Deck 9: Executing Strategy Through Organizational Design

Question 1

Informal linkages do not appear in organizational charts.

Answer 1

True

Question 2

A big advantage of a functional structure is that it allows a firm to act quickly.

Answer 2

False

Question 3

Horizontal linkages tie supervisors and subordinates together.

Answer 3

False

Question 4

Vertical linkages are often called committees, task forces, or teams.

Question 5

Horizontal linkages refer to unofficial relationships such as personal friendships, rivalries, and politics.

Question 6

Simple organizational structures rely on formal systems of division of labor.

Question 7

Division of labor can improve efficiency.

Question 8

Horizontal linkages are relationships between equals in an organization.

Question 9

Using a multidivisional structure violates the unity of command principle.

Question 10

Matrix structures rely heavily on horizontal relationships.

Question 11

A functional structure works best for organizations that offer wide variety of products lines.

Question 12

Multidivisional structures tend to be more costly to operate than functional structures.

Question 13

Creating a structure that effectively coordinates a firm's activities increases the firm's likelihood of being successful.

Question 14

A functional structure keeps costs low and creates efficiency.

Question 15

Organizations such as engineering and consulting firms that need to maximize their flexibility to service projects of limited duration can benefit from the use of a matrix structure.

Question 16

A functional structure tends to create highly-skilled specialists.

Question 17

Division of labor can improve coordination between different tasks and the people who perform them.

Question 18

Strategic decision making in a simple structure tends to be highly centralized.

Question 19

Multidivisional structures create cross-functional teams that each work on a different project.

Question 20

Vertical linkages are of great importance when close coordination is needed across different segments of an organization.

Question 21

Output control focuses on measurable results within an organization.

Question 22

Behavioral control focuses on controlling the actions that ultimately lead to results.

Question 23

Clan control is most appropriate in settings where creativity is vital.

Question 24

Which of the following is a basic building block of an organizational structure?

A)Vertical linkage
B)Horizontal division
C)Lateral linkage
D)Informal linkage
E)Lateral division

Question 25

Most organizations use a diagram called an organizational chart to depict their _____.

A)growth trajectory
B)consumer profile
C)product life-cycle
D)competitive strategy
E)organizational structure

Question 26

Clan control is an informal type of control.

Question 27

Which of the following is the solution to the challenge created by division of labor- figuring out how to coordinate different tasks and the people who perform them?

A)Concentration strategy
B)Blue ocean strategy
C)Organizational structure
D)Disintermediation
E)Decentralization

Question 28

Three basic types of control systems are available to executives: input control, behavioral control, and tribe control.

Question 29

Enchanted Toys Inc., an American toy manufacturing firm, splits up the process of creating a toy into a series of smaller tasks.Each task is performed by a group of people who are specialized in that task.In this example, Enchanted Toys Inc.uses which of the following processes?

A)Division of labor
B)Vertical linkages
C)Unity of command
D)Horizontal linkages
E)Decentralization

Question 30

Most business fads are harmless, and they rarely create any long term problems for those that embrace them.

Question 31

Embracing business fads could lead executives to make bad decisions.

Question 32

MBO is a process wherein managers and employees work together to create goals.

Question 33

All profits of a sole proprietorship are the property of the owner.

Question 34

Which of the following best describes vertical linkages?

A)They refer to the relationships between equals in an organization.
B)They tie supervisors and subordinates together.
C)They are often called committees, task forces, or teams.
D)They do not appear in organizational charts, but can have a significant influence on how firms operate.
E)They refer to unofficial relationships such as personal friendships, rivalries, and politics.

Question 35

Management by objectives is more effective than clan control in guiding employee behavior.

Question 36

Double taxation is a disadvantage unique to partnerships.

Question 37

_____ show the lines of responsibility through which a supervisor delegates authority to subordinates, oversees their activities, evaluates their performance, and guides them toward improvement when necessary.

A)Horizontal linkages
B)Lateral linkages
C)Informal linkages
D)Vertical linkages
E)Lateral divisions

Question 38

Which of the following components of an organizational chart ties supervisors and subordinates together?

A)Horizontal linkages
B)Lateral linkages
C)Horizontal divisions
D)Vertical linkages
E)Lateral divisions

Question 39

Corporations involve the separation of ownership and management.

Question 40

A quality circle is a formal group of employees that meets regularly to brainstorm solutions to organizational problems.

