Question 1

When decision-making responsibilities are decentralized,benefits include all of the following except
A)increased motivation and accountability.
B)lower bureaucratic costs from flattened hierarchy.
C)reduced information overload.
D)easier coordination.
E)all of these choices are benefits of decentralization.

Accepted Answer

Decentralization can make coordination more challenging as decision-making is spread across various levels and departments.

Question 2

Flat organizational structures are characterized by
A)few levels of management and a relatively narrow span of control.
B)few levels of management and a relatively wide span of control.
C)many levels of management and a relatively narrow span of control.
D)many levels of management and a relatively wide span of control.
E)none of these choices.

Accepted Answer

Flat organizational structures have few levels of management and a relatively wide span of control, meaning that each manager oversees a large number of employees. This leads to a decentralized decision-making process and more employee autonomy. Option A describes a tall organizational structure, whereas options C and D describe complex structures with many levels of management. Option E is not a valid choice.

Question 3

One of the main differences between a product team and a team in a matrix structure is that a product team is more permanent than a team in a matrix structure.

Accepted Answer

A product team is generally formed to work on a specific product or set of products and is more dedicated and long-term as compared to a team in a matrix structure, which is created for specific projects and has a temporary nature.

Question 4

The organizational structure and organizational culture of a company can have
A)little effect on overall company performance.
B)a direct bearing on a company's profits.
C)a tangential effect on employee morale.
D)no impact on employee morale.
E)none of these choices.

Accepted Answer

The organizational structure and culture of a company can have a direct bearing on the company's profits. The structure determines how tasks are allocated, lines of communication, and decision-making processes. The culture determines how employees behave and interact with one another, influencing their motivation, engagement, and productivity. Both factors can affect the company's performance and financial results.

Question 5

Which of the following is not one of the company levels where strategic control systems measure performance?
A)Board of directors
B)Corporate
C)Divisional
D)Functional
E)Individual

Accepted Answer

The board of directors is not a company level, but rather a group of individuals responsible for overseeing the management of the company. Strategic control systems measure performance at the corporate, divisional, functional, and individual levels.

Question 6

A product structure requires that support activities from a company's value chain be decentralized so that independent specialists in support activities exist within each product group.

Accepted Answer

The answer of A product structure requires that support activities...

Question 7

Information technology (IT)would be least helpful to managers who are addressing issues of
A)behavior control.
B)output control.
C)integration.
D)organizational culture.
E)standardization.

Accepted Answer

The answer of Information technology (IT)would be least helpful to...

Question 8

Johnson & Johnson is organized into Consumer,Medical,and Pharmaceutical units to serve the needs of its different customer groups.Johnson & Johnson is using a market structure.

Accepted Answer

Johnson & Johnson's organization into different units to serve different customer groups suggests the use of a market structure, where the company is focused on meeting the needs and preferences of different market segments.

Question 9

Cypress Semiconductor utilizes a computer-based information system through which the CEO can manage what every employee and team is doing in the decentralized organization.

Accepted Answer

The statement describes a centralized information system used by Cypress Semiconductor, which allows the CEO to have visibility and control over all employees and teams.

Question 10

In manufacturing,functional strategy usually centers on improving efficiency and quality.

Accepted Answer

Manufacturing functional strategy typically focuses on improving efficiency and quality in order to reduce costs and improve customer satisfaction.

Question 11

Using output controls at the individual level is least appropriate when the work force consists primarily of
A)salespeople.
B)production workers.
C)research and development scientists.
D)tax accountants.
E)data-entry clerks.

Accepted Answer

Output controls are more appropriate for jobs with clear and measurable performance outcomes, such as salespeople or production workers. Research and development scientists may have more ambiguous or long-term goals that may not be easily measured by output, while tax accountants and data-entry clerks may have more routine and repetitive tasks that can be better managed through other types of controls.

Question 12

Standardization is a form of
A)output control.
B)financial control.
C)organizational inertia.
D)organizational culture.
E)behavior control.

Accepted Answer

The answer of Standardization is a form of
A)output control.
B)financial control.
C)organizational...

Question 13

Standardization is employed to squeeze out costs in manufacturing.Standardization may be achieved through standardization of
A)inputs.
B)work processes.
C)outputs.
D)work processes and outputs.
E)inputs,work processes,and outputs.

Accepted Answer

Standardization is most effective when it is applied to inputs, work processes, and outputs. Standardizing inputs can help ensure consistent quality of raw materials and supplies, while standardizing work processes can increase efficiency and reduce errors. Finally, standardizing outputs can help ensure that finished products meet the same quality standards and specifications. Therefore, E) inputs, work processes, and outputs is the best choice.

