Question 1

Which of the following actions would you expect to see in a company that is undergoing a reengineering?

Accepted Answer

Reengineering involves fundamentally rethinking and redesigning business processes to improve efficiency and effectiveness. As such, examining activities from a customer's point of view is likely to be a key part of the reengineering process, as it can identify opportunities for streamlining and simplifying processes to better meet customer needs. Hiring more managers, investing in R&D, or centralizing decision-making authority may or may not be part of a reengineering effort, depending on the specific goals and circumstances of the organization. Hiring more workers is unlikely to be a focus of reengineering, as the goal is typically to improve productivity and streamline processes, rather than adding more resources.

Question 2

Restructuring is

Accepted Answer

Restructuring involves a significant change in the organization's staffing and hierarchy to improve efficiency and effectiveness.

Question 3

Companies that are innovative and able to deal with environmental change with new strategies and structures probably have

Accepted Answer

Companies that are innovative and able to deal with environmental change with new strategies and structures are said to have an adaptive culture. This culture supports the organization's ability to adapt and evolve to meet new challenges, which is essential for surviving in a constantly changing business environment.

Question 4

The degree to which a company specifies how decisions are to be made so that employees' behavior becomes predictable is referred to as

Accepted Answer

Standardization refers to the extent to which a company formalizes its procedures and controls, thereby making employee behavior more predictable. This can include specifying how decisions are to be made, which in turn affects employee behavior. Choices A, B, D, and E do not accurately describe this concept.

Question 5

Which of the following structures is the flattest?

Accepted Answer

The answer of Which of the following structures is the...

Question 6

Which of the following is required by a restructuring?

Accepted Answer

The answer of Which of the following is required by...

Question 7

As a general principle,a company should always choose the hierarchal organization structure that has the

Accepted Answer

The hierarchal organization structure with the fewest levels of authority is the best choice for a company as it leads to a more efficient decision-making process and a clearer chain of command. With fewer levels, communication is more direct, and decisions can be made quickly. Additionally, a flatter organization can reduce bureaucracy and increase employee empowerment and engagement. However, the exact number of levels needed may depend on the size and complexity of the organization.

Question 8

If a firm finds that its functional structure is becoming too awkward as the firm grows in size and complexity,the firm can turn to

Accepted Answer

The answer of If a firm finds that its functional...

Question 9

Which form of control would you be most likely to find in a voluntary or charity organization?

Accepted Answer

In a voluntary or charity organization, control is most likely to be exerted through norms and values, as the organization's members are motivated by a shared sense of purpose and a commitment to a particular cause or mission. Bureaucratic control through rules and procedures is less likely to be utilized, as the organization is likely to be more informal and reflective of its members' values and priorities. Financial control through accurate financial statements, output control, and incentive systems are also less likely to be used, as the organization's success is typically measured by its ability to make an impact in its chosen area of focus rather than by profitability or efficiency metrics.

Question 10

A drawback of the functional structure is

Accepted Answer

The functional structure divides the organization into departments based on skill sets or functions, such as marketing, finance, and operations. However, this siloed structure can make communication and coordination across functions difficult, leading to delays and inefficiencies. This is a significant drawback of the functional structure.

Question 11

Essentially,centralization or decentralization are concepts that refer to the

Accepted Answer

Centralization or decentralization refers to the levels where decisions are made in an organization. Centralization means decision-making is concentrated at higher levels of the organization, while decentralization means decision-making is dispersed to lower levels of the organization. The number of hierarchical levels, managers, and employees may be affected by centralization or decentralization, but they are not the defining factors of these concepts.

Question 12

Which of the following is not one of the advantages of a geographic structure?

Accepted Answer

Cost inefficiencies from issues of scope is not an advantage of a geographic structure. It is actually a disadvantage as it can lead to higher costs due to duplication of efforts, resources, and activities across different regions. The other options listed are all advantages of a geographic structure.

Question 13

A hospital examines its processes closely and then changes them radically to become more patient-centered.Among the changes are new ways of doing tasks and new groupings of workers.This is an example of

Accepted Answer

This is an example of reengineering, which involves radical changes to processes and organizational structure in order to improve efficiency and effectiveness. Restucturing is similar but not as comprehensive, while TQM and benchmarking focus more on continuous improvement rather than drastic changes. Downsizing involves reducing the size of the organization, and is not necessarily related to process improvement.

Question 14

A matrix structure would be the most appropriate for which of the following firms?

Accepted Answer

A matrix structure is a good fit for a medium-sized technological firm with an objective of fast product development time. A matrix structure allows for cross-functional teams to work on projects, facilitating faster product development.

Question 15

Matrix structures

Accepted Answer

Matrix structures group activities vertically by function (such as marketing or finance) and horizontally by product or project. This allows for greater flexibility and cross-functional collaboration. They do not necessarily have many hierarchical levels, nor are they specific to companies with low-skilled workers. They may not be the best choice for a firm pursuing a low-cost strategy, as they can be more complex and potentially costly to implement.

Question 16

The process of deciding how a company should create,use,and combine organizational structure,control systems,and culture to pursue a business model successfully is referred to as

Accepted Answer

This question describes the process of designing an organization to effectively pursue a business model, which is encompassed by the concept of organizational design. Choices A, B, D, and E do not fully capture this concept.

Question 17

To a large degree,any organization's tasks are a function of its

Accepted Answer

An organization's tasks are largely determined by its strategy. A clear, well-defined strategy sets the direction and goals for the organization, which then informs the tasks that need to be completed in order to achieve those goals. Market area, labor supply, supervisors, and compensation plan can all impact the organization's tasks to some extent, but they do not have as much of a direct influence as the overall strategy.

Question 18

Which of the following structures requires centralization of value chain support activities?

Accepted Answer

The product structure requires centralization of value chain support activities to ensure consistency and efficiency across different product lines.

Question 19

A cost-leadership strategy would be most effective with

Accepted Answer

A cost-leadership strategy focuses on producing goods or services at a lower cost than competitors, which requires tight cost management and efficient production processes. Output controls, which are designed to monitor and manage the quantity and quality of goods or services produced, are important to ensure that the organization is achieving its cost goals. Personal controls, behavioral controls, and cultural controls may be less relevant to a cost-leadership strategy.

Question 20

A stereo manufacturer sells only leading-edge stereos to the upscale segment.Which of the following structures is the most appropriate for this firm?

Accepted Answer

A functional structure is most appropriate for a firm focusing on a specific product line, like leading-edge stereos, as it allows for specialization and efficiency in production and marketing.

Quiz 12: Implementing Strategy in Companies That Compete in a Single Industry