Deck 11: Strategy and Structure

Question 1

Electrolux, the company described in the opening vignette for the chapter, has organized itself primarily around the types of products it offers.

Answer 1

True

Question 2

A typical orchestra is organized into a matrix structure, with each musician reporting to both the conductor and the concertmaster.

Answer 2

False

Question 3

Specialization, as one of the structural facets of organizations, refers to how narrow or broad the product scope of the company is.

Answer 3

False

Question 4

The key components of an organization to be considered in the structuring process are the core, techno structure, and staff support.

Question 5

The pilots employed by airlines in the United States are typically in the strategic core of the company.

Question 6

Organizations use five coordinating mechanisms, ranging from the standardization of work processes at one end of a continuum to the standardization of work output at the other end of the continuum.

Question 7

When employees are coordinated through output measures, as in the coordination method of standardization of work output, it is important to have a well-established code of conduct.

Question 8

As a company increasingly depends on a low-cost leadership competitive approach, consistency of output, or significant control over operations it will tend toward the direct supervision end of the coordination methods continuum.

Question 9

A simple structure is most effectively used when a firm has several products sold through different channels or is trying to train people as specialists.

Question 10

A functional structure groups people together by their abilities as measured by an aptitude test given during the hiring process.

Question 11

A university has several colleges, each with a number of academic departments. This is a divisional structure in which each college is a division and each division is organized functionally.

Question 12

Electrolux, described in the opening vignette for the chapter, has structured itself primarily around

A) the different activities that it performs.
B) the countries in which it operates.
C) crucial value-creating resources.
D) the types of products that it offers.

Question 13

It becomes increasingly difficult to coordinate the activities of people in an organization as

A) the number of employees increases.
B) employees are increasingly dispersed geographically.
C) the business becomes more multidimensional with different products, services, and operating divisions.
D) all of the above contribute to difficulties in coordination.

Question 14

Which of the following is not a structural facet of organizations?

A) specialization
B) operations.
C) centralization
D) formalization

Question 15

The issue of where important decisions are made in an organization, either by upper management or at lower levels of the firm, is one of

A) formalization.
B) accession.
C) centralization.
D) policy capturing.

Question 16

Which of the following is not one of the key components or parts of an organization that must be identified in the process of structuring?

A) the core
B) information systems
C) staff support
D) the techno structure

Question 17

The groups that are directly responsible for the competitive advantages that the firm enjoys are known as

A) the techno structure.
B) the core.
C) line management.
D) the key operators.

Question 18

Noncore functions of the business can be classified into two distinct areas: ________ and ________.

A) domestic; international
B) critical; non-critical
C) techno structure; staff support
D) primary activities; support activities

Question 19

The pilots employed by commercial airlines in the United States are typically in the ________ of the company.

A) techno structure
B) strategic core
C) policy group
D) non-unionized part

Question 20

The five coordinating mechanisms used by organizations can be placed on a continuum that ranges from ________ at one end to ________ at the other end.

A) standardization of work skills; standardization of output
B) policies; procedures
C) instant messaging; written memos
D) mutual adjustment; direct supervision

Question 21

When managing a large number of employees where outcomes are well-defined and those outcomes are associated with employee performance one can use the ________ method of coordination.

A) direct supervision
B) empowerment
C) indirect oversight
D) standardization of work output

Question 22

Which of the following is not one of the five basic types of organizational structure?

A) simple
B) functional
C) divisional
D) network

Question 23

A divisional structure should have its divisions organized by

A) geography.
B) product lines.
C) customer type.
D) All of the above can be used to organize divisions.

Question 24

An organizational structure should be designed to facilitate communication, coordination, and control. Elaborate on this statement.