Question 1

Functional structures are usually found in organizations where there

Accepted Answer

A)   is high volume production.
B)   are unrelated product lines or service offerings.
C)   is very little vertical integration.
D)   there exists a strong need to decentralize decision making.E) All of the above
F) B) and C)

Question 2

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

A) True 
 B)False

Question 3

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)   divisional
B)   functional
C)   product-market
D)   geographicE) B) and D)
F) B) and C)

Question 4

Which of the following is an advantage of a functional type of organizational structure?

Accepted Answer

A)   Decentralized decision-making enhances an organization-wide perspective across functions.
B)   It facilitates the development of general management talent.
C)   Pooling of specialists enhances coordination and control.
D)   It is easy to establish uniform performance standards.E) None of the above
F) C) and D)

Question 5

A virtual organization may be most appropriate for firms

Accepted Answer

A)   whose strategies require merging technologies.
B)   whose product life cycles are just beginning.
C)   who have no need to get to market quickly with new offers.
D)   who have no need to meet competitive pressures.E) All of the above
F) A) and C)

Question 6

Strategic business unit (SBU) structures are best suited for corporations pursuing ________,whereas holding company structures are best suited for companies with ________ strategies.

Accepted Answer

A)   product-market diversification; international
B)   international diversification; product-market
C)   related diversification; unrelated diversification
D)   unrelated diversification; related diversificationE) B) and D)
F) A) and B)

Question 7

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

A)   the extent of international expansion
B)   the type of strategy (global, multidomestic, or transnational) 
C)   the degree of product diversity
D)   the degree of market diversityE) None of the above
F) A) and C)

Question 8

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

A)   on-shored
B)   internalized
C)   outsourced
D)   internationalizedE) A) and D)
F) None of the above

Question 9

What is a barrier-free organization? Discuss the importance for a barrier-free organization of creating permeable internal boundaries and developing effective relationships with external constituencies.

Accepted Answer

A barrier-free organization is an organi...

Question 10

According to the study by O'Reilly and Tushman,effective ambidextrous structures had all the following attributes except

Accepted Answer

A)   a clear and compelling vision.
B)   managerial efforts were highly focused on revenue enhancement.
C)   cross-fertilization among business units.
D)   established units were shielded from the distractions of launching new businesses.E) A) and B)
F) A) and C)

Question 11

Which of the following is not a disadvantage of a divisional type of organizational structure?

Accepted Answer

A)   It can be very expensive compared to a functional organizational structure.
B)   There is a strong tendency for divisions to focus on short-term performance.
C)   There can be dysfunctional competition among divisions.
D)   There is separation of strategic and operating control.E) B) and C)
F) A) and D)

Question 12

Tools and techniques used to achieve effective coordination and integration of key activities in an organization include all the following except

Accepted Answer

A)   horizontal organization structures.
B)   common culture and shared values.
C)   horizontal diversification.
D)   communications and information technologies.E) A) and C)
F) B) and C)

Question 13

One of the challenges of an ambidexterity in a firm is that it must ensure that it remains proactive in expanding or modifying its product-market scope to anticipate and satisfy market conditions.

Accepted Answer

A) True 
 B)False

Question 14

A simple structure is characterized by

Accepted Answer

A)   high specialization and low centralization.
B)   low specialization and high centralization.
C)   low formality and low creativity.
D)   high formality and low centralization.E) B) and C)
F) None of the above

Question 15

The strategy and structure of a firm change as the firm increases in size,diversifies into new product markets,and limits its geographic scope.

Accepted Answer

A) True 
 B)False

Question 16

An organization such as ConAgra that has dozens of different divisions with similar products will probably have the greatest success with which form of organization structure?

Accepted Answer

A)   functional structure
B)   matrix structure
C)   strategic business unit structure
D)   holding company structureE) B) and C)
F) A) and C)

Question 17

The O'Reilly and Tushman study on ambidextrous organizational designs found that there was little support for the argument that organizational structure,management practices employed and performance of both the breakthrough initiative and the traditional business are related.

Accepted Answer

A) True 
 B)False

Question 18

Managers trained in rigid hierarchies do not find it difficult to transition to participative style required for effective teamwork.

Accepted Answer

A) True 
 B)False

Question 19

What is organizational structure and why is it important?

Accepted Answer

Organizational structure refers to the f...

Question 20

Which of the following is not a disadvantage of the barrier-free form of organization?

Accepted Answer

A)   Lack of strong leadership can lead to coordination problems.
B)   Democratic process can be time-consuming and difficult to manage.
C)   Additional integration issues result in a slower response to market changes.
D)   If trust among employees is not sufficiently high, organizational performance may suffer.E) A) and D)
F) A) and B)

Exam 10: Creating Effective Organizational Designs

Strategic business unit (SBU) structures are best suited for corporations pursuing ________,whereas holding company structures are best suited for companies with ________ strategies.

Correct AnswerverifiedShow Answer

A virtual organization may be most appropriate for firms

Correct AnswerverifiedShow Answer

Tools and techniques used to achieve effective coordination and integration of key activities in an organization include all the following except

Correct AnswerverifiedShow Answer

What is a barrier-free organization? Discuss the importance for a barrier-free organization of creating permeable internal boundaries and developing effective relationships with external constituencies.

Correct AnswerverifiedA barrier-free organization is an organi...View AnswerShow Answer

Which of the following is not a disadvantage of the barrier-free form of organization?

Correct AnswerverifiedShow Answer

Which of the following is an advantage of a functional type of organizational structure?

Correct AnswerverifiedShow Answer

Which of the following is not a disadvantage of a divisional type of organizational structure?

Correct AnswerverifiedShow Answer

The O'Reilly and Tushman study on ambidextrous organizational designs found that there was little support for the argument that organizational structure,management practices employed and performance of both the breakthrough initiative and the traditional business are related.

Correct AnswerverifiedShow Answer

The strategy and structure of a firm change as the firm increases in size,diversifies into new product markets,and limits its geographic scope.

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

What is organizational structure and why is it important?

Correct AnswerverifiedOrganizational structure refers to the f...View AnswerShow Answer

An organization such as ConAgra that has dozens of different divisions with similar products will probably have the greatest success with which form of organization structure?

Correct AnswerverifiedShow Answer

A simple structure is characterized by

Correct AnswerverifiedShow Answer

Functional structures are usually found in organizations where there

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

One of the challenges of an ambidexterity in a firm is that it must ensure that it remains proactive in expanding or modifying its product-market scope to anticipate and satisfy market conditions.

Correct AnswerverifiedShow Answer

Managers trained in rigid hierarchies do not find it difficult to transition to participative style required for effective teamwork.

Correct AnswerverifiedShow Answer

According to the study by O'Reilly and Tushman,effective ambidextrous structures had all the following attributes except

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

Strategic business unit (SBU) structures are best suited for corporations pursuing ,whereas holding company structures are best suited for companies with strategies.

Correct Answer
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A barrier-free organization is an organi...
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Organizational structure refers to the f...
View Answer

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