Professional Documents
Culture Documents
The purpose of organizational structure is to provide managers with specific feedback on how well an organization
and its members are performing and building competitive advantage.
a. True
b. False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Easy
LEARNING OBJECTIVES: SMIA.HILL.l5.12.01- Understand how organizational design requires managers to
select the right combination of organizational structure, control, and culture
NATIONAL STANDARDS: United States- BUSPROG: Reflective Thin- BUSPROG: Analytic
KEYWORDS:
Bloom's: Knowledge
2. An important purpose of control systems is to motivate employees to work toward increasing efficiency, quality,
innovation, and responsiveness to customers.
a. True
b. False
ANSWER:
POINTS:
DIFFICULTY:
True
1
Easy
b. False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Easy
LEARNING OBJECTIVES: SMIA.HILL.l5.12.01- Understand how organizational design requires managers to
select the right combination of organizational structure, control, and culture
NATIONAL STANDARDS: United States- BUSPROG: Reflective Thin- BUSPROG: Analytic
KEYWORDS:
Bloom's: Knowledge
4. Span of control refers to the number of subordinates who report directly to one supervisor.
a. True
b. False
ANSWER:
True
POINTS:
DIFFICULTY:
Easy
Bloom's: Knowledge
5. The reward system affects motivation, however, the type of organizational culture that develops in a company is
primarily affected by the founder's values and not the reward system.
a. True
b. False
ANSWER:
False
POINTS:
DIFFICULTY:
Easy
Bloom's: Comprehension
b. False
ANSWER:
POINTS:
DIFFICULTY:
False
1
Easy
7. Organizational structure contributes to the strategy formulation by providing the framework of tasks and roles that
reduces transaction difficulties and allows employees to think and behave in ways that allow a company to achieve
superior performance.
a. True
b. False
ANSWER:
POINTS:
True
1
DIFFICULTY:
Easy
LEARNING OBJECTIVES: SMIA.HILL.15.12.01- Understand how organizational design requires managers to
select the right combination of organizational structure, control, and culture
NATIONAL STANDARDS: United States- BUSPROG: Reflective Thin- BUSPROG: Analytic
KEYWORDS:
Bloom's: Knowledge
8. Bradley is a new employee in the sales department at a local car dealership. In his first few months on the job, he
will be learning the norms and values of the organization. This refers to organizational socialization.
a. True
b. False
ANSWER:
POINTS:
True
1
DIFFICULTY:
Moderate
LEARNING OBJECTIVES: SMIA.HILL.15.12.01- Understand how organizational design requires managers to
select the right combination of organizational structure, control, and culture
NATIONAL STANDARDS: United States- BUSPROG: Reflective Thinking
KEYWORDS:
Bloom's: Application
9. Effective organizational design can allow a company to obtain a competitive advantage but it has no impact on
profitability.
a. True
b. False
ANSWER:
POINTS:
False
1
DIFFICULTY:
Easy
LEARNING OBJECTIVES: SMIA.HILL.15.12.02- Discuss how effective organizational design enables a
company to increase product differentiation, reduce its cost structure, and build
competitive advantage
NATIONAL STANDARDS: United States- BUSPROG: Reflective Thin- BUSPROG: Analytic
KEYWORDS:
Bloom's: Comprehension
10. Control systems can help managers evaluate how efficiently they are producing goods and services.
a. True
b. False
ANSWER:
True
POINTS:
DIFFICULTY:
Easy
Bloom's: Knowledge
11. Controls at each level should provide the basis on which managers at the levels below design their control systems.
a. True
b. False
ANSWER:
True
POINTS:
DIFFICULTY:
Easy
b. False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Easy
LEARNING OBJECTIVES: SMIA.HILL.l5.12.02- Discuss how effective organizational design enables a
company to increase product differentiation, reduce its cost structure, and build
competitive advantage
NATIONAL STANDARDS: United States- BUSPROG: Technology
KEYWORDS:
Bloom's: Knowledge
13. Effective strategy implementation is very important for cost leaders, but it is of less importance to differentiators.