Question 41

Carlton Group Inc., a firm that manufactures ceramic and porcelain tiles, structures its organization into the following departments: marketing, production, human resources, finance, and customer service.Each employee is grouped into one these departments and each department is headed up by a manager.Carlton Group Inc.is most likely to be using a _____ organizational structure.

A)matrix
B)functional
C)mosaic
D)simple
E)boundaryless

Question 42

_____ refer to unofficial relationships such as personal friendships, rivalries, and politics.

A)Horizontal linkages
B)Lateral linkages
C)Informal linkages
D)Vertical linkages
E)Lateral divisions

Question 43

Which of the following statements about functional structures is accurate?

A)They do not rely on formal systems of division of labor.
B)They tend to create highly-skilled specialists.
C)They allow a firm to implement strategic moves quickly.
D)They tend to increase costs and reduce efficiency.
E)They lead to increased conflicts within departments.

Question 44

Which of the following best describes informal linkages?

A)They are relationships between equals in an organization.
B)They show the lines of responsibility through which a supervisor delegates authority to subordinates.
C)They tie supervisors and subordinates together.
D)They are often called committees, task forces, or teams.
E)They refer to unofficial relationships such as personal friendships, rivalries, and politics.

Question 45

Claire is the owner and chef at Vanilla and Sugar, a cafe that also offers a range of baked products.Claire employs two people who help her with various tasks at the cafe.At Vanilla and Sugar, tasks tend to be distributed among the two employees in an informal manner rather than each person developing a narrow area of specialization.Vanilla and Sugar is most likely to have a _____ structure.

A)simple
B)functional
C)multidivisional
D)matrix
E)bureaucratic

Question 46

If a firm consisting of more than one person is following a _____ organizational structure, tasks tend to be distributed among them in an informal manner rather than each person developing a narrow area of specialization.

A)matrix
B)functional
C)multidivisional
D)simple
E)bureaucratic

Question 47

The process of evaluating and rewarding employees' performance tends to be informal in organizations that follow a _____ type of organizational structure.

A)matrix
B)functional
C)multidivisional
D)simple
E)bureaucratic

Question 48

Which of the following is used by executives when mapping out the vertical linkages in an organizational structure?

A)A gang plank
B)Portfolio planning
C)The BCG matrix
D)The attractiveness-strength matrix
E)The unity of command principle

Question 49

Which of the following is a disadvantage of using a functional structure?

A)Reduced specialization
B)Slow execution of strategic changes
C)Increased costs
D)Increased inefficiency
E)Informal distribution of tasks

Question 50

Which of the following is true about horizontal linkages?

A)They are of great importance when close coordination is needed across different segments of an organization.
B)They show the lines of responsibility through which a supervisor delegates authority to subordinates.
C)They tie supervisors and subordinates together.
D)They do not appear in organizational charts, but can have a significant influence on how firms operate.
E)They refer to unofficial relationships such as personal friendships, rivalries, and politics.

Question 51

_____ are relationships between equals in an organization.

A)Horizontal linkages
B)Lateral linkages
C)Informal linkages
D)Vertical divisions
E)Lateral divisions

Question 52

Organizations that use a _____ type of organizational structure tend to have very few rules and regulations.

A)matrix
B)functional
C)multidivisional
D)simple
E)bureaucratic

Question 53

Paul Kelly is the store manager at the Fresh Produce Grocery Store, in Cincinnati.He has a close friendship with Matthew, who works as a cashier at the store, with whom he shares an interest in comic books and graphic novels.This is an example of which of the following structures?

A)Horizontal linkages
B)Lateral linkages
C)Informal linkages
D)Vertical divisions
E)Lateral divisions

Question 54

Strategic decision making in a _____ organizational structure tends to be highly centralized, with the owner often making all the important decisions.

A)matrix
B)functional
C)multidivisional
D)simple
E)boundaryless

Question 55

In which of the following organizational structures, an organizational chart is usually not needed?

A)A matrix structure
B)A functional structure
C)A multidivisional structure
D)A simple structure
E)A bureaucratic structure

Question 56

Conflicts within departments are relatively rare in organizations that follow a _____ structure because all the people in a particular department share the same background, training, and as such, they tend to get along with each other.

A)matrix
B)functional
C)mosaic
D)simple
E)multidivisional

Question 57

_____ are of great importance when close coordination is needed across different segments of an organization.

A)Horizontal linkages
B)Lateral linkages
C)Informal linkages
D)Vertical divisions
E)Lateral divisions

Question 58

The _____ principle states that each person should only report directly to one supervisor.

