Deck 9: Organizational Structures and Strategic Change

Question 1

Alfred Chandler (1962) was of the view that 'structure follows ___________'.

Answer 1

strategy

Question 2

Subsequent research has found that Chandler's dictum that 'structure follows strategy' is reasonably accurate.

Answer 2

True

Question 3

A very small firm is likely to have which type of structure?

A) Matrix
B) Functional
C) Entrepreneurial
D) Divisional

Answer 3

C

Question 4

The problems of role ambiguity and role incompatibility are most likely to occur within a _________________ structure.

Question 5

The configuration of outsourced activities around a central hub is known as a _______________ structure.

Question 6

Nike and Zara both outsource manufacturing activities to specialist firms, while retaining tight control at the centre over their distinctive capabilities. This is a typical network structure.

Question 7

Bartlett and Ghoshal identified three distinct processes in firms that considered processes to be more important than structures. These processes are entrepreneurial process, competence-building process and:

A) Renewal process
B) Improvement process
C) Risk taking process
D) Support process

Question 8

Which of the below describes a competence-building process? Please select all that apply.

A) The employees within the individual businesses need to be given the task of creating these competencies.
B) Top management needs to understand that individuals perform more effectively when they are trusted to work, utilizing their own self-discipline rather than a formal control system.
C) The role of senior management is to ensure that the competencies are coordinated across different business units.
D) Senior managers must also ensure that their control systems are fair and transparent to encourage risk-taking.

Question 9

A____________ system will include agreed objectives between senior managers and managers of business units, and a mechanism for monitoring performance based on these objectives and for providing feedback to managers.

Question 10

Goold and Quinn (1990) suggest three reasons for establishing control systems:

A) A strategic control system should coordinate the activities of members of an organization.
B) A strategic control system should motivate managers to achieve their agreed objectives.
C) It helps to build up levels of trust.
D) A strategic control system helps senior managers know when to intervene in the decisions of unit managers.

Question 11

Goold and Quinn (1990) suggest a contingency approach to strategic control. The parameters they use for ascertaining which strategic control approach to use are:

A) Environmental turbulence and the degree to which goals are measurable.
B) Size of firm and the degree to which goals are measurable.
C) Environmental turbulence and industry life cycle.
D) Size of firm and industry life cycle.

Question 12

Argyris argues that firms need to go beyond _______________ learning.

Question 13

A 'loose-tight' structure is one where: Please select all that apply.

A) The pursuit of organizational objectives is unflinching.
B) The structure is designed for local responsiveness.
C) The structure is networked.
D) There is flexibility about how objectives will be achieved.

Question 14

How much support organizations provide to their employees can be seen from:

A) How it cares for employee welfare and satisfaction.
B) The fairness of its rewards.
C) The investment it makes in their development and compensation.
D) Motivation to employees.

Question 15

Strategic change is about ensuring that there is a fit between an organization's resources and capabilities and its changing __________________________.

Question 16

____________________describes 'prolonged periods of growth where no major upheaval occurs in management practices' (Greiner 1972:38).

Question 17

In terms of Greiner's 'Five Phases of Growth' model, the first phase of growth is 'crisis of leadership'.

Question 18

_____________________ is an inability or unwillingness to change even when the external environment very strongly suggests that change is required.

Question 19

Hammer (1990) suggests that ______________________________ can be used to radically overhaul the way the business operates.

Question 20

In discussing the challenges surrounding strategic change, Gerry Johnson introduces the term________. This refers to a situation in which the strategy being pursued by an organization becomes less relevant to the environment in which the organization competes.

Question 21

A matrix-of-change approach allows managers to think through the following change issues before attempting implementation:

A) Feasibility
B) Sequence
C) Pace
D) location

Question 22

Incremental changes are: Please select all that apply.

A) Changing gradually.
B) There is little misalignment between the organization strategy and the needs of its markets.
C) When the organization's strategy is gradually moving away from its business environment because the environment is changing more rapidly than the change in the organization strategy.
D) When there is no clear strategic direction and internal arguments intensify about the strategic direction of the firm.

Question 23

Gerry Johnson and his colleagues (2012) found three fundamental advantages from those high-performing companies that successfully transformed themselves in order to find out which management capabilities companies need to develop over time. Please select the correct answers below.

A) A tradition of creating alternative coalitions.
B) A tradition of constructively challenging business as usual.
C) A tradition of exploiting happy accidents.
D) A tradition to avoid unforeseen events that stopped them from galvanizing support for their ideas.

Question 24

According to Collins and Porras (1994), what distinguishes a visionary organization from a non-visionary organization? Please select all that apply.

A) Visionary organizations have a strong core ideology.
B) Visionary organizations are in mature markets.
C) Visionary organizations have a purpose over and above making a profit.
D) Visionary organizations are networked.

Question 25

According to Collins and Porras, visionary organizations stimulate change through "big hairy audacious goals".

Question 26

Hamel and Prahalad (1989) use the term _________________ to describe an organization's pursuit of overarching goals.

Question 27

It was found by Collins and Porras that visionary organizations tended to have charismatic leaders.

Question 28

The Theory Z organization is based on having a high level of bureaucratic procedures.

Question 29

Collins uses the analogy of a ____________ to describe organizations that are very good at one particular thing.

Question 30

According to Collins (1994), the good-to-great companies developed their strategies based on an understanding of these three questions: Please select all that apply.

A) What can you be the best in the world at?
B) What drives your economic engine?
C) What you are deeply passionate about?
D) What are the potential risks?