Question 14

Which of the following integrating mechanisms consists of one manager from each relevant function or division assigned to a team that meets to solve a specific mutual problem?
A)Direct contact
B)Liaison roles
C)Teams
D)Integrating roles
E)The matrix structure

Accepted Answer

This mechanism is called "teams". It involves assigning one manager from each relevant function or division to a team that meets to solve a specific mutual problem. This allows for collaboration and communication between different departments, leading to integration and a cohesive approach to problem-solving.

Question 15

Restructuring always involves flattening the organizational hierarchy and downsizing the work force.

Accepted Answer

The answer of Restructuring always involves flattening the organizational hierarchy...

Question 16

Whenever different functions work together,bureaucratic costs inevitably arise.

Accepted Answer

This statement is true. Whenever different functions work together, there may be coordination costs, communication costs, or other bureaucratic costs that arise due to the need for standardized procedures or protocols, clear lines of authority and communication, and other formal aspects of organizational structure. These costs may be necessary to ensure efficient and effective cooperation among different departments or units, but they can also add to the overall complexity and rigidity of the organization.

Question 17

Control systems
A)enable a company to evaluate its performance.
B)help managers determine which generic strategy to pursue.
C)are used only at the business level.
D)allow firms to control the external environment.
E)are most effective for firms pursuing cost leadership.

Accepted Answer

Control systems enable a company to evaluate its performance by setting goals and monitoring progress towards those goals. This allows managers to make adjustments and take corrective actions as necessary. Control systems are important for all levels (corporate, business, and functional) of a company and can be used with any generic strategy, not just cost leadership.

Question 18

Within a firm,a function is made up of workers who
A)perform the same types of tasks or hold similar positions.
B)are paid the same amount of compensation.
C)work at the same hierarchical level (for example,all middle managers).
D)have the same background and education.
E)have the same job title (for example,all are vice presidents).

Accepted Answer

A function within a firm is typically defined by the type of work performed. Workers within a function generally perform similar tasks or hold similar positions, such as all being part of the marketing department, finance team, or human resources division. While compensation, hierarchical level, background, education, and job title may have some level of similarity within a function, these factors alone do not define a function.

Question 19

Control through organizational culture is so powerful because
A)it reduces the costs of organizational control in a large company.
B)self-control develops through the establishment of an internal system of organizational values.
C)it results in maximum decentralization and the elimination of bureaucracy.
D)it achieves increased performance through the alignment of organizational goals with societal expectations.
E)it achieves external control through motivated coworkers.

Accepted Answer

Organizational culture influences employee behavior by shaping their values and beliefs. When individuals internalize the norms and values of the organization, they exercise self-control and align their behavior with the organizational expectations. As a result, the company's control over employees is reduced, and this reduces the costs of control in a large company. Additionally, a strong organizational culture can enable an organization to adapt to changing circumstances and make strategic decisions appropriately. Furthermore, because the culture is shared across the organization, it can help in the creation of an internal system of values, beliefs, and practices, increasing operational efficiency and effectiveness. Thus, organizational culture is a powerful tool for achieving organizational objectives.

Question 20

Union Pacific,one of the largest freight carriers in the United States,experienced costly problems due to the company's centralized organization structure.

Accepted Answer

According to the statement, Union Pacific experienced costly problems due to the company's centralized organization structure.

Quiz 12: Implementing Strategy in Companies That Compete in a Single Industry

When decision-making responsibilities are decentralized,benefits include all of the following except

Flat organizational structures are characterized by

One of the main differences between a product team and a team in a matrix structure is that a product team is more permanent than a team in a matrix structure.

The organizational structure and organizational culture of a company can have

Which of the following is not one of the company levels where strategic control systems measure performance?

A product structure requires that support activities from a company's value chain be decentralized so that independent specialists in support activities exist within each product group.

Information technology (IT) would be least helpful to managers who are addressing issues of

Johnson & Johnson is organized into Consumer,Medical,and Pharmaceutical units to serve the needs of its different customer groups.Johnson & Johnson is using a market structure.

Cypress Semiconductor utilizes a computer-based information system through which the CEO can manage what every employee and team is doing in the decentralized organization.

In manufacturing,functional strategy usually centers on improving efficiency and quality.

Using output controls at the individual level is least appropriate when the work force consists primarily of

Standardization is a form of

Standardization is employed to squeeze out costs in manufacturing.Standardization may be achieved through standardization of

Which of the following integrating mechanisms consists of one manager from each relevant function or division assigned to a team that meets to solve a specific mutual problem?

Restructuring always involves flattening the organizational hierarchy and downsizing the work force.

Whenever different functions work together,bureaucratic costs inevitably arise.

Control systems

Within a firm,a function is made up of workers who

Control through organizational culture is so powerful because

Union Pacific,one of the largest freight carriers in the United States,experienced costly problems due to the company's centralized organization structure.