a. True
b. False
ANSWER:
POINTS:
DIFFICULTY:
False
I
Easy
Bloom's: Comprehension
14. For each function, a cost leader adopts output controls that allow it to monitor and evaluate functional performance
closely.
a. True
b. False
ANSWER:
POINTS:
DIFFICULTY:
True
I
Easy
Bloom's: Knowledge
15. Flat structures can lead to information distortion when data are being sent either up or down the hierarchy.
a. True
b. False
ANSWER:
POINTS:
DIFFICULTY:
False
I
Easy
LEARNING OBJECTIVES: SMIA.HILL.l5.12.03 -Explain why it is so important that managers keep the
organizational hierarchy as flat as possible and what factors determine the way they
decide to centralize or decentralize authority
NATIONAL STANDARDS: United States- BUSPROG: Reflective Thin- BUSPROG: Analytic
KEYWORDS:
Bloom's: Comprehension
16. When companies become too tall and the chain of command too long, strategic managers tend to lose control over
the hierarchy and, subsequently, their strategies.
a. True
b. False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Easy
LEARNING OBJECTIVES: SMIA.HILL.l5.12.03 -Explain why it is so important that managers keep the
organizational hierarchy as flat as possible and what factors determine the way they
decide to centralize or decentralize authority
NATIONAL STANDARDS: United States- BUSPROG: Communication
KEYWORDS:
Bloom's: Knowledge
17. Research finds that centralization of authority is never advantageous, not even in time of crisis.
a. True
b. False
ANSWER:
POINTS:
DIFFICULTY:
False
1
Easy
LEARNING OBJECTIVES: SMIA.HILL.l5.12.03 -Explain why it is so important that managers keep the
organizational hierarchy as flat as possible and what factors determine the way they
decide to centralize or decentralize authority
NATIONAL STANDARDS: United States- BUSPROG: Reflective Thin- BUSPROG: Analytic
KEYWORDS:
Bloom's: Comprehension
18. The need for integrating mechanisms is greater when a company's structure is more complex.
a. True
b. False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Easy
LEARNING OBJECTIVES: SMIA.HILL.l5.12.03 -Explain why it is so important that managers keep the
organizational hierarchy as flat as possible and what factors determine the way they
decide to centralize or decentralize authority
NATIONAL STANDARDS: United States- BUSPROG: Communication
KEYWORDS:
Bloom's: Knowledge
19. 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.
a. True
b. False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Easy
LEARNING OBJECTIVES: SMIA.HILL.l5.12.03 -Explain why it is so important that managers keep the
organizational hierarchy as flat as possible and what factors determine the way they
decide to centralize or decentralize authority
NATIONAL STANDARDS: United States- BUSPROG: Reflective Thin- BUSPROG: Analytic
KEYWORDS:
Bloom's: Comprehension
20. Silica Dustcloud Inc. is a decentralized organization. This means that the organization promotes flexibility and
reduces bureaucratic costs because lower-level managers are authorized to make on-the-spot decisions.
a. True
b. False
ANSWER:
True
POINTS:
DIFFICULTY:
Moderate
LEARNING OBJECTIVES: SMIA.HILL.l5.12.03 -Explain why it is so important that managers keep the
organizational hierarchy as flat as possible and what factors determine the way they
decide to centralize or decentralize authority
NATIONAL STANDARDS: United States- BUSPROG: Reflective Thinking
KEYWORDS:
Bloom's: Application
21. An organization with a centralized structure has a potential for creating higher bureaucratic costs.
a. True
b. False
ANSWER:
True
POINTS:
DIFFICULTY:
Easy
LEARNING OBJECTIVES: SMIA.HILL.l5.12.03 -Explain why it is so important that managers keep the
organizational hierarchy as flat as possible and what factors determine the way they
decide to centralize or decentralize authority
NATIONAL STANDARDS: United States- BUSPROG: Analytic
KEYWORDS:
Bloom's: Comprehension
22. Flat organizational structures are less flexible and tend to resist change.
a. True
b. False
ANSWER:
False
POINTS:
DIFFICULTY:
Easy
LEARNING OBJECTIVES: SMIA.HILL.15.12.03 -Explain why it is so important that managers keep the
organizational hierarchy as flat as possible and what factors determine the way they
decide to centralize or decentralize authority
NATIONAL STANDARDS: United States- BUSPROG: Analytic
KEYWORDS:
Bloom's: Comprehension
23. Silica Dustcloud Inc. plans to change its organization structure from a market structure to a functional structure and
create separate divisions. This change will better serve its different groups of customers.
