Question 1

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

Accepted Answer

strategy

Question 2

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

Accepted Answer

Subsequent research has generally supported Chandler's statement that a company's structure should be designed to support its strategic goals and objectives.

Question 3

A very small firm is likely to have which type of structure?
A) Matrix
B) Functional
C) Entrepreneurial
D) Divisional

Accepted Answer

A very small firm tends to have an entrepreneurial structure because it is usually characterized by a flat hierarchy with the owner/founder making most of the decisions and being involved in many aspects of the business operations.

Question 4

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

Accepted Answer

The answer of The problems of role ambiguity and role...

Question 5

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

Accepted Answer

The answer of The configuration of outsourced activities around a...

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.

Accepted Answer

The statement correctly describes the typical network structure, where firms outsource non-core activities to specialized firms but control their core competencies in-house.

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

Accepted Answer

Bartlett and Ghoshal's third process is the renewal process, which involves continuous adaptation and renewal of a firm's core competencies and strategic direction to meet changing external conditions. This process helps firms to stay competitive and relevant in the long term.

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.

Accepted Answer

The answer of Which of the below describes a competence-building...

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.

Accepted Answer

The answer of A____________ system will include agreed objectives between...

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.

Accepted Answer

A strategic control system should coordinate the activities of members of an organization to ensure that their efforts are aligned with the overall strategic objectives of the organization. This helps to ensure that the organization is working towards a common goal.

A strategic control system should motivate managers to achieve their agreed objectives by providing them with clear targets to work towards and by tracking their progress towards these targets. This helps to ensure that managers are held accountable for their actions and that they are working towards the goals of the organization.

A strategic control system helps senior managers know when to intervene in the decisions of unit managers. By tracking performance and identifying deviations from expected outcomes, senior managers can identify areas where intervention may be necessary to ensure that the organization is on track towards its goals. This allows for timely and effective decision-making.

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.

Accepted Answer

According to Goold and Quinn (1990), the parameters for determining strategic control approach are environmental turbulence and the degree to which goals are measurable. The size of the firm and the industry life cycle are not mentioned as relevant parameters in their contingency approach.

Question 12

Argyris argues that firms need to go beyond _______________ learning.

Accepted Answer

The answer of Argyris argues that firms need to go...

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.

Accepted Answer

The answer of A 'loose-tight' structure is one where: Please...

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.

Accepted Answer

A) Employee welfare and satisfaction is a key indicator of how much support organizations provide to their employees. If an organization prioritizes the well-being and needs of its employees, it is likely to offer support in various forms such as health and wellness programs, flexible work arrangements, and assistance programs. 
B) Fairness in rewards is also indicative of how much support an organization provides to its employees. If an organization values fairness, it will ensure that employees are compensated fairly for their effort and contribution to the company. Rewards can take many forms such as salary, bonuses, or benefits. 
C) Investments in employee development and compensation are crucial in providing support to employees. Organizations that provide access to training and development opportunities are more likely to retain employees and increase their motivation and engagement levels. Additionally, offering fair and competitive compensation packages also shows support from the organization.

Question 15

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

Accepted Answer

The answer of Strategic change is about ensuring that there...

Question 16

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

Accepted Answer

The answer of ____________________describes 'prolonged periods of growth where no...

Question 17

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

Accepted Answer

According to Greiner's model, the first phase of growth is 'growth through creativity', but it is often accompanied by a 'crisis of leadership'.

Question 18

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

Accepted Answer

The answer of _____________________ is an inability or unwillingness to...

Question 19

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

Accepted Answer

The answer of Hammer (1990) suggests that ______________________________ can be...

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.

Accepted Answer

The answer of In discussing the challenges surrounding strategic change,...

Quiz 9: Organizational Structures and Strategic Change

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

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

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

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

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

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.

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:

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

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.

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

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