scientific
E) organic

Question 35

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

Question 36

Companies meet the increasing demand for mass customization by creating "modules" that perform specific tasks or processes.

Question 37

Survivor's syndrome occurs when an employee deals with a major work failure.

Question 38

Usually,companies with higher volumes of products tend to offer more varieties.

Question 39

A _____ is the knowledge,expertise,or skill that underlies a company's ability to be a leader in providing a range of specific goods or services.

A) dynamic network
B) continuous process
C) core capability
D) cognitive ability
E) knowledge flow

Question 40

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

Question 41

Which of the following types of organizations pursues activities such as engaging in disciplined thinking,searching constantly for new knowledge,benchmarking,and sharing ideas throughout the organization via information systems?

A) Mechanistic organizations
B) Learning organizations
C) High-involvement organizations
D) Monolithic organizations
E) Pluralistic organizations

Question 42

Which of the following statements is true about strategic alliances?

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

Question 43

Downsizing in organizations refers to the:

A) planned elimination of organizational positions.
B) decrease in product volume and variety.
C) transition from corporate equity to corporate debt.
D) sale of less efficient operating units.
E) decrease in the use of organizational resources.

Question 44

Which of the following is an effective practice in downsizing?

A) Laying off excessive people so that new people can be hired when needed
B) Making slow,small,and frequent layoffs to maintain productivity
C) Engaging in excessive hiring so that downsizing doesn't affect productivity
D) Giving special attention and help to those who have lost their jobs
E) Implementing voluntary early retirement

Question 45

Diseconomies of scale refers to the:

A) environmental forces that inherently have a negative impact on business growth.
B) realization of lower per-unit costs.
C) costs associated with an organization being too big.
D) use of materials or processes in related products or services.
E) fluctuations in the economy.

Question 46

According to Dr.Kenichi Ohmae,which of the following constitutes the strategic triangle of a business unit?

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

Question 47

Managers who want to strengthen their firms' competitiveness via core capabilities need to focus on:

A) assigning only specific tasks to specific workers.
B) purchasing more capital assets.
C) hiring more people anticipating economic downturns.
D) extending capabilities to find new applications and opportunities.
E) maintaining and growing the stock pricE.

Question 48

Structurally,a high-involvement organization is usually ____.

A) task-oriented and bureaucratic
B) flat and decentralized
C) hierarchical and centralized
D) customer-centric and centralized
E) highly departmentalized

Question 49

Survivor's syndrome refers to the:

A) loss of productivity and morale in employees who remain after downsizing.
B) guilt on the part of management for going ahead with the downsizing.
C) slump in market share after a new company enters the market.
D) lack of motivation in the people who got laid off to find new jobs.
E) distress experienced by employees who have been laid off.

Question 50

Which of the following aspects of an organization creates scale economies and economies of scope and leads to advantages like lower operating costs,greater purchasing power,and easier access to capital?

A) Large size
B) High flexibility
C) Mass customization
D) Centralized structure
E) High agility

Question 51

In a _____ organization,top management ensures that there is consensus about the direction in which the business is heading.

A) learning
B) high-involvement
C) mechanistic
D) network
E) customer-centric

Question 52

Phoenix Paint,a manufacturer of designer indoor paint,is in the process of eliminating some positions in its organization.Its management has carefully analyzed all of the jobs and strategically determined which to keep,with an eye toward protecting its most talented people.Which of the following refers to what Phoenix is doing in this scenario?

A) Standardizing
B) Centralizing
C) Downsizing
D) Benchmarking
E) Globalizing

Question 53

Slim Center Counseling and ASA 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 could have developed it using only their own resources.Both will own the resulting program.This is an example of a ____.

A) network organization
B) strategic alliance
C) cluster organization
D) subordinate collaboration
E) high-involvement organization

Question 54

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) agility
D) scope
E) size

Question 55

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 is,often,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 56

Which of the following involves eliminating functions,hierarchical levels,or even whole units?

A) Reengineering
B) Domain selection
C) Downsizing
D) Buffering
E) Benchmarking

Question 57

Which of the following statements is true of a high-involvement organization?

A) Lower-level employees are not accountable for a good or service delivery.
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 time and resource.
D) Employee involvement tends to be inadequate when the environment changes rapidly.
E) The organizational form is a flat,decentralized structure built around a customer,good,or servicE.