a. True
b. False
ANSWER:
POINTS:
DIFFICULTY:
False
1
Moderate
LEARNING OBJECTIVES: SMIA.HILL.15.12.04- Explain the many advantages of a functional structure and why
and when it becomes necessary to utilize a more complex form of organizational
structure
NATIONAL STANDARDS: United States- BUSPROG: Reflective Thinking
KEYWORDS:
Bloom's: Application
24. Building capabilities in organizational design that allow a company to develop a competitive advantage starts at the
functional level.
a. True
b. False
ANSWER:
POINTS:
True
DIFFICULTY:
Easy
LEARNING OBJECTIVES: SMIA.HILL.15.12.04- Explain the many advantages of a functional structure and why
and when it becomes necessary to utilize a more complex form of organizational
structure
NATIONAL STANDARDS: United States- BUSPROG: Reflective Thin- BUSPROG: Analytic
KEYWORDS:
Bloom's: Knowledge
25. In manufacturing, functional strategy usually centers on improving efficiency and quality.
a. True
b. False
ANSWER:
POINTS:
True
DIFFICULTY:
Easy
LEARNING OBJECTIVES: SMIA.HILL.l5.12.04- Explain the many advantages of a functional structure and why
and when it becomes necessary to utilize a more complex form of organizational
structure
NATIONAL STANDARDS: United States- BUSPROG: Reflective Thin- BUSPROG: Analytic
KEYWORDS:
Bloom's: Knowledge
26. Fortunately, whenever different functions work together, bureaucratic costs inevitably declines.
a. True
b. False
ANSWER:
POINTS:
False
DIFFICULTY:
Easy
LEARNING OBJECTIVES: SMIA.HILL.l5.12.04- Explain the many advantages of a functional structure and why
and when it becomes necessary to utilize a more complex form of organizational
structure
NATIONAL STANDARDS: United States- BUSPROG: Reflective Thin- BUSPROG: Analytic
KEYWORDS:
Bloom's: Comprehension
27. Ambrosia Inc. is organized into Consumer, Medical, and Pharmaceutical units to serve the needs of its different
customer groups. Ambrosia is using a market structure.
a. True
b. False
ANSWER:
POINTS:
DIFFICULTY:
True
I
Moderate
Bloom's: Application
28. One of the main differences between a product team and a team in a matrix structure is that a matrix team is more
permanent than a team in a product structure.
a. True
b. False
ANSWER:
POINTS:
False
DIFFICULTY:
Easy
Bloom's: Knowledge
29. Restructuring always involves flattening the organizational hierarchy and downsizing the work force.
a. True
b. False
ANSWER:
POINTS:
DIFFICULTY:
True
1
Easy
Knowledge
is to provide managers with incentives for employees as well as feedback on how the
b. adaptive culture
c. organizational design
d. span of control
e. hierarchy of authority
ANSWER:
POINTS:
DIFFICULTY:
a
1
Easy
ANSWER:
POINTS:
DIFFICULTY:
a
I
Easy
Bloom's: Knowledge
ANSWER:
POINTS:
DIFFICULTY:
a
I
Easy
ANSWER:
POINTS:
DIFFICULTY:
LEARNING OBJECTIVES:
e
I
Easy
SMIA.HILL.l5.12.01- Understand how organizational design requires managers to
select the right combination of organizational structure, control, and culture
Bloom's: Knowledge
ANSWER:
b POINTS:
I
DIFFICULTY:
Challenging
LEARNING OBJECTIVES: SMIA.HILL.l5.12.01- Understand how organizational design requires managers to
select the right combination of organizational structure, control, and culture
NATIONAL STANDARDS: United States- BUSPROG: Reflective Thin- BUSPROG: Analytic
KEYWORDS:
Bloom's: Evaluation
ANSWER:
POINTS:
DIFFICULTY:
LEARNING OBJECTIVES:
