Question 1

One of the factors that explained the effectiveness of ambidextrous organizational designs in the O'Reilly and Tushman study was the clear and compelling vision that the company senior management team communicated.

Accepted Answer

The study found that there were many factors. A clear and compelling vision, consistently communicated by the company's senior management team, was critical in building the ambidextrous designs.

Question 2

One of the factors that explained the effectiveness of ambidextrous organizational designs in the O'Reilly and Tushman study was that the structure enabled cross-fertilization while avoiding cross contamination in terms of sharing resources.

Accepted Answer

The study found that there were many factors. The structure enabled cross-fertilization while avoiding cross-contamination. The tight coordination and integration at the managerial levels enabled the newer units to share important resources from the traditional units, such as cash, talent, and expertise. Such sharing was encouraged and facilitated by effective reward systems that emphasized overall company goals.

Question 3

When an organization with a functional structure diversifies into related product-markets, it generally

Accepted Answer

A firm with a functional structure may see its initial markets mature, so it looks beyond its present products and markets for possible expansion. A strategy of related diversification requires a need to reorganize around product lines or geographic markets. This leads to a divisional structure.

Question 4

Which of the following is not a primary factor that a large firm with international operations should consider when choosing the appropriate structure for its organization?

Accepted Answer

Deciding upon the most appropriate structure when a firm has international operations depends on three primary factors: the extent of international expansion, the type of strategy (global, multidomestic, or transnational), and the degree of product diversity.

Question 5

Which of the following statements about simple organizational structures is false?

Accepted Answer

The simple organizational structure is the oldest, and most common, organizational form. Most organizations are very small and have a single or very narrow product line in which the owner-manager (or top executive) makes most of the decisions. Decision making is highly centralized. There is little specialization of tasks. There are few rules and regulations. There exists an informal evaluation and reward system. A simple structure may foster creativity and individualism, since there are generally few rules and regulations.

Question 6

Successful organizations create ______ boundaries among the _____ activities as well as between the organization and its external customers, suppliers, and alliance partners.

Accepted Answer

One of the central concepts in this chapter is the importance of boundaryless organizations. Successful organizations create permeable boundaries among the internal activities as well as between the organization and its external customers, suppliers, and alliance partners.

Question 7

Which of the following activities is not identified structure?

Accepted Answer

Structure identifies the executive, managerial, and administrative organization of a firm and indicates responsibilities and hierarchical relationships.

Question 8

Organizational structure refers to the formalized patterns of interactions that link company ___________, ___________, and _____________.

Accepted Answer

Organizational structure refers to the formalized patterns of interactions that link company tasks, technologies, and people.

Question 9

In large organizations, a strategy of diversification requires a need to reorganize around ______________ or _____________.

Accepted Answer

A strategy of related diversification requires a need to reorganize around product lines or geographic markets. This leads to a divisional structure.

Question 10

In successful ambidextrous organizations, according to the O'Reilly and Tushman study, the traditional and new units were shielded from each other so that they each focused attention and energy on its own operations, products, and customers.

Accepted Answer

The study found that there were many factors. The organizational separation ensured that the distinctive processes, structures, and cultures of the new unit were not overwhelmed by the forces of business as usual. The established units were shielded from the distractions of launching new businesses, and they continued to focus all of their attention and energy on refining their operations, enhancing their products, and serving their customers.

Question 11

Organizations that make it to the growth stage design strategies to

Accepted Answer

Most organizations begin very small and either die or remain small. Those that survive and prosper embark on strategies designed to increase the overall scope of operations and enable them to enter new product-market domains.

Question 12

Structures help to ensure that ____________ are used effectively in accomplishing the mission of the organization.

Accepted Answer

Structures help to ensure that resources are used effectively in accomplishing the mission of the organization.

Question 13

The two vital ongoing activities necessary for creating boundaryless organizations that managers today must concern themselves with are

Accepted Answer

Managers today are faced with two ongoing and vital activities in structuring and designing their organizations. First, they must decide on the most appropriate type of organizational structure. Second, they need to assess what mechanisms, processes, and techniques are most helpful in enhancing the permeability of both internal and external boundaries.

Question 14

A simple structure is characterized by

Accepted Answer

The simple organizational structure is the oldest, and most common, organizational form. Most organizations are very small and have a single or very narrow product line in which the owner-manager makes most of the decisions. Decision making is highly centralized and there is little specialization of tasks.