A)gang plank
B)bricolage
C)informal linkage
D)division of labor
E)unity of command

Question 59

_____ are often called committees, task forces, or teams.

A)Horizontal linkages
B)Lateral linkages
C)Informal linkages
D)Vertical divisions
E)Lateral divisions

Question 60

_____ organizational structures do not rely on formal systems of division of labor.

A)Matrix
B)Functional
C)Multidivisional
D)Simple
E)Bureaucratic

Question 61

_____ control focuses on measurable results within an organization.

A)Behavioral
B)Hierarchical
C)Informal
D)Clan
E)Output

Question 62

Employees at Pinetree Publications, a book publishing firm based in New York, are divided into departments based on product areas, such as academic books, autobiographies, fiction, and politics.Pinetree Publications is most likely to be using which of the following organizational structures?

A)functional
B)simple
C)matrix
D)boundaryless
E)multidivisional

Question 63

_____ allow executives to track how well the organization is performing, identify areas of concern, and then take action to address the concerns.

A)Organizational charts
B)Management by objectives
C)Pareto analyses
D)Concentration strategies
E)Organizational control systems

Question 64

Which of the following statements about matrix structures is accurate?

A)They do not rely on formal systems of division of labor.
B)They divide employees into departments based on product areas and/or geographic regions.
C)They work best for organizations that offer narrow and stable product lines.
D)They violate the unity of command principle.
E)They tend to rely heavily on vertical linkages.

Question 65

A big advantage of a _____ structure is that it allows a firm to act quickly.

A)multidivisional
B)functional
C)mosaic
D)boundaryless
E)bureaucratic

Question 66

One of the main reasons for changing an organization's structure is improving:

A)analysis
B)efficiency
C)control
D)output
E)functions

Question 67

Which of the following organizational structures relies heavily on horizontal relationships?

A)A multidivisional structure
B)A functional structure
C)A mosaic structure
D)A matrix structure
E)A connected structure

Question 68

The dress codes that are enforced within many organizations are an example of _____ control.

A)behavioral
B)hierarchical
C)informal
D)clan
E)output

Question 69

_____ control is often used heavily in settings where creativity is vital.

A)Behavioral
B)Hierarchical
C)Qualitative
D)Clan
E)Output

Question 70

_____ control is an informal type of control.

A)Behavioral
B)Hierarchical
C)Qualitative
D)Clan
E)Output

Question 71

Which of the following is true about behavioral control?

A)It is often used in settings where creativity is vital.
B)It is an informal type of control.
C)It focuses on controlling the actions that ultimately lead to results.
D)It relies on shared expectations and values of employees.
E)It focuses on measurable results within an organization.

Question 72

Because _____ structures are slow to execute change, they tend to work best for organizations that offer narrow and stable product lines.

A)multidivisional
B)functional
C)mosaic
D)simple
E)boundaryless

Question 73

Which of the following refers to a process wherein managers and employees work together to create goals?

A)Management by objectives
B)Job enrichment
C)Quality circle
D)Organizational culture
E)Benchmarking

Question 74

Which of the following forms of businesses necessarily involves the separation of ownership and management?

A)Partnership
B)Sole proprietorship
C)Corporation
D)Association
E)Co-operative

Question 75

A _____ structure can help develop new managers by putting a person without managerial experience in charge of a relatively small project as a test to see if the person has a talent for leading others.

A)multidivisional
B)functional
C)mosaic
D)matrix
E)connected

Question 76

Clan control differs from behavioral control in that clan control:

A)focuses on results.
B)hinders creativity.
C)relies on shared traditions, and norms to lead people.
D)focuses on controlling the actions that ultimately lead to results.
E)is a formal type of control.

Question 77

In-fighting and politics among project managers around the issue of what people are assigned to each project is a potential concern for organizations following a _____ structure.

A)multidivisional
B)functional
C)boundaryless
D)matrix
E)simple

Question 78

A functional structure differs from a simple structure in that a functional structure:

A)does not require an organizational chart.
B)relies on a formal system of division of labor.
C)promotes informal distribution of tasks amongst employees.
D)tends to have very few rules and regulations.
D)tends to use an informal process of evaluating and rewarding employees' performance.

Question 79

_____ control relies on shared traditions, expectations, values, and norms to lead people to work toward the good of their organization.

A)Behavioral
B)Hierarchical
C)Quantitative
D)Clan
E)Output

Question 80

Which of the following management fads involves a formal group of employees meeting regularly to brainstorm solutions to organizational problems?

A)Management by objectives
B)Sensitivity-training groups
C)Quality circles
D)Concentration strategy
E)Viral marketing