c
I
Easy
SMIA.HILL.l5.12.01- Understand how organizational design requires managers to
select the right combination of organizational structure, control, and culture
Bloom's: Knowledge
36. Which form of control would you most likely frnd in a voluntary or charity organization?
a. Bureaucratic control through rules and procedures
b. Control through norms and values
c. Financial control through accurate frnancial statements
d. Output control, since it is the cheapest
e. Incentive systems to motivate employees
ANSWER:
b POINTS:
I
DIFFICULTY:
Challenging
LEARNING OBJECTIVES: SMIA.HILL.l5.12.01- Understand how organizational design requires managers to
select the right combination of organizational structure, control, and culture
NATIONAL STANDARDS: United States- BUSPROG: Reflective Thin- BUSPROG: Analytic
KEYWORDS:
Bloom's: Evaluation
37. Companies that are innovative and able to deal with environmental change with new strategies and structures
probably have:
a. weak cultures.
b. strong functional cultures.
c. adaptive cultures.
d. prescriptive cultures.
e. cost-conscious culture.
ANSWER:
POINTS:
DIFFICULTY:
LEARNING OBJECTIVES:
c
I
Easy
SMIA.HILL.l5.12.01- Understand how organizational design requires managers to
select the right combination of organizational structure, control, and culture
Bloom's: Knowledge
38. The process of deciding how a company should create, use, and combine organizational structure, control systems,
and culture to pursue a business model successfully is referred to as:
a. organizational behavior.
b. organizational norm.
c. organizational design.
d. organizational ecology.
e. organizational density.
ANSWER:
POINTS:
DIFFICULTY:
c
I
Easy
Bloom's: Knowledge
d. strategies.
e. compensation plan.
ANSWER:
POINTS:
DIFFICULTY:
LEARNING OBJECTIVES:
d
I
Easy
SMIA.HILL.l5.12.01- Understand how organizational design requires managers to
select the right combination of organizational structure, control, and culture
ANSWER:
POINTS:
DIFFICULTY:
c
I
Easy
Bloom's: Knowledge
ANSWER:
POINTS:
DIFFICULTY:
a
I
Easy
ANSWER:
POINTS:
1
DIFFICULTY:
Easy
LEARNING OBJECTIVES: SMIA.HILL.15.12.01- Understand how organizational design requires managers to
select the right combination of organizational structure, control, and culture
NATIONAL STANDARDS: United States- BUSPROG: Analytic
KEYWORDS:
Bloom's: Knowledge
43. The specific collection of values, norms, beliefs, and attitudes shared by people and groups in a company is
commonly referred to as:
a. organizational fit.
b. organizational culture.
c. organizational development.
d. organizational positioning.
e. organizational design.
ANSWER:
POINTS:
DIFFICULTY:
Easy
ANSWER:
POINTS:
e
1
DIFFICULTY:
Easy
LEARNING OBJECTIVES: SMIA.HILL.15.12.01- Understand how organizational design requires managers to
select the right combination of organizational structure, control, and culture
NATIONAL STANDARDS: United States- BUSPROG: Reflective Thin- BUSPROG: Analytic
KEYWORDS:
Bloom's: Knowledge
b. disincentive
c. reporting
d. administrative
e. reward
ANSWER:
POINTS:
DIFFICULTY:
LEARNING OBJECTIVES:
e
I
Easy
SMIA.HILL.l5.12.01- Understand how organizational design requires managers to
select the right combination of organizational structure, control, and culture
ANSWER:
POINTS:
DIFFICULTY:
c
I
Easy
ANSWER:
POINTS:
DIFFICULTY:
LEARNING OBJECTIVES:
c
I
Moderate
SMIA.HILL.l5.12.01- Understand how organizational design requires managers to
select the right combination of organizational structure, control, and culture
Bloom's: Application
48. 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?
