Question 1

Jay Galbraith and Ed Lawler's comment that: "Ultimately, there may be no long-term sustainable advantage that the ability to organize and manage" may be justified by:

Accepted Answer

The statement by Galbraith and Lawler suggests that the ability to organize and manage may not necessarily provide a sustainable advantage in the long run. This is because firms need to continually develop and renew their organizational capabilities to stay competitive. This idea aligns with choice C, which emphasizes the need for firms to constantly update their organizational capabilities. While choices A and B may also reflect the impact of disruptive technologies and Schumpeterian competition on a firm's ability to maintain a competitive advantage, they do not directly address the role of organizational capabilities. Choice D, on the other hand, suggests that good managers are scarce, but it does not address the idea of a long-term sustainable advantage or the need for firms to continually update their capabilities.

Question 2

A fundamental task of organization is to manage:

Accepted Answer

While both options A and B are elements of organizational management, the most fundamental task of organization is to divide labor into separate tasks and then integrate those tasks to achieve a common goal. This involves managing cooperation and coordination (option A), as well as the division of labor (option B). However, option C encompasses both of these tasks and recognizes that successful organizations must effectively manage both the segmentation and integration of tasks to be successful. Agency (option D) is a related but somewhat separate topic in organizational theory, and not as fundamental a task as the division and integration of tasks.

Question 3

The Tata Group, the Virgin Group, and Alphabet Inc.are examples of:

Accepted Answer

All three companies are examples of holding companies, which are corporations that hold the shares of other companies but do not necessarily engage in the operational activities of those companies.

Question 4

Adhocracy is a structure where values, motivation, participation, and mutual respect, allow a high level of coordination without the need for formal control

Accepted Answer

This is the definition of adhocracy.

Question 5

As companies and their industries mature, the need for efficiency and more centralized control, often results in companies replacing their functional structures with multidivisional structures.

Accepted Answer

The answer of As companies and their industries mature, the...

Question 6

The pioneers of the multidivisional structure were:

Accepted Answer

The answer of The pioneers of the multidivisional structure were:
...

Question 7

The "agency problem" refers to:

Accepted Answer

The agency problem refers to the misalignment of goals between a principal (such as a shareholder) and his/her agent (such as a company's manager). This can occur because the agent may prioritize his or her own interests over those of the principal.

Question 8

The epithet "Great strategy; lousy implementation" is typically wrong because:

Accepted Answer

The answer of The epithet "Great strategy; lousy implementation" is...

Question 9

The success of the multidivisional structure as an organizational form was because:

Accepted Answer

The separation of strategic from operational decision allowed corporate management to exercise more effective strategic and financial control. With the multidivisional structure, corporate management could focus on long-term strategic decision-making while allowing each division to handle day-to-day operational decisions. This separation of decision-making power allowed for more effective overall control of the organization.

Question 10

In most large companies strategic planning is:

Accepted Answer

Most large companies use a combination of top-down initiatives and directives along with bottom-up proposals in their strategic planning process. This allows for input from various levels of the organization and helps ensure that strategies are feasible and effective.

Question 11

In most large companies the strategic planning cycle begins with:

Accepted Answer

In most large companies, the strategic planning cycle typically begins with top management setting strategic priorities. This involves analyzing the external and internal environment, identifying opportunities, and determining the company's strengths and weaknesses. Once the strategic priorities are set, business units can then develop their specific business plans in alignment with the overall strategy. The financial requirements and guidelines from the board of directors and investors typically come later in the planning process, after the strategic priorities have been established.

Question 12

According to Henry Mintzberg, organizational structure can be defined as:

Accepted Answer

Henry Mintzberg defines organizational structure as the ways in which labor is divided into distinct tasks, and coordination is achieved among these tasks. This choice accurately describes Mintzberg's definition of organizational structure. Choices B and C focus more on the division of tasks among different levels or departments within an organization, rather than the overall structure of how tasks are coordinated. Choice D is too narrow in scope, describing only the coordination and cooperation of productive tasks, rather than the overarching structure of the organization.

Question 13

The creation of business enterprises where a head office managed geographically-separate operational units was facilitated by:

Accepted Answer

The improvements in transportation and communication, specifically the railroad and telegraph, allowed for better and more efficient communication between the head office and geographically-separate operational units. This made it easier for businesses to manage and coordinate their operations across different locations.

Question 14

During the 19th century the principle source of ideas about how to organize large business enterprises derived from:

Accepted Answer

The answer of During the 19th century the principle source...

Question 15

According to James Thompson, "pooled interdependence" is the most intensive form of interaction between organizational members.

Accepted Answer

The answer of According to James Thompson, "pooled interdependence" is...

Question 16

The primary mechanisms through which companies translate strategic plans into action are:

Accepted Answer

Operating plans and capital expenditure budgets are the primary mechanisms through which companies translate strategic plans into action. These plans specify the specific actions, initiatives, and milestones necessary to achieve strategic goals, and allocate resources such as funding, personnel, and technology to support their implementation. Vision and mission statements, CEO leadership, and resolutions by the board of directors all play important roles in shaping and guiding strategic plans, but they are not direct mechanisms for translating those plans into action.

Question 17

In recent decades many large corporations have reorganized their matrix structures such that financial and strategic control is exercised through a single dimension.

Accepted Answer

The answer of In recent decades many large corporations have...

Question 18

The distinctive feature of project-based organizations is that the operating units-the project teams-are temporary.

Accepted Answer

In project-based organizations, the project teams are temporary and are formed to complete a specific project or assignment. Once the project is completed, the team is dissolved, and members move on to other projects.

Question 19

The main reason that most entrepreneurial start-up companies adopt a formalized process of strategic planning processes at some stage of their development is:

Accepted Answer

As a start-up grows in size and complexity, it becomes more difficult to coordinate and control all aspects of the business. Formalized strategic planning processes can facilitate coordination and control, helping the company to stay focused on its goals and objectives. While quantitative analysis (A) and long-term development (D) are important factors in strategic planning, they are not the main reason why start-up companies adopt a formalized process. Limiting the power of founders (B) is also not a primary reason for strategic planning.

Question 20

The tendency for societies to revert to subsistence economies when the fabric of civilization breaks down is because:

Accepted Answer

The modern economy and its division of labor require a reliable exchange economy based on mutual trust and the rule of law. If civilization breaks down and uncertainty increases, it becomes difficult to trust others and engage in this type of exchange. As a result, societies tend to revert to family-based production and subsistence economies. Money and a stable government are also required for the modern economy to function properly, but they are not the primary reasons for the shift towards subsistence.

Quiz 6: Organization Structure and Management Systems: the Fundamentals of Strategy Implementation