Question 1

A drawback of the functional structure is:

Accepted Answer

The functional structure groups employees by their specialized functions and becomes more hierarchical as the organization grows. Technical experts report to a functional manager who then reports to higher-level managers. This results in difficulty in communicating and coordinating across functions because there is little interaction between the different levels of management. Managers can become too caught up in their own area of expertise and not see the bigger picture, which can lead to a lack of innovation and slow decision-making. The other options are incorrect because functional structures typically involve a clear reporting structure, decision-making authority is usually centralized at the top, and downsizing is not a requirement for implementing this structure.

Question 2

To reduce costs, cost leaders prefer to use to closely monitor and evaluate functional performance.

Accepted Answer

Output controls are used by cost leaders to monitor and evaluate performance by focusing on measurable results, which helps in reducing costs.

Question 3

Which of the following structures requires centralization of value chain support activities?

Accepted Answer

The answer of Which of the following structures requires centralization...

Question 4

At Silica Dustcloud Inc., rules are published at the cubicle of all employees stating what is expected of them regarding time to arrive, time for lunch, when to take breaks, and when to socialize.Which of the following is this an example of?

Accepted Answer

This is an example of behavior control, as the rules dictate specific behaviors expected from employees. Output control focuses on the final results of work, personal control relies on self-regulation, conversion activities are a set of actions to transform inputs into outputs, and strategic competencies are a set of skills and abilities necessary for organizational success.

Question 5

Organizations strive to control employees' behavior by linking systems to their control systems.

Accepted Answer

Reward systems are used to control employees' behavior by linking them to the organization's control systems.

Question 6

At LittleHippo, an online retail company, the work environment is playful.Employees often get their pictures taken wearing silly wigs and masks.This atmosphere is part of the company's:

Accepted Answer

The playful work environment and the practice of taking pictures of employees in silly wigs and masks are indicative of the company culture. Organizational culture refers to the shared values, norms, beliefs, and practices that shape the behavior of employees and define the identity of a company. LittleHippo's culture fosters creativity, fun, and experimentation among its employees.

Question 7

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

Accepted Answer

Decentralized decision-making can lead to easier coordination of functions as decisions can be made quickly and directly within each department or team. However, it may not necessarily reduce information overload, as each team or department may still need to process a large amount of information. Additionally, while decentralized decision-making can increase motivation and accountability, it may not necessarily result in lower bureaucratic costs as a flattened hierarchy may still require additional layers of management to oversee and coordinate the decentralized decision-making. Finally, while flexibility in decision-making is a benefit of decentralization, it may also lead to inconsistency in decision-making across different departments or teams.

Question 8

Flat organizational structures are characterized by:

Accepted Answer

Flat organizational structures have a relatively wide span of control, which means that fewer managers oversee a larger number of employees. This increases the efficiency of decision-making and allows for a faster response to changes in the competitive environment. Flat structures also tend to be less bureaucratic, which can reduce costs. However, they may not be as flexible in decision-making compared to hierarchical structures with more levels of management.

Question 9

The specific collection of values, norms, beliefs, and attitudes shared by people and groups in a company is commonly referred to as:

Accepted Answer

Organizational culture refers to the shared values, norms, beliefs and attitudes that exist among people within an organization. It shapes the behavior and actions of employees within the organization and influences how they interact with each other as well as with customers and external stakeholders. Organizational culture is a key factor in determining job satisfaction, employee engagement and overall organizational performance.

Question 10

An effective organizational design:

Accepted Answer

An effective organizational design should economize on bureaucratic costs by streamlining processes and minimizing unnecessary layers of hierarchy. This increases efficiency and can also lead to a flatter organizational structure. Keeping the number of employees to a minimum may not necessarily be the best approach, as it may limit the organization's capacity for growth and innovation. A purely centralized or tall hierarchical structure may also not be ideal, as it can stifle creativity and limit communication and collaboration within the organization.

Question 11

In a successful company, the purpose of a control system is to:

Accepted Answer

The answer of In a successful company, the purpose of...

Question 12

If a firm fmds that its functional structure is becoming too complex as the firm grows in size, the firm can tum to:

Accepted Answer

The answer of If a firm fmds that its functional...

Question 13

Eva Studio, an audio company, manufactures a wide range of sound systems such as noise-canceling headsets, loudspeakers, and amplifiers.Employees in EvaStudio are grouped such that each group works only on one type of sound system.Which of the following structures is EvaStudio is most likely to have employed?

Accepted Answer

Eva Studio is likely using a product structure, where employees are grouped based on the specific product they work on, such as headsets, loudspeakers, or amplifiers.

Question 14

Natalie and Shay are both employees at Silica Dustcloud Inc.Natalie, the marketing manager, often meets with Shay, the production manager, in order to solve specific mutual problems.Which of the following is this an example of?

Accepted Answer

Direct contact refers to the communication and interaction between individuals from different departments to address and solve mutual problems, as seen with Natalie and Shay.

Question 15

Essentially, centralization or decentralization are concepts that refer to the:

Accepted Answer

Centralization and decentralization refer to whether decision-making power is concentrated at the top of the organizational hierarchy (centralization) or distributed across various levels of the hierarchy (decentralization). The number of hierarchical levels, tools for monitoring, business models, and product strategies are not directly related to centralization/decentralization.

Question 16

Which of the following advantages does a functional organizational structure offer a company?

Accepted Answer

The answer of Which of the following advantages does a...

Question 17

The term used to describe how people learn an organization's culture and way of behaving in the organization is:

Accepted Answer

The process by which new employees learn an organization's culture, values, and norms, and acquire the necessary behaviors to become effective organizational members is called organizational socialization. It involves a complex set of processes that helps new employees fit into their roles and become familiar with the organization's practices and expectations.

Question 18

Which of the following strategic control systems do managers use to shape and influence the behavior of employees in face-to-face interactions?

Accepted Answer

Personal control involves direct supervision and face-to-face interactions, allowing managers to influence employee behavior directly.

Question 19

Companies choose the number of hierarchical levels they need on the basis of their strategies and the functional tasks necessary to:

Accepted Answer

Companies design their hierarchical levels to create distinctive competencies, which are unique strengths that allow them to achieve competitive advantage and effectively implement their strategies.

Question 20

In any organization, for-profit or not-for-profit, span of control refers to the:

Accepted Answer

Span of control refers to the number of subordinates who report directly to one manager, indicating the level of hierarchy in an organization. A wider span of control means a flatter hierarchy, whereas a narrower span of control means a taller hierarchy. The other options do not directly relate to the concept of span of control.

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