a. Output control
b. Personal control
c. Behavior control
d. Conversion activities
e. Strategic competencies
ANSWER:
POINTS:
DIFFICULTY:
LEARNING OBJECTIVES:
c
I
Moderate
SMIA.HILL.l5.12.01- Understand how organizational design requires managers to
select the right combination of organizational structure, control, and culture
Bloom's: Application
ANSWER:
POINTS:
DIFFICULTY:
d
I
Easy
b. personal controls
c. behavioral controls
d. cultural controls
e. input controls
ANSWER:
POINTS:
DIFFICULTY:
LEARNING OBJECTIVES:
a
I
Easy
SMIA.HILL.l5.12.02- Discuss how effective organizational design enables a
company to increase product differentiation, reduce its cost structure, and build
competitive advantage
Bloom's: Knowledge
51. Which of the following strategic control systems do managers use to shape and influence the behavior of employees
in face-to-face interactions?
a. Personal control
b. Output control
c. Behavior control
d. Input control
e. Process control
ANSWER:
POINTS:
DIFFICULTY:
a
I
Easy
ANSWER:
POINTS:
DIFFICULTY:
LEARNING OBJECTIVES:
c
I
Easy
SMIA.HILL.l5.12.03 -Explain why it is so important that managers keep the
organizational hierarchy as flat as possible and what factors determine the way they
decide to centralize or decentralize authority
ANSWER:
POINTS:
DIFFICULTY:
d
I
Easy
LEARNING OBJECTIVES: SMIA.HILL.l5.12.03 -Explain why it is so important that managers keep the
organizational hierarchy as flat as possible and what factors determine the way they
decide to centralize or decentralize authority
NATIONAL STANDARDS: United States- BUSPROG: Reflective Thin- BUSPROG: Analytic
KEYWORDS:
Bloom's: Comprehension
54. Companies choose the number of hierarchical levels they need on the basis of their strategies and the functional
tasks necessary to:
a. achieve diseconomies of scale.
b. create distinctive competencies.
c. enhance employee productivity.
d. enhance cross-departmental coordination.
e. attract skilled employees
ANSWER:
POINTS:
DIFFICULTY:
LEARNING OBJECTIVES:
b
I
Easy
SMIA.HILL.l5.12.03 -Explain why it is so important that managers keep the
organizational hierarchy as flat as possible and what factors determine the way they
decide to centralize or decentralize authority
Bloom's: Knowledge
ANSWER:
POINTS:
DIFFICULTY:
a
I
Moderate
LEARNING OBJECTIVES: SMIA.HILL.l5.12.03 -Explain why it is so important that managers keep the
organizational hierarchy as flat as possible and what factors determine the way they
decide to centralize or decentralize authority
NATIONAL STANDARDS: United States- BUSPROG: Reflective Thin- BUSPROG: Analytic
KEYWORDS:
Bloom's: Comprehension
ANSWER:
POINTS:
DIFFICULTY:
Easy
LEARNING OBJECTIVES: SMIA.HILL.l5.12.04- Explain the many advantages of a functional structure and why
and when it becomes necessary to utilize a more complex form of organizational
structure
NATIONAL STANDARDS: United States- BUSPROG: Reflective Thin- BUSPROG: Analytic
KEYWORDS:
Bloom's: Knowledge
57. If a firm fmds that its functional structure is becoming too complex as the firm grows in size, the firm can tum to:
a. a simple structure.
b. downsizing.
c. reengmeerrng.
d. restructuring.
e. outsourcing.