Question 15

The appropriateness of the type of organizational structure depends upon the ___________ and _______ of growth.

Accepted Answer

Most organizations begin very small and either die or remain small. Those that survive and prosper embark on strategies designed to increase the overall scope of operations and enable them to enter new product-market domains. Such growth places additional pressure on executives to control and coordinate the firm's increasing size and diversity. The most appropriate type of structure depends on the nature and magnitude of growth.

Question 16

As illustrated in the opening case for Chapter 10, Boeing lost a lot of control and therefore incurred high operating costs for its build out of the 787 Dreamliner, because it ____________ design and manufacturing.

Accepted Answer

There are a number of possible benefits to outsourcing activities as part of becoming an effective boundaryless organization. However, outsourcing can also create challenges. As in the case of Boeing, the firm lost a large amount of control by using independent suppliers to design and manufacture key subsystems of the 787.

Question 17

Functional structures are usually found in organizations where there

Accepted Answer

Functional structures are generally found in organizations in which there is a single or closely related product or service, high production volume, and some vertical integration.

Question 18

When an organization with a simple structure increases its sales revenue and volume of outputs, it is most likely to develop a ______________ structure.

Accepted Answer

A new firm with a simple structure typically increases its sales revenue and volume of outputs over time. It may also engage in some vertical integration to secure sources of supply (backward integration) as well as channels of distribution (forward integration). The simple-structure firm then implements a functional structure to concentrate efforts on both increasing efficiency and enhancing its operations and products.

Question 19

A strategy of related diversification requires most firms to organize around geographical areas or product lines. This type of organizational growth leads to a(n) ______________ structure.

Accepted Answer

A strategy of related diversification requires a need to reorganize around product lines or geographic markets. This leads to a divisional structure.

Question 20

One of the factors that explained the effectiveness of ambidextrous organizational designs in the O'Reilly and Tushman study was that the reward systems emphasized traditional unit goals.

Accepted Answer

The study found that there were many factors. The tight coordination and integration at the managerial levels enabled the newer units to share important resources from the traditional units, such as cash, talent, and expertise. Such sharing was encouraged and facilitated by effective reward systems that emphasized overall company goals.

Quiz 10: Creating Effective Organizational Designs

One of the factors that explained the effectiveness of ambidextrous organizational designs in the O'Reilly and Tushman study was the clear and compelling vision that the company senior management team communicated.

One of the factors that explained the effectiveness of ambidextrous organizational designs in the O'Reilly and Tushman study was that the structure enabled cross-fertilization while avoiding cross contamination in terms of sharing resources.

When an organization with a functional structure diversifies into related product-markets, it generally

Which of the following is not a primary factor that a large firm with international operations should consider when choosing the appropriate structure for its organization?

Which of the following statements about simple organizational structures is false?

Successful organizations create __ boundaries among the _ activities as well as between the organization and its external customers, suppliers, and alliance partners.

Which of the following activities is not identified structure?

Organizational structure refers to the formalized patterns of interactions that link company _____, _, and _________.

In large organizations, a strategy of diversification requires a need to reorganize around __ or _.

In successful ambidextrous organizations, according to the O'Reilly and Tushman study, the traditional and new units were shielded from each other so that they each focused attention and energy on its own operations, products, and customers.

Organizations that make it to the growth stage design strategies to

Structures help to ensure that ____________ are used effectively in accomplishing the mission of the organization.

The two vital ongoing activities necessary for creating boundaryless organizations that managers today must concern themselves with are

A simple structure is characterized by

The appropriateness of the type of organizational structure depends upon the _____ and _ of growth.

As illustrated in the opening case for Chapter 10, Boeing lost a lot of control and therefore incurred high operating costs for its build out of the 787 Dreamliner, because it ____________ design and manufacturing.

Functional structures are usually found in organizations where there

When an organization with a simple structure increases its sales revenue and volume of outputs, it is most likely to develop a ______________ structure.

A strategy of related diversification requires most firms to organize around geographical areas or product lines. This type of organizational growth leads to a(n) ______________ structure.

One of the factors that explained the effectiveness of ambidextrous organizational designs in the O'Reilly and Tushman study was that the reward systems emphasized traditional unit goals.