Question 58

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

A) unemployment anxiety
B) survivor's syndrome
C) downsizing disorientation
D) downsizing anxiety
E) employee depression

Question 59

An organization that is skilled at creating,acquiring,and transferring knowledge and at modifying its behavior to reflect new knowledge and insights is known as a ____ organization.

A) learning
B) high-involvement
C) mechanistic
D) network
E) matrix

Question 60

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

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

Question 61

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

Question 62

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) continuous integration
B) continuous improvement
C) value chain analysis
D) customer exchange
E) total quality management

Question 63

_____ is an integrative approach to management that supports the attainment of customer satisfaction through a wide variety of tools and techniques that result in goods and services of high standards.

A) Total quality management
B) Customer relationship management
C) Value-added manufacturing
D) Mass customization
E) Computer-integrated manufacturing

Question 64

A series of quality standards developed by a committee working under the International Organization for Standardization to improve total quality in all businesses for the benefit of both producers and consumers is known as ____.

A) total quality management
B) just-in-time control
C) ISO 9001
D) computer-integrated manufacturing
E) customer-based integration

Question 65

Will is the marketing head of a firm.He usually strives for long-term improvement rather than short-term profit,regardless of the economic environment.In the context of Deming's 14 points of quality,this is an example of:

A) creating constancy of purpose.
B) adopting a new philosophy.
C) improving constantly and forever the system of production and service.
D) taking action to accomplish the transformation.
E) offering training and retraining.

Question 66

The principal idea of reengineering is to:

A) fully utilize available technology.
B) get more market share.
C) revolutionize key organizational systems and processes.
D) provide more customized products.
E) innovate more than the competitors.

Question 67

In a business unit setup,kaizen refers to ____.

A) zero defects
B) total quality management
C) value chain
D) continuous improvement
E) rightsizing

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 _____ management.

A) customer relationship
B) total quality
C) human resources
D) customer analytics
E) buyer-behavior

Question 69

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

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

Question 70

According to Deming's 14 points of quality,which of the following has to be eliminated,as they are contrary to the idea of continuous improvement?

A) Numerical quotas
B) Retraining programs
C) Value chains
D) Strategic alliances
E) Just-in-time operations

Question 71

Executives at a pharmaceuticals company have been working with a consultant to implement ISO 9001.They have established the company's vision and goals,and have been working hard to provide inspiration to their employees and establish trust.Which of the following principles is the company addressing here?

A) Involvement of people
B) Strategic quality planning
C) Mutually beneficial supplier relationships
D) Process approach to management
E) Leadership

Question 72

Which of the following is one of the criteria for receiving the Malcolm Baldrige National Quality Award?

A) Use of JIT
B) Extensive training for workers
C) Technological innovation
D) Customer and market focus
E) ISO 9001 certification

Question 73

As organizations focus on responding to customer needs,they soon find that the traditional meaning of a customer expands to include internal customers.The word customer now refers to ____.

A) the purchaser of the end product
B) the user of the end product
C) the consumer with whom a relationship is maintained
D) the next process
E) the person interested in the product

Question 74

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

Question 75

Which of the following is one of W.Edwards Deming's 14 points of quality?

A) Strive for short-term improvement rather than long-term profit.
B) Ensure compliance by punishing those who deviate from the process.
C) Eliminate slogans and buzzwords.
D) Implement or reinforce the use of numerical quotas.
E) Mass inspection is the best way to ensure quality.

Question 76

One of the most important contributors to total quality management has been the introduction of statistical tools to analyze the causes of product defects in an approach called ____.

A) six sigma quality
B) concurrent engineering
C) value chain management
D) computer-integrated manufacturing
E) kanban

Question 77

A company that asks itself "If you were the customer,how would you like us to operate?" and then takes action to transform itself is best described as using the notion of ____.

A) strategic maneuvering
B) lean manufacturing
C) operations management
D) reengineering
E) total quality management

Question 78

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

Question 79

The sequence of activities that flow from raw materials to the delivery of a good or service,with additional value created at each step,is known as ____.

A) competitive analysis
B) the value chain
C) customer analysis
D) total quality management
E) the strategic triangle

Question 80

A small office with only a physician,a nurse,and a bookkeeper is an example of a _____ shop.

A) job
B) large batch
C) continuous process
D) mass customization
E) specialty