ANSWER:
POINTS:
DIFFICULTY:
Easy
LEARNING OBJECTIVES: SMIA.HILL.l5.12.04- Explain the many advantages of a functional structure and why
and when it becomes necessary to utilize a more complex form of organizational
structure
NATIONAL STANDARDS: United States- BUSPROG: Reflective Thin- BUSPROG: Analytic
KEYWORDS:
Bloom's: Comprehension
58. Which of the following advantages does a functional organizational structure offer a company?
a. Diversification of activities leading to greater productivity
b. Lesser communication problems
c. Reduction in manufacturing costs and increase in operational flexibility
d. Ease in gauging the contribution of products to overall profitability
e. Faster servicing of customers
ANSWER:
POINTS:
DIFFICULTY:
c
I
Easy
LEARNING OBJECTIVES: SMIA.HILL.l5.12.04- Explain the many advantages of a functional structure and why
and when it becomes necessary to utilize a more complex form of organizational
structure
NATIONAL STANDARDS: United States- BUSPROG: Analytic
KEYWORDS:
Bloom's: Knowledge
59. 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?
a. Matrix
b. Multidivisional
c. Geographic
d. Functional
e. Product
ANSWER:
POINTS:
DIFFICULTY:
Challenging
Bloom's: Evaluation
60. Which of the following structures requires centralization of value chain support activities?
a. The product structure
b. The product team structure
c. The matrix structure
d. The functional structure
e. The innovative structure
ANSWER:
POINTS:
DIFFICULTY:
Easy
Bloom's: Comprehension
61. Which of the following is not one of the advantages of a geographic structure?
a. Promotion of innovation and product development due to intensive cross-functional integration
b. Responsiveness to the needs of regional customers
c. Lower transportation costs
d. More coordination and control than a functional structure
e. Centralization of key activities and functions that allow leveraging skills across regions
ANSWER:
POINTS:
DIFFICULTY:
Moderate
Bloom's: Comprehension
b. geographic
c. market
d. matrix
e. product
ANSWER:
POINTS:
DIFFICULTY:
Easy
Bloom's: Comprehension
ANSWER:
POINTS:
DIFFICULTY:
c
I
Easy
Bloom's: Knowledge
64. A matrix structure would be the most appropriate for which of the following fmus?
a. A company in which each employee is required to have only one boss
b. A company operating in the maturity stage of the industry life cycle
c. A company which is dependent on rapid mobilization of resources for competitive success
d. A company with a high level of vertical differentiation
e. A company in which the speed of product development is not crucial
ANSWER:
POINTS:
DIFFICULTY:
Challenging
ANSWER:
POINTS:
DIFFICULTY:
Easy
ANSWER:
POINTS:
DIFFICULTY:
c
1
Easy
Bloom's: Comprehension
ANSWER:
POINTS:
DIFFICULTY:
Easy
Bloom's: Knowledge
68. A hospital examines its processes closely and then changes them radically to become more patient-centered. Among
the changes are new ways of doing tasks and new groupings of workers. This is an example of:
a. restructuring.
b. reengineering.
c. total quality management.
d. benchmarking.
e. downsizing.
ANSWER:
POINTS:
DIFFICULTY:
b
I
Moderate
69. The organization structure that organizations most commonly adopt to solve control problems that result from
producing many different kinds of products for many different market segments is the:
a. functional structure.
b. process structure.
c. matrix structure.
d. product structure.
e. differentiated structure.
ANSWER:
POINTS:
DIFFICULTY:
Easy
Bloom's: Knowledge
ANSWER:
POINTS:
DIFFICULTY:
Moderate
ANSWER:
POINTS:
DIFFICULTY:
LEARNING OBJECTIVES:
c
I
Easy
SMIA.HILL.l5.12.05 -Differentiate between the more complex forms of
organizational structures managers adopt to implement specific kinds of business-level
strategies
Bloom's: Knowledge
72. Identify and discuss the three building blocks of organizational structure.
ANSWER:
Organizational structure assigns employees to specific value creation tasks and roles
and specifies how these tasks and roles are to be linked together in a way that
increases efficiency, quality, innovation, and responsiveness to customers D distinctive
competencies that build competitive advantage.
