Question 1

Phoenix Motor Corp.is considering using a loosely coupled organizational structure.They have asked for your evaluation of such a structure and if you would recommend it for an automobile manufacturer.What will your answer be?

Accepted Answer

The answer of Phoenix Motor Corp.is considering using a loosely...

Question 2

Since much innovation arises from experimentation and improvisation,the _____ organization structure is typically considered better suited to creativity and innovation.

Accepted Answer

Organic organization structures are more flexible, decentralized, and allow for more autonomy and collaboration among employees. This creates an environment where experimentation and improvisation can thrive, leading to more creativity and innovation. Mechanistic, formalized, and standardized structures, on the other hand, are more rigid and hierarchical, which can stifle creativity and innovation.

Question 3

According to Schoonhoven and Jelinek,quasiformal structures are:

Accepted Answer

Quasiformal structures are not part of the formal reporting structure. They often develop through social interactions and informal networks within an organization, rather than being deliberately designed by management.

Question 4

Biotrue Inc.produces tissues and diagnostics substances for three market segments: hospitals,universities,and pharmaceutical companies.The firm is trying to decide whether to decentralize its R&D activities by division or not.You have been called in as a consultant to explain the advantages and disadvantages of such a move.What will your opinion be?

Accepted Answer

The answer of Biotrue Inc.produces tissues and diagnostics substances for...

Question 5

In a locally leveraged strategy to innovation,the R&D divisions _____.

Accepted Answer

The answer of In a locally leveraged strategy to innovation,the...

Question 6

A firm choosing to decentralize its R&D by divisions rather than centralizing it will have a greater possibility of:

Accepted Answer

Decentralizing R&D by divisions allows for each division to tailor their R&D efforts to the specific needs and requirements of the customers they serve. This can lead to better matching of new products to customer requirements.

Question 7

M&P Inc.,a consumer goods manufacturing firm,has subsidiaries throughout the globe that have to respond to varying local market requirements.Therefore,the firm has planned to adopt a local-for-local approach to innovation.Which of the following statement is true in this context?

Accepted Answer

By adopting a local-for-local approach, the subsidiaries are given a high degree of autonomy to respond to the varying local market requirements. This means that each subsidiary's R&D division will have greater control over their innovation efforts.

Question 8

Liam,an employee of Centaurs Inc.,is part of a new product development team that operates in a completely different manner from its parent organization.Within the team,there is considerable decentralization of authority and limited bureaucracy.It also has its own unique culture.Liam's team can be most accurately referred to as:

Accepted Answer

The characteristics described in the scenario - decentralization of authority, limited bureaucracy, and its unique culture - are all indicative of a skunk works team. A skunk works team is a small, autonomous group within an organization that is given the freedom to innovate and develop new ideas without the constraints of the larger organization's rules and procedures. This type of team is often used for highly innovative or risky projects.

Question 9

Which of the following statements is true of skunk works?

Accepted Answer

Skunk works are typically isolated from the mainstream organization to allow for greater flexibility and innovation without being constrained by bureaucratic red tape.

Question 10

Which of the following statements is true of loosely coupled organizational structures?

Accepted Answer

The answer of Which of the following statements is true...

Question 11

What are some of the advantages and disadvantages of large firms in terms of R&D?

Accepted Answer

The answer of What are some of the advantages and...

Question 12

ErgoWorld Inc.manufactures office furniture.The company is considering adopting a modular production system.A modular system would offer greater value to ErgoWorld if:

Accepted Answer

A modular production system would allow ErgoWorld to offer a wide range of product configurations and meet the heterogeneous demands of its customers in a cost-effective manner. This would also give customers the flexibility to replace or upgrade specific components instead of replacing the entire system.

Question 13

Which of the following statements is true of ambidextrous organizations?

Accepted Answer

Ambidextrous organizations are designed to be flexible and adaptable, allowing them to pursue both incremental and radical innovation. This complexity often results in a mix of structures and processes that may seem inconsistent but are tailored to balance the demands of exploration and exploitation, innovation and efficiency.

Question 14

Explain why a mechanistic organizational structure stifles creativity.

Accepted Answer

The answer of Explain why a mechanistic organizational structure stifles...

Question 15

Not-invented-here syndrome occurs when:

Accepted Answer

Not-invented-here syndrome is when a division or department of a company is reluctant to adopt innovations developed by other divisions or departments within the same company. This can lead to a lack of collaboration and missed opportunities for improvement or cost savings.

Question 16

Oxygenic Corp.uses photodynamic therapy to treat cancer and has major divisions in Germany,Russia,and the United States.The scientists in Russia develop the cancer treatment methods,treatment clinics are organized in Germany,and the U.S.division gathers the finance and markets the treatment methods.What type of strategy is being employed by Oxygenic,and what are the advantages and disadvantages of this type of strategy?

Accepted Answer

The answer of Oxygenic Corp.uses photodynamic therapy to treat cancer...

Question 17

Urban Fashions Corp.has become very successful in the last few years and now employs a large number of people.Serena,the owner of the firm,had been very informal in running the company.However,because of the increase in the size of the firm,she now feels that the informal ways of management have become ineffective.In order to structure the behavior of employees,Serena wants to introduce written codes of conduct and regulations into the firm.This change being introduced in the company by Serena is referred to as _____.

Accepted Answer

Serena's decision to introduce written codes of conduct and regulations indicates a move towards formalization, which involves the establishment of formal rules and procedures to govern the behavior of employees in an organization. Disintermediation refers to the elimination of intermediaries in a supply chain, nationalization involves the transfer of ownership and control of a company from private to public hands, and decentralization involves the delegation of decision-making authority to lower levels in an organization. None of these concepts accurately describe the change being introduced by Serena.

Question 18

Which of the following statements is true of standardization?

Accepted Answer

Standardization involves establishing consistent processes, guidelines, and procedures to ensure that activities within a firm run smoothly and predictably. This can improve efficiency, reduce errors, and increase quality control. While standardization may limit creativity and experimentation, it can also provide a foundation for innovation by establishing a stable and reliable framework for employees to work within. Choice B is partially correct in defining standardization, but it is only one aspect of it. Choice C is incorrect as organic structures are characterized by decentralized decision-making and flexibility, while mechanistic structures are more rigid and rule-based, which is more similar to standardization. Choice D is incorrect as standardization is typically associated with conformity and consistency rather than encouraging creativity and experimentation.

Question 19

Pioneer Systems Inc.has a high degree of formalization.Employees in Pioneer Systems are more likely to:

Accepted Answer

High degree of formalization usually means a lot of rules and procedures in place, which can cause employees to feel constrained and less motivated. This may eventually lead to morale and motivation problems. A high degree of formalization does not typically encourage creativity, experimentation, or empowerment to implement new solutions.

Question 20

Oxygenic Inc.is a company with major decentralized divisions in Germany,Russia,and the United States.The scientists in Russia develop cancer treatment methods.Treatment clinics are organized in Germany.The U.S.division gathers finance and markets the treatment methods.The activities of the different divisions are coordinated by the central office of the firm to meet companywide objectives.This is most clearly an example of a _____ strategy.

Accepted Answer

The strategy demonstrated by Oxygenic Inc. is a globally linked strategy, as it involves coordination between decentralized divisions located in different countries to achieve companywide objectives.

Quiz 10: Organizing for Innovation