The first building block of structure is grouping tasks, functions, and divisions. As
companies grow, they may need to revisit structure so that these groupings are done to
help create distinctive competencies.
The second building block is allocating authority and responsibility. As companies
address authority and responsibility, the day-to-day structure takes shape. Decisions
must address the hierarchy of authority, span of control, tall or flat structure, chain of
command, and degree of centralization or decentralization.
The fmal building block of structure is integration and integrating mechanisms. The
greater the complexity of an organization's structure, the greater is the need for
coordination among the people, functions, and divisions to make the organizational
structure work efficiently. Tools of integration include direct contact, liaison roles, and
teams.
POINTS:
DIFFICULTY:
Challenging
LEARNING OBJECTIVES: SMIA.HILL.l5.12.01- Understand how organizational design requires managers to
select the right combination of organizational structure, control, and culture
NATIONAL STANDARDS: United States- BUSPROG: Reflective Thin- BUSPROG: Analytic
KEYWORDS:
Bloom's: Analysis
73. Describe the roles that organizational structure, strategic control systems, and organizational culture play in strategy
implementation.
ANSWER:
POINTS:
DIFFICULTY:
Challenging
LEARNING OBJECTIVES: SMIA.HILL.l5.12.01- Understand how organizational desigu requires managers to
select the right combination of organizational structure, control, and culture
NATIONAL STANDARDS: United States- BUSPROG: Reflective Thin- BUSPROG: Analytic
KEYWORDS:
Bloom's: Synthesis
74. Consider the case of a family-run business that operates one small local retail shop and its subsequent expansion into
more locations and more stores. Describe the changes that are likely to take place in that business's organizational
structure as it grows in size, geographic dispersion, and complexity. Tell why the changes are beneficial for the
business.
ANSWER:
The store probably followed this common pattern. It began with a simple structure
because the owner-manager could do all the work or with the help of just a few
employees. Each employee could be supervised directly by the owner, and the store's
performance could be monitored directly by the owner. However, as the business grew
and a second store was added, it was no longer possible for the owner to do it all.
More employees were hired, including another supervisor. Supervision and monitoring
became more difficult, too. As the number of stores continued to grow, they also
became more geographically widespread. Both the size and the dispersion of stores
created a need for many new employees and supervisors. Also, the increased size and
complexity necessitated specialization to be most efficient. Therefore, some employees
began to specialize in tasks such as payroll, training, store desigu, purchasing,
marketing, and so on. A functional structure was adopted to help the firm better cope
with these changes.
POINTS:
DIFFICULTY:
Challenging
Bloom's: Evaluation
75. Describe what is meant by the terms restructuring and reengineering, and discuss when and why they would be
used.
ANSWER:
While both can lead to improved performance, there are important differences between
these two approaches.
Restructuring refers to the process of downsizing and is usually performed in two
steps: (I) streamlining the management hierarchy by reducing the number of levels, and
(2) downsizing the work force. Restructuring is often painful but it may be necessary
for any number of reasons, including a change in the business envirornnent, conditions
that result in excess capacity, inefficient cost structures that must be addressed, or a
failure to monitor and control operations over time so that a drastic move (as opposed
to incremental adjustments) must be made. Restructuring is often viewed as a broad
stroke to wipe the slate clean and start anew.
Reengineering is an attempt to address poor performance by fundamentally rethinking
how a company does things. Rather than focus on functions, companies that engage in
reengineering do so by focusing on different processes and fmding ways to perform
these processes more efficiently. In many cases, when companies focus on processes
and make them better, the output improves as well. Reengineering often results in
companies reorganizing their value delivery systems. The concept is closely aligned
with total quality management (TQM).
POINTS:
DIFFICULTY:
Challenging
LEARNING OBJECTIVES: SMIA.HILL.l5.12.05 -Differentiate between the more complex forms of
organizational structures managers adopt to implement specific kinds of business-level
strategies
NATIONAL STANDARDS: United States- BUSPROG: Reflective Thin- BUSPROG: Analytic
KEYWORDS:
Bloom